Daně a legislativa ČR
When You Must File a Tax Return Because of Investments
Key takeaways
- You must file a return if you received foreign dividends or realised a taxable gain from securities sales.
- Exempt income (time test or value test) is neither reported nor declared on the return.
- Dividends are not exempt under the time test — they are always taxed at 15%.
- Employees with a single employer and payroll tax settlement may still be required to file because of investments.
- This is not tax advice — verify the current conditions with an adviser.
Whether you must file a tax return because of investments depends on the type of income you received and whether you meet the conditions for exemption. Many investors do not need to file — but others do, even if it does not seem that way.
When You Must File
As an investor you are obliged to file a return in the following cases:
- Foreign dividends: every dividend from a foreign fund or stock is taxed at 15% and must be reported on the return. The time test does not apply to dividends.
- Taxable gain from selling securities: if you sold securities and do not meet the time test (holding period under 3 years) or the value test (total proceeds from securities sales in a year exceeding CZK 100,000), the gain is taxable.
- Income above the statutory threshold: if total other income exceeds the statutory threshold for mandatory filing, you must file.
When You Do Not Need to File
Exempt income is not reported on the return. Specifically:
- Gains from securities sales where you meet the time test (holding period over 3 years), and total proceeds do not exceed CZK 40 million per year (in effect from 2025).
- Gains from securities sales where you meet the value test (total proceeds from securities sales in a year ≤ CZK 100,000).
Both tests are explained in detail in ETF taxes in the Czech Republic.
What If I Only Hold Accumulating ETFs and Have Sold Nothing?
Accumulating ETFs do not pay dividends — the return is reinvested inside the fund. If you sold nothing during the year and no other taxable investment income arose, you do not need to file. As soon as you sell and do not meet the exemption conditions, the obligation arises. A comparison of accumulating and distributing funds is in the article accumulating vs. distributing ETFs.
Deadlines
The tax return is normally due by 1 April of the year following the tax period. When filed electronically, the deadline is 1 July. If you file through a tax adviser, the deadline is also 1 July.
This article is not tax advice. Conditions may change — verify the current legislation or consult a tax adviser. See also ETF taxes in the Czech Republic.
FAQ
Do I need to report exempt income to the tax authority?
No — income exempt under the time or value test is not reported on the return and you do not actively notify the tax authority. However, keep your purchase documents — they may be requested during an audit.
What are foreign dividends from a tax perspective?
They are profit distributions from foreign funds or stocks. They are always taxed at 15% and the time test does not apply. They must be reported on the return even if the amounts are small. Your broker does not withhold the tax for you.
What is the filing deadline?
Normally 1 April. If filed electronically or through a tax adviser, the deadline is extended to 1 July. Check deadlines each year — they may change.