Information about application of lump-sum expenses in the 2018 personal income tax return

Information about application of lump-sum expenses in the 2018 personal income tax return

The deadline for filing of 2018 personal income tax return is approaching slowly so we want to show you how the lump sum expenses can be applied in your tax return. Because of the transitional provision in the Income Tax Act there was a possibility to choose the regime of application of lump sum expenses in 2017 personal income tax return. This is not possible for 2018 tax return. The Income Tax Act limits the application of expenses up to the income cap of CZK 1,000,000 (previously cap of CZK 2,000,000).

Maximal applicable amounts are:

Type of activity Maximum amount of lump-sum expenses

30% CZK 300,000

40% CZK 400,000

60% CZK 600,000

80% CZK 800,000

On the other side it is allowed to apply the deduction for non-working spouse and allowances for children for self-employed persons using lump sum expenses. The limits for the year 2018 are:

Amount of deduction/allowance

Non-working spouse CZK 24,840

First child CZK 15,204

Second child CZK 19,404

3rd and next CZK 24,204