Other changes resulting from the consolidation package, specifically from the amendment to the Income Tax Act include rules on the Reporting of Foreign Income form.
Income received by a non-resident taxpayer from sources in the Czech Republic that are exempt from taxation in the Czech Republic or that is not subject to taxation in the Czech Republic due to the Double Taxation Convention is currently required to be reported. Now the list of incomes that are subject to this obligation is being reduced only to incomes from royalties, profit shares including other types of income from holding capital assets (settlement shares, etc.) and interests from credit financial instruments. The minimum income threshold CZK 300,000 (EUR 12k) per calendar month which is required to be reported remains unchanged. However, this minimum reporting amount will now be applied only to interest income; other types of income will be reported regardless of the amount. These rules come into force on 1 January 2024 and could be applied also for 2023 notifications.
The reporting requirements remain unchanged for all income which is subject to withholding tax in the Czech Republic.