Looking to hire in Czech Republic

Employees in Czechia must submit current-year expenses within 60 days of the expense date or within 30 days after returning from a business trip, whichever is later. Prior-year expenses must be submitted no later than February 1 of the following year.

All domestic and international business travel expenses, including per diems, must be supported by a Business Trip Form. Phone and internet expenses incurred in Czechia must be backed by a tax invoice that includes the employer’s information.

Phone, internet, and coworking costs are reimbursable when properly documented. For phone and internet incurred in Czechia, the tax invoice must show the employer’s name and address.

Work equipment and supplies such as laptops, other equipment, office supplies, and software subscriptions are generally reimbursed tax-free when supported by proper documentation. Where required, documents must show the employer’s details and, for some lower-value items, the employee’s name.

A wide range of business travel costs can be reimbursed on a non-taxable basis when backed by appropriate tickets, tax invoices, or receipts. Some items, such as public transport passes, are treated differently when used on a recurring basis.

Standard business meals and client entertainment are reimbursable on a non-taxable basis when supported by a tax invoice or receipt. Groceries are treated differently and are classified as a taxable allowance when reimbursed without documentation.

Training, courses, books, promotional items, business-related gifts, and certain medical costs can be reimbursed, with tax treatment depending on the nature of the expense. Mandatory medical checks are treated more favorably than other medical services.

Under EU Directive 90/270/EEC, employers must reimburse employees for protective screen eyewear and eye exams when these are required due to work with display screens. The need for protective eyewear must be confirmed by a medical exam or health and safety assessment, and reimbursements within the stated annual limit are non-taxable.

In Czechia, bonuses include contractual and discretionary payments such as incentives and commissions, and they are taxed as regular income with applicable social security contributions. Because of the progressive personal income tax system, withholding in pay periods that include bonus payments may be higher than in regular periods.

As of October 1, 2023, employers must cover increased utility costs linked to remote work. To add this allowance, the employment agreement needs to be updated accordingly.

Employees using a personal vehicle for business travel must complete the Business Trip Form — Mileage (Private Car), provide their registration number, and keep a log of distance traveled and fuel consumed to support reimbursement.

Employers may pay a non-taxable per diem to cover meal costs on business trips lasting more than 5 hours. Rates depend on whether the trip is domestic or international, its duration, and whether the employer provides meals, in which case the per diem is reduced.

Some allowances are non-taxable up to specific limits and must be offered consistently to all eligible employees when included in the employment agreement.

Employers may also offer a range of discretionary taxable allowances to selected employees at their own discretion. These are submitted manually and do not require supporting documentation.