Increase in Child Tax Credits

Novinky

The amendment of the Income Tax Act introduces a further increase of the child tax credit.  The tax credit increase will apply to the second child, the third child, and any other child. For the first child the taxpayer may deduct CZK 13,404 from his or her annual tax liability (as in 2016), for the second child the amount is CZK 19,404 and for the third and any other child the amount is CZK 24,204. 

The increased tax credits stipulated above will be applicable since 2017. For the first months of 2017, i.e. before the amendment of the Act comes into effect, the tax credits may be claimed on the tax return for 2017 or in the annual employment tax report – employees may ask their employer to issue the report until 15 February 2018.