Contributions paid for life insurance – a deductible item from the income tax base of FO

Contributions paid for life insurance – a deductible item from the income tax base of FO
A taxpayer can deduct premiums paid for private life insurance from the income tax base. The deduction can be made up to a total of CZK 24,000 per year, even if the taxpayer has concluded several private life insurance contracts.

The reduction of the tax base by the premiums paid for private life insurance is possible if the following conditions are met. If the taxpayer does not meet the conditions, the insurance company will not issue a certificate.

If the insurance contract is terminated early, the entitlement to the tax-free part of the tax base ceases. The taxpayer is obliged to repay the amounts by which he has reduced his tax base over the past 10 years due to the premiums paid. This does not apply if the insured person becomes entitled to an old-age pension or an invalidity pension for third degree disability, or if the insured person becomes a third degree invalid under the Pension Insurance Act, or in the event of death. It is also not added in the case of insurance contracts where no insurance benefit or surrender charge is paid and at the same time the surrender charge is directly transferred to another private life insurance contract meeting the conditions for the application of the tax-free part of the taxable base.

The taxpayer proves the entitlement to the deductible item from the tax base by a certificate from the insurance company on the premium paid for the private life insurance. This certificate is an attachment to the tax return.