12. 7. 2023
The taxpayer has the right to apply for a tax credit for a dependant child living in the same household as the taxpayer
- 15 204 CZK annually for the first child
- 22 320 CZK annually for the second child
- 27 840 CZK annually for the third and any other child
A dependant child of the taxpayer covers his/her own child, an adopted child, a child in foster care, a child that does not live with the taxpayer anymore because of gaining legal capacity or reaching legal age in foster care, husband´s or wife´s child, his/her own grandchild or husband´s/ wife´s grandchild, if the child´s parents do not have sufficient income to apply for the child tax credit.
The child can be:
- an underage child
- a child that has come of age but is younger than 26 years old and is not entitled to disability pension of the third grade and
- is a full-time student
- cannot be a full-time student or cannot be employed because of an illness or injury
- cannot be employed because of constant unfavourable health condition
It is possible to obtain the tax credit in three forms:
- In the form of a tax relief when the calculated tax is higher than the applicable tax credit.
- In the form of a tax bonus when the calculated tax is zero. In this case the sum of the tax credit turns into a tax bonus.
- In the form of a concurrent tax relief and tax bonus, when the calculated tax is lower than the tax credit. The tax credit becomes a tax relief up to the calculated tax amount and the rest is a tax bonus.
If there are more taxpayers living in the same household with the dependant child, the tax credit can only be applied by one of the taxpayers in a tax period. The other taxpayer has to present a confirmation from his/her employer stating the name of the child his/her partner applies the tax credit for and the amount of the tax credit.
The tax credit can be applied for the same month when the child was born or when he/she started the full-time studies or for the month the child was adopted or when the foster care began.