Annual tax reconciliation by the employer (roční zúčtování daně)
A recalculation of the advance tax on employment income for the whole year, carried out by the employer at the employee's request (§ 38ch of Act No. 586/1992 Coll.). The employee requests it by 15 February of the following year and documents non-taxable parts of the tax base, e.g. mortgage interest. The employer refunds the overpayment in the salary, usually for March.
Example
For 2026, an employee paid roughly CZK 198,000 in interest on a CZK 4,000,000 mortgage (5.00 %). By 15 February 2027 they hand the payroll accountant the request, the interest certificate (potvrzení o zaplacených úrocích) and the title sheet (list vlastnictví). The employer recognises a deduction of CZK 150,000 and refunds up to CZK 22,500 with the March salary.
In practice
Annual reconciliation is open to you only if you had employment income (even from several employers in succession, with a signed declaration) and no other taxable income. Anyone who rents out a flat or runs a business must file a tax return. Miss the February deadline and the deduction can be claimed only through your own tax return.
How it differs
With the reconciliation, the employer does the work for you. A tax return (daňové přiznání) you file yourself with the tax office, and it is mandatory when there is other income, e.g. from renting. For purely employment income the result is the same; only the deadline and the way the overpayment is refunded differ.
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