A Ukrainian is employed in Ukraine as an IT working – technically setup as a contractor (“private entrepreneur”) – a very common setup over there. They receive money monthly, and tax is paid on it to the Ukrainian authorities.
This person has come to Czech Republic as a result of the war in Ukraine, and has been issued with Temporary Protection, allowing them CZ residency for 1 year (I’m not completely sure on the details/technicalities – but that’s the headline).
After 183 days they will fall into the Czech Republic Tax Resident category.
Two questions:
1. Will they have to pay tax in Czech Republic as well as back home? My understanding of the CZ/UA double taxation agreement means they will not.
2. Can anyone with knowledge/experience of the specifics of this case, as set out above, think of any problems the worker might run into?
My reason for asking question 2 is: the worker’s company is strongly advising against the worker staying in CZ for more than the 183 day “tax resident” limit. The argument being that the company does not have a presence in Czech Republic – and therefore would not be able to pay taxes to the Czech authorities. But I cannot find anything online to suggest they would actually need to.
Thank you very much for any advice. Don’t be afraid to just throw links to websites at me – I’ll do the leg work.
So far I have used:
[https://www.praguereferral.cz/czech-tax-return-should-you-submit-it-yourself-czech-tax-resident-vs-not/](https://www.praguereferral.cz/czech-tax-return-should-you-submit-it-yourself-czech-tax-resident-vs-not/)
[https://www.mfcr.cz/cs/legislativa/dvoji-zdaneni/prehled-platnych-smluv](https://www.mfcr.cz/cs/legislativa/dvoji-zdaneni/prehled-platnych-smluv)