The tax rebate on the first child rose by 1,800 crowns
In 2017, a tax deduction was lifted only for the second, third and every other child. In the case of the second child, this was an annual benefit of CZK 19,404, which increased by CZK 1,617 compared to 2016. For the third and every other child the discount was raised by CZK 2,017 to CZK 24,204 per year. These amounts are not changing this year.
"On the other hand, the tax benefit for the first child was raised. Monthly, a discount of CZK 1,267 will be available, which is CZK 150 more than in previous years. The whole year's discount then corresponds to 15,204 crowns. Benefits may be applied by one of the parents of the dependent child, in the case of a student up to the age of 26, " explains Miloslav Kufa (Ramfin), with the entrepreneurs applying the discount once a year in the tax return, the employees can then draw it continuously through their employer.
Higher parental contribution for twins and multiplets
Another novelty of 2018 will please families of twins and multiplexes. While in the past years the amount of parental allowance was set at 220,000 crowns, regardless of whether one or more children were born, this amount increases from this year onwards. It will be worth CZK 330,000, with the addition of more than four years.
Greater freedom to take parental allowance
In addition to the increase in parental allowance for families with multiple births, the year 2018 also brings news in the area of its use. Changes will affect both people with higher incomes to make the allowance faster, as well as those with a payout period automatically set to four years, which was most often the case for students, the unemployed or the self-employed.
The new rules cancel the ceiling for the maximum monthly amount of the accelerated drawdown, which has so far been set at 11,500 crowns. In 2018 it may be more depending on the income achieved. High-income parents will be able to get their parental allowance to the most quickly in about six months.
Shorter parental leave, and therefore a higher monthly income, can now be chosen by parents who have previously been automatically drawn for four years. Now they can set a monthly installment up to 7,600 crowns, and the length of time they would receive would be reduced to approximately 29 months.
The schooling will increase up to CZK 1,200 a year
Last year, the parent of the dependent child could apply a tax deduction for provably spent funds for placement of the child in the pre-school facility - the so-called kindergarten - up to CZK 11,000. In 2018 this maximum was raised by CZK 1,200 to CZK 12,200. The discount will be applied in the tax collection in 2019.
"However, this amount is indeed the maximum, the resulting amount corresponds to the actual costs incurred for placement of the child in pre-school facilities. If the amount paid for the kindergarten is higher than the 12,200 crowns, the whole amount can be used. In addition, the discount can be applied to more children, " says Michael Pokiser (Ramfin). In order to apply the discount, it is sufficient for the employees to deliver a certificate from the nursery about the paid amount of the company accountant, the self-employed person is a mandatory attachment of their tax return.
A week of paid paternity leave
The last major novelty concerns the fathers of newly born children. From February 1, 2018, so-called paternal postnatal care will be in place, which is intended for new-born fathers for one week. It is possible to get in on it for six weeks after the birth of the child, and the fathers of children born within six weeks before the entry into force of the new version can also use it. The calculation of the benefit during this weekly paternity leave is the same as for the maternity allowance.
Source: tz, edited editorially