Personal income tax
FP-UzfoPAcad. year: 2019/2020
During the course students are acquainted with the issues of personal income tax. Attention will be given to the basic principles of personal income tax, methods for establishing the tax base and tax liability of individuals. The students will also be acquainted with the non-taxable portions of the tax base, items deductible from the tax base and tax rebates for individuals. More detailed attention will be given to the taxation of individual sources of income, such as income from employment, non-salaried income, capital, rent and other income. Students will be introduced not only to standard cases of personal income tax but also with selected special cases such as income from securities, on closing down an individual’s business, the taxation of solar power plant operators, etc.
Learning outcomes of the course unit
Knowledge: Students will know the individual types of taxable personable income, tax-free incomes and incomes that are not subject to tax as well as the principles of calculating tax liabilities, preparing tax returns, reports for health insurance companies and the social insurance administration.
Skills: Students will be able to identify individual types of taxable income, assign to them taxable expenses and choose criteria for calculating the optimum tax liabilities.
Abilities: Students can produce a tax return for personal income tax, i.e. define the optimum approach for calculating the tax liabilities.
Students learn the principles of personal income tax, which they will then be able to apply when resolving specific practical situations. Students will be able to determine the resulting personal tax liability (for tax residents of the Czech Republic), including various types of income and at the same time apply appropriate instruments for tax optimisation.
A knowledge of accountancy, the basics of business law and Act No. 455/1991 Coll., on Trade Licensing as later amended.
Recommended optional programme components
Recommended or required reading
Brychta, I. a J. Vychopeň. Daň z příjmu 2017 (Meritum). 552 s. ISBN 978-80-7552-750-9.
Zákon č. 586/1992 Sb., o daních z příjmů, ve znění účinném pro rok 2016. (CS)
Halabrinová, D. Praktický průvodce podnikatele, aneb, Jak vést daňovou evidenci: zdanitelné příjmy a výdaje, knihy pohledávek a dluhů, faktury přijaté a vystavené, karty dlouhodobého majetku, pokladní doklady, skladovací karty, DPH. 1. vyd. Brno: Aprofitail Czech Republic, 2016. 204 s. ISBN 978-80-905622-2-6.
Vančurová, A. a L. Láchová. Daňový systém ČR 2016. 13., aktualiz. vyd. V Praze: VOX, 2016. ISBN 978-80-87480-44-1.
Dvořáková, V. Zdaňování příjmů fyzických a právnických osob 2017. 2. aktualizované vyd. 331 s. ISBN 978-80-7552-538-3.
Planned learning activities and teaching methods
The course contains lectures that explain the basic principles, problems and methodology of the discipline, and seminars that promote a practical knowledge of the material presented in the lectures.
Assesment methods and criteria linked to learning outcomes
The course is completed with a credit and an exam.
To pass the credit it is necessary to meet the conditions as stated below:
- an active attendance at the seminars (the attendance at the seminars is compulsory; the absence is discused with the teacher; the students are obliged to have relevant study materials at their disposal and work individually on the tasks submitted);
- to pass and within the set term commit a seminar assignment and present the work (students can work in groups).
The exam consists of two parts:
a) a complex example for which also a tax return shall be filled in ;
b) a test with a choice of one correct answer
To pass the exam it is necessary to get at least 50 % of the overall points available in each part. In the event that the student fails only one part, it is always necessary to resit the entire exam, that is both its parts! The students are allowed to use act on income taxes (its non-commented wording) during the exam. The examination is graded according to the ECTS scale.
Language of instruction
1. Introduction to the course and to income tax, the relevance of personal income tax for the public budget, structural elements of personal income tax (general)
2. Taxable entities (taxpayers), the subject of tax, tax exemption
3. Tax base, partial tax bases
4. Tax calculation algorithms, tax allowances, deductible items from the tax base
5. Tax relief, child tax benefit
6. Income from employment
7. Non-salaried income
8. Revenue from capital
9. Rental income and other income
10. Social and health insurance (introduction to issues, legislation, establishment and termination of insurance, duties of payers)
11. Social and health insurance of employees and the self-employed
12. Special situations and their taxation (termination of business of a private individual, transfer from tax records to accounting and vice versa)
13. Special situations and their taxation (taxation of solar power plant operators, taxation of securities)
The objective is to acquaint students with personal income tax so that they can apply the knowledge gained to specific cases in practice.
Specification of controlled education, way of implementation and compensation for absences
Attendance at the lectures is not compulsory.
Attendance at the seminars is compulsory. If the absence is going on, it's compulsory to discus it with the teacher in advance.