I do my taxes. I renew my driver’s license. I pay my electric bill. I don’t understand how else someone would say those things.
“I do taxes. I renew driver’s license. I pay electric bill.”
“I do the taxes. I renew the driver’s license. I pay the electric bill.”
As a non-native English speaker I know “my taxes” just sound most natural because–but only because–that’s how lot of people say it. :D
(Not that it’s relevant, but In my native language, Czech, we would not stress the “my” part, maybe only in case of the driver’s license, and even there, only indirectly by grammar. But I’m aware Czech is weird to most of the world… :D))
How do Czech pay taxes? Is it auto withheld from your paycheck or do you do forms and pay them periodically or both? Is it pretty quick or super involved or somewhere between?
We have witholding and then do forms between January and April to determine if we owe more or get some back. Those forms can be relatively simple or super complicated.
TL;DR: for “simple” employees, pretty quick and simple. for freelancers / small businesses the complexity scales based on type and size of business: from pretty quick (for freelance licenses) to more involved (for high turnover or special corpo licenses etc. i don’t really know).
Generally if you are employee and all your income comes from single employer, your taxes are done by the employer and simply withheld from your paycheck. Some are paid continuously and then balanced (excess returned, never the opposite) some time in the spring, but as employee you don’t have to fill any forms. (With small exceptions – IIRC we had to sign one “pink” form every year, I don’t recall what exactly it was for.)
For long time when I was employee I also had income from stocks, so then my employer did not have to do taxes for me so I had to do it on my own (ie. I used advisor.)
If you are self-employed then it depends on the type of business license / trade and turnover: you may need to track every expense and then compute & fill form in April (this term moves to June if you use accredited tax advisor).
There are also license types where you don’t need to keep expenses, you only need to report yearly income and tax based on that number. The license has a percentage number assigned and it’s just assumed that your expenses was that % of your income. When I was freelancing as a programmer, I used this kind of license. It was pretty comfy for me, even though i still used advisor since I can’t come close than 2m to a tax paperwork or I’ll start panicking :D
Once you get past some turnover (i think it’s 2 million CZK per year–about $100k) you need to use more complex system which requires you to do extra papers/taxes related to VAT, plus there’s more tracking. (You need to track expenses precisely and keep the invoices/bills for some amount of years.) The rules are probably also different for different kinds of corporations, for some regulated trades, etc. For even larger businesses some of these are done half-yearly or quarterly.
Social & health insurance (both of these are mandatory, ie. they are basically taxes) is paid separately from the above (for businesses. for employees this is still done by employers) as advance payment and then balanced based on your reported income. (Then there are several small taxes like public broadcasting, land taxes or city taxes, but those are usually really easy to pay, they are either same per capita, or in case of land taxes you just report your land size and the burreau will compute it for you and send you the bill.
Of course there are also deductions based on whether you have kids, spouse, mortgage, charity gifts, etc.
“I do taxes. I renew driver’s license. I pay electric bill.”
“I do the taxes. I renew the driver’s license. I pay the electric bill.”
As a non-native English speaker I know “my taxes” just sound most natural because–but only because–that’s how lot of people say it. :D
(Not that it’s relevant, but In my native language, Czech, we would not stress the “my” part, maybe only in case of the driver’s license, and even there, only indirectly by grammar. But I’m aware Czech is weird to most of the world… :D))
How do Czech pay taxes? Is it auto withheld from your paycheck or do you do forms and pay them periodically or both? Is it pretty quick or super involved or somewhere between?
We have witholding and then do forms between January and April to determine if we owe more or get some back. Those forms can be relatively simple or super complicated.
TL;DR: for “simple” employees, pretty quick and simple. for freelancers / small businesses the complexity scales based on type and size of business: from pretty quick (for freelance licenses) to more involved (for high turnover or special corpo licenses etc. i don’t really know).
Generally if you are employee and all your income comes from single employer, your taxes are done by the employer and simply withheld from your paycheck. Some are paid continuously and then balanced (excess returned, never the opposite) some time in the spring, but as employee you don’t have to fill any forms. (With small exceptions – IIRC we had to sign one “pink” form every year, I don’t recall what exactly it was for.)
For long time when I was employee I also had income from stocks, so then my employer did not have to do taxes for me so I had to do it on my own (ie. I used advisor.)
If you are self-employed then it depends on the type of business license / trade and turnover: you may need to track every expense and then compute & fill form in April (this term moves to June if you use accredited tax advisor).
There are also license types where you don’t need to keep expenses, you only need to report yearly income and tax based on that number. The license has a percentage number assigned and it’s just assumed that your expenses was that % of your income. When I was freelancing as a programmer, I used this kind of license. It was pretty comfy for me, even though i still used advisor since I can’t come close than 2m to a tax paperwork or I’ll start panicking :D
Once you get past some turnover (i think it’s 2 million CZK per year–about $100k) you need to use more complex system which requires you to do extra papers/taxes related to VAT, plus there’s more tracking. (You need to track expenses precisely and keep the invoices/bills for some amount of years.) The rules are probably also different for different kinds of corporations, for some regulated trades, etc. For even larger businesses some of these are done half-yearly or quarterly.
Social & health insurance (both of these are mandatory, ie. they are basically taxes) is paid separately from the above (for businesses. for employees this is still done by employers) as advance payment and then balanced based on your reported income. (Then there are several small taxes like public broadcasting, land taxes or city taxes, but those are usually really easy to pay, they are either same per capita, or in case of land taxes you just report your land size and the burreau will compute it for you and send you the bill.
Of course there are also deductions based on whether you have kids, spouse, mortgage, charity gifts, etc.