Refugees from Ukraine residing in the Czech Republic have received warning letters stating that their account information will be transferred to the Specialized Financial Office. Find out more about what account data will be transferred to the tax office and what consequences there may be for illegal income and work

Legal assistance for Ukrainians abroad

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According to the Act on International Cooperation in Tax Administration (No. 105/2016 of 2016), banking institutions are obliged to report on the accounts of foreigners in the Czech Republic. This is the reason why Ukrainians, like other foreigners, have received warning letters. Such checks are conducted to detect illegal labor and other violations by foreign nationals residing in the Czech Republic and other EU countries.

We will tell you what data will be transferred to the tax office and what punishment awaits those who work illegally with reference to proukrainu.blesk.cz.

What information will Czech banks transfer to the tax office?

In the Czech Republic, as in many other countries, banks play a key role in the national tax system. In fact, they are intermediaries between taxpayers and the state, ensuring the accuracy and completeness of financial information submitted to the tax authorities. Therefore, in order to help fight tax evaders and ensure the integrity of tax systems, reporting and information collection requirements have been introduced around the world. All information that banks provide to the tax authorities is clearly regulated by law, and all documents are in line with international standards and EU directives.

Thus, Czech banks (as well as banks in other EU countries and in Ukraine in particular) are obliged to report to the tax authorities on:

– Identification data (name, address, taxpayer identification number);

– Account information (account numbers, balances and types of account ownership);

– Transaction data (special attention is paid to transactions that exceed certain thresholds or reveal patterns indicative of money laundering);

– Interest and dividends (income from interest and dividends).

In the absence of violations (money laundering, illegal income, etc.), information on accounts and income simply remains in the system and is not used for additional verification. At the same time, it should be remembered that Ukrainians who stay in the country for more than 183 days and have a source of income outside the Czech Republic (for example, are employed by a Ukrainian company or have a sole proprietorship in Ukraine) are subject to double taxation rules. That is, they are obliged to pay taxes twice: to the Ukrainian budget and to the budget of the EU country (unless they can prove their tax residency in Ukraine).

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What is the responsibility for illegal income and work?

Illegal employment in the Czech Republic, i.e. work without signing a contract or a relevant work permit for a foreigner, entails fines and, in some cases, more serious punishment, including deportation from the country. In this case, fines will be imposed on both the illegal employee and his employer.

The type of penalty will depend on the nature of the violation and will be determined by the law enforcement and judicial authorities of the Czech Republic. 

If you need the help of a specialist in migration issues, please contact the Visit Ukraine legal team. They will help you solve your immediate problems, answer all your questions and, if necessary, assist you in collecting and submitting documents. To order a legal consultation or full legal support, please follow this link.

We remind you! In 2024, some of the rules of stay in the Czech Republic have changed for Ukrainian refugees. In particular, it concerns the status of temporary protection and cars with Ukrainian license plates. Read more about the changes and innovations in our previous article.

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