Will My UK Social Security Benefits Be Taxed In Czech Republic
Jul 27th 2020, 8:22 pm
#1
Just Joined
Thread Starter
Joined: Jul 2011
Posts: 14
Will My UK Social Security Benefits Be Taxed In Czech Republic
I'm going to be moving to The Czech Republic. I currently claim ESA Employments Support Allowance (old Incapacity Benefit) which is exportable to other EU countries. I receive this benefit without having to pay tax in The UK.
Czech Republic has a flat rate of tax - 15%. Will they tax this benefit when I'm living in CZ and being paid this benefit from The UK DWP? Thanks for any advice.
Czech Republic has a flat rate of tax - 15%. Will they tax this benefit when I'm living in CZ and being paid this benefit from The UK DWP? Thanks for any advice.
Sep 13th 2020, 6:15 am
#2
Forum Regular
Joined: Apr 2013
Posts: 61
Re: Will My UK Social Security Benefits Be Taxed In Czech Republic
If you live in the Czech Republic you are taxed on world-wide income.
The Czech tax system is a flat rate but you are taxed on “super gross”, an amount above gross. It’s always been a complete mystery to me how the super gross is arrived at. So, it’s the opposite of the UK system where allowances reduce gross pay to taxable pay. However, the tax system is due to be changed in the New Year and super gross will no longer apply but tax rates will be higher and there will be a super tax for high earners. Most people will be better off under the new system. In my case, I will be about £200 a month better off.
Will your benefit have been taxed already by the UK authorities? If so, you’ll still have to declare it to the Czech authorities but you may not have to pay any more tax due to the Double Taxation Agreement that exists between the Czech Republic and UK.
The Czech tax system is a flat rate but you are taxed on “super gross”, an amount above gross. It’s always been a complete mystery to me how the super gross is arrived at. So, it’s the opposite of the UK system where allowances reduce gross pay to taxable pay. However, the tax system is due to be changed in the New Year and super gross will no longer apply but tax rates will be higher and there will be a super tax for high earners. Most people will be better off under the new system. In my case, I will be about £200 a month better off.
Will your benefit have been taxed already by the UK authorities? If so, you’ll still have to declare it to the Czech authorities but you may not have to pay any more tax due to the Double Taxation Agreement that exists between the Czech Republic and UK.
