Daně a legislativa ČR
How to File a Tax Return as an ETF Investor
Key takeaways
- Foreign dividends and taxable gains from ETF sales must be reported on your tax return — your broker does not withhold tax automatically.
- Gains from sales go in Appendix 2; foreign dividends go in the section for foreign income.
- Currency conversion uses the uniform MF exchange rate for the given year or the CNB rate on the date the income was received.
- Exempt income (time test or value test) is not reported on the return.
- Always verify the current form instructions — this is not tax advice.
Investors in foreign ETFs cannot rely on their broker to pay tax on their behalf — foreign dividends and taxable gains from sales must be reported on the tax return yourself. The return is due by 1 April (or 1 July if filed electronically).
When Do You Actually Need to File Because of Investments?
As an investor you must file a return if:
- you received foreign dividends (these are never exempt regardless of circumstances and are taxed at 15%),
- you realised a taxable gain from selling securities (i.e. you do not meet the time test or the value test),
- your other income exceeds the statutory thresholds for mandatory filing.
Exempt income (meeting the time or value test) is not reported. More in when you must file a return because of investments.
Which Appendices to Fill In
The tax return form (type B) contains the following relevant sections for investors:
- Appendix 2 — other income under Section 10 of the Income Tax Act: this is where taxable gains from the sale of securities, commodities or other assets not covered by Sections 8 or 9 belong.
- Foreign income section — this is where foreign dividends go, including any withholding tax paid abroad (it can be taken into account as tax paid in a foreign country, depending on the double-taxation treaty).
Currency Conversion
Income in foreign currency is converted to CZK using either the uniform MF exchange rate (issued by the Ministry of Finance for the entire preceding year, usually published in January) or the CNB rate on the date the income was received. You must choose one method consistently for all income in the given year. More on conversion in exchange rates and converting gains to Czech crowns.
What to Prepare in Advance
For a correct filing you need: broker statements (all transactions for the year), a summary of dividends received, records of purchase prices (FIFO), and the chosen conversion rate. Keep purchase documents — the tax authority may check them retrospectively. Details in tax records of trades.
This article is not tax advice. Rules may change — always verify the current legislation or consult a tax adviser. See also ETF taxes in the Czech Republic.
FAQ
Do I need to file a return if I only hold accumulating ETFs and have sold nothing?
If you have received no dividends and sold nothing, you most likely do not need to file a return on account of investments. However, as soon as you sell and the gain is taxable, or you receive a dividend, you must file.
Where do I find the uniform MF exchange rate for conversion?
The Ministry of Finance publishes uniform exchange rates every year in January or February — they are available on the MF or financial administration website. They apply to the entire preceding year, so for 2026 income you will use the MF rate issued in January 2027.
What do I do with withholding tax paid abroad?
If your broker withheld foreign dividend tax (e.g. 15% in Ireland or 30% in the USA), it can under certain conditions be credited as tax paid abroad. This depends on the double-taxation treaty — verify the specific situation with an adviser.