At the end of July 2021, a new regulation was published in the Collection of Laws that increases the tax benefit for the second, third and each additional child by CZK 243 and CZK 303 per month, respectively. The tax benefit for the second child increases from CZK 1,617 to CZK 1,860 (an increase of CZK 243). The tax benefit for the third and each additional child increases from CZK 2,017 to CZK 2,320 (an increase of CZK 303).
This change is already in force for the whole year 2021, but it will be applied for the first time in wages for January 2022. To get the correct amount of tax relief, the employee will have to ask their employer for an annual tax reconciliation if they are entitled to one or file a tax return. The increased tax relief will then apply retrospectively for the whole year 2021.
Thus, an employee who claimed tax benefits for 3 children for the whole year 2021 should get back at least CZK 6,552 as part of the annual tax reconciliation or tax return.
The new regulation also contains a provision that removes the maximum monthly limit on the tax bonus, but it will be applies from January 2022 for the first time.