On 30 September 2026, the Czech Financial Administration reiterated its administrative practice for the 2026 election year concerning the taxation and reporting of remuneration paid to members of district election commissions (okrskové volební komise) under the Unified Monthly Employer Reporting (JMHZ) regime. With municipal and regional elections approaching, the authority confirmed that fees paid to commission members constitute taxable employment income subject to withholding tax at a flat rate of 15% under Section 36 of the Income Tax Act (Act No. 586/1992 Coll.), and are fully subject to social security and health insurance contributions. The guidance specifies that the municipality or regional authority acting as the payer must report these amounts via JMHZ using specific income type codes (Type 1 – employment income) and ensure timely remittance of withheld taxes and contributions by the 20th of the following month.
Key Takeaways
- Flat-Rate Withholding Applies: Election commission fees are not exempt from tax; they fall under the special flat-rate withholding regime for occasional activities, requiring the payer to deduct 15% tax at source without applying tax allowances or deductions.
- Full Social Security Liability: Unlike certain director’s fees or board member compensation, election commission remuneration attracts full employer and employee social security and health insurance contributions, increasing the total labor cost for municipalities by approximately 34% on top of the gross fee.
- JMHZ Reporting Deadline Rigor: The administration warned that late or incorrect JMHZ submissions for these payments will incur penalties under Section 233 of the Tax Code, urging local authorities to integrate election payroll into their standard monthly reporting workflows well before the election date.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement