The situation may differ all around the world but in most cases, you, as an active trader or investor, are obligated to file a tax return in your country of residence. Moving forward, we are going to discuss the tax laws of the Czech Republic, the country in which the service provider of Analytical Platform resides.

According to the current laws, you should file a tax return if you have sold any type or a mix of securities like stocks and bonds during a given calendar year in the total value surpassing CZK 100,000, regardless of whether you were profitable or made a loss. You do not have to file a tax return if you have held onto your assets for more than 3 years before selling them.

Depending on the situation of a particular taxpayer, the tax rate and the deductible expenses may vary. For example, the taxpayer might be a natural person or an entrepreneur, and trading on the financial markets might be his main activity or not. Our tax application can generate reports for any natural person not running a business and any entrepreneur whose main activity is not trading. These are the most prevailing groups of clients.

As of the date of publishing this document, the tax rate in both of mentioned cases is 15% on the realized profits during the given calendar year.

How to use the tax application?

We have created a tax application for the users of StockPicking Lab and the users of our strategies to help them file the tax returns with more ease. Our application creates a report from some of the output files you can find in your brokerage account, extracting only the necessary information.

The process is as follows:

After the end of the calendar year, go into the “Reports” section in your IBKR account and download the Activity, MTM Summary and Realized Summary reports.

These documents can either be uploaded to our tax application or simply sent to your tax advisor.

When the uploading process finishes, the report containing all the important information to file the tax return is generated by our application.

It is only necessary to fill in the total Revenues and Expenses into the corresponding columns of Appendix No. 2 of the tax return and then upload the generated report into the Other attachments according to § 10 of the Income Tax Law.

Tax advisory

The services of an external tax advisor are included for our Asset Manager Tier clients.
All you have to do is download all three mentioned reports from the “Reports” section
in your IBKR account and send them to the tax advisor.
The tax advisor will then fill the whole Appendix No. 2 of the tax return according to
the trades executed as suggested by our tools.

Final information

With Asset Manager Tier

  • We provide Asset Manager Tier clients with all the necessary services to help them file a tax return after investing in our strategies.

Without Asset Manager Tier

  • We are offering the tax application and the service of an external tax advisor related to using Interactive Brokers as a seperate service.

Have a look at the sample files

If you are trading other financial instruments or using any other platforms to trade, you should file a tax return for each one of them. The tax advisory service in the Asset Manager Tier does not include assistance with your other accounts or merging the information into one summary document. However, we can provide these services as a separate service.

We are only providers of software. We always recommend asking a specialized tax advisor for help.