Taxes on Grants and Awards

The following grants and aids are exempt from the personal income tax under the Income Taxes Act:

  • Grants from the Government budget, from regional budgets, from universities, public research institutions or corporate entities that run a secondary school or a professional or vocational school,
  • Motivation fee granted to a pupil or a student (under a contract) who trains with a taxpayer for his or her trade or profession in the amount of up to CZK 5000 per month or up to CZK 10,000 for university students; the motivation fee is defined in the law as a subsidy, stipend, catering contribution, accommodation, gratuitous education in educational institutions pursued in connection with future profession or trade, public transport tickets and seasons tickets if the student travels to the place of education, contribution for personal protective equipment and other aids needed under special legal regulations.

Financial awards are exempt from the personal income tax to the extent they do not exceed CZK 10,000 won from public contests, advertising contests or lotteries (consumer lotteries excepting), price awards for sports events (excepting awards to taxpayers who perform sports in the course of their business).

Financial awards from cultural events are also exempt from tax. This applies, for example, to awards listed in the Government Decree No. 5/2003 Sb., On Cultural Awards granted by the Ministry of Culture, as amended by Government Decree No. 98/2006 Sb., Act No. 130/2002 Sb., On Support for Culture, Research and Development from Public Funds, and modifications of some associated laws (R&D Support Act).