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Changes to Czech entrepreneurs and companies in the Czech Republic
tuesday, 4 January 2022

With the first January 2022 - new minimum liabilities rates will apply. A positive message for the new year is an increase in the amount of tax reliefs and tax deductions.

Changes to Czech entrepreneurs and companies in the Czech Republic

tax on individuals PIT

According to previous promises, the amount of basic tax break (tax-free amount) will be subject to annual revalorization.

In the tax settlement for 2021, the Czech entrepreneur and the employee will benefit from the basic relief (the amount deducted from the tax due) will amount to 27.840 CZK (~ 5000 PLN) and will be higher by 3000 crowns (~ 550 PLN). In the following year - 2022 - the tax due will be reduced by an additional 3000 crown.

In 2021 and 2022, Czech taxpayers with children will be able to count on 15204 CZK for the first child, 19404 CZK for the second and 24204 CZK for each subsequent. In addition, from tax, the costs of kindergarten or nurseries up to the height of 15200 CZK can be deducted for 2021 and 16200 crowns in 2022.

As in previous years, you can still use (also in new taxpayers and contracts) from interest relief for a residential loan, a life policy or a private pension policy and deduction of donations (also foreign).

salaries and salary

From 2022, minimal salaries for all professional categories are raised. The lowest salary due to the employment contract or the execution of the Management Board in companies in the Czech Republic will amount to 16.200 CZK.

In 2022, there is also a clear increase in diets in the case of a business trip.

insurance

From 2022, the rates of minimal social and health insurance will be revalorized. Starting from January 2022, the minimum social security rate in the Czech Republic will amount to 2841 CZK, and the health 2627 CZK.

Not determined disease insurance remains unchanged and the minimum amount of the premium is 147 CZK.

Tax lump sum

In 2022, the rate introduced last year of tax lump sum for small Czech entrepreneurs will increase, which will increase by 525 CZK to the amount of 5994 CZK per month.

VAT tax

At the end of 2022, the Czech parliament finally adopted EU regulations regarding OSS. These are mainly related to the simplification of tax obligations from mail order sales to other countries and services of electronic services. A taxpayer leading a company in the Czech Republic no longer need to register to VAT in every country separately, but it can regulate its obligations through the Czech Tax Office.

CIT tax

From 2021, the concept of intangible assets comes to liquidation. Costs - eg for the purchase of the Software - regardless of the amount - in full, will be a tax expense in the year of purchase.

Also from 2021 there is an increase in the amount of the threshold of the value of assets to be amortized.

Covidova 2022 shield for companies and entrepreneurs

Entrepreneurs and small companies, which in December 2021 or January 2022 recorded a 30% drop in turnover can count on a compensation additive.

 

 

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26.09.2022
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