Who can use this settlement option?

The Czech entrepreneur who already has a registered business must meet two basic conditions:

1. Is not an active VAT payer

2. Planned revenue in 2023 will not exceed 1,000,000 CZK (approx. 190,000 PLN) or 1,500,000 CZK (approx. 285,000 PLN) or 2,000,000 CZK (approx. 380,000 PLN) - more details below.

After meeting the above conditions, you can proceed to a lump sum tax. An application for registration for a lump sum tax should be submitted at the latest until 10.01.2023. (applies to people who already have registered business activity in Czechs)

Benefits of a flat-rate form of business settlements in the Czech Republic :

1. No obligation to keep a detailed accounting. From January 2023, it is mandatory to keep the tax book for ongoing control of income.

2. One transfer instead of three compulsory contributions - a monthly lump sum is transferred to the tax office's account, which then transfers individual amounts to the sickness fund and the Czech equivalent of ZUS - OSSZ.

3. Lack of obligation to settle income tax and compulsory settlement of insurance for sole proprietorships.

monthly payment as part of a flat-rate tax in 2023 will be:

1. Group 1 - revenue up to 1,000,000 CZK - 6 208 CZK (approx. 1200 PLN)

This amount includes:

Health insurance premium - 2722 CZK
Social and emergency insurance premium - 3386 CZK
Income tax - 100 CZK

2. Group 2 - revenue up to 1,500,000 CZK - 16,000 CZK (approx. 3120 PLN)

This amount includes:

Health insurance premium - 3591 CZK
Social and emergency insurance premium - 7446 CZK
Income tax - 4936 CZK

3. Group 3 - revenue up to 2,000,000 CZK - 26,000 CZK (approx. 5050 PLN)

This amount includes:

Health insurance premium - 5292 CZK
Social and emergency insurance premium - 11 388 CZK
Income tax - 9320 CZK

The above contributions will be transferred by the Tax Office to the relevant institutions.

A monthly flat premium must be settled by the 20th calendar day of the month at the latest. Advances can also be regulated in advance for a greater period of time. It is recommended to set a permanent monthly transfer in online banking for the entire 2023 year.

Note 1!

persons conducting agricultural or craft activity will be able to use Group 1. to obtain revenue of 2,000,000 CZK, in a relationship with which their fees do not apply to group 2 and group 3.

persons conducting a business or agricultural activity and not being a activity on special terms (e.g. copyrights, e.g. copyright, intellectual property, literary publications with the help of own funds, etc.) fee from the group1. It will apply to revenue of up to 1,500,000 CZK, while in the case of revenues above 1,500,000 CZK up to a maximum of 2,000,000 CZK, fee from group 2.

Until when should you report your desire to go to this type of settlement?

Entrepreneurs, who are not VAT payers and meeting the above terms, willingness to transfer to a flat -rate tax settlement in 2023, they can report to the tax office by 10.01.2023 at the latest

at the latest

People willing, please complete the "Lbwage tax application" form available in the Customer Panel (Services> Forms> Lbwest tax application).

Note 2!

Persons registered at the Tax Office as "a person identified for VAT", can also take advantage of this type of accounting with the tax office.
People who plan to set up a business in 2023 can also take advantage of this form of settlements.

In the case of any queries regarding the registration of business activity for a flat -rate tax, please contact us