Responding to the information, questions and discussions of Internet users about business in the Czech Republic that appeared on the web, we decided to collect the most important questions and provide answers to them. We especially want to thank the participants of the portal www.wykop.pl .
We hope the information presented will prevent you from making hasty decisions and judgments. We will develop the article as questions and opinions arise.
WRONG: In order to be able to do business in the Czech Republic, I have to live here permanently.
As a condition for running a business (except in certain cases) by other citizens European Union countries is to have place of business in the Republic. This"place" partially corresponds to the Polish deficit of the company's headquarters. The place of business must be documented by the contract of renting the premises or part thereof, by the deed of ownership or permission of the owner of the premises with the location of the company's seat.
WRONG: When working in the Czech Republic, I cannot see a Polish doctor.
This is not true. Every citizen of the European Union, after registering for health insurance in the country in which he conducts business activity, has the right to use ordinary medical care in the country of residence. It results from the provisions of the European Union on the common social and health policy. For this purpose, it is enough to attach Annex E106 to the application form. This insurance will also cover non-working family members (wife and children). In this case, the costs of treatment in the country of residence will be covered by the Czech insurer - one of the selected health insurance funds.
WRONG: When running a business in the Czech Republic, I still have to pay taxes in Poland.
Although a person permanently residing in Poland is subject to unlimited tax liability, pursuant to an intergovernmental agreement, income from employment and activity is taxed only in the country of its acquisition (the principle of limiting double taxation by exemption with progression).
TRUE: Not all economic activities can be moved.
That's true. Economic activity which by its nature requires the so-called the workplace may only be moved if that establishment is also moved. We are talking here, among others about factories, stationary stores. Some of the services that require a license may also be a problem. Here, however, each case must be assessed individually.
TRUE: It is not always profitable to relocate a business.
This is also true, unfortunately. In the case of an activity that also generates a large clean income and requires considerable resources in the amount exceeding 60% of the income, the transfer of the activity does not have to be profitable (e.g. online stores with a low margin). This is due to the addiction of the so-called ZUS contributions on the income earned (14% from profit). People earning more can pay very high advance payments for retirement insurance, up to a maximum rate of about PLN 6,000 (with an income of about PLN 42,000 per month). The government plans to introduce a lower limit from next year.
On the other hand, the most profitable thing is to transfer the activity where the greatest cost is time. The Czech tax system allows you to deduct from 40% to 60% of your income as operating expenses without having to document them. Only after the end of the tax year, the taxpayer decides whether to take into account actual or lump sum expenses. He can change his decision in each subsequent year, choosing a more convenient form. This form is particularly profitable for IT specialists, translators, artists, consultants, etc., who usually do not incur large expenses. There are cases when this form is used by companies selling goods with a high margin (i.e. where the cost of purchasing the goods is significantly less than 60% of the selling price). The above rule is limited by entering the threshold of the obligation to keep full accounting for natural persons (turnover over PLN 1.6 million).
The flat rate of income tax is also a big simplification. The taxpayer does not have to make sure that he does not exceed something. In addition to the flat rate, the tax office cuts the annual income tax receivable in the form of a relief almost PLN 4,000 (not from the base).
WRONG: Having a company in the Czech Republic I cannot have a bank account in Poland
No. Also, a foreign entrepreneur has the right to open an account in Poland. However, it must be taken into account that not every bank keeps such accounts, and their number can be accommodated on the fingers of both hands (BZWBK, PNB Paribas, PKO, PEKAO, BPH, CITIBANK, Alior). You also have to take into account the fact that most Polish banks are reluctant to pay offers credit products to people and companies from outside Poland.