Lump sum tax for entrepreneurs in the Czech Republic is a new type of settlement with the tax office, health insurance and Czech social insurance.

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

1. No accounting obligation required.

2. One transfer instead of three obligatory contributions.

3. No obligation to settle the income tax annually and compulsory insurance for sole proprietorship.

The monthly flat rate tax payment in 2021 is CZK 5469 (approx. PLN 937). The amount includes:

1. Health insurance premium - CZK 2,393 (approx. PLN 410)
2. Contribution for social and pension insurance - CZK 2,979 (approx. PLN 510)
3. Income tax - CZK 100 (approx. PLN 17)

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

The monthly lump sum must be paid by the 20th calendar day of the month at the latest. Exceptionally, in 2021 the fee for January can be paid by 22/02/2021 at the latest. Advance payments can also be made in advance for a longer period of time

Who can use this billing option?

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

1. He is not an active VAT payer
2. The planned revenue in 2021 will not exceed CZK 1,000,000 (approx. PLN 170,000)

After the above conditions are met, you can proceed to the flat-rate tax declaration.

Persons running a business, who would like to be lump-sum tax payers from January 2021, are required to report it no later than 01/11/2021. Therefore, please log in to the Customer Panel and fill in the form:

Services> Forms> Flat-rate tax application.

NOTE !

People registered in the Tax Office as"Person identified for VAT", can also benefit from this type of tax settlement.