The flat-rate tax for the self-employed persons has already passed. Is it worth to you? (No. 968)

After its remit by the Senate, the Chamber of Deputies approved the draft law for a flat tax for 2021. The law now only awaits the president’s signature and its publication in the Collection of Laws.

The flat tax should be a simplification for self-employed persons (sole traders), who would not have to file tax returns or insurance reports of income and expenses after the end of 2021, if the conditions are met. The amount of the flat tax for next year is CZK 5,469 per month. This amount includes a minimum health insurance contribution of CZK 2,393, a social insurance contribution of CZK 2,976 and an income tax of CZK 100. However, in order to use this scheme in 2021, the self-employed person must notify the respective tax office of this intention by January 10, 2021. The flat-rate tax is intended for non-payers of VAT, with annual incomes of up to CZK 1 million.

The Ministry of Finance has published a calculator on its website, comparing the flat tax with the taxation in standard mode. Please note that the calculator still calculates the minimum amount of insurance contributions for the year 2020, not for the year 2021.

publikováno 07.12.2020