From January 1st, the limit for joining the flat-rate tax is expanded; self-employed workers have time until Jan. 10th to apply for it
Self-employed workers, who decide to join the flat-rate tax scheme must notify their decision by sending a form/application by email, in person or certified email to the relevant office. The flat tax, in addition to income tax, includes pension and social security contributions. With the latest reform, the income threshold within which is it possible to apply was increased: from 1 that was, to CZK 2 million now. Moreover, three flat brackets will be introduced, depending on the amount and nature of the taxpayer’s income.
The taxpayer is whom:
- Is self-employed within the meaning of the law regulating public pension and health insurance,
- Is not a VAT taxpayer and is not required to register for this tax,
- Is not a partner in a public company or a general partner in a limited partnership,
- is not a debtor with a bankruptcy proceeding initiated,
- in the tax period immediately preceding the applicable tax period, did not have self-employment income exceeding CZK 1.000.000,
- as of the first day of the applicable tax period, does not engage in an activity from which income from employment is derived,
- submits a notice of entry into the flat-rate scheme to the tax authorities and, by the last day of the deadline for submission of the notice of entry into the flat-rate scheme, notifies the commencement of self-employment in accordance with the laws governing the organization and implementation of social security and public health insurance.
Sources: https://www.financnisprava.cz/ ; https://www.camic.cz/
Sources of images: https://storyset.com/ ; https://pixabay.com/
