Czech government proposes flat tax for self-employed workers on a Živnostenský list

The new proposal would simplify the tax process for both self-employed workers and government offices

Samantha Tatro

Written by Samantha Tatro
Published on 29.06.2020 13:51 (updated on 29.06.2020)

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The Czech government may shake things up for self-employed people and entrepreneurs paying taxes in 2021.

According to a new proposal by the Ministry of Finance, self-employed people (on a Živnostenský list) and entrepreneurs with an annual income of up to one million crowns will have the option to pay a flat tax instead of monthly contributions.

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The flat tax would include a minimum contribution to health insurance and a minimum contribution to social insurance, or 5,740 CZK per month, according to the report in iDnes. The yearly flat tax would save people time and money, officials said.

“The vast majority of self-employed persons and entrepreneurs perceive the current obligation of three different levies as time-consuming and administratively demanding,” Minister of Finance Alena Schillerová told iDnes.

“Reducing the administrative burden and legal certainty will bring self-employed people not only less stress but also more time for a trade.”

The proposal will still have to be approved by parliament.

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In addition, Schillerová is proposing a 350 CZK compensatory bonus for people working in the government on a work performance agreement or employment activity agreement during the coronavirus lockdown measures.

The bonus would be retroactive and would apply from March 12 to June 8; workers could get more than 30,000 CZK.

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