Expat Taxes

05/01/2026

Changes to health insurance effective from 1.1.2026

- From January 1, 2026, only persons caring for one or more children under the age of 7 will be covered by state insurance

- Until the end of 2025, persons caring for one child under the age of 7 or two or more children under the age of 15 are covered by state insurance for health insurance purposes).

- On the other hand, the condition of the maximum length of a child's stay in school or preschool has been removed, which is now not limited in any way for the purposes of classification as a state insurance beneficiary (until the end of 2025, there was limit 4h per day)

- Self-employed having their business as side activity (vedlejší činnost) cannot pay monthly advances for heath insurance. They will pay health insurance once , retroactively after submitting Statement of income for year2026

- The minimum health insurance advance payment for self-employed having their business as main activity (hlavní činnost) increased to CZK 3,306 as of January 1, 2026.

28/12/2025

2026 PAYMENTS:

Be informed about the new social and health advances in 2026 for self-employed persons (OSVČ) taking effect FROM JANUARY 2026.

Minimum advances of SOCIAL INSURANCE:
• 5 720 CZK for freelancers having their business as main activity (hlavní činnost)
• 1 574 CZK for freelancers having their business as side activity (vedlejší činnost)
• 3 575 CZK for freelancers having their business as main activity (hlavní činnost) and initiated their business (or reinitiated and didn´t do it in the last 20 calendar years)

Minimum advances of HEALTH INSURANCE:
• 3 306 CZK for freelancers having their business as main activity (hlavní činnost)
Please, set your payment orders accordingly from January 2026!

13/01/2025

New rules for mandatory VAT registration

As of 1.1.2025, there are TWO LIMITS for mandatory VAT registration, considered for CALENDAR YEAR (1.1.-31.12.):
- 1st limit of your turnover 2 000 000 CZK
- 2nd limit of your turnover 2 536 500 CZK
Exceeding both limits MUST BE WATCHED to the SPECIFIC DAY.
By exceeding 1st limit, you can choose whether become full VAT payer from 1st day after exceeding the limit or from new calendar year.
By exceeding 2nd limit, you must become full VAT payer from 1st day after exceeding the limit.

You must SUBMIT VAT application (voluntary or mandatory) BY 10th DAY from the day the limit was exceeded.
Learn more on our blog www.Expattaxes.cz

13/01/2025

HEALTH INSURANCE ADVANCES in the year 2025

Be informed that the minimum monthly payments on public health insurance advances increases as of January 1, 2025, as follows:
• 3 143 CZK for freelancers having their business as main activity (hlavní činnost)
Don´t forget to set up your payment orders accordingly.
For more info go to the blog on www.ExpatTaxes.cz

13/01/2025

SOCIAL insurance ADVANCES in the year 2025

As of January 1, 2025, the minimum monthly payments on social insurance increased as follows:
• 1 496 CZK for freelancers having their business as side activity (vedlejší činnost)
• 4 759 CZK for freelancers having their business as main activity (hlavní činnost)

News: Self-employed persons (OSVČ) who initiated their business don´t have to pay social insurance advances in the current and the following year.
This doesn´t exempt to pay the social insurance itself based on Statement of Income and expences for the given years.

For more information go to the blog of
www.expattaxes.cz :

08/04/2024

RSUs CHANGE in TAXATION from 1.1.2024

1. postponement of the moment of taxation

An employee who has acquired an Employee Shares from an employer or company from group of companies will newly tax it at the first of the following moments:

-the moment at which the employee ceases to perform activities for the employer
-the moment that employer enters into liquidation
-the moment at which employer or employee ceases to be tax resident of the Czech Republic
-the moment of transfer of the share (e.g. sale) or transferable option
-the moment of excercise of the transferable option
-the moment of an exchange of shares in which the total nominal value of the employee's shares changes
-the moment of expiration of 10 year´s period from acquisition of the share or transferable option
Also new is that an employee must notify the employer when the Employee Shares are transferred (e.g. sold).

2. When the value of the Employee Share is reduced between the moment of acquisition and the moment of itś taxation, the value to be taxed is also lowered

21/12/2023

LUMP SUM TAX 2024

Are a freelancer thinking of entering the flat rate regime? Would it be an advantage for you and your business?

Paying just 7 498 CZK per month and no paper work sounds great! Kindly note that the deadline for entering, leaving, changing the zone or informing about not meeting the criteria of a lump sum tax regime is 10th January 2024.

For more info, check out our website and contact us - we're here to help!

21/12/2023

SOCIAL insurance ADVANCES in the year 2024

As of January 1, 2024, the minimum monthly payments on social insurance will increase as follows:
• 1 413 CZK for freelancers having their business as side activity (vedlejší činnost)
• 3 852 CZK for freelancers having their business as main activity (hlavní činnost)
• 3 210 CZK for freelancers who initiated their business as main activity in the years 2024

Every self-employed person (OSVČ) who paid social insurance advances in 2023 in an amount lower than the minimum valid for 2024 must pay new advances at least in the amount of the minimum set for 2024 FROM JANUARY 2024.
This amount is to be paid until the month following the month in which the Summary of Income and Expenses (following the Income Tax Return) is or should be submitted.

04/12/2023

CONSOLIDATION PACKAGE comes into effect

The new year 2024 is just around the corner, so let's have a quick look at some tax news you might be affected by:

• Limitation of the tax write-off of a personal car used for business purposes to 2 mills. CZK
• Still wine provided as a gift no longer tax-deductible
• Cancellation of a student and kindergarten discounts
• Deduction for a non-working spouse only if taking care of a child under 3 y/o
• Corporate income tax rate increased from 19 % to 21 %
• 23 % personal income tax rate if earning more than approx. 1.6 mills CZK
• Gradual growth of social insurance for freelancers between 2024 – 2026
• Limitation of the tax-exempt income from the sale of shares to 40 mills CZK

For more details check it out on our website! www.expattaxes.cz

31/10/2023

The “Government CONSOLIDATION PACKAGE”
was approved by the Czech Chamber of Deputies in October 2023.

How will these changes affect employers, employees, freelancers or corporations? And what about the everyday life of people?

Will a higher corporate income tax (21 %) get enough savings for a Czech Government?
Will freelancers pay more on social?
Sad to expect higher price of a Czech beer?
Enjoying kindergarten or student tax discount is probably history now.

For more details check it out on our website!

Expat Taxes - your Accountant in Prague, Czech Republic