With the coming autumn, we are once again approaching the end of the calendar year, which is crucial for the area of accounting and taxes. At the end of the year, most income tax payers will end their current tax period and enter a new one. As in previous years, sole traders and other natural persons doing business will have the opportunity to enter the so-called flat-rate tax regime by January 10th.
What is a flat tax?
The flat-rate tax is a tax that can be imposed on the chinese overseas asia database income of small entrepreneurs on a monthly basis if they decide to take advantage of the possibility of entering this regime. This regime combines three mandatory payments – income tax, health and social insurance – into one regular flat-rate payment. The advantage of this regime is not only a lower administrative burden, but also the possibility of saving on tax. The flat-rate tax payer no longer files an income tax return or insurance premium reports for a given tax period in which he was a payer in the flat-rate regime throughout.
Conditions for entering the flat-rate regime
A taxpayer may enter the flat-rate regime if he/she meets the conditions set out in Section 7a of Act No. 586/1992 Coll., on income taxes, for the given tax period in which he/she enters the flat-rate regime, or for the previous tax period. A taxpayer already this is how much time i invest in my blogs and websites per week carrying out economic activity must meet the following conditions as of January 1 of the relevant tax period :
not being a VAT payer or not having a VAT registration obligation (can be an identified person),
not to be a partner of VOS or a general partner of KS,
must not have income from employment taxed by so-called advance tax (performance of employment taxed by withholding tax is possible),
in the immediately preceding tax period, did not exceed the relevant income for the selected flat-rate regime band,
A taxpayer who is just starting his economic activity must meet the same conditions as other taxpayers in the flat-rate regime to enter the flat-rate regime, with the difference that he must meet them on the date of commencement of activity.
Conditions for flat-rate regime
First band
The first band includes all natural persons with income thailand data up to CZK 1 million (regardless of the type of self-employment), income .
The flat-rate advance for the first band for 2025 is CZK 8,765 . Next year, there will be a relatively significant increase in flat-rate tax advances in the first band, when the payment of advances will become more expensive each month by CZK 1,267 compared to advances from 2024 (the amount of the monthly flat-rate tax advance was only CZK 7,498). This increase in the first band comes mainly from rising prices in the area of social and health insurance, as the increase in prices primarily reflects the increase in the cost of living and inflation, which affect the calculation of social and health insurance contributions.
