New flat rate tax for 2022

Since the beginning of this year, self-employed persons who meet the specified conditions could choose to pay personal income tax in the so-called flat rate regime (more information HERE).

The flat rate tax includes advance payments for personal income tax, health insurance ,pension insurance and state employment policy. A significant simplification for taxpayers in the flat rate regime is the fact that they pay only one payment each month and in the same amount and (if the specified conditions are met throughout the tax period) without the obligation to file personal income tax return and social security and health insurance reports  after the end of the taxable period.

The tax administration has now published information on the increase of the monthly lump sum tax amount for 2022 (HERE), from the current CZK 5,469 to CZK 5,994. The increase is due to the fact that the amounts of the minimum health insurance and social security premiums are linked to the average monthly wage in the national economy, which is updated on annual basis.

New participants to the flat rate scheme from 2022 must submit the relevant notification by 10 January 2022.

If you have any questions, please contact the authors of this article or the EY advisory team you are working with.

Authors:

Ondřej Polívka

Dana Provázková