letterhead5              
 
Note: the system for calculating Tax / Social / Health charges has changed SIGNIFICANTLY for 2015! 
2) For Revenues over 2 M CZK per calendar year, this XLS sheet is UNSUITABLE - since new, more complicated rules apply. We have another XLS for that.
3) This XLS sheet does NOT correctly calculate Social  / Health contributions for combined income from Trade License and Employment. We have another XLS for that.
In case you do not want to fill in this sheet yourself, have questions about Trade License, Tax / Social  / Health contributions, Visa / Residence Permit or VAT:
Book a 1-hour Business Consultation here : https://alexio.cz/consultation/business_consultation_for_foreigners.html  
Fill in all YELLOW fields. Leave the other fields / numbers untouched, please    
Green fields show what you will have to pay monthly and at time of filing the Income Tax Return  
Month in which you start your živnostenský list Fill in here:    
Fill in here:    
         
Fill in here:  
Do you want to use the 60/40 rule for expense deduction? (Select Y or N):  
  Y  
           
Are you an EU citizen or non-EU with permanent residence permit / employment / Public Health Care? Select Y or N:
       
(or citizen from Bosnia / Hercegovina, Croatia, Macedonia, Montenegro, Serbia, Turkey and Japan?)            
           
Year   Fill in here:  
Standard Expense Deduction (depends on profession) %   Fill in here:  
Exchange rate CZK / EURO (Fill in - www.cnb.cz)   Fill in here:  
         
 
Social contributions %
Social support (NP, optional, but necessary for paid sickleave and maternity benefits) % 2.3%
monthly minimum payment
according to Trade License Revenue
yearly maximum payment
   
social contributions social contributions
   
         
 
Health contributions %
monthly minimum payment
according to Trade License Revenue
9,999,999
   
health contributions health contributions
   
 
In the second and next years, the contributions are based on the income of the previous year. If in the previous year you made little money, you continue paying minimum contributions.
However, if you made a lot of money in the previous year (especially if your TL was active for only a few months), the monthly contributions jump up in the next year.
In case your income drops significantly, and you are paying more than the minimum contributions, it is possible to file a request for lowering the monthly contributions.
 
Income tax (%) flat-rate, for Tax Base 0 - 1.2 M CZK
Solidarity Tax Threshhold For employees: for each month that +/- 100.000 is crossed
Income tax (the 15% + 7% solidarity tax) flat-rate, for Tax Base over 1.2 M
 
         
Factors reducing the Tax Base could include: Mortgage Interests, Gifts, Life Insurance - see the more eleborate XLS
     
Tax Deductions could include: Student, Children, non-working Spouses - see the more eleborate XLS
Standard Personal Tax deduction not refunded, only deducted from income tax  
     
         
15% Income Tax    
22% Income Tax      
   
         
 
 
     
 
VAT Registration  
Do you receive 1M CZK or more from CZECH sources? Select (Y or N):
   
       
Do you regularly invoice into EU (once or more per month)? Or do you receive goods / services from the EU? Select (Y or N):
   
       
Do you invoice sporadically into EU (a few times per year), but do not receive goods / services from EU? Select (Y or N):
   
         
VAT Registration checking / ordering tool : https://alexio.cz/vat/vat_order.html
More VAT Information on Alexio.cz :  https://alexio.cz/vat/vat_registration_types.html
 Trade License (Živnostenský List) Setup Costs   
   
Trade License Registration cost calculation tool: https://alexio.cz/TL/TL_order.html
         
       
 
         
  Trade License      
Revenue      
Tax Base      
Social contributions      
Health contributions      
Income Tax (before deductions, benefits)      
CZK EUR
Net money in your hand (yearly) *
Net money in your hand % (yearly) *
Net money in your hand (monthly) *
         
More Information Online  
   
Trade License  eleborate information : www.Trade License.cz
Business Consultation : https://alexio.cz/consultation/business_consultation_for_foreigners.html
Accounting Services : https://alexio.cz/accounting/accounting_services_for_czech_republic.html
Income Tax Returns : https://alexio.cz/income_tax_return/tradelicense_income_tax_return.html
         
Disclaimer: this is a simplified calculation, just to give you an indication. No rights can be derived from this sheet, no guarantee for correctness.
Income as employee, multiple sources of income (from abroad) and tax-treaties are NOT taken into account, contact Alexio.cz for that.
Legislation and sheet are subject to change without prior notice. Please contact us in case of any difficulties - we're here to help you.
Alexio.cz Expat Accountant
alexio@alexio.cz
version 8.4 2015
tel +420 77 402 7 402
Mánesova 864/19, Vinohrady, 12000 Praha 2
© www.Alexio.cz 2009-2015