letterhead5              
 
Note: the system for calculating Tax / Social / Health charges has changed SIGNIFICANTLY since 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
   
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.
 
Income tax (%) flat-rate, for Tax Base 0 - 1.2 M CZK
Solidarity Tax Threshhold průměrná mzda 28 232 Kč * 48
Income tax (the 15% + 7% solidarity tax)
 
         
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      
   
         
 
 
     
 
Note on Business Visa extension
Your business visa extension depends on your Trade License revenue. If you make too little money - your Business Visa will not be extended. How much you need to earn depends on your situation.
Using the 60/40 rule, with no dependants, we recommend a revenue of 400.000 CZK. This is necessary to get to the 160.000 CZK Tax Base, which is about the minimum for 1 person required by the Foreign Police.
If you do not have a revenue of 400.000 CZK, you will have to abandon the 60/40 rule - this also means a sharp increase in Tax / Social / Health charges, which many cannot afford (!)
EACH YEAR people get into visa problems. Start the extension procedure 2 months before the visa ends. Contact us EARLY to see how to optimize your Revenue. Last Minute = Too Late
VAT Registration  
Do you receive 1M CZK / 12 months or more from CZECH sources (clients)? Select (Y or N):
   
   
Do you regularly pay for goods / services from an EU-based supplier? Select (Y or N):
   
   
Do you invoice (goods / services) to EU-based businesses ? 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 (after 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 8.6 2017
tel +420 77 402 7 402
Jungmannovo Namesti 14, Praha 1
© www.Alexio.cz 2009-2017