Trade License.cz / Social Charges and Health Insurance for a Czech Trade License
Monthly Social Charges for a trade license:
(for everybody, no difference in nationality)
The height of the social charges depends on your revenue, but the minimum (for 2011) is:
- 2012 social charges 1836 CZK / month *
(2011: 1807 CZK / month, 2010: 1731 CZK / month, 2009: 1720 CZK / month)
* If you also have a job as employee, and using the trade license as secondary income, then the minimum monthly social charge is 723 CZK / month.
Everybody will start in the first year of his trade license with the minium social charges of 1836 CZK /m, independent on the revenue. When filing the income tax return of that first year, we will calculate if those minimum charges were enough or that you must pay extra for this first year (this can be 10.000s of CZK!). Also, based on the income from the previous year, we will calculate the new monthly social charges for the next year.
Monthly Health Insurance Contributions for a trade license:
(for EU Citizens and 3rd-Country Nationals with Permanent Residence Permit
and 3rd-Country Nationals who already previously have been employee in EU):
The height of the contributions depends on your revenue, but the minimum (for 2011) is:
- 2012 health contribution 1697 CZK / month *
(2011: 1670 CZK / month, 2010: 1601 CZK / month, 2009: 1590 CZK / month)
* If you also have a job as employee, and using the trade license as secondary income, then the minimum monthly health contribution is 0 CZK / month.
Everybody will start in the first year of his trade license with the minimum health contribution of 1697 CZK /m, independent of the revenue. Just like the social charges, when the income tax return is being prepared, we will also calculate if the minimum health contributions were enough or that you must pay extra for the previous year (this is always much less than the social charges). Also, based on the income from the previous year, we will calculate the new monthly health contributions for the next year.
Monthly Health Insurance Contributions for a trade license:
(for Citizens from Croatia, Macedonia, Montenegro, Serbia, Turkey and Japan):
Because of the bi-lateral agreement between Czech Republic and Croatia, Macedonia, Montenegro, Serbia, Turkey and Japan those citizens pay monthly health contributions just like EU Citizens, instead of the expected 'emergency' or 'complex care' health insurance 3rd-Country Nationals pay normally.
Commercial 'Emergency' or 'Complex Care' Health Insurance for a trade license
(for 3rd-Country Nationals with a long-term D-Visa):
People with a long-term D-Visa do not pay monthly health insurance contributions *, because they already paid commercial health insurance when they applied for a visa or extended the visa.
* Unless they fall into the two categories mentioned above
For the first long-term D-Visa it is enough to have the basic emergency insurance of +/- 5.000 CZK / year (to be paid at once).
For extended visas the much more expensive 'complex' health insurance is obligated since 2011. The price depends on gender, age and risk category, but for a young, healthy person it is about 15.000 CZK / year (which also needs to be paid for the entire length of the visa extension - so 1 or 2 years at once)
The Business Visas issued in 2011 are only valid for 6 months (instead of 1 year), so the first year you will have to deal with 2 different types of health insurance. Fortunately we can help you, because we sell all common types of health insurance for foreigners on the Alexio.cz website:
VZP, Maxima, Slavia Health Insurance for foreigners (external link)
Income Tax for a Trade License:
(for everybody, no difference in nationality)
A Trade License is subject to 15% income tax, but this is not calculated from the entire revenue, but only from 40% of the revenue (in most cases).
You can read more about income tax and filing an income tax return on the next page:
