Note: the system for calculating Tax / Social / Health charges for 2018 has changed SIGNIFICANTLY compared to 2017!
For High Revenues (multiple M CZK)  and combinations with Employment, this XLS sheet is NOT SUITABLE. We have other XLSes for that. Those also deal with Tax Optimization and questions such as TL or SRO? TL and SRO next to each other? TL & Offshore entities? The complex XLSes are not publically available 'because of complexity' - please book a consultation since it requires a fair amount of explanation.  
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 : http://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):  
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?)            
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 (can not be less than the minimum)
yearly maximum payment
social contributions social contributions
Health contributions %
monthly minimum payment
according to Trade License Revenue (can not be less than the minimum)
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 (%)
Solidarity Tax Threshhold průměrná mzda * 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 CAN include: Children, non-working Spouses (this was not possible in 2017)
Standard Personal Tax deduction tax deductions (except for children) are 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 : http://alexio.cz/vat/vat_order.html
More VAT Information on Alexio.cz :  http://alexio.cz/vat/vat_registration_types.html
 Trade License (Živnostenský List) Setup Costs         
Trade License Registration cost calculation tool: http://alexio.cz/TL/TL_order.html
  Trade License      
Tax Base      
Social contributions      
Health contributions      
Income Tax (after deductions, benefits)      
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 : http://alexio.cz/consultation/business_consultation_for_foreigners.html
Accounting Services : http://alexio.cz/accounting/accounting_services_for_czech_republic.html
Income Tax Returns : http://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
version 9.0 2018
tel +420 77 402 7 402
Manesova 19, 12000 Praha 2
© www.Alexio.cz 2009-2018