How tax, social & health contributions change with revenue
Income tax, social and health insurance for a trade license at every income, compared with the flat-tax method and an s.r.o. company.
Total you invoice this calendar year, before expenses. EUR at CZK.
Starting later in the year? The monthly minimums and the flat-tax method then count only your active months.
- 60/40 method
- –
- –
- You keep
- –
- Flat-tax method
- –
- –
- You keep
- –
- s.r.o. (all as dividends)
- –
- –
- You keep
- –
Share of revenue you pay
Income tax, social and health insurance together, as a percentage of your revenue. Lower is better. The marker shows your revenue. Revenue from 100K to 3M CZK. The scale stops at 40%: at very low revenues the monthly minimums push the share higher. Above 3M, your own numbers are in the cards above.
- 60/40 method
- Flat-tax method (up to 2M CZK, only with public health insurance)
- s.r.o., profit paid out as dividends
What the 60/40 total is made of
- Income tax 15%
- Income tax 23%
- Social insurance
- Health insurance
What these numbers assume
- A trade license as your main income (or next to a Czech job if you select it), active from the month you choose, with the 60/40 flat-expense method (most services and IT work; the 60% applies to the first 2,000,000 CZK).
- Public health insurance (VZP) unless you switch it off above; without it, commercial health insurance comes on top. The basic tax credit only, no other income, no deductions and no real expenses.
- Flat-tax method for the 60% expense group: band 1 (9,162 CZK a month, after the refund for January to June) up to 1,500,000 CZK and band 2 (16,745 CZK a month) up to 2,000,000 CZK. It isn’t possible without public health insurance, as a full VAT payer or alongside a Czech job.
- s.r.o.: no costs, 21% corporate income tax, all profit paid out as dividends and taxed in your personal tax return, no salary. In practice you also pay health insurance and accounting costs.
Your exact numbers
A Czech job, a second business, real expenses or a mid-year start change everything.
In a consultation we run your own situation through our full model.
