Czech tax questions, answered

Every self-employed person files a return, as does every employee with side income over 20,000 CZK, and anyone who had two or more employers at the same time deducting advance tax. The deadline is 1 April on paper, 2 May electronically, and 1 July with a tax advisor.

A self-employed person whose last known tax liability was over 30,000 CZK pays half-yearly advances on 15 June and 15 December, each 40 percent of the tax. Above 150,000 CZK, quarterly advances are due on the 15th of the third month of each quarter, each 25 percent of the tax.

Preparing a self-employed person's tax return usually costs 3,000 to 8,000 CZK depending on complexity. A full annual service including payroll and VAT starts around 5,000 CZK per month. Hourly rates in Prague run between 1,500 and 3,500 CZK.

A bookkeeper keeps your records and prepares statements. A tax advisor is a licensed professional who can sign your return, represent you before the tax office and extend your filing deadline to 1 July. For a simple sole trader a bookkeeper is usually enough; for VAT, employees or an audit, a tax advisor adds real protection.

The flat-rate tax is a single monthly payment that covers income tax plus social and health insurance for the self-employed. There are three bands by income up to 2 million CZK. You cannot be a VAT payer and cannot have side income over 50,000 CZK. The first-band payment for 2026 is 8,716 CZK per month.

VAT registration is mandatory once your turnover exceeds 2 million CZK over 12 consecutive calendar months. You can also register voluntarily. Registration is filed electronically and you become a payer from the first day of the second month after the threshold is crossed.

A self-employed person pays 29.2 percent for social insurance and 13.5 percent for health insurance, both from half of the tax base. Minimum monthly payments apply even in a loss year. For 2026 the minimums rose again in line with the average wage.