There are the same rules applied as in 2024. The only change is in the amount of monthly payment in 1st zone – it increases to 8 716 CZK.

If you decide to register for a Lump sum tax, you will pay only one monthly payment which includes income tax, social and health insurance together. After the year-end there is no need to file a tax return nor pay additional taxes in case you meet the criteria for a Lump sum tax.

If you want to enter the flat tax regime, the self-employment income must be the ONLY income during the year (with some minor exceptions). Please note that you cannot get a proof of income from the tax office nor a copy of tax return which might be important when applying for a visa, residency permit or a loan.

DEADLINE, PAYMENT TERMS AND ZONES

The deadline for entering, leaving, changing the zone or informing about not meeting the criteria of a lump sum tax regime is 10th January 2025. Monthly payments must be paid till the 20th day of the respective month.

There are totally 3 zones (pásma) which correspond to the nature of business and amount of income:

FIRST ZONE - Monthly payment: 8 716 CZK

Self-employed persons with income up to 2 million CZK, if most income (at least 75%) is income on which can be applied 80% lump sum expenses (e.g. agriculture income or income from craft trade for which is needed license).

Self-employed persons with income up to 1,5 million CZK, if most income (at least 75%) is income on which can be applied 60% or 80% lump sum expenses (e.g. income from non-craft trade; most usual free trade licenses).

All self-employed persons with income up to 1 million CZK in other cases – more than 25% income is income on which can be applied 40% lump sum expenses (e.g. Income of auditors, lawyers, tax advisors etc.)

SECOND ZONE - Monthly payment: 16 745 CZK

Self-employed persons with income between 1,5 and 2 million CZK, if most income (at least 75%) is income on which can be applied 60% or 80% lump sum expenses.

Self-employed persons with income between 1 and 1,5 million CZK, if more than 25% of income is income on which can be applied 40% lump sum expenses.

THIRD ZONE - Monthly payment: 27 139 CZK

Self-employed persons with income between 1,5 and 2 million CZK, if more than 25% of income is income on which can be applied 40% lump sum expenses (e.g. lawyers, auditors)

Examples for determining the zone for freelancers with a free TL (živnost volná)

SUMMARY

• Annual income from self-employment up to 2 million CZK in the respective month

• Not a VAT payer

• No income from employment (exemption: employment income with withholding tax)

• Other income only up to 50 000 CZK (e.g. rent income, income from capital assets or other occasional income)

• Not a partner in a public company or a general partner in a limited partnership

OUR SERVICES

2 000 CZK – registration for the Lump sum tax for 2025

1 000 CZK – calculation if the lump sum tax will be advantageous for you in 2025

500 CZK – tax advisory if you meet the criteria of lump sum tax regime for 2025