“Flat tax approved. It means a single payment instead of three and thus significantly less paperwork. It will be valid from 1 January 2021, next year there will be a monthly payment of 5,740 crowns, ”wrote Minister of Finance Alena Schillerová (for YES) on Twitter.
–
Flat tax approved. It means a single payment instead of three and thus significantly less paperwork. It will be valid from 1.1.2021, next year the monthly fee will be CZK 5,740. Includes CZK 100 tax, minimum social + 15% and minimum health. The limit will be the annual income from business up to CZK 800,000.
— Alena Schillerová (@alenaschillerov) June 29, 2020
–
The amount of the flat tax thus includes health insurance premiums of 2,514 crowns, income tax in the symbolic amount of 100 crowns, and the minimum social insurance premium increased by 15 percent. This corresponds to 3126 crowns for next year.
–
Originally, the Minister of Finance Alena Schillerová proposed a flat tax for self-employed persons with an income of up to one million crowns. On the other hand, the Minister of Labor and Social Affairs Jana Maláčová (ČSSD) stated when she came to the government that she would like it to be for small entrepreneurs with incomes up to 600 to 750 thousand crowns.
–
In the end, the government supported 800,000 crowns.
–
“I agree with the support of small tradesmen, the simplification of their lives, but it should not develop even more scissors between the taxation of tradesmen and employees. There is the difference in the order of several tens of multiples, “said Maláčová.
–
He also considers income tax in the amount of the symbolic 100 crowns to be very small.
–
The CSSD will postpone its validity
The change should take effect on January 1, 2020. However, when she came to the government, Minister Maláčová stated that she wanted to postpone the effectiveness due to an unprepared IT system. According to her, the IT system of the Czech Social Security Administration (CSSA) cannot be redesigned in half a year.
–
“It’s really very challenging, because the whole system will have to be redesigned. We have a 30-year-old system at the CSSA. If it were to take place on January 1 next year, it would be done by hand, it would be a big complication, “added the head of the Ministry of Labor and Social Affairs.
–
The change must now be assessed by the House. According to Schiller, lawmakers could manage to discuss it before the parliamentary holidays, which are from mid-July to the end of August. An extraordinary meeting should be convened for this.
–
According to the calculations of the Ministry of Finance, the introduction of a flat tax would deprive public budgets of about 300 million crowns. At the same time, however, income from social insurance should increase by 59 million crowns.
–
The Ministry of Finance expects that about 140,000 taxpayers would join the system.
—
