Czech Republic Payroll Solutions

Contractors in Czech Republic can be set up as Self-Employed.

EU citizens (including Czech citizens) who wish to become self-employed firstly need to apply for a trade licence. Workr
will assist with this process via in country accountants.

Once you receive your trade licence, you are obliged to register at the Social Security Office and at your local Tax Office.

EU citizens are also obliged to register at the National Insurance company called VZP. Again assistance is provided for
these activities.

Tax year – The tax year is the calendar year for individuals

Immigration – Nationals of the EU, EEA and Switzerland do not require a work permit, but are required to register within 8 days from the day when the business activity start.

Workr fees – €575 per month plus €350 set up fee.

Self-employment Summary

Registration – The business activities must be registered at the Trade License Office to obtain an extract of its trade license.

The trade License is a license issued by the municipal corporation which gives you permission to carry on the particular
trade or business for which it is issued.

After the completion of the registration process, the Trade License Office issues the excerpt of the trade license register
which is either picked-up personally by the applicant at the Trade License Office, delivered by post mail, or delivered to
an electronic data box.

Contract – A fixed-term contract can be used in Czech Republic.

Social Security – The social security rate for self-employed is 29.2% of the assessment base for the current year. The
assessment base is equal to 50% of the tax base achieved in the previous calendar year.

For the first year of a new business activity, the payable amount of contribution is equal to the minimum amount stated by the government. This minimum amount is updated every year and for the year 2021, this amount is CZK 2,588 per month.

Tax – Income tax is a flat rate of 15%

Benefits – Genuine business expenses can be claimed as a self-employed contractor, typically travel, training courses and work-relevant subscriptions are considered allowable expenses as well as costs associated with the move to and from Czech Republic for foreign workers going into the country specifically for a project.

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