The principles for inclusion in the individual flat-rate tax bands remain the same (see article from last year Changes in flat-rate tax from 2024). However, due to the increase in the average wage and the increase in the assessment base of social security from 30% to 35% of the average wage, there is an increase in band I.
What is the new amount of monthly lump-sum advances and lump-sum tax?
The amount of the taxpayer’s lump-sum advances in the 2025 advance period by flat rate band is as follows:
● Band I of the flat rate scheme: CZK 8 716
● Band II of the flat rate scheme: CZK 16 745
● Band III of the flat rate scheme: CZK 27 139
Monthly prepayments | Total amount | Income tax | Pension insurance | Health insurance |
I. band | CZK 8 716 | CZK 100 | CZK 5 473 | CZK 3 143 |
II. band | CZK 16 745 | CZK 4 963 | CZK 8 191 | CZK 3 591 |
III. band | CZK 27 139 | CZK 9 320 | CZK 12 527 | CZK 5 292 |
We remind you that entry into the flat-rate scheme is voluntary and it is possible to register until 10 January 2025. Those taxpayers who used the flat-rate tax in 2024 and for whom the current increase would mean a disadvantage may consider leaving the flat-rate scheme. This must also be notified to the tax office by 10 January 2025.
If you wish to remain in the flat-rate scheme for the following year, there is no need to reapply; the scheme is permanent unless you actively deregister or fail to meet the conditions.
Self-employed individuals starting their activities during 2025 must submit the notification of entry into the flat-rate scheme at the same time as the notification of the commencement of their business activity/registration with the tax office.
Flat-Rate Tax Payments in 2025
Taxpayers already in the scheme since 2024
● Those already in the flat-rate scheme in 2024 and not intending to leave, or those who have been in business for some time and decide to join the flat-rate scheme in 2025, must pay the flat-rate tax advance according to their band by the 20th of each month.
Taxpayers starting independent activity in January 2025
● By February 20, 2025, they must pay the monthly advances for the flat-rate tax for both January and February 2025.
● From March to December 2025, the flat-rate tax advance must be paid monthly by the 20th of each month.
Self-Employed Individuals starting activity during 2025
● The first flat-rate tax advance is due by the 20th of the following month, together with the advance for the second month. For example, if registration occurs in March, the advances for March and April must be paid by April 20, 2025.
● In subsequent months, the standard monthly payment must be made by the 20th of the current month.