Who must register?

Companies and self-employed

• Registration is mandatory for everyone, even if you ultimately do not have to pay the fee.
• If you have fewer than 25 employees and own a vehicle that is not rented out to other individuals or companies, you are exempt from the fee—but registration is still required.
• Failure to register may result in a fine of up to CZK 10,000, even if you are not required to pay the fee.

Individuals

• You must pay the fee if you own at least one device technically capable of receiving radio or television signals – e.g., a TV, radio, computer, laptop, tablet, smartphone, etc.
• It doesn’t matter whether you actually use the device – it only matters that you own it and it can receive a signal.
• Only one member per household pays the fee (with exceptions such as dormitories, where each person pays separately).
• If you live in a rented apartment, the tenant pays the fee, unless the rental agreement states otherwise.

Who is exempt?

You do not have to pay the fee if you are:

• a person with low income (up to 2.15 times the minimum subsistence level – i.e., up to CZK 10,449),

• a person with a severe disability (total/practical blindness in both eyes or total/practical deafness in both ears), if you live alone or in a household with another person with the same disability.

• Individuals with temporary protection (refugees) do not have to pay a household fee, but if they are self-employed, they must register – just like all other tradespeople.

What are the rules in 2025 for filing documents by self-employed workers?

• From 2025, self-employed workers with an established data box must submit all prescribed forms, such as income and expenditure statements or applications, exclusively electronically.
• If it is not possible to file electronically for technical reasons, a paper form can be used. However, this option must be duly justified and assessed by the competent administration.
• Submissions that are neither electronic nor sufficiently substantiated will not be accepted.

The ePortal of the ČSSZ will offer the most convenience in electronic communication. Once logged into the system, you will have access to pre-filled forms and other useful features.

What are the new social security contributions from 2025 for self-employed persons?

Another major change is the increase in the minimum monthly pension contributions:

• Main activity: the minimum advance will be CZK 4,759.
• Secondary activity: the minimum advance will increase to CZK 1 496.

If we pay lower advances in 2024, we must switch to the new minimum from January 2025. This obligation will apply until we file our income and expenditure statement for 2024.

What are the new advance payments for health insurance from 2025 for self-employed persons?

• Main activity: the minimum deposit will be CZK 3,143.
• Self-employed persons carrying out secondary activities do not have to pay health insurance on an ongoing basis. After submitting the income and expenditure statement at the beginning of the year, they will pay the premium retroactively for the whole year according to the actual income.

Where can I find out what accounts to send the minimum deposits to?

Bank accounts for social security payments vary depending on where the payer is registered. The first two digits of the variable symbol can be used to find out which region. An overview of bank accounts by region can be found on the website of the Czech Social Security Administration.

• https://www.cssz.cz/web/cz/kontakty/region/ossz/praha#bankovni-spojeni

Bank accounts for health insurance payments at VZP are listed on the official VZP website.

• https://www.vzp.cz/platci/cisla-uctu?Category=Self&Region=ustecky-region

For accounts with other health insurance companies, you need to search for “health insurance company bank account numbers”, for example via an internet search engine.

If an entrepreneur decides to opt out of the system, he or she has several options. Withdrawal from the flat-rate tax is usually voluntary and most entrepreneurs cannot take this step immediately.

How to opt out of the flat-rate tax

    1. Immediate withdrawal

There are three specific situations where a taxpayer can opt out of the flat-rate scheme at any time during the year:

• Termination or discontinuation of self-employment – If the entrepreneur ceases or temporarily interrupts his or her business.
• Long-term stay abroad – If the taxpayer goes abroad and no longer has to pay health insurance.
• Loss of tax resident status – If the taxpayer ceases to be a tax resident of the Czech Republic.

In these cases, the obligation to pay the flat-rate tax ends with the expiry of the month in which the relevant event occurred. The taxpayer is obliged to notify this change within 15 days of its discovery.

      2. Withdrawal at the end of the tax period

If the above situations do not arise, the taxpayer may opt out by 10 January of the year following the year in which the flat-rate tax was declared. For example, if a business has a child in 2021 and wants to take advantage of the tax credit, it can file a notice of withdrawal from the flat-rate scheme by 10 January 2022. However, it remains in the flat-rate scheme throughout 2021 and must pay a fixed amount.

If the taxpayer does not meet the conditions of the flat-rate tax during the current tax year (for example, becomes liable for VAT), he or she will have to continue to pay the flat-rate tax until the end of the year and will not return to the normal system until the following year. In this case, he is obliged to submit a tax return and income and expenditure statements.

Moving out of the flat-rate tax may be advantageous for some businesses, especially if they plan to take advantage of tax credits or have income that exceeds the limits set for the flat-rate scheme. To learn more about the flat tax, its advantages, disadvantages and the correct procedure for opting out, watch our YouTube video where we explain everything in detail.

Logging in to internet banking

First, log in to your Raiffeisenbank internet banking. After logging in, our personal account will automatically appear. If we want to add a dispositor to a business account, switch to it at the top of the page.

Access to the disposition section

In the account settings, we find the “Manage Dispensers” section. After clicking on “Overview”, you will see a list of current dispositors, if we already have any. To add a new disponent, click on the “Add disponent” button.

Basic rules for adding a dispositor

In order to add someone as a dispositor, they must meet several conditions:

1. The dispositor must be a Raiffeisenbank customer.
2. We will need information from his/her ID card, passport or permanent residence certificate.

Filling in the data of the dispositor

On the following page, start filling in the personal details of the dispositor. Select the type of document (ID card, passport, etc.) and fill in its number. Then click on the “Continue” button.

Conclusion

The whole process of adding a disponent is intuitive and quick. This allows us to easily manage who has access to your account, both in the personal and business spheres. Remember that a disponent must meet all the requirements to be successfully added.

What is the A1 form?

The A1 form is an application form that you submit to the social insurance office. The purpose of this form is to ensure that a person working abroad remains insured in the Czech Republic. This means that they will continue to pay social security and health insurance here.

Where to find the A1 form?

The first step is to open the portal of the social insurance office and search for the relevant form. Click on the “forms” section and enter “A1” in the search box. We select the application for employees or self-employed, depending on what we need.

What will we need?

In addition to basic information about the applicant, you will also need to attach a contract or purchase order from abroad. This is because the Social Insurance Office often requires proof of a foreign contract.

Filling in the A1 form

1. Date and purpose of the application: we select whether the applicant will work only abroad or whether he/she will carry out activities both in the Czech Republic and abroad (concurrent activities). We enter the start and end dates of these activities, usually a period of two years.
2. Information about the applicant: By logging in via the data box, most of the data, such as the birth number, date of birth and address, are filled in automatically. It is also advisable to provide a contact number.
3. Social security and health insurance: Indicate where the applicant is insured. Most people will have health insurance with VZP unless otherwise stated.
4. Address and business address: We will check that the home address is correct. If it is the same as the contact address, tick the appropriate box. Next, enter the countries where the applicant will carry out his/her activity, usually EU countries.
5. Activity information: indicate whether the applicant is established in the Czech Republic and, if applicable, add the VAT number and the field of activity. If the applicant carries out more than one activity, we will break them down according to the different fields of activity and the countries where they will be carried out.
6. Periods of insurance: If the applicant was insured in another country, enter the relevant data.
7. Attachments: attach any necessary documents, such as contracts or orders from abroad. The form allows you to attach up to 8 files.
8. Declaration and submission: once all the data has been filled in, we save and submit the form. We can also print it or save it as a template for future use.

Conclusion

Filling out the A1 form can be complicated at first, but if you follow these instructions, you will get through it without any problems. If you have any questions or need help, please do not hesitate to contact us. Good luck and good luck with your international work activities!

If you’re a sole trader, you’ll be familiar with the term “minimum social insurance contributions”. For many, it’s a key item that can significantly affect monthly cashflow and overall business profitability.

Maximum invoiced amount 560 000 CZK

In 2023, the magic number to keep in mind is £560,000. This means that if you invoice amounts up to this threshold during the year, you can achieve the lowest possible social security contributions. Of course, this doesn’t mean you can’t invoice more, but if you want to minimise your contributions it’s a good number to keep in mind.

Why is this threshold important?

Social Security is made up of several parts, and the amount you pay varies depending on your income. With a lower income, you may qualify for reduced contributions, which can significantly reduce your monthly costs. On the other hand, if you exceed a certain threshold, your contributions may increase.

In conclusion

Whether you’re a start-up entrepreneur or have several years in the business, it’s important to know your options to optimize your cash flow and minimize your costs. £560,000 is the amount you should keep in mind in 2023 if you want to minimize your social security contributions.

If you have further questions or need a consultation about your business, please do not hesitate to contact us. The Accountants on 1 Ltd. team is here for you!

Note: We always recommend consulting with your accountant or tax advisor to ensure you have up-to-date and accurate information specific to your situation.