Tax Calendar for 2025: When to File in the Czech Republic?

Companies and sole proprietors in the Czech Republic have until the beginning of May to file their tax returns electronically.

The new requirement to file returns electronically also applies to the report to the Czech Social Security Institution (ČSSZ). We are publishing a list of deadlines for self-employed individuals regarding income tax, social security, and health insurance.

A Flat Tax Will Help Avoid Paperwork and Save Money

Until January 10, 2025, self-employed individuals can apply for a flat tax. After this date, switching to the flat tax system will only be possible next year if the entrepreneur meets certain conditions. The flat tax allows self-employed individuals to simplify their payments by consolidating two or three different advance payments into one monthly contribution, as well as eliminating the obligation to file tax returns and reports. 

The maximum income from self-employment for switching to the flat tax regime is CZK 2 million. Due to the diverse range of incomes among taxpayers opting for the flat-rate tax, there are three bands based on the amount and nature of the taxpayer’s income. In the first band, the lump sum tax is set as the sum of the minimum health insurance premium, 1.15 times the minimum social security contribution, and a tax of 100 crowns. For 2025, this amount is CZK 8,716. In the second band, it is CZK 16,745, and in the third band, it is CZK 27,139.

How to Switch to a Flat Tax

To switch to a flat tax, you only need to submit a notice to the tax office. This notice to join the flat tax scheme must be submitted by January 10 of the year in which you want to apply the flat tax. For 2025, the notice must have been submitted by January 10. The flat tax itself is paid by the 20th day of the advance period (calendar month) for which the advance is due.

Please note that if you switch to the flat tax now, you will still need to submit returns and reports for 2024.

Those who participated in the flat tax system last year and wish to remain in it do not need to take any action; they simply need to adjust the flat tax amount based on their income in 2024. If they fall into a different band this year compared to last year, they must submit a notice of change to their chosen flat tax band by January 10, 2025.

You Can File Your Tax Return Electronically Until May 2

The main deadline for filing your tax return has remained the same for several years: this year, it falls on Tuesday, April 1. However, for several consecutive years, in some cases, you can file your tax return even on May 2. This is because self-employed individuals and companies that file their tax returns electronically have the option to extend the filing deadline by one month. They can therefore submit their tax return by Friday, May 2 (the deadline for paying additional taxes is also extended until May 2).

Thanks to the provisions of the relevant regulation, taxpayers who file their tax returns electronically not only receive an additional month, but even if they miss the extended deadline, the penalty will be calculated from the end of that extended period. In other words, those who do not manage to file their income tax return by early April can still file it electronically by early May without the risk of incurring a penalty.

If you miss the May deadline, you can use the services of a tax consultant and file your tax return without a penalty until early July. If you file a tax return in August, for example, the amount of the fine will depend on whether you filed it electronically or had a tax consultant file it for you. If someone filed a paper return in August, the fine would be calculated from April. If they filed electronically, the fine would be calculated from May, and if a consultant filed it for them, the fine would be calculated only from July.

Who Must Submit the Mandatory Electronic Declaration

It is important to note that two years ago, data collection boxes became mandatory for almost all individuals engaged in business, which entails the obligation to submit declarations online. As a result, most self-employed individuals were required to submit their declaration electronically by May 2, 2024.

What Are the Penalties for Late Submission of the Declaration

There is still a 5-working-day grace period for filing tax returns, which can be missed without penalty. Additionally, if the fine does not exceed CZK 1,000, the taxpayer is not obligated to pay it.

In the case of late filing of the declaration, the grace period is 3 calendar days. However, similar to fines for late filing, no interest is applied and no obligation to pay arises if the total amount of the fine does not exceed CZK 1,000 for one type of tax with one tax administrator for one tax period or for one calendar year for one-off taxes.

Interest for late payment of tax is calculated based on the interest rate for late payment in accordance with the Civil Code, which is equal to the repo rate set by the Czech National Bank on the first day of the calendar half-year in which the delay occurred plus 8 percentage points. The current interest rate is 12%.

Deadlines for Payment of Health and Social Insurance

Both declarations—for the insurance company and the social insurance office—must be submitted within one month after the entrepreneur or company has filed their tax return. A sole proprietor without a tax consultant who submits the declaration by the original deadline at the beginning of April must submit the declarations no later than the first working day of May, which is Friday, May 2. However, if the entrepreneur takes advantage of the option to submit the declaration later, the deadline for filing is extended by one month. In this case, the entrepreneur must submit the declaration by Monday, June 2.

It is important to note an innovation in the area of social insurance. The new procedure is similar to that for tax authorities, where mandatory electronic communication with the tax administrator has been introduced for individuals with an electronic data box (as required by law). Therefore, starting in 2025, the obligation to submit individual documents electronically will also apply to self-employed individuals in the areas of social and health insurance if they have a data box provided by law. The income and expense report for self-employed individuals is among the documents that must be submitted electronically starting this year.

As for insurance premiums, they must still be paid within 8 days after the actual filing of the declaration. If a self-employed person files a declaration on the last possible day, May 2, they must pay the insurance premiums by May 10. Conversely, if they file their report earlier, for example on February 1, they must pay the insurance premiums by February 9.

What Are the Penalties for Late Payment?

For insurance premiums, the day of payment is considered to be the day on which the money is received in the account of the insurance company and the social security office. Late payment may result in a penalty. 

The penalty amounts to 0.05% of the debt for each calendar day of late payment of the insurance premium. If the competent social security office has allowed the premium to be paid in installments, the penalty for such arrears is 0.025% of the debt for each calendar day during which the debt remains unpaid. The penalty is calculated from the day following the due date up to and including the day of payment. However, no penalty is calculated if it does not exceed CZK 100 in total for one calendar year.

Advances Must Be Changed Already in January

Since last year, the Social Insurance Institution has established that if a self-employed person’s monthly contribution base is lower than the minimum monthly contribution base in the new calendar year, then the minimum monthly contribution base for pension insurance and state employment policy contributions for that year is set from the first month of the new calendar year until the month in which the self-employed person’s income and expenditure report for the previous year must be submitted. The same system applies to health insurance. Thus, many self-employed individuals must change their advance payments for health and social insurance as early as January.

Self-employed individuals whose entrepreneurship is their main source of income and who have paid advance payments of less than CZK 4,759 (the new minimum advance payment for self-employed individuals) must adjust their payments to this amount by January. For health insurance, the new advance payment amount is CZK 3,143.

If you have any questions about taxes and business in the Czech Republic, feel free to ask us at 360WEDO. You can order a consultation on our website.

Source:

https://www.podnikatel.cz/clanky/kdy-letos-podat-priznani-a-prehledy-osvc-mame-danovy-kalendar-pro-rok-2025