Many entrepreneurs in the Czech Republic end up paying more in taxes than necessary – simply because they don’t take advantage of all the deductions allowed by law. And that can cost them thousands of crowns every year.
Starting a business in the Czech Republic without VAT registration is easy and often more convenient, especially in the early stages. Many entrepreneurs choose to operate as non-VAT payers because it means less paperwork, no obligation to remit part of their earnings to the state, and in many cases, more competitive pricing for end consumers.
In 2025, the minimum wage in the Czech Republic has gone up again. The Ministry of Labour and Social Affairs (MPSV) now uses an indexation mechanism to calculate the monthly and hourly minimum wage each year. But what exactly is the minimum wage this year? And how does it compare with other EU countries like Germany, Austria, Slovakia, or Poland?
Document archiving is an essential part of any accounting process. Properly storing documents in accordance with current regulations can protect entrepreneurs from issues during audits and serve as a legal safeguard.
Start by creating a personal file for the new employee from day one. This is essentially a folder where you store all key documents related to their employment. Having everything organized in one place will save you time and trouble later on.
A recent amendment to the VAT Act introduced a new obligation: the so-called refund of the declared VAT deduction in cases where a payment has not been made. But when exactly does this obligation take effect, and for which tax period must an entrepreneur or company adjust the deduction?
Sending money abroad through your bank might seem like a straightforward task, but it can end up costing you a lot more than expected. Hidden fees, unfavorable currency conversions, or even minor data entry mistakes can lead to significant losses.
As of June, the rules for terminating employees in the Czech Republic have changed significantly. The new conditions apply to both dismissals initiated by the employer and those initiated by the employee. The changes are especially disadvantageous for employees who, for instance, violate their work obligations.
A properly issued tax document is essential for claiming the right to a VAT deduction. At the same time, it serves as a key accounting and tax record. Its required format and content are defined by VAT legislation.
Many entrepreneurs rely on external sources of financing — in other words, borrowed funds — to support their business operations. One common option is credit financing. But how exactly are loans recorded in accounting?
Artificial intelligence (AI) is becoming an essential tool across a wide range of industries — and accounting is no exception. As technology continues to evolve, it’s reshaping the way we work, helping us process large volumes of data with greater speed, accuracy, and efficiency.
In the Czech Republic, four out of five sole proprietors currently pay no more than 100 crowns a month in income tax. Economists from PAQ Research and the Institute for Labour and Social Affairs (RILSA) argue that it’s time to rethink this setup. Adjustments to the lump-sum tax regime and a reduction in flat-rate expenses could generate up to 25 billion crowns annually for the state, they estimate.
Voluntary pension insurance offers a way to fill in gaps in your insurance record and potentially increase your future pension, especially during times when you're not employed or are working outside the Czech social security system.
All taxpayers in the Czech Republic should have already received information regarding the amount of their real estate tax. If someone has not yet received a notice, they can check the amount either through the financial administration or via the MOJE daně portal.
