Illustrative calculation for CZK 1,217,400 gross annual income.
Self-employed person with 60% lump-sum expenses (OSVČ, výdajový paušál 60 %)
Deduct 60% deemed expenses (capped at CZK 1,200,000), then 15% income tax on the rest plus social (29.2%) and health (13.5%) on half the tax base.
| Income tax | CZK 73,044 |
| Social insurance | CZK 71,096 |
| Health insurance | CZK 39,663 |
| Total tax & contributions | CZK 183,803 |
| Effective rate | 15.1% |
| Net income | CZK 1,033,597 |
Assumptions
- Lump-sum expenses 60% of revenue, capped at CZK 1,200,000 (§7 odst. 7 písm. b) ZDP; equivalent to 60% of CZK 2,000,000 revenue)
- Income tax 15%; the 23% rate above a CZK 1,762,812 tax base is not modelled
- Social 29.2% and health 13.5% on the assessment base = 50% of the tax base
- Minimum assessment bases applied (social CZK 235,044/yr, health CZK 293,802/yr); social base capped at CZK 2,350,416/yr
- The flat lump-sum tax (paušální daň) alternative is not modelled; see TODO
- No first-year activity relief modelled for this regime (none)
- Effective rate is total tax and contributions over gross revenue
Who it's for
- Self-employed (OSVČ) using the 60% lump-sum expense rate (trades / most services)
- Lump-sum expenses capped at CZK 1,200,000 (60% of CZK 2,000,000 revenue) under §7(7) ZDP
- Free professions without a trade licence use a 40% rate (not modelled)