Changes in the payments of Advances for Social and Health insurance

Government has approved, and president signed the law, which allows to self-employed persons not to pay Social and Health insurance between March through August 2020. This is valid for all self- employed persons regardless if the self-employment is their main or a side activity.

 

This is how this works:

Between March and August, you will pay ZERO advances for Social and Health insurance.

After year-end you will be required to prepare the Statement of income (Prehled o příjmech a výdajích OSVC) as usually and calculate the total annual insuracne. The total annual insurance will be lowered of 6xminimum advance payment (which is for main activity 2,544 CZK and for side activity 1,018 CZK for social insurance and 2,352 CZK for health insurance).

 

So in fact, self-employed persons who worked the whole 6 months between March and August will get a "discount" on the total Social insurance in amount 6 x 2,544 czk (for main activity) = 15,264 czk and on Health insurance 6 x 2,352 czk= 14,112 czk.  The two items total 29,376 czk.

The law also confirms that there will be no penalties for those who don`t pay the advances between March and August 2020.

If you have already paid the advance payment for March, then this advance payment is considered as September prepayment!

 

Your Expat taxes team

 

You can find the complete information (in Czech) here:

 https://www.psp.cz/sqw/tisky.sqw?tx=1

Social insurance changes are in the list 787/0

Health insurance changes are in the list 785/0