The change lies in the fact that lower-income self-employed will be able to benefit from tax rebates, while higher earning entrepreneurs will be worse off in the form of a reduction in the limit of revenue to which lump-sums can be applied.

The change will be obligatory for all self-employed people from 2018. 

Most of self-employd people using lump-sum expenditures (60% of income) to reduce the tax base and the taxes.

Before 2018 the lump-sum was limited by 1 200 000 Czk. From 2018 the limit is only 600 000 Czk.

It means that the maximum of lump-sum expenses which you can declare in the income tax return is 600 000 Czk.

For people with annual income over 1 mil Czk will be taxation higher from 2018.


If this is your case, you should consider to set up s.r.o.