About 31,500 small entrepreneurs have filed new flat taxes so far, and hundreds more applications may still be arriving at the tax authorities in the mail. In total, around 100,000 entrepreneurs will use the flat tax this year, the Ministry of Finance said in a press release Monday.

Last year, 82,000 entrepreneurs filed for flat-rate taxes, but some of them closed their businesses or decided not to continue with the flat-rate tax regime. Since this January, the annual sales limit for entry into the flat-rate tax regime has been doubled to two million crowns.

“This year, around 100,000 self-employed people will deal with their taxes and fees as the only permanent monthly payment in internet banking. I think flat-rate tax is the right project which symbolizes the simplification of tax obligations and the reduction of bureaucracy. , the expansion that we also want for other groups of entrepreneurs that they should work on in the future,” said Minister of Finance Zbyněk Stanjura (ODS).

The flat rate tax is aimed at self-employed, non-VAT payers with an annual income from business of up to two million crowns. It should save self-employed bureaucracy and, according to the Ministry of Finance, the reason for most inspections will disappear. In one payment, employers pay taxes, health and social insurance. Last year, the Ministry of Finance, while presenting a proposal to double the income cap, estimated up to 60,000 self-employed people could register for the system this year.

The application deadline for the flat-rate scheme ends on January 10. This year it is only paid in three bands namely 6,208, 16,000 and 26,000 crowns per month. According to tax experts, most people interested in flat taxes will use the lowest band. Entrepreneurs in certain sectors, such as IT, photography services, tax advocacy or consulting, can enter a higher bracket if their income exceeds one million crowns or 1.5 million crowns.

According to experts, a flat-rate tax is most beneficial for self-employed persons with a lower flat-rate fee, but at the same time they do not apply tax discounts for children and spouses. After signing up for flat rate taxes, employers can no longer claim deductible items, tax deductions, or tax benefits, such as mortgages or life insurance.