Self-employed persons must submit a snapshot of their income and expenses for the past year by May 2, if they submit their tax return by April 1 in paper form. Entrepreneurs who send their tax returns electronically still have time – until June 1. They file their tax returns no later than May 2, so they have a month to file.

Reports can be brought to the social administration in person, sent by post or submitted via the interactive form available at CSSA ePortalwithout the client having to login to the site.

It’s the same with health insurance companies, where reports can usually also be submitted electronically. Just be careful – for health insurance companies, the form is renamed “Overview of the number of self-employed tax bases” this year and simplified – only one data is filled in, namely the amount of the tax base.

The deadline for payment of social or health insurance arrears is eight days from the submission of the report.

As the Czech Social Security Administration points out on its website, if the Self-Employed Income and Expenditure Statement is not submitted to the social administration on time or at all, a fine of up to CZK 50,000 may be imposed by law.

In the case of a health insurance company, the amount of the penalty for late or late delivery is determined according to civil law on the amount of interest on arrears. Interest in arrears in the first semester of 2022 is 11.75 percent.

The amount of the new advance is calculated in the report

All self-employed persons carrying out their main activities must pay a monthly down payment for social and health insurance. From the overview, they will know how much crown they have to send to the advance from May.

“The monthly down payment is one twelfth of the annual social and health insurance calculated if it is higher than the minimum monthly down payment. The social insurance rate is 29.2 percent and in health insurance 13.5 percent of the valuation base,” says tax expert Mazars Gabriela Ivanco.

He added that the premium is calculated from the minimum valuation basis if the actual valuation basis (half of the tax base) is lower. Even with profits in thousands of crowns for 2021, a down payment on monthly premiums has to be paid.

“In such a case, a minimum monthly advance is paid, which increases every year. The monthly health insurance advance is due on the eighth day of the following month and the social insurance advance is due at the end of the month,” said Gabriela Ivanco of Mazar.

The minimum monthly deposit for health insurance in 2022 is CZK 2,627. The minimum upfront payment for health insurance is paid by the self-employed with a gross profit for 2021 up to 467 thousand crowns. “For example, with a 2021 profit of 600 thousand crowns, the new monthly down payment for health insurance is 3,375 crowns,” calculated Gabriela Ivanco.

The minimum monthly deposit for social insurance after submitting a report for 2021 is 2,841 krona and is paid by self-employed with the profit for 2021 being 233,500 krona. Due to the establishment of a minimum valuation basis, the minimum down payment for social insurance applies less to self-employed than to health insurance. “With last year’s profit of 400,000 crowns, the minimum deposit for health insurance was paid, but the deposit for social security was 4,867 crowns,” explains Gabriela Ivanco.

Income tax in the form of an advance

While social and health insurance advances must be paid by all self-employed with their primary activities, only a few pay income tax advances. “It is paid by those who have an annual income tax higher than 30 thousand crowns. Self-employed with income tax calculated up to this amount will therefore not pay an income tax advance during 2022 and will pay income tax for 2022 once again after submission of the 2022 SPT,” added Gabriela Ivanco.

Entrepreneurs with annual tax obligations higher than 30,000 crowns and less than 150 thousand crowns will pay two tax advances of 40 percent of the calculated income tax, while the deadlines for advance payments are June 15 and December 15. “For example, an entrepreneur with an annual income tax of 50,000 will pay two tax payments of 20,000 each,” Ivanco said.

If the annual calculated income tax is higher than 150 thousand crowns, the income tax is paid in four periods, always in the amount of one quarter of the annual income tax.