Business taxes in Czech Republic: calculator for sole proprietors and companies
Choose a sector, a legal form and a tax system, enter your annual revenue and expenses — the calculator shows every tax and contribution, the total and what you keep.
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Legal forms
Sole trader (OSVČ) Osoba samostatně výdělečně činná (OSVČ, živnostník)
You run the business as an individual under a trade licence (živnostenské oprávnění); there is no separate legal entity and you are liable with all your property. You can choose flat-rate expenses, the flat-rate tax or actual expenses.
Requirements
Trade notification (ohlášení živnosti) at any trade licensing office or online — fee CZK 1,000. Craft trades (hairdressing, cosmetics, bakery, carpentry, car repair) require proof of qualification.
Records: with flat-rate expenses — records of income and receivables; with actual expenses — tax records (daňová evidence) with a document for every expense. In the flat-rate tax regime no return is filed.
The income tax return is due within 3 months after the year (1 April), within 4 months if filed electronically after that, and within 6 months if filed by a tax adviser.
There is no electronic sales registration (EET) — the act was repealed from 1 January 2023; a cash register is not required by law, but receipts or invoices are issued.
Sole proprietorOsoba samostatně výdělečně činná — výdaje procentem z příjmů (60 %)
Instead of actual costs, 60% of income is deducted (max CZK 1,200,000); income tax, pension and health insurance are paid on the rest.
Conditions
60% for non-craft trades (IT, consulting, trade, most services), expense cap CZK 1,200,000; 80% for craft trades (hairdressing, cosmetics, bakery, carpentry, car repair), cap CZK 1,600,000; 40% for activities outside trade licensing (tax advisers, auditors, authorised engineers), cap CZK 800,000.
Tax 15% (23% on the base above CZK 1,762,812), base rounded down to CZK 100, minus the taxpayer credit of CZK 30,840.
Pension insurance 29.2% of 55% of profit (minimum base CZK 17,139 a month, maximum CZK 2,350,416 a year) and health insurance 13.5% of 50% of profit (minimum base CZK 24,484 a month); these premiums do not reduce tax.
VAT registration is required from the next year once turnover exceeds CZK 2,000,000 in a year (or from the next day above CZK 2,536,500); VAT is not included in the calculation.
Sole proprietorOsoba samostatně výdělečně činná v paušálním režimu (paušální daň)
One monthly payment instead of income tax, pension and health insurance and returns: in 2026 band I is CZK 9,162, band II CZK 16,745, band III CZK 27,139 a month.
Conditions
Income limits for activities with the 60% flat expense rate (if at least 75% of income): band I up to CZK 1,500,000, band II up to CZK 2,000,000, band III up to CZK 2,000,000; for any activity: band I up to CZK 1,000,000, band II up to CZK 1,500,000.
You may not be a VAT payer, have employment income (other than income taxed at a special withholding rate) or other income above CZK 50,000; the band is chosen by 10 January.
The 2026 amounts reflect the reduction of the minimum pension insurance base by Act No. 90/2026 Coll., retroactive to 1 January 2026 (band I was previously CZK 9,984).
Sole proprietorOsoba samostatně výdělečně činná — skutečné výdaje (daňová evidence)
Tax and insurance are based on profit (income minus documented expenses); worthwhile if expenses exceed 60% of income.
Conditions
Tax records (daňová evidence) and documents for every expense are required; no income limit.
Tax 15% (23% on the base above CZK 1,762,812), base rounded down to CZK 100, minus the taxpayer credit of CZK 30,840.
Pension insurance 29.2% of 55% of profit (minimum base CZK 17,139 a month, maximum CZK 2,350,416 a year) and health insurance 13.5% of 50% of profit (minimum base CZK 24,484 a month); these premiums do not reduce tax.
VAT registration is required from the next year once turnover exceeds CZK 2,000,000 in a year (or from the next day above CZK 2,536,500); VAT is not included in the calculation.
Limited company (s.r.o.) Společnost s ručením omezeným (s.r.o.)
A separate legal entity; the owner risks only the contribution (and any unpaid part of it). It may have a single founder; profit is taxed in the company, dividends in the owner's hands.
Requirements
Minimum contribution CZK 1. The founding document must be a public deed (notarial record).
Entry in the commercial register: no court fee if the notary registers it directly using the model memorandum with a cash contribution; the company also needs a trade licence.
Double-entry accounting and annual financial statements; the corporate tax return is due 1 April, 1 May if filed electronically later, 1 July via a tax adviser or with a mandatory audit.
The company pays 21% corporate income tax (base rounded down to CZK 1,000); 15% is withheld from dividends.
Conditions
An owner without salary or a remunerated director contract pays no insurance through the company. If they have no other cover (employment, self-employment, state), they must pay health insurance themselves as a person without taxable income, on the minimum wage; not included in the calculation.
VAT registration is required from the next year once turnover exceeds CZK 2,000,000 in a year (or from the next day above CZK 2,536,500); VAT is not included in the calculation.
Software development, IT services, consulting for companies and entrepreneurs.
IT services and consulting are a free trade: flat-rate expenses 60% (up to CZK 1,200,000); flat-rate tax band I for income up to CZK 1,500,000.
VAT: registration from the following year once turnover exceeds CZK 2,000,000 in a year; a VAT payer cannot use the flat-rate tax regime.
Other business services draft — data being checked
Marketing, design, translation, engineering, bookkeeping and other professional services to companies.
Marketing, design, translation, bookkeeping and construction design are trades (free or regulated): flat-rate expenses 60% (used in the calculation).
Activities outside trade licensing under special laws (tax advisers, auditors, authorised engineers and architects) get only 40% (up to CZK 800,000), and flat-rate tax band I only up to CZK 1,000,000 of income.
Services to individuals draft — data being checked
Household services, repairs, beauty, tutoring, photography — for private customers.
Craft trades — hairdressing, cosmetics, manicure and pedicure, car repair, dry cleaning: flat-rate expenses 80% (up to CZK 1,600,000, used in the calculation); proof of qualification is required.
Tutoring and photography are free trades: 60%. Flat-rate tax band I applies up to CZK 2,000,000 if at least 75% of income comes from craft trades.
Trade in goods draft — data being checked
Retail and wholesale, including an online shop (excluding excise goods).
Trade is a free trade: flat-rate expenses 60% (up to CZK 1,200,000). In trade, actual costs (purchase of goods) are often above 60% — then actual expenses are cheaper.
Selling food: the start of the activity must be notified to the supervisory authority (SZPI or the public health office) no later than the day it starts.
Manufacturing draft — data being checked
Making and selling your own products: food, furniture, clothing, handmade goods.
Craft production — bakery and confectionery, butchery, dairy, carpentry: flat-rate expenses 80% (up to CZK 1,600,000, used in the calculation); proof of qualification is required.
Clothing and handmade goods under a free trade — 60%. A food producer notifies the supervisory authority of the start no later than the day it starts.
Assumptions
One owner who is a Czech tax resident, no employees, no other income, no children; full year 2026; amounts in CZK.
Self-employment is the main activity and not in the first years after starting (minimum pension base 35% of the average wage, not 25%); no voluntary sickness insurance; only the basic taxpayer credit.
IT services and consulting are a free trade, so the flat expense rate is 60%; for the flat-rate tax the lowest band allowed for that income is chosen.
VAT is not included. For the s.r.o.: the owner takes no salary; profit after tax is either fully paid out as dividends or kept in the company; the owner's health insurance as a person without taxable income is not included.
Other sectors: flat-rate expenses are 60% for business services and trade (free trades) and 80% for services to individuals and manufacturing (craft trades: hairdressing, cosmetics, repairs, bakery, carpentry); the flat-rate tax band limits depend on this too.
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