Illustrative calculation for CZK 1,209,450 gross annual income.
Self-employed: 60/40 lump-sum expenses
Deduct 60% deemed expenses, then 15% income tax on the rest plus social (29.2%) and health (13.5%) on half the tax base.
| Income tax | CZK 72,567 |
| Social insurance | CZK 70,632 |
| Health insurance | CZK 39,663 |
| Total tax & contributions | CZK 182,862 |
| Effective rate | 15.1% |
| Net income | CZK 1,026,588 |
Assumptions
- Lump-sum expenses fixed at 60% of revenue (valid up to CZK 2,000,000 revenue)
- Income tax 15%; the 23% rate above a CZK 1,762,812 tax base is not modelled
- Social 29.2% and health 13.5% on the assessment base = 50% of the tax base
- Minimum assessment bases applied (social CZK 235,044/yr, health CZK 293,802/yr); social base capped at CZK 2,350,416/yr
- The flat lump-sum tax (paušální daň) alternative is not modelled; see TODO
- Effective rate is total tax and contributions over gross revenue
Who it's for
- Self-employed (OSVČ) using the 60% lump-sum expense rate (trades / most services)
- Annual revenue up to CZK 2,000,000 for the full 60% deduction
- Free professions without a trade licence use a 40% rate (not modelled)