Compensation bonus for the self-employed (the spring ‘twenty-five thousand’ and its later autumn versions)

It is not treated as taxable income, nor does it enter the assessment base for social security and health insurance. Quite simply, it falls outside both the tax return and the contribution statements.

But be careful: if you want to claim the tax credit for a wife with income of up to 68 thousand who received this compensation bonus during 2020, the bonus counts towards those 68 thousand!

Compensation bonus for managing directors of small s.r.o. companies

This is similar to the previous bonus, but here I would simply like to point out that this bonus should not be included in the s.r.o.’s accounts! The managing director should give their personal bank account on the application, and the bonus will be paid into it.

Care allowance for the self-employed

Again, this is income that is not taxable and does not create an obligation to pay social security and health insurance contributions. Here too, just as with the compensation bonus for the self-employed, be careful when claiming the tax credit for a wife or husband with income of up to 68 thousand Kč.

Antivirus programmes A and B

The employer records this contribution as other income – wages are included in expenses, so clearly the corresponding contribution must be included in income. However, it has no effect on social security or health insurance contributions for either the employer or employees.

Rent subsidies: all rounds

For tenants, the subsidy is again income or revenue, just as in the previous case. This is because rent is your expenditure or expense. The subsidy does not cause much trouble in double-entry bookkeeping, but I have noticed that many self-employed people using lump-sum expenses struggle to see it as business income. However, since the full rent is ‘included’ in the lump-sum expenses, you clearly have to increase your income by the subsidy. This does not mean you tax the ‘whole’ subsidy. You apply the 60% expense deduction (or another percentage) to it as well, so only 40 % of the rent subsidy is taxable. It is analogous to claiming actual expenses: your profit would also be higher then because your rent expenditure had been ‘compensated’ and was therefore lower. 🙂

Gifts from municipalities

Some municipalities provided gifts under gift agreements to business owners who could not open their premises because of government measures.

This is a gift, and it is taxable income.

As a general rule, we can probably summarise it simply: personal compensation (the compensation bonus, care allowance) is not taxed and is not subject to contributions. A subsidy for a specific expense (wages, rent), or a gift, is taxed and included in the assessment base for social security and health insurance. 🙂

If you are unsure, feel free to get in touch and we will look at it together. 🙂