Ways to leave
Voluntarily

By 10.1.2022 you could not only join the flat-rate tax scheme but also leave voluntarily.

Compulsorily

If you registered for flat-rate tax last year but breached any of the conditions during the year, you had 15 days to submit a notification of termination of the scheme to the tax office. From 2022, it is therefore automatically assumed that you have left the scheme. 

Health and social insurance advance payments

Whichever way you left the scheme, you paid monthly flat-rate tax until December 2021. From January 2022 you must start making advance payments again, at the minimum amount for 2022.

Social insurance

Bank account: can be found on the Czech Social Security Administration website according to your permanent address (also shown on your 2020 Statement of Income and Expenses, or any letter the district social security administration has sent you)

Payment reference: this is the specific number assigned when you first registered as self-employed (you used the same reference for advance payments before 2021; it is also shown on your 2020 Statement of Income and Expenses or any letter the district social security administration has sent you)

Due date: by the end of the month for which you are paying, i.e. 31 January 2022 for January 2022

Amount: CZK 2,841

Health insurance

Bank account: can be found on your health insurer’s website – most commonly: VZP, ZPMV, ČPZP, VoZP, OZP (make sure this is the account for self-employed people; with some health insurers, payments even go to a specific branch according to your permanent address)

Payment reference: birth registration number without the slash (if you are a foreign national, note that the health insurer assigned you this number when you first registered)

Due date: by the 8th day of the month following the month for which the payment is made; for January 2022, the payment window is therefore from 9 January 2022 to 8 February 2022

Amount: CZK 2,627

Tax return and insurance statements for 2021

If you left the scheme voluntarily, I have good news: you do not need to deal with 2021 at all. You will therefore pay minimum social and health insurance advances throughout 2022. Be careful, however: I recommend using a calculator to work out your final social and health insurance contributions based on your planned profit for 2022 when filing the statements in spring 2023, and allowing for those amounts. Because you will be paying only minimum advances, a larger balance due in spring 2023 may catch you off guard. This usually concerns the balance due on social insurance.

If you breached the conditions during the year, you must file a 2021 income tax return by 1 April 2022 (or 2 May 2022 if filing electronically).

In the tax return itself, you enter CZK 1,200 as income tax advances paid (12 x CZK 100 included in the flat-rate tax). You can also claim all tax credits and deductions to which you are entitled.

Within one month of filing the tax return, you must then submit statements to the social insurance authority and your health insurer (available on your health insurer’s website). In these statements, you report how much of your flat-rate tax payments went towards the relevant insurance during 2021. The best source for this amount is the account reconciliation sent to you by both insurance authorities by post or to your data mailbox. In practice, however, it should be CZK 35,712 for social insurance and CZK 28,716 for health insurance.

The statements then calculate your revised advance payments for 2022. From the month in which you submit the statement, you pay this calculated amount for health insurance. For social insurance, you pay the new advance only from the following month. 

If you are unsure, do not hesitate to get in touch and we can look at it together. 🙂