Changes for the self-employed

The new year begins under the sign of changes for the self-employed. In fact, there will have to be an increase in the minimum monthly advances for health and social insurance. What will these increases be?

A self-employed person means a self-employed person who is self-employed, or who is self-employed, and is therefore not employed by an employer. In 2022, the minimum advance for social insurance for the main activity of the self-employed, therefore any activity that provides for the execution, for consideration, of a work or a service, with predominantly its own work and without any obligation of subordination to the principal object of the activity which clearly exceeds any other gainful activity in terms of income received, is calculated from the average wage and will amount to CZK 2,841, or 29.2% of the minimum monthly assessment base (CZK 9,728 * 29.2%). In 2021 the average wage was 35,441 CZK, while in 2022 it is expected to CZK 38,911. The minimum monthly calculation basis is one-quarter of the average salary (one quarter of CZK 38.911), or CZK 9.728. In 2021, the minimum monthly advance for social insurance for self-employed persons is CZK 2,588. Annual growth is 253 CZK per month (3,036 CZK per year).

The discount for the taxpayer increases from CZK 27,840 in 2021 to CZK 30,840 in 2022.

A self-employed person engaged in secondary gainful activity, thus pursuing another occupation or in employment, education, retirement, maternity leave or parental allowance, has an income up to the limit, does not have to pay any social insurance for the tax period. The decisive amount (limit) is 2,4 times the average wage (for the year 2022, or CZK 36,119 1,0773 2,4). For the year 2021, the limit for non-payment of social insurance applies to CZK 85.058. For 2022, the limit will be set at CZK 93,387. For ancillary activities, coordination activities and, more generally, any complementary activities to the main one, a minimum advance is set on the social insurance of CZK 1.036 for 2021 . The basis for calculating the minimum advance for ancillary activities is the average of the average wage, namely CZK 3.892. From this amount, 29.2% of pension insurance is determined. The minimum monthly advance for ancillary activities will therefore be CZK 1.137. In 2022 will also increase the maximum tax base, which is 48 times the average wage. Above this amount, self-employed persons no longer have to pay additional pension insurance. For the year 2022, the maximum assessment basis will be CZK 1,867,728.

Payments for self-employed persons on minimum monthly advances on health insurance

The minimum amount of advances on health insurance in 2021 is CZK 2.393.

The tax base for the calculation of advances is half of the average monthly gross salary, set at CZK 38,911 for 2022.

The tax base is CZK 19,456. The health insurance rate is 13.5% of the tax base, that is CZK 0.135 x CZK 19,456.

The minimum monthly amount of advance payment for health insurance for self-employed persons for the year 2022 after this calculation is CZK 2.627 .

The self employed person shall not be obliged to respect the minimum amount of advances for health insurance for the months during which he was in secondary gainful employment.

Source: www.open.online

The flat tax for the self-employed

The flat-rate tax consists of levies equal to the minimum contribution to health insurance. Compared to the year 2021, the minimum contribution to pension insurance is increased by 15%, that is to say, amounts to CZK 3,268, as well as personal income tax which is increased by an amount of CZK 100. The sum of these amounts influences the flat tax which in 2021 is CZK 5,469 per month, while in 2022 it will be CZK 5,995 per month.

The amount of health insurance for OBZP

For persons without taxable income (OBZP), the calculation of advances for health insurance is different. Advances for health insurance must be paid by the OBZP every month, at the latest by the 8th of the following month.

The tax base is the minimum wage, in 2021 of CZK 15,200.

From the minimum wage, the health insurance deposit for OBZP is calculated at the health insurance rate of 13.5%.

For the year 2021, the advance payment for health insurance for OBZP amounts to 2,052 CZK .

For the year 2022 , the advance for the OBZP will amount to CZK 2.187, as the minimum wage will increase to CZK 16.200.

Persons without taxable income are not obliged to pay social insurance.

Tax discount for dependent children of employees

Over the next year, the tax discount for dependent children will increase,  as shown in the table below.

Source: www.open.online