Lump sum tax in the year 2022

14. December 2021
  • Roman Burnus
  • Marek Toráč

Sole traders in the flat-rate regime will newly need to pay higher income tax advances from 2022. One merged monthly payment will include, as before, the minimum health insurance premium of CZK 2,627, the minimum social insurance premium increased by 15%, i.e. CZK 3,267, and income tax of CZK 100. In 2022, taxpayers will therefore pay advance payments in the amount of CZK 5,994 per month. These monthly payments can be prepaid for several months in advance or even for the entire year. The greatest advantage of entering may be the merging of three payments into one or the reduction of the risk of control by the tax authority.

Current lump sum taxpayers, who qualify for 2022, need to change their monthly advance to CZK 5,994 in their January payment already. If a sole trader enters the flat-rate tax scheme in January 2022 and submits a notice of entry into the lump sum tax scheme to the tax administrator by 10 January 2022, the first advance payment will be due on 20 January 2022. He is then obliged to make monthly payments on the 20th of the month until 20 December of the given calendar year.

If the taxpayer starts self-employment in January 2022 and signs up for the lump sum tax scheme, the advance payment for January and February will be due by 21 February 2022. 

Author: Roman Burnus, Marek Toráč