Income tex return 2019 and the tax rate nad flat-rate expenditure:
- Personal income tax: 15%
- Corporate income tax: 19%
Application of flat-rate expenditure for personal income tax 2019:
- 80% (maximum 1 600 000 CZK per year) – from income from agricultural production, forestry and water management, from income from craft licence,
- 60% (up to CZK 1,200,000 a year) – income from usual business licence,
- 40% (up to CZK 800,000 per year) – other income,
- 30% (up to CZK 600,000 per year) – from rental income.
The EET will be extended in May 2020
The receipts have to include again the tax identification number (valid from November 2019)
The obligation to record sales will be extended to farmers, bakers, confectioners, butchers, lawyers, accountants, doctors, hairdressers, repairers, craftsmen, veterinarians, etc.
Exemption from EET – small business licence person with annual earnings up to CZK 600,000 – the law provides the possibility to record sales in a special off-line regime (it is necessary to submit EET notification in a special regime quarterly and submit special paper bills for customers which are available at finance office) .
Changes in VAT rates 2020
- VAT rates for hairdressing and barbers’ services reduced, bicycle repairs, footwear, clothing and textile products modification and draft beer sales from 21% to 10%
- VAT rates for water and sewarage are reduced from 15% to 10%
- VAT rates on catering services and soft drinks are also reduced to 10%
ESICK-NOTES from the 1st January 2020
- From 1 January 2020 eSick-notes will be fully functional to transmit information on the occurrence, course and termination of temporary incapacity for work to the employer
- Data box or NIA (National Identity Authority) will be required for employer login to ePortal
- The doctor prints out only the sickness confirmation for the patient, the Sicknotes will submit through the software or directly on the CSSZ ePortal
Changes in VAT when delivering goods between individual EU countries (quick fixes)
a new European directive on chain stores is implemented in the Czech law (goods are transported between two EU countries, but invoicing does not go directly from the first seller to the final buyer, but through one or more intermediaries who sell the goods in the chain
in this case, several supplies (invoices) are associated with a single physical movement of goods – it is necessary to assign this single transport to one of the supplies, which will be exempt from VAT (reverse charge) as supplies to another EU country, while other supplies will be taxed either in the country of the first seller or in the country of the final buyer
after the amendment it will be decisive who arranges the transport (intermediary)
obligation of the supplier to prove to the tax authority that the goods were actually dispatched to another EU country (CMR sheet, transport invoice, documents proving payment of the transport or confirmation of the storer in the country of destination of the goods, etc.