The Chamber of Deputies rejected an amendment intended to restore the cap on the flat expense charge-off (“paušální výdaje”) to the past year’s level, i.e. in relation to the annual income of CZK 2 million.
As a result, for all income from independent activities, the flat expense charge-off remains only at CZK 1 million per year (income in excess of this amount is taxed on a gross basis). Entrepreneurs and sole traders will need to work out properly whether a more beneficial treatment for them does not involve deducting the actual expenses incurred. Changing the treatment also requires taking into account special obligations related to the change such as additional taxation of receivables, etc.
The article is part of dReport – October 2018, Tax news; Grants and investment Incentives.
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