From 2025, changes will come into force for individual entrepreneurs (OSVČ) and self-employed persons in the Czech Republic, which will significantly increase their financial burden. The increase concerns the minimum social and health insurance contributions as well as the flat tax (paušální daň) for participants in the simplified tax regime. These changes are aimed at strengthening the social security system and emphasise the need for low-income entrepreneurs to take into account the new financial conditions…
Increase in mandatory contributions
The minimum monthly social and health insurance contributions will be increased by 1,082 CZK compared to the current year.
In 2025, the aggregate amount of contributions will be:
- 4,759 CZK — minimum social security contribution (increase of 907 CZK);
- 3,143 CZK — minimum health insurance contribution (increase of 175 CZK).
Changes in the flat tax
For participants in the simplified tax regime (paušální daň), the monthly payment will also increase. In 2025 it will amount to:
The simplified tax regime (paušální daň) remains favourable for many entrepreneurs, as it allows them to combine several tax and insurance obligations in a single payment. However, not all entrepreneurs can take advantage of this regime. For example, it is not available to VAT payers, entrepreneurs with taxable rental or capital income exceeding 50,000 CZK, and those who have income from their main job on which income tax is withheld. More details about the simplified tax regime (paušální daň) were given in our article.
With the growing tax burden, it is especially important to properly plan the budget for the next year in order to minimise financial risks and maintain business stability.
DoMyTax s.r.o. has been helping entrepreneurs like you successfully run a business in the Czech Republic for many years. We provide professional services:
- Bookkeeping in the Czech Republic.
- Assistance with OSVČ registration and renewal.
- Advice on tax and social contributions.
If you would like to learn more about tax changes or get professional advice — contact the professionals at DoMyTax and we will be happy to help you avoid problems, save time and money.
