Average and minimum wage

A regular change that awaits us from 2022 is an increase in the average and minimum wages for 2022 and the tax will rise accordingly.

Fixed tax

If a taxpayer uses a flat tax scheme, they should pay attention to the change in the flat tax amount from 2022. The flat tax for 2021 was set at CZK 5,469 and consisted of tax payment (CZK 100), social insurance payment (CZK 2,976) and health insurance payment (CZK 2,393). The flat tax for 2022 is CZK 5,994 due to the increase in the minimum wage.

Taxpayer loan

A long-awaited innovation in the coming years is an increase in the base tax rebate. For a long time, the basic allowance per taxpayer was CZK 24,840 per year (CZK 2,070 per month). In 2021, the basic taxpayer’s allowance was increased to CZK 27,840 per year (CZK 2,320 per month). Even in 2022, you can look forward to an increase in the base discount to CZK 30,840 per year (CZK 2,570 per month).

Tax incentives

The child tax credit will also increase next year. If you are claiming a child tax credit, your tax credit will not change. If you have more children, a surcharge applies to the amount.

Cancellation of excess gross wages

As a result of the abolition of excess gross wages for taxpayers with income from dependent activities (usually from employment), a progressive tax rate was introduced. If a taxpayer with income from a dependent activity reaches an income of up to CZK 1,701,168, a rate of 15% is applied when taxing this income. However, if the taxpayer exceeds this limit, income in excess of this limit is taxed at the higher tax rate of 23%. The increased tax rate applies to all types of income.