Self-employed in Czech Republic: manual for Ukrainians

Self-employed type of work contract is rather popular among both Czechs and Ukrainians. It is locally called OSVČ (osoba samostatně výdělečně činná). You can be self-employed as a main work activity (hlavní činnost) or as an additional activity (vedlejší činnost). You can also check our blog and find important information on this topic.

Difference between main and additional activity

• Main activity is your main source of income. That means you need to pay monthly contributions : social and medical insurance.
• Additional activity means that you have another source of income. The most common situations when you can use this type are if you are on maternity leave, if you are employed or receiving a pension or during studies.
• You don’t need to pay taxes in advance if you have additional activity, but then you will need to pay taxes according to your income when filing a tax return. We always recommend paying at least some small amounts every month, so you wouldn’t need to pay a lot after submitting a tax return.

Flat rate tax

Each self-employed person, who has a main activity, should pay deposits for medical and social insurance monthly. Deposit consists of 1,15 times minimum medical fee, 1,15 times minimum social fee and income tax - 100 CZK. For the tax year 2023, medical deposit is 2722 CZK, social deposit is 3386 CZK and income tax is 100 CZK, which in summary is 6208 CZK per month. You can request the flat tax rate till the 10th of January. Deposits should be paid till the 20th of each month.

When do you need to start OSVČ

If you decide to become self-employed, first of all you need to register in the Trade licensing register. You will need to pay a 1000 CZK fee for registration. There is a list of free categories - you can choose as many categories as you need and you don’t need to prove your education degree or attach any specific documents. Other activities, not mentioned in the list, require additional confirmations you need to provide to be registered. These categories are rather popular among Ukrainians in Czech Republic:

• 10 - production of textile, clothes etc.,
• 41 - production of school and office supplies (except of producing paper), producing accessories, umbrellas, gifts,
• 45 - construction work, specialized construction activities,
• 56 - software and IT consultations, data analysis, etc.,
• 68 - photo service,
• 69 - translator activity,
• 72 - free time education, arranging courses, workshops including lectures
• 75 - housekeepers, ironing, repairing clothes and boots, etc.

We can offer you a personal consultation with a tax advisor, since each situation is unique.