Overview of changes: tax and legislative news in 2022
The new year brings changes in taxes for entrepreneurs and employees, as well as a number of legal innovations. Higher minimum wage and taxpayer's rebate, increase in insurance premiums for self-employed persons, amendment of data boxes or directive on work-life balance and others. Read the full overview and stay up to date on what's coming up this year.
CHANGES TO INCOME TAX RELIEF
Higher discount per taxpayer. The basic discount can be deducted from the tax by self-employed persons and employees who sign the so-called "pink paper". From 1 January 2022, it increases by CZK 250 to CZK 2,520 per month, so each taxpayer can reduce their income tax by a total of CZK 30,840 per year.
Higher discount on school fees. A parent can claim a tax rebate of up to CZK 16,200 for 2022, which is CZK 1,000 more than before. This discount is not applied continuously during the year, but only in the employees' annual accounts or in the tax return of self-employed persons, so the new amount will not be claimed until the spring of 2023.
Unlimited tax bonus. The tax authority pays a tax bonus when the child tax credit is higher than the calculated income tax. Until 2021, the bonus was limited to a maximum of CZK 5,025 per month, but the capping is no longer in force this year and the bonus can be higher. You will know the difference if you have at least three children - the monthly tax benefits are CZK 1,267 for the first, CZK 1,860 for the second and CZK 2,320 for the third and each additional child.
MINIMUM LEVIES FOR THE EWC IN 2022
Health insurance. The minimum monthly payment increases to CZK 2,627 for the main activity. Do you pay the minimum amount in advance? Don't forget to adjust your standing order - you'll need to pay the new health insurance amount from January onwards, with a due date of 8 February 2022. There's no change for entrepreneurs with a secondary activity, or for those who pay higher advances on the basis of their tax return.
Social insurance. The new minimum pension insurance payment for self-employed persons with main activity is CZK 2,841 per month. Is your current payment lower? You can increase your payments from January or wait to pay more until after you submit your 2021 statement to the CSSA, it's up to you. Entrepreneurs with a secondary activity will pay at least CZK 1,137 per month in pension contributions. The minimum amount of sickness insurance remains at CZK 147 per month.
Flat tax. Entrepreneurs registered in the flat-rate regime pay one aggregate amount per month - this amounts to CZK 5,994 in 2022 and includes:
- 100 CZK for income tax;
- CZK 2,627 for health insurance (the same as the minimum payment for 2022);
- CZK 3,267 for pension insurance (15% increase in the minimum payment for 2022).
The flat-rate tax is payable by the 20th of the month, so you must pay the higher amount by 20 January 2022 at the latest. There is a limited deadline to sign up to pay the flat-rate tax for the year, this year it was 10 January. So if you are considering entering the flat rate scheme, you will have to wait until next year.
CHANGES FOR EMPLOYEES AND EMPLOYERS
Minimum wage in 2022. The minimum wage has increased to CZK 16 200 per month. The increase also affects guaranteed wages in a number of professions.
Extension of paternity leave. New dads can now stay at home for 14 calendar days on top of their normal leave instead of the previous seven. Any father who pays his sickness insurance can take paternity leave at any time within 6 weeks of the birth of his child. If the mother or child is hospitalised for medical reasons during this period, the period for taking paternity leave may be extended by the number of calendar days of hospitalisation.
Meal allowances for business travel. An employee in the business sector is entitled to reimbursement of meal allowances for business travel pursuant to Section 163(1) of the Labour Code.
Amounts for reimbursement of meals are based on the time spent on the road, in 2022:
|Length of business trip||Minimum amount of meal allowance|
|5–12 h||99 CZK|
|more than 12 and less than 18 h||151 CZK|
|more than 18 h||237 CZK|
DELIVERY OF PRIVATE MESSAGES TO DATA BOXES AND THE FICTION OF DELIVERY
On 1 January 2022, an amendment came into force that changes the rules for the use of data boxes. Everyone who has a data box will now automatically receive so-called postal data messages. This means that you can now receive mail not only from public administration bodies but also from private persons (companies, individuals). In addition, all messages are considered delivered on the 10th day after delivery to the data box.
We have discussed this topic in detail in our article on the new developments in data box delivery.
WHAT ELSE IS COMING UP? WHISTLEBLOWING AND THE WORK-LIFE BALANCE DIRECTIVE
On 17 December 2021, the deadline for the adoption of the Whistleblower Protection Act (the Whistleblowing Act) expired, so we should see it soon. The new law sets out rules to protect people who want to blow the whistle on illegal activities of an institution or organisation. Legal entities and public authorities will be obliged to establish an internal whistleblowing system for the safe reporting of illegal activities.
This year also marks the end of the deadline for the implementation of the Work-Life Balance Directive. This includes, for example, requirements on the length of paternity, parental and care leave, and the possibility of flexible working arrangements for parents.
We will let you know as soon as more information is available on the implementation of these points in the Czech legal system.