Here are some important information for the holders of trade licence in the Czech Republic! It’s regarding not only Czech citizens, but expats as well. Read the article and find out what the upcoming year of 2019 is preparing for you!
Starting in January 2019, social security contributions will always be paid in the calendar month to which the social security insurance relates. Paying will be possible from the first to the last day of the calendar month. Thanks to this, the ČSSZ (Czech Social Security Administration) will be able to send an inventory of receivables to entrepreneurs in January. At the same time, it will be clear in what month the contributions have already been paid.
However, due to shift in due date, in January 2019 the self-employed person would have to pay a social security contribution twice: for December 2018 and January 2019 in January. The contribution paid in January 2019 will be considered as a contribution for this month. Contribution for December does not have to be paid at all. However, the law allows self-employed to make a voluntary contribution for December. Yet, a voluntary contribution for December may be paid only from 21 December to 31 December 2018 (in December, a contribution would be paid twice – one for November 2018 with due dates of 1 to 20 December and the other for December 2018).
The new thing for 2019 is that the self-employed person no longer provides the monthly assessment base of social security insurance contribution. At the same time, the limit for determination of the maximum amount of the monthly assessment base for social security contributions and for these contributions and the obligation for self-employed persons to notify ČSSZ is cancelled. Also, the self-employed are allowed to pay a higher contribution over the year, however the procedure will be quite different. Compared with the current situation, a higher contribution will be considered as a future payment. It will be cumulated in December (or in the last month of activity) of the current year as a contribution for this month.
If you have any questions regarding these new norms, don’t forget to contact us, in order to get some clarification!
Some information regarding this issue in the Czech language: https://www.cssz.cz/cz/pojisteni-osvc/zmeny-v-pojisteni-osvc-od-1-1-2019.htm
A source (also in Czech): https://www.podnikatel.cz/clanky/mohou-si-osvc-i-v-roce-2019-platit-na-duchod-vice/