Monthly flat-rate tax advances for sole traders in the first income band will rise by CZK 1,218 to CZK 8,716 starting next year, the Financial Administration announced today. Advances for the second and third bands will remain unchanged at CZK 16,745 and CZK 27,139, respectively. Sole traders wishing to join, exit, or switch their tax band must submit their applications by January 10. The increase in the first-band advance is attributed to higher contributions for health and pension insurance. Health insurance premiums will increase by CZK 175 to CZK 3,143 per month, while pension insurance premiums will rise by CZK 1,043 to CZK 5,473. The income tax component of the flat-rate payment remains unchanged at CZK 100. Advances must be paid by the 20th day of each month. The flat-rate tax system, introduced to simplify tax payments for sole traders, allows non-VAT payers with annual business incomes of up to CZK 2 million to combine income tax, health insurance, and social insurance into a single payment. According to the Ministry of Finance, this system reduces bureaucratic burdens and minimizes the likelihood of tax inspections. As of January 2023, approximately 125,000 entrepreneurs were registered under this regime. In 2023, the flat-rate tax system introduced income bands to accommodate variations in earnings among small entrepreneurs. Tradespeople in certain professions, such as IT, photography, law, or tax advisory, can move into higher bands if their annual income exceeds CZK 1 million or CZK 1.5 million. Entrepreneurs looking to enter or adjust their flat-rate tax arrangements for 2024 must submit their requests by January 10. Changes may include switching tax bands if their actual income aligns better with a different category. Notifications must be submitted electronically by those required by law to use a data box. Others may file their notifications by post or in person at a tax office branch. Entrepreneurs already enrolled in the flat-rate tax regime will be automatically re-enrolled for the coming year, ensuring a seamless transition. Source: CTK