Businesses and lessors who do not declare their real expenses and whose tax base generated by their business or lease (or, as the case may be, the combination of both) exceeds a half of their total tax base may choose the type of their flat rate.
The first option is the application of the higher limit of the lump sum expenses at the cost of not being able to claim neither the spouse tax deduction nor the child tax bonus and the total income may not exceed CZK 2,000,000.
The other possibility consists in applying the lower limit of the lump sum expenses with the option of claiming the spouse tax deduction (if all the necessary requirements are met) and the child tax bonus with income not exceeding CZK 1,000,000.
The choice may only be made within the tax period of 2017; next year, it will not be possible to choose and only the second option will apply (i.e. application of the lower flat-rate limit with the spouse tax deduction and child tax bonus claims) for the above subjects.
The maximum limits of the flat-rate expense options may be found in the following table:
| Deduct expenses as percentage from revenues | Maximum amount of deductible expenses (Option 1) | Maximum amount of deductible expenses (Option 2) |
Businesses in agricultural production, forestry and water management and craft traders | 80 % | CZK 1,600,000 | CZK 800,000 |
Other traders | 60 % | CZK 1,200,000 | CZK 600,000 |
Businesspersons with other income from independent activities | 40 % | CZK 800,000 | CZK 600,000 |
Tax payers with income from lease | 30 % | CZK 600,000 | CZK 400,000 |