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The maximum amount of the lump sums that entrepreneurs – individuals – can apply from next year is halved. For example, in the case of farmers and traders carrying out craft trades, it is possible to apply flat-rate expenses up to a maximum of 800,000 CZK, which corresponds to income of 1,000,000 CZK. On the other hand, restrictions on the application of a child or spouse discount for entrepreneurs with regards to lump sums have been abolished.
For revenue for 2017, entrepreneurs can choose whether to follow the “old” rules or whether they will be able to follow the “new” rules. The new rules pay off especially to small entrepreneurs with income up to CZK 1,000,000, but they can also be advantageous for entrepreneurs with higher incomes due to the possibility of discounts. For example, in the case of a farmer applying a discount on a spouse and three children, the adjustment introduced by the amendment is more favourable up to the income amount of CZK 1,650,000. Therefore, we recommend that you try to calculate both variants and find out which one is better in your case.
For the review, we have summarised the maximum amount of flat-rate spending valid from 2018: