Czech Republic launches flat‑rate tax for self‑employed from 2026

The Czech government will introduce a simplified flat‑rate tax system for self‑employed workers (OSVČ) beginning in January 2026. The regime combines income tax, health and social insurance into a single monthly payment due on the 20th of each month, eliminating the need for separate tax returns and insurance reports.

Three contribution bands are defined based on annual revenue: up to CZK 1 million (CZK 9 162 per month), CZK 1‑1.5 million (CZK 16 745 per month) and up to CZK 2 million (CZK 27 139 per month). Eligibility requires the taxpayer not to be a VAT payer, to have at least 75 % of income from main business activity, and to meet income and other restrictions such as no child tax credits. The scheme also outlines voluntary termination, transition between bands, and separate enrollment for sickness insurance if desired.