On 17 June 2020, the Chamber of Deputies approved a government draft bill on waiver of social security contributions and contribution to the state employment policy paid by some employers as taxpayers in connection with the emergency measures during the epidemic in 2020, which has been presented by the Ministry of Social Affairs of the Czech Republic.

The subject matter of the bill is a waiver of social security contributions and contributions to the state employment policy for the months of June, July and August 2020, which the employer has to pay for employees, reaching 24.8 %.

The waiver only applies to selected employers, though, who meet the given preconditions. The construction of the calculation of the personal income tax from employment (the so-called supergross salary, i.e. wage including all payable taxes and insurance premiums) will not be affected by the waiver of contributions in any way. Employers fulfilling conditions for waiver of contributions will continue to raise the income of the taxpayer in the standard way for the purposes of calculation of the tax base usually by 33.8 %.

The waiver of contributions will also not be reflected in the way of filling in the Confirmation of Taxable Income from income, deducted prepayments of tax for this income and tax credit on line no. 6 of the form MFin 5460, template no. 28 for the year 2020. The situation will be similar for the Confirmation of Taxable Income from employment and tax withheld according to a special tax rate.
The waiver of contributions also will not influence the setting of the maximum base of assessment for levies of social security contributions.

The bill was then signed by the president and published in the Collection of Laws under no. 300/2020 Coll. on 30 June 2020.