Within the so-called tax package (act no. 80/2019 Coll.), which we have repeatedly informed you about, some stipulations of the income tax relating to taxation of natural persons have also been ultimately adopted.

Limit of the tax base for taxation using withholding tax 
In the case of income from employment, which is a separate tax base for taxation using withholding tax (minor income from employers, where the employee has not signed the so-called declaration of the taxpayer), the monthly sum of this income will no longer be limited by a fixed sum (previously CZK 2,500), but will be based on the reference sum for participation of the employee in health insurance, which currently reaches CZK 3,000. This stipulation takes effect from 1 May 2019. 
In the case of contracts of services, the limit for taxation of this income using the withholding tax remains at CZK 10,000.

Change in flat-rate expenses
In the case of flat-rate expenses for sole traders and taxpayers with income from rent (article 7 paragraph 7 and article 9 paragraph 4 of the income tax act), after their previous lowering they are being increased again, to a double sum compared to the year 2018. The maximum limit on expenses, which an entrepreneur can apply as flat-rate work-related expenses, will thus again be calculated from the sum of CZK 2m. The percentage of the flat rates (30 % – 80 %) depending on the type of self-employed activity or income from rent, remains unchanged. It will be possible to use the new limit for applying flat-rate expenses for income achieved in the year 2019, i.e. in the tax declaration submitted in the year 2020.