Return of yearly tax allowance on taxpayer from last year’s CZK 23,640 to CZK 24,840 (abolishment of the so-called „flood hundred-crown note“) and increase in the child tax allowance from CZK 967 to CZK 1,117 monthly.
Decrease in the yearly threshold from last year’s CZK 1,781,280 to CZK 1,206,576 for the payment of social security. The threshold for payment of health insurance premiums in 2012 is CZK 1,809,864 yearly.
Executives will be subject to health insurance. Members of the collective bodies of legal persons, for example, members of the Board, will now be subject to social security.
Monthly income in excess of CZK 10,000 will be subject to public insurance. All contracts concluded for the same employer shall be cumulative. At the same time, the volume of work for one employer is being increased from 150 to 300 hours per year.
Tomáš Hunal
+420 251 152 516
Source: PwC Česká republika, s.r.o.; Tax, Legal and Business News, January 2012
www.pwc.cz/tbn
