Frequently Asked Question including czech s.r.o. company and individual in 2020
As a limited company, called in czech s.r.o. , you will pay a tax called corporate income. This is a 19% tax deducted from revenu and expenses corresponding to a tax period.
What characterize a sole trader – in czech OSVČ – is the cash-oriented system. All the money received will feel a 15% cut. This tax is also personal income tax received (PITR).
The individual status, unless a limited company carries its debt to his personnal life. For instance, in case of bankruptcy, the individual may need to use its proper funds to compensate the loss.
It always depend on your activity. There may be more reason to be a VAT payer such as marketing purposes. It can also vary: – on your type of client; – the country of your clients and providers; – and what do you invoice. It can be also a money reason since you will be able to have VAT back on your purchases.
It turns out that Di Raffaele accounting has many beneficial aspects:
- It is our profession to make sure your accounting is established as per Czech law. As a fact, it takes an average up to 6 time longer for an uncertified accountant to perform accounting.
- You will benefit a 100% online accounting so you don’t need to make copies or print anything since all will be uploaded online.
- We record your finance to our online semi-automatic accounting software. So we can focus on your specific needs and you can check your company finance whenever you are connected, wherever and in real time!