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Výdajový paušál

lump-sum (standard) expenses

What does “Výdajový paušál” mean in Czechia?

Výdajový paušál is a way to calculate expenses as a percentage of income, without collecting receipts or keeping records of actual expenses. Do not confuse it with paušální daň (lump-sum tax): these are different things.

Four rates and their limits

80% — agricultural production, forestry and water management, živnosti řemeslné (craft trades). Maximum 1,600,000 CZK/year.
60% — živnostenské podnikání (trade business, except craft trades). Maximum 1,200,000 CZK/year.
40% — other business: liberal professions, author's fees. Maximum 800,000 CZK/year.
30% — rent of property in business assets. Maximum 600,000 CZK/year.

How it works with numbers

Revenue of 800,000 CZK with a 60% lump sum → expenses of 480,000 CZK → tax base of 320,000 CZK. This base is then used to calculate both the tax and the OSVČ (self-employed status) contributions (social insurance — 55% of the base, health insurance — 50%).

Important. Ceiling on earnings — not a detail. At a 60% rate, lump-sum expenses stop growing after 1,200,000 CZK: everything you earn above this amount is taxed fully. With high turnover, actual expenses may be more beneficial.

Examples of use

I am applying the 60% expense allowance.

I apply lump-sum expenses of 60%.

The craft trade (remeselná živnosť) has an 80% flat-rate expense deduction.

Craft entrepreneurship has an 80% lump sum tax.

Articles on this topic

Business

OSVČ in the Czech Republic: A Complete Guide for NewcomersArticle

Legalization

Taxes and Insurance: What Migrants Must Pay in the Czech RepublicArticle

Frequently asked questions

Are "výdajový paušál" and "paušální daň" the same thing?

No, these are different things. Výdajový paušál (expense allowance) is a way to calculate expenses as a percentage of income within a regular tax return. Paušální daň (lump-sum tax) is a separate system where you pay one fixed amount and do not submit a tax return at all.

What is the lump sum tax for a regular "živnosť" (sole-trader licence) of the "voľné" (unrestricted) type?

60% is for trade licensing business (živnosť), except for craft trades, with a ceiling of 1,200,000 CZK per year. The 80% rate with a ceiling of 1,600,000 CZK is for craft trades, agriculture, forestry, and water management businesses (živnosti).