Tax treatment of self-employed and employee incomes

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04274644%3A_____%2F19%3A%230000489" target="_blank" >RIV/04274644:_____/19:#0000489 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Tax treatment of self-employed and employee incomes

Original language description

The comparable amount of the overall taxation of the incomes of self-employed, employees and single directors is significantly influenced not only by tax rates, but also by the assessment bases for income tax and social security contributions. Unlike western countries, we have a low tax rate on the income of natural persons and a high burden on work through social security contributions, the lion share of which is paid by the employers. The prerequisite for the effective solution of the problem of the overall taxation of self-employed includes clarification of the concept for financing social security, from which the expediency of combining the current taxation of personal incomes with the social security contributions paid by employees becomes apparent under Czech conditions. At the same time, this will also involve a necessary increase in the tax rates for self-employed and single directors. The rate of the social security contributions paid by employers and self-employed may be differentiated on the grounds of the lower scope of social security provision for self-employed, but this is not necessary under Czech conditions. The allowance for employee benefits (in particular paid leave) provides justification for the reduction of the assessment base for self-employed social security contributions to below the level corresponding to the share of an employee gross wage in the total labour costs.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50201 - Economic Theory

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2019

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Proceedings of 18th International Conference Economic Policy in the European Union Member Countries

ISBN

9788075102898

ISSN

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e-ISSN

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Number of pages

10

Pages from-to

404-413

Publisher name

Silesian University

Place of publication

Karviná

Event location

Čeladná

Event date

Jan 1, 2018

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

000485363200044