Tax rates in 2017

•    The limit for registering as a person liable for value added tax is a turnover exceeding 16 000 euros.

•    The withheld income tax rate is 20%.

•    The basic exemption is 180 euros per month (implemented on the basis of an application of the payment recipient).

•    The increased basic exemption in the event of an accident at work or an occupational disease is 64 euros per month (implemented on the basis of an application of the payment recipient).

•    The social tax rate is 33%. The monthly rate for calculating the minimal social tax duty is 430 euros (instead of the 390 euros applied in 2016), meaning that the minimal social tax duty is 141.90 euros per month. The monthly payment of at least the minimal social tax rate ensures health insurance.

•    The unemployment insurance payment rates are 1.6% for employees and 0.8% for employers.

•    The minimum wage per month for full-time work is 470 euros, i.e. 2.78 euros per hour (gross).

•    The VAT for accommodation services is 9%.

•    The domestic reverse charge mechanism as of 1 January 2017 for selling metal products (the buyer pays the amount net of VAT).

•    As of 1 July 2017, employers can voluntarily reimburse for the 2nd to 3rd day on sick leave without social tax (as is currently obligatory for the 4th to the 8th day).

Tax rates from 2018

•    As of 1 January 2018, the limit for registering as a person liable for value added tax is a turnover exceeding 40 000 euros.

•    As of 1 January 2018, progressive income tax shall be applied.