“Brigadiers employed on work execution agreements, abbreviated as DPP, can earn five hundred more without having to pay taxes,” reminded tax consultant Monika Lodrová from the consulting company BDO. While last year levies were mandatory from a monthly income of 11,500 crowns from one employer, this year the threshold is 12,000 crowns.
The reason is their linking to the average wage. This year, for similar calculations, it amounts to 48,967 crowns. The insurance premium is paid from a quarter of it, rounded down to the whole five hundred kroner.
The limit does not change in the case of an employment agreement, known by the abbreviation DPČ. It remains at 4500 crowns.
Part of the levies concern employers and part of employees. For the latter, it is 7.1 percent of the salary for social security and 4.5 percent for health insurance.
The obligation applies to income from one employer. If a person works on several contracts with several different companies, the amounts do not add up – even if the person collectively earns more than the mentioned 12 thousand on the contracts.
“Neither the Labor Code nor the tax rules limit the number of employers with whom a person can work on an agreement at the same time. There are, however, limitations for one employer,” pointed out Nikola Žítková, operations director of NeoTax. For one company, it is possible to work a maximum of 300 hours per year on a DPP, on a DPČ, work may not exceed half of the weekly working hours on average.
So people can have several jobs at the same time, they just have to watch their hours. At the same time, earnings are taxed at 15 percent, and they can deduct a tax credit for the taxpayer. This year it will reach 30,840 crowns, i.e. 2,570 crowns per month.
When to sign the “pink form”
However, it can only be claimed during the year if a person signs a personal income tax declaration, popularly referred to as a pink form. “A person can make this declaration only once, i.e. with one employer. With multiple employers, it would be against the tax regulations,” emphasized adviser Lodrová.
Of course, it is possible to transfer the declaration to another place during the year, especially if you change part-time or work. “It makes sense to sign a declaration with the employer where the person has the highest regular income. There, a discount for the taxpayer and any other discounts are applied every month, so this will reduce the monthly tax the most,” said Žítková.
If a person does not sign the form anywhere, the monthly discount will not apply. However, it can be obtained retroactively through a tax return – even if a person is not obliged to submit it due to the amount of income. The tax office will then refund the tax overpayment.
