Self-employed parents could pay lower contributions
Pirate MPs have filed a bill that would let a parent caring for a child run a business as a secondary activity until the child turns 7, instead of 4 as today.
Parents who start a business during childcare could then pay reduced minimum pension advances for up to two more years, calculated from 25% instead of 35% of the average wage. Měšec.cz estimates about CZK 3,772 a month in 2027 instead of CZK 5,281. Conditions include at least 12 months of continuous care and no self-employment in the previous 20 years.
The proposed start is 1 January 2027, but this is only a proposal: it may change or fail.
A new definition of dependent work (švarcsystém)
A Labour Code amendment that passed its first reading would define dependent work by six conditions that must all be met, instead of four. PAQ Research estimates that the share of self-employed people showing signs of disguised employment would fall from about 6% to 0.8%.
Unions have launched the "Nechci IČO!" campaign against the change, warning about lost employee rights and tax revenue; the Labour Ministry rejects their objections. If you work mainly for one client on a trade license, follow this bill: it affects how your set-up is judged.
VAT on scrapped goods: substance over contract
A coordination committee conclusion between the tax authority and the Chamber of Tax Advisers says that when scrapped material still has value reflected in the disposal price, there may be two supplies: a disposal service and a supply of goods, even if the contract mentions only one.
Reverse charge applies only when the goods objectively qualify as waste or scrap under the VAT Act annex, not simply because the owner discards them. VAT payers who liquidate stock or sell recovered parts should check their invoicing.
Deadlines
Saturday 31 October: OSS VAT returns and payment for Q3; Monday 2 November: last day to apply for VAT group registration from 1 January 2027.
Sources
- Měšec.cz – Lower contributions for self-employed parents (28 Oct 2026)
- Podnikatel.cz – Unions' "Nechci IČO!" campaign (28 Oct 2026)
- Daňovky.cz (KPMG) – VAT on liquidated goods (27 Oct 2026)
- Finanční správa – Tax calendar
This summary is for general information only and does not replace individual tax advice. Rules and amounts can change; check the date of this post.
