Moving Business to Prage Question
 

I'm thinking of moving to Prague in the next few months.

I know the Czech Republic hosts a number of adult webmasters, so I have a question for you.

When registering as self-employed, you need to choose a category which your line of business falls under.

I don't see anything relating to porn or affiliate marketing.

What trade category to adult webmasters choose?

*Excuse the mistyped question title..

i think i filled in "advertisment"

Didnt you ask these questions 4 years ago?

Funny i remember that thread,but i couldn't remember how he asked that question without checking his posting history.You must be having a powerful memory.

Also,i planned to move to Prague as well 4 years ago and still planning it,but there is always some stupid reasons which preventing to do it,so i'l guess he have those reasons as well.

If you are an affiliate, then it's: "Reklamní činnost, marketing, mediální zastoupení" :thumbsup

Haha, not quite - I asked which were the best countries to live as an adult webmaster and there was a discussion of the Czech Republic which largely centered upon social security and taxation costs :

https://gfy.com/showthread.php?t=987255

BTW, most of the advice given there was that although the fixed tax rate in the Czech Republic is only 15%, nearly half of your income has to go towards mandatory social security and health insurance (self-employed have to pay twice as much as employees).

From recent online research, I've discovered that although the rules are complicated, you should end up paying far less than half your income. The social security payments are treated as an expense you can deduct from your gross earnings, which already have 60% deducted as 'expenses' (no matter what percentage you spend on expenses).

I can post some links if anyone is interested.

Czech Republic comes out well in most lists of 'Effective Tax Rates' (i.e. income tax and state social security/insurance payments).

Many thanks! :thumbsup

Well speaking about taxes,one well know offshore adult service for some reason registered CZ company and having a CZ bank account,so i'l guess they are indeed best at that field.Tho,they picked worst possible bank,meaning the one with highest rates for everything,ceska sporitelna.

the rules in CZ have changed drastically in 2014 - it became much better actually

start an s.r.o., you can now do it for 0 czk initial investment

then pay yourself an income like 15.000 czk and have all your things covered like social insurance, health insurance etc at very affordable costs

then you only pay 19% corporate tax and all profits you can keep at no extra personal income tax (they killed those 15% this year)

this means your personal tax rate is 19% of all profits plus like 5000-8000 czk income tax, social and health insurance etc per month

and get a tax accountant

Interesting! But what about VAT in CZ?

what exactly is the question?

you handle VAT as usual...

You dont even need to be in VAT system if you dont make certain amount in a year.

What the percentage is.... but i alleady found it.... 21%...

Are you sure about those 15%?
I talked to two Czech accountants and i have been told that the 15% withholding tax is not canceled. You pay 19% corporate tax on profits of the s.r.o. and then 15% withholding tax.

well - my tax accountant told me that recently - starts from this year.

i hope he's right - lol

Also you dont need account unless you make more then 1m czk in a year.