Abolition of the Super-gross Salary as of 2021

10. March 2021 | Reading Time: 1 Min

On 1 January 2021 a strongly-discussed amendment to the Income Tax Act took effect, which, among other things, abolishes the so-called super-gross salary. This represents the most significant change in personal income taxation in the Czech Republic over the last years.

Already as of January 2021 salary, the tax basis for income tax is not derived from a so called “super brutto” tax basis, i.e. from income increased by employer’s contribution to social security, but  only from gross income. Moreover, there are now two progressive rates 15 % and 23 %. The higher rate is applied to the part of the personal tax base exceeding 48 times the average salary. Due to the introduction of the two tax rates, the solidarity tax of 7% was also abolished.

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