H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxesReturn

The article focuses on an overview of selected tax changes in the Czech Republic from 2024 as part of the adoption of the consolidation package. The article further deals with the analysis of the tax progressivity of the tax system of the Czech Republic in 2023 and 2024. The aim of the article is to describe selected tax changes in the Czech Republic and to evaluate the impact of changes in interval progressivity. Calculations are made on the basis of the effective tax rate, the progressivity of the average rate, the progressivity of the tax obligation and the progressivity of the after-tax income of the taxpayer receiving income from a dependent activity. 6 hypothetical situations of taxpayers are analyzed. Some of the tax changes under discussion include an increase in the corporate income tax rate, the abolition of the taxpayer discount, the limitation of the spouse discount, the introduction of a rate for employee health insurance, an increase in the tax on real estate, changes in work done outside of employment or an increase in social insurance rates for self-employed only. The results of the interval progressivity show that the highest tax progressivity is for low-income taxpayers and it decreases with increasing gross income. Taxpayers with child have interval progressivity and a lower effective tax rate. Furthermore, in 2024 compared to 2023, due to tax changes, the indicators of interval progressivity will change.

The article deals on unemployment in the context of social, tax and evacuating. Unemployment is a global economic, social and psychological problem, whose growth is closely linked with the economic crisis. Approach to solving unemployment is different between countries. In the Czech Republic, moreover, due to the relative generosity of the welfare system pushes the unwillingness of some of the unemployed to work. Aim of this article is to design economic incentives to motivate the unemployed to employment or operation of self-employment, such as cutting and editing insurance and social change in the tax on personal income by introducing a tax bonus for the taxpayer.

Introduction of a super-gross income represent an important change for the end of 2007 an employee's gross income was a tax base and at the same time the progress taxation was applied. Installation of a supergross income concept has caused an important increase of a tax base and a way of taxation was transformed into so called an equal taxation and the new equal tax at rate of 15 percent came into force as well.