30% flat-rate expense deduction (výdajový paušál)

What you must keep records of even with the flat rate

The flat rate doesn’t mean you can skip record-keeping altogether. You still need to record your income and any receivables arising from the tenancy. You should also separate rent from service charges in the payments you receive. Advance payments that are properly settled against actual costs are not automatically part of the amount you calculate the 30% from.

Your choice applies to all income making up a single partial tax base under § 9. So you can’t claim the flat rate for one rented flat and actual expenses for another in the same year. Nor does the 600,000 Kč cap apply to each property separately. Income Tax Act, § 9, and GFŘ Instruction D-59, section on § 9(5).

When it pays to calculate actual expenses

An example for illustration: Rent received for the year totals 420,000 Kč. Flat-rate expenses come to 126,000 Kč, leaving a partial tax base of 294,000 Kč. If your deductible actual expenses, including any depreciation, would exceed 126,000 Kč, run the numbers the other way too. Proper records and the impact on future years matter as well, though.

If you are already depreciating the flat, depreciation continues on paper during the flat-rate years – you can’t save it all up for later. Switching between the two methods may also require adjusting your tax base, for example because of receivables. It isn’t something you fix by changing a single figure on your tax return.

Don’t confuse the 30% flat-rate expense deduction with the flat-rate tax for the self-employed (paušální daň pro OSVČ). They are separate tax regimes with different conditions.