Secondary activity (Vedlejší činnost) is defined quite specifically in the law, and yet, many have a misconception about what vedlejší činnost is and when it can be established.
Vedlejší činnost is an activity that is secondary to a primary one. It is appropriate to register a business as a secondary activity when you:
- Have employment as your primary activity
- Are retired or receiving a disability pension
- Are a dependent child (student)
- Are a member of the armed forces in the Czech Republic
- Are on maternity or parental leave and receiving related benefits
- Are caring for a child under 10 years of age or another person who is dependent on you.
The comparative advantages of vedlejší činnost are as follows:
- Health insurance is paid based on the actual assessment base, unlike with a primary activity, where a minimum health insurance payment is due even when your income is zero.
- Advance payments for health and social insurance may not be required during the first year of activity. However, it’s important to understand that this refers to advance payments, not the insurance amount itself – that will be calculated at the end of the accounting period, and the final amount will have to be paid.
- If the income from the vedlejší činnost does not exceed 93,387 CZK (amount set for 2022), then you will not pay social insurance. If the income exceeds this amount, social insurance is paid as a lump sum after the annual settlement.*
If you have questions about conducting a vedlejší činnost, you can contact us or our accountant for a consultation to clarify any points that remain unclear. Write to us at info@unimfa.com.