Do you want to earn extra money? Try casual income


Casual income is one of the ways to earn extra money. It can also be beneficial for those who offer such an opportunity and pay for the work. However, certain conditions and rules must be observed.

What is a casual activity

Typical examples of casual activity might include occasional renting, for instance, a car or machine rental. Occasional services can include, for example, one-off consultancy or assistance (e.g. helping someone to paint office spaces). It might also include things like one-off income from the sale of fruit or vegetables.

Taxing casual income

If the casual income does not exceed CZK 30,000 per year, it is exempt from personal income tax and, therefore, you don’t have to include it in your tax return. If the occasional assistance is provided to an individual (an entrepreneur – a self-employed person) or a legal entity (e.g. a limited liability company), the entrepreneurs may include the amount paid for this assistance in their tax-deductible costs.

How to set the conditions correctly

If the casual activity is carried out for an entrepreneur, regardless of whether they are a natural or a legal person, it is recommended to conclude a written contract on the basis of which the entrepreneur can later prove his/her entitlement to tax-deductible costs. In order for the performed casual activity to be recognised as tax-deductible, it must, of course, be related to the entrepreneurs’ objects of business.

Beware of repeated activities and exceeding the limit

However, it is important to bear in mind that the activity must be truly occasional in nature, i.e. it must not be regularly repeated.

If a person runs a business on the basis of a trade licence and earns less than CZK 30,000 per year, this cannot be classified as a “casual activity” either, since such an activity is not occasional in nature.

If you earn more than CZK 30,000 per year from casual activities, the total amount of such casual income earned becomes subject to tax, even if the limit is exceeded by just one CZK.

Are you looking for advice concerning occasional activities and casual income? Do not hesitate to contact us, we will be happy to explain everything.

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