Tax records (called “daňová evidencia” in Slovakia and “daňová evidence” in Czechia) are the simplest way for the self-employed to claim actual expenses without keeping full accounts. Both countries offer them as a middle path between a flat-rate expense deduction and bookkeeping. The core idea is identical – you are not an accounting entity and file no financial statements – but the thresholds and flat-rate percentages differ.
What tax records are and who uses them
Tax records sit between flat-rate expenses and proper accounting. They suit a sole trader whose real costs are higher than the flat-rate deduction would allow, but who does not want – or is not required – to keep books. In both countries, the person who keeps tax records is not an accounting entity, keeps no accounting books in the statutory sense and files no financial statements.
The practical appeal is the same on both sides of the border: you record what you actually earned and spent, back every entry with a document – typically a correctly issued invoice – and arrive at the tax base without the overhead of double-entry accounting.
How Slovakia regulates tax records
In Slovakia, Section 6(11) of the Income Tax Act sets out exactly what the records must contain: income and tax expenses in chronological order, tangible and intangible business assets, inventory and receivables, and liabilities. Since 2014 there are no restrictions – you may keep tax records regardless of turnover and even if you employ people.
The alternative is the flat-rate deduction under Section 6(10): 60% of income, capped at €20,000 a year, plus paid contributions. Tax records win whenever real costs exceed that cap – for example for traders buying materials or depreciating equipment. For the wider picture, see our guide to the single-member s.r.o. in Slovakia and Czechia when a company form becomes the better option.
How Czechia regulates tax records
In the Czech Republic, Section 7b of the Income Tax Act requires records of income and expenses and of assets and debts. The flat-rate percentages under Section 7(7) are more graduated than in Slovakia: 80% for craft trades and farming (max CZK 1,600,000), 60% for other trades (max CZK 1,200,000), 40% for other self-employment and liberal professions (max CZK 800,000) and 30% for rental (max CZK 600,000).
A Czech sole trader must switch to full accounting only on specific triggers – registration in the Commercial Register, turnover above CZK 25 million in the previous year, a special legal duty, or a voluntary decision. Czechia also offers a “flat tax” (paušální daň) that bundles income tax and both insurance contributions into one monthly payment for traders with income up to CZK 2 million.
The key difference between the two countries
The structure is the same, but the numbers are not. Slovakia uses a single 60% flat rate with a hard €20,000 ceiling; Czechia uses four percentages tied to the type of activity, each capped at the level matching CZK 2 million of income. The accounting threshold also differs sharply – Slovakia has no turnover limit forcing a non-registered individual into accounting, while Czechia sets a clear CZK 25 million trigger.
In both systems, however, the logic for choosing is the same: compare your real costs against the flat-rate deduction. If actual expenses are higher, tax records save tax; if they are lower, the flat rate is simpler and usually cheaper.
Managing assets, inventory and year-end
In both countries tangible assets are recorded and depreciated under the income tax rules, and depreciation feeds into expenses. Inventory, receivables and liabilities are tracked throughout the year. Czechia adds an explicit year-end step under Section 7b(4): on the last day of the tax period the taxpayer establishes the actual stock of inventory, assets, receivables and debts in a written record and adjusts the tax base for any differences.
When moving from the flat rate to actual expenses, both systems require care so that inventory and receivables are neither taxed twice nor left out. A clean stocktake at the switch is the safest approach.
How long to keep the records
In Slovakia, records must be kept until the tax authority’s right to assess the tax expires – generally five years, extendable during an audit. In Czechia, the limitation period under Section 148 of the Tax Code is three years, extendable up to ten; VAT payers must keep tax documents for at least ten years, and loss-related documents are best kept longer.
In practice, in both countries you should not discard invoices and records right after filing. Well-organised, backed-up documents are what prove your claimed expenses if an inspection comes.
Not sure whether the flat rate or tax records save you more, or need order in your documents in Slovakia or Czechia?
FAQ
Are tax records the same as accounting?
No. Tax records are far simpler – they work on a cash basis and require only income and expenses plus a record of assets and debts, with no financial statements. Accounting uses the accrual principle and is more demanding. A self-employed person must switch to accounting only on specific triggers, such as turnover above CZK 25 million in Czechia.
How do the flat-rate expenses differ in Slovakia and Czechia?
Slovakia uses a single rate of 60% of income capped at €20,000 a year. Czechia uses four rates by activity – 80%, 60%, 40% and 30% – each capped at the amount matching CZK 2 million of income. In both countries tax records become worthwhile once real costs exceed the applicable flat-rate deduction.
When is it worth switching from the flat rate to tax records?
When your actual expenses exceed what the flat-rate deduction allows, or when you hit its absolute cap. This typically applies to traders with high costs for materials, goods or premises. For low-cost activities the flat rate is usually simpler and cheaper. On switching, both countries require an adjustment of the tax base for inventory and receivables.