Cleaning Services: How to handle taxes and paperwork the right way?
Zde je překlad článku do angličtiny. Použil jsem přirozený a úderný styl, přičemž jsem zachoval HTML strukturu a funkčně přeložil české specifické termíny (jako DPP nebo Prohlášení poplatníka), aby byly srozumitelné i v mezinárodním kontextu. HTML
"I want to have my cottage or business premises cleaned regularly. The lady who does it doesn't have a business license. How can I handle this to make sure everything is legally compliant?"
Ad Hoc Cooperation
If the cooperation is not regular, payments may fall under the "other income" category for the person performing the cleaning. This is typical for one-off, occasional, or incidental tasks.
- For incidental income, the actual irregularity and non-systematic nature of the work are assessed. If the cleaning starts to happen on a regular schedule, it is no longer considered ad hoc cooperation.
- The individual reports this income in their tax return according to current rules for "other income." The specific tax liability depends on the total income amount and the individual's overall tax situation.
Regular Cooperation: Two Main Options
1) Invoicing via a Business ID (IČO)
This is the simplest option administratively. You can ask the cleaner to obtain a trade license (business ID). She will then issue invoices to you just like any other supplier, and you include them in your accounting as standard services.
2) Agreement on Performance of Work (DPP)
If the individual does not have or does not want a business ID, you can hire them under an "Agreement on Performance of Work" (locally known as DPP).
- Up to a threshold of CZK 11,499 per month (in 2025), no social security or health insurance premiums are paid (this threshold is expected to be CZK 11,999 in 2026). Above this limit, contributions are mandatory, similar to standard employment.
- The DPP limit is 300 hours per year per employee (this must be monitored; if exceeded, the agreement expires and further work would be considered illegal).
- If the employee signs a Taxpayer Declaration (meaning they have no other primary employer), gross pay = net pay. If they do not sign it, a 15% withholding tax is deducted.
- Since 2024, it has been mandatory to report DPPs monthly to the Social Security Administration, so even this option requires basic administrative upkeep.
If you choose the DPP route, we can handle the employee registration, monthly reporting, and payroll calculations for you. All we need from you at the end of the month is the number of hours worked and the gross reward to be paid (including any agreed-upon task bonuses, etc.).