Jednotné inkasní místo pro Česko
The joint collection of Czech tax and social security contributions

Summary/Abstract: The paper addresses the introduction of the joint collection of tax and social security contributions with a minimum of related reforms. It illustrates an approach towards achieving significant savings in both collection costs and the administrative burden on employers and self-employed persons within a period of one year. Thus, it would be possible to end the collection of health insurance premiums by seven health insurance companies, which are currently fully redistributed according to the so-called reimbursement decree issued by the Ministry of Health. The Czech Social Security Administration could also immediately take over the collection of employer liability insurance for work injuries and professional diseases premiums, which have been paid into the state budget by two private insurance companies for the past three decades. All employer insurance payments could be fully integrated into one simple social security contribution, partly since the insurance principle of equivalence is significantly suppressed in the Czech social security system. The double „insurance“ payments of employees could be included in income tax from dependent activities, while, in addition, the (superfluous) second tax rate could be eliminated. All this could be achieved without the occurrence of significant redistributive effects; the most significant change in this respect would comprise the abolition of health insurance premiums for „persons without taxable income“ (half of whom do not pay this insurance premium anyway). Similarly, the first phase of the joint collection of the income tax and the social security contribution for the self-employed shall be realized. The second stage of the introduction of the joint collection system might then involve the transference of the collection of social security contributions to the tax administration system.

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