A prop firm payout is not a capital gain from your own trading. You never own the position: you trade a simulated account belonging to the firm, and what reaches your bank is a contractual share of the profit that account produced, paid by a company abroad. In the Czech Republic that share is normally reported either as other income under § 10 of Act 586/1992 Coll. or as income from self-employment under § 7 of the same act. In Slovakia the same fork runs between § 8 and § 6 of Act 595/2003 Coll. Nobody withholds anything for you, so the whole reporting job is yours.
- The payout is a share of profit under a service agreement with a company in the United Arab Emirates, not proceeds from selling a security or a derivative you owned.
- Czech Republic: § 10 is simpler and carries no social or health insurance, but only provable costs are deductible. § 7 allows lump-sum expenses of 60% or 40%, and pulls in insurance.
- 2026 Czech rates: 15% up to CZK 1,762,812 and 23% above it (§ 16). A return is due once your annual taxable income passes CZK 50,000 (§ 38g).
- Slovakia rebuilt its brackets for 2026: 19%, 25%, 30% and 35% on the § 8 base. Health insurance at 15% also applies to § 8 income, which it does not in Czechia.
- Buying an evaluation from a company that is not established in your country can make you an "identified person" for Czech VAT under § 6h of Act 235/2004 Coll. It is the purchase, not the payout, that triggers it.
- Dolvero does not withhold tax and issues no tax certificate, and says so up front. What it gives you instead is a public ledger entry with a verification code for every payout, exactly the evidence a tax office accepts.
- CZ base rate
- 15%§ 16, on the part of the base up to CZK 1,762,812
- CZ top rate
- 23%on the part above 36 times the average wage
- CZ filing trigger
- CZK 50,000annual taxable income, § 38g odst. 1
- SK brackets 2026
- 19 to 35%§ 15 písm. a), first applied for 2026
- SK health rate
- 15%also on § 8 other income, § 12 of Act 580/2004
- CZ health rate
- 13.5%self-employment only, never on § 10 income
What the income actually is
Neither income tax act mentions prop trading, which is why practitioners argue by analogy and why the advice online is confident and contradictory at the same time. The factual chain is not in dispute. You buy an evaluation, you trade an account the firm owns on a simulated book, and if that account closes profit without a rule breach you request a payout and receive an agreed percentage of it. There is no security you bought, no derivative contract in your name and no broker statement showing your own position.
Two consequences follow. The rules written for your own securities or derivative trading do not reach this income, so neither do the exemptions attached to them. And the payer is abroad: Dolvero's contracting party is DKZ Information Technology Services L.L.C, registered in the United Arab Emirates under number 2701441, with Stratinova LTD (Cyprus, HE475207) acting only as EU agent. A UAE company is not a Czech or Slovak withholding agent, so nothing is deducted at source. A Czech tax resident is taxed on worldwide income anyway (§ 2 odst. 2), so the origin of the money changes the paperwork, not the duty to declare it.
Dolvero does not withhold tax, does not register you anywhere and issues no tax certificate. Every payout is instead listed in the public ledger with a date, an amount and a verification code, and the dashboard shows the same record. Treat that entry as your primary document: dated, verifiable by a third party and matching the money that arrived.
Czech Republic: § 10 or § 7
The choice follows from how you actually operate. If trading funded accounts is systematic activity carried on in your own name with the intention of earning a living from it, the tax administration will read it as self-employment under § 7. If it is genuinely occasional, § 10 odst. 1 písm. a) or the residual § 10 odst. 1 písm. r) is the honest place for it. Where that line sits is common interpretation, not a rule written in the act, and it is the point most worth putting to an adviser.
| Question | § 10 other income | § 7 self-employment |
|---|---|---|
| Legal basis | § 10 odst. 1 písm. a) or r), Act 586/1992 Coll. | § 7 odst. 1 písm. b) or c), or § 7 odst. 2 písm. c) |
| Fits | Occasional payouts, trading alongside a job or studies | Regular payouts, several funded accounts, this is the plan |
| Trade licence | not applicable | needed for the 60% lump suma free trade licence; without one the activity falls under § 7 odst. 1 písm. c) or § 7 odst. 2 písm. c) |
| Lump-sum expenses | noneonly provable costs, § 10 odst. 4 | 60% or 40%§ 7 odst. 7 písm. b) capped at CZK 1,200,000, písm. d) capped at CZK 800,000 |
| Loss | ignoredif expenses exceed income the difference is disregarded | recogniseda tax loss can be carried forward |
| Social insurance | none§ 10 income is not self-employment for ČSSZ | 29.2% of 55% of the tax baseminimum monthly advance CZK 5,005 main, CZK 1,574 secondary |
| Health insurance | none | 13.5% of 50% of the baseminimum monthly advance CZK 3,306, no ceiling |
| Tax rate | Same for both: 15% up to CZK 1,762,812, 23% above (§ 16) | |
| Annual admin | Tax return only | Tax return plus a statement to ČSSZ and to your health insurer |
Two traps catch people every year. The exemption in § 10 odst. 3 písm. a) is a threshold, not an allowance: below CZK 50,000 a year that type of income is exempt, but the moment it passes CZK 50,000 the whole amount is taxable, not just the excess. And under § 10 odst. 4 a loss is simply disregarded, so a bad year gives you nothing to carry forward.
The 2026 numbers you actually need
These figures are in force for the 2026 tax year in both countries. The Czech average wage for 2026 works out at CZK 48,967, which is what the multiples in the act are built on.
| Item | Czech Republic 2026 | Slovakia 2026 |
|---|---|---|
| Tax rates on this income | 15% and 23% | 19, 25, 30 and 35% |
| Top rate starts at | CZK 1,762,81236 times the average wage | EUR 43,983.32154.8 times the subsistence minimum, then 212.4 and 264 |
| Return required from | CZK 50,000CZK 20,000 if you are an employee filing only for this | EUR 2,983.37half of 21 times the subsistence minimum |
| Personal allowance or credit | Tax credit CZK 30,840applies whichever section you use | EUR 5,966.73§ 5 and § 6 odst. 1 a 2 base only, never § 8 |
| Lump-sum expenses | 60% or 40%§ 7 only | 60%, capped at EUR 20,000§ 6 only |
| Filing deadline | 1 April, 2 May if filed electronically, 1 July with an adviser | 31 March, up to six months more on notice if you have foreign-source income |
The Slovak brackets are new: the wording of § 15 písm. a) effective 1 January 2026 applies for the first time to the 2026 tax period. The multiples run off the subsistence minimum valid on 1 January 2026, EUR 284.13, and the euro figures above are that multiple worked out.
Social and health insurance
Czech social insurance follows the tax section. ČSSZ treats an activity as self-employment only where the income counts as income from self-employment under § 7, so § 10 income creates no obligation at all. If you do fall under § 7 and the activity is secondary (you are employed, a student under 26, a pensioner or on parental leave), you pay only once the annual tax base passes the decisive amount, CZK 117,521 for 2026. Above it the contribution is 29.2% of 55% of the tax base, with a minimum monthly advance of CZK 1,574 for secondary and CZK 5,005 for main activity from 1 July 2026, and an annual assessment base capped at CZK 2,350,416.
Czech health insurance works the same way but has no decisive amount and no ceiling. VZP puts it plainly: a trade licence is not what makes you self-employed for health insurance, income from self-employment under the income tax act is. The rate is 13.5% of a base equal to half your income after expenses, minimum monthly advance CZK 3,306 in 2026. Again, § 10 income is outside the system.
Slovakia differs in one decisive respect. Under § 10b odst. 1 písm. d) of Act 580/2004 Coll., other income under § 8 is a gainful activity for health insurance, and § 12 sets the rate at 15%, settled in the annual reconciliation rather than monthly. Czech law has no equivalent, and it is the biggest single reason a Slovak calculation lands higher than a Czech one on the same payout.
From 1 January 2026 the wording of § 21 of Act 461/2003 Coll. drops the income threshold for compulsory social insurance of the self-employed entirely, and under transitional provision § 293gma anyone already self-employed before 2026 becomes compulsorily sickness and pension insured on 1 July 2026 whatever the activity earns. Registering a Slovak trade licence for prop payouts is therefore a heavier decision than it was in 2025. Confirm your position with Sociálna poisťovňa before you register anything.
VAT: the identified person question
Most traders assume VAT cannot touch them because they are nowhere near the registration turnover. The rule that catches people has nothing to do with turnover.
Under § 6h of Act 235/2004 Coll., a taxable person seated in the Czech Republic who is not a VAT payer becomes an identified person from the day they receive services with a place of supply here from a person not established here. An evaluation fee paid to a UAE company is exactly that shape of transaction. Registration is due within 15 days and the recipient accounts for Czech VAT at 21% on the fee. An identified person is not a VAT payer: you charge no VAT and deduct nothing, you simply declare the reverse-charged tax.
Two qualifications matter. The rule bites only on a taxable person, meaning someone carrying on economic activity, so a trader whose payouts are genuinely occasional § 10 income has a real argument that § 6h never applies. And supplying a service to a UAE company triggers nothing on its own: § 6i covers services supplied to another EU member state, not to a third country. The Czech flat-tax regime tolerates the status expressly, in § 7a odst. 1 písm. c) of the income tax act.
Slovakia is drafted differently. § 69 ods. 3 of Act 222/2004 Coll. makes the Slovak recipient liable for tax at the standard rate of 23% on a service supplied by a foreign person from a third country where the place of supply is in Slovakia, but the registration duty in § 7a ods. 1 is written for services received from another member state. That gap is a question for a Slovak adviser, not a forum.
A worked example in CZK
Take a trader on a $100,000 2-Step account who closes $12,000 of profit across 2026. At the standard 80% split that is $9,600 of payouts, less the flat 1% fee of $96. At the ČNB rate of 20.813 CZK to the dollar published for 9 September 2026, the gross share is CZK 199,805 and the fee CZK 1,998. The $549 list-price evaluation fee is refunded in full with the second payout, so across a year it is a cost and then an equal receipt, and it is left out of the table to keep the comparison clean.
| Line | § 10 other income | § 7 with a free trade licence, 60% lump sum |
|---|---|---|
| Gross profit share 2026 | CZK 199,805 | CZK 199,805 |
| Expenses | CZK 1,998the 1% fee, provable | CZK 119,88360% lump sum |
| Partial tax base | CZK 197,807 | CZK 79,922 |
| Tax at 15% | CZK 29,670base rounded down to whole hundreds | CZK 11,985 |
| Social insurance | CZK 0 | CZK 0secondary activity, base below the CZK 117,521 decisive amount |
| Health insurance | CZK 0 | CZK 5,39513.5% of half the base, no minimum because you are also employed |
| Total, trader who already has a job | CZK 29,670 | CZK 17,380 |
| Total, trader with no other income | CZK 0tax credit of CZK 30,840 covers it | CZK 0 taxbut main activity minimum advances then apply |
Read the last two rows together. For an employed trader at this level the § 7 route comes out roughly CZK 12,000 cheaper, because the lump sum removes more from the base than the insurance adds back. For a trader with no other income the CZK 30,840 credit wipes out the tax either way, and the deciding factor becomes the minimum advances that main-activity self-employment brings. If the activity falls under § 7 odst. 1 písm. c) or § 7 odst. 2 písm. c) rather than a trade, the lump sum drops to 40% and the arithmetic moves back towards § 10.
Slovakia in detail
The Slovak fork is § 6 against § 8. § 6 ods. 1 covers a trade or other licensed business, § 6 ods. 2 other independent gainful activity. § 8 is residual and its list opens with the words "in particular", so it catches income that fits nowhere else, the usual home for an occasional prop payout.
| Question | § 8 other income | § 6 business or independent activity |
|---|---|---|
| Rate | 19, 25, 30, 35%§ 15 písm. a) bod 1 | 15% up to EUR 100,000then 19 to 35%, § 15 písm. a) body 2 a 3 |
| Expenses | provable only§ 8 ods. 2, a loss is disregarded | 60%, capped at EUR 20,000§ 6 ods. 10, non-VAT payers |
| Personal allowance | not available§ 11 ods. 1 covers § 5 and § 6 ods. 1 a 2 only | EUR 5,966.73tapered above a base of EUR 26,083.13 |
| EUR 500 exemption | rarely available§ 9 ods. 1 písm. g) points to § 8 ods. 1 písm. a), which excludes work done under a contract the paying company can expense | not applicable |
| Health insurance | 15% on the tax base§ 10b ods. 1 písm. d), settled in the annual reconciliation | 15% with a minimum basepaid monthly |
| Social insurance | none§ 8 income does not make you self-employed | 33.15% in totalcompulsory from 1 July 2026 regardless of income |
On the same payout, EUR 8,238.93 gross at the ECB reference rate of 1.1652 for 9 September 2026, § 8 gives a base of EUR 8,156.54 after the EUR 82.39 fee, tax at 19% of EUR 1,549.74 and health insurance at 15% of EUR 1,223.48, roughly a third of the gross. The § 6 route would cut the tax to nil through the lump sum and the allowance, but from 1 July 2026 it brings compulsory social insurance whatever you earn, plus minimum health contributions. At small amounts § 8 usually wins; at larger and regular amounts § 6 starts to pay for itself.
For converting dollars, both countries let you choose. A Czech individual who does not keep accounts uses either the ČNB rate for the day the income arose or the unified rate in § 38 odst. 7 of Act 586/1992 Coll., and cannot mix the two within one period. A Slovak individual who is not an accounting entity picks one of the four options in § 31 ods. 2 of Act 595/2003 Coll. Pick one method, write it down and use it all year.
What to keep, and where it comes from
- A payout ledger of your own. One row per payout: request date, release date, gross dollars, the 1% fee, the net received, the rate you used and the resulting CZK or EUR figure.
- Proof of every payout. The dashboard record and the public ledger entry with its verification code, saved at the time, not reconstructed a year later.
- Proof of every cost. Evaluation and add-on fees with the receipt behind each. The refunded evaluation fee then comes back as a receipt on the second payout.
- The exchange rate you applied. Save the ČNB or ECB page for that date, or record that you use the unified or annual average rate.
- The bank or wallet credit. The statement line showing the money arriving, which ties the chain together.
| Record | Where it comes from | Why the tax office cares |
|---|---|---|
| Payout entry with verification code | Dolvero public payout ledger | Third party can confirm the date and amount independently |
| Payout history on your account | Dolvero dashboard | Ties each payment to a specific funded account |
| Terms and rules in force | Public rules page and changelog | Shows the legal nature of the payment and who the counterparty is |
| Evaluation and add-on receipts | Your payment provider | Supports any deduction you claim |
| Exchange rate for the date | ČNB or ECB | Makes the conversion reproducible |
Nothing here is tax or legal advice. It summarises legislation in force on 10 September 2026 and the interpretations most commonly applied to it, and both can change. Your answer depends on facts this article cannot see: your residence, your other income and how your activity is classified. Confirm your position with a licensed tax adviser in your own country before you file or register anything.
Where Dolvero stands out
A prop firm cannot file your return for you. What it can do is make sure the evidence exists, is dated and can be checked by someone who was not there. That is the whole of Dolvero's contribution to your tax file, and deliberately more than most firms publish.
- Payout evidence
- Public ledgerverification code on every payout
- Processing fee
- 1%flat, the only deduction Dolvero makes
- Withholding
- Nonestated openly, you report the income
- Contracting party
- NamedDKZ Information Technology Services L.L.C, UAE, reg. 2701441
- Evaluation fee
- Refundedin full with the second payout, a receipt to record
- Payout cycle
- 14 dayspredictable dates make a clean ledger
Frequently asked questions
Do I have to declare a prop firm payout at all?
Yes. § 2 odst. 2 of Act 586/1992 Coll. taxes Czech residents on worldwide income, and a return is due once annual taxable income exceeds CZK 50,000, or CZK 20,000 under § 7 to § 10 if you are otherwise only an employee (§ 38g). The Slovak threshold is EUR 2,983.37 for 2026 (§ 32 ods. 1).
Is a payout a capital gain from trading?
No. You do not own the position and there is no security or derivative contract in your name, so the reliefs written for your own trading do not reach it. This is the common interpretation rather than a rule stated in either act, and the point most worth confirming with an adviser.
Does Dolvero withhold tax or send me a tax certificate?
No. Dolvero deducts only the flat 1% processing fee and pays the rest. The contracting party is a UAE company and is not a Czech or Slovak withholding agent, so nothing is deducted at source and no annual certificate is issued. The public ledger entry, with its verification code, is your document.
Do I need a trade licence to trade a funded account?
Not to buy or trade one. It matters for tax: without a licence you cannot use the 60% lump sum under § 7 odst. 7 písm. b), and the activity falls under § 7 odst. 1 písm. c) or § 7 odst. 2 písm. c) with 40%, or under § 10 with provable costs only.
Will buying an evaluation make me register for VAT?
It can make you an identified person, which is not the same thing. Under § 6h of Act 235/2004 Coll. a Czech taxable person who is not a VAT payer becomes one on receiving a service from a supplier not established here, registers within 15 days and accounts for 21% VAT on the fee, while still charging no VAT and deducting nothing. If your payouts are genuinely occasional § 10 income you may not be a taxable person at all.
Which exchange rate should I use?
A Czech individual who does not keep accounts uses either the ČNB rate for the day the income arose or the unified rate under § 38 odst. 7, and cannot combine both in one period. In Slovakia, § 31 ods. 2 of Act 595/2003 Coll. offers four options. Choose one and apply it consistently all year.
Every payout, on the record
Each processed payout is listed with its date, amount and verification code, and the transparency page computes the live release average from that same ledger. It is the evidence your accountant will ask for.
- Act No. 586/1992 Coll., on income taxes, consolidated text, § 2, § 7, § 10, § 16, § 35ba, § 38, § 38g: zakonyprolidi.cz/cs/1992-586
- Act No. 235/2004 Coll., on value added tax, § 6h, § 6i, § 47: zakonyprolidi.cz/cs/2004-235
- Act No. 280/2009 Coll., Tax Code, § 136 (filing deadlines): zakonyprolidi.cz/cs/2009-280
- Financial Administration of the Czech Republic, flat-tax information for 2025 and 2026 (bands and 2026 monthly advances of CZK 9,162, CZK 16,745 and CZK 27,139): financnisprava.cz
- ČSSZ, advances on pension insurance premiums (2026 minimums, 29.2% rate, maximum base CZK 2,350,416): cssz.gov.cz
- ČSSZ, self-employment in brief (decisive amount CZK 117,521 for 2026): cssz.gov.cz/web/cz/osvc-v-kostce
- ČSSZ, definition and types of self-employment (link to § 7 of the income tax act): cssz.gov.cz/web/cz/definice-a-druhy-svc
- VZP, information for the self-employed (13.5% rate, minimum advance CZK 3,306 in 2026): vzp.cz/platci/informace/osvc
- Act No. 595/2003 Coll. of Slovakia, on income tax, consolidated text effective 1 January 2026, § 6, § 8, § 9, § 11, § 15, § 31, § 32, § 49: slov-lex.sk
- Act No. 580/2004 Coll. of Slovakia, on health insurance, § 10b, § 12, § 13: slov-lex.sk
- Act No. 461/2003 Coll. of Slovakia, on social insurance, § 3, § 5, § 21, § 293gma: slov-lex.sk
- Act No. 222/2004 Coll. of Slovakia, on value added tax, § 7a, § 27, § 69: slov-lex.sk
- Ministry of Labour, Social Affairs and Family of the Slovak Republic, subsistence minimum (EUR 284.13 from 1 July 2025, EUR 295.22 from 1 July 2026): employment.gov.sk
- Czech National Bank, foreign exchange market rates for 9 September 2026 (USD 20.813, EUR 24.250): cnb.cz
- European Central Bank, euro reference rates for 9 September 2026 (USD 1.1652): ecb.europa.eu
- Dolvero: Trading rules, transparency page, terms, and how prop firm payouts work
