People are canceling jobs en masse. They don’t want data boxes

The number of applications for cancellation of trade licenses has increased sharply in the last three months. The reason is the mandatory data boxes – starting this year, the state automatically assigns them even to people who only earn extra from business or whose business has been discontinued. This was pointed out by Dun & Bradstreet consulting company.

From November to January, a total of more than 40,000 entrepreneurs canceled their operations, while in 2020 and 2021, the average number was below four thousand per month.

“In January-September last year, the monthly average of closed businesses rose to 4,700, in October 8,400, in November 11,800, and in December a record 17,400.” in the long term, however, in 2021, fewer than 6,100 entrepreneurs quit, and in 2020, there were 6,320. In January 2023, almost 11,000 people quit their jobs, but this number is not yet final,” says Dun & Bradstreet analyst Petra Štěpán. For the whole of 2020, 44,600 entrepreneurs closed their businesses, a year later 47,710, and 80,160 in 2022.

More than 2.179 million self-employed persons are currently registered in the Czech Republic. “According to Dun & Bradstreet’s internal methodology, business activities are performed by approximately 1.143 million self-employed persons, which represents 52% of the total number. Other issued business licenses are so-called dormant, which in practice means that a natural person has an issued business license, but does not carry out the activity,” explains Štěpánová. In the period from 2021 to 2022, the number of entrepreneurs increased by only 6,846, which is a comparable increase as in the period from 2020 to 2021.

From 2023, data boxes are mandatory for all self-employed and other entrepreneurs (self-employed). Including those who operate only as a secondary or suspended activity. The obligation is extended to associations, associations and foundations, including associations of owners of housing units (SVJ). The state automatically activates their data box, and new users receive their login data gradually from January to March.

Finally, natural persons who are not entrepreneurs will not automatically receive a box with data (the law originally envisaged its activation as soon as a person uses some form of electronic identity in communication with the state at least once). If they are interested in it, they can voluntarily set it up.

Source: Dun & Bradstreet

Number of jobs canceled between 2020 and 2022

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