In the first years of doing business the investments may overcome the incomes. In such case the Czech law allows the businessmen to declare the losses in tax returns and dissolve them with the earnings of following years. The losses of one year you could dissolve during next five years.

If somebody has incomes from employment and loss from individual business, the loss does not reduce the tax base from the employment. He just could transfer the loss for the next year.

If somebody has incomes from self-employment and for renting real estates, so losses from one source will reduce the tax base from another source.