On 11 February 2023, Government Regulation No. 36/2023 Coll., on the Format and Template for the Submission Form for the Levy on Excess Income, came into force. Attached to this Regulation is a template for reporting the advance payment of the levy and the settlement of the levy on excess income. The Energy Regulatory Office shall publish the submission form on its website in a way that will allow the completion and submission of the advance levy report and the levy statement electronically.

A windfall tax return form is also being prepared to supplement Regulation No. 525/2020 Coll., on Income Tax Returns, as amended. This tax is not subject to the obligation to file a tax registration form; the windfall taxpayer will file a tax return directly. The form includes instructions on how to complete the form with a specific example for calculating the taxpayer’s adjusted comparative tax bases. Neither the structure of the form nor the related instructions as currently drafted raise any new questions. However, in connection with the windfall tax, the representatives of the Chamber of Tax Advisors are in discussions with the representatives of the Ministry of Finance to clarify a few uncertainties. Following this discussion, a list of questions and answers will most likely be drawn up and published on the government’s website.

In connection with the introduction of the windfall tax, Section 20bd(2)(c) of the Income Tax Act allows shifting the average of adjusted comparative tax bases among companies that are the members of the same group of companies. In this context, the Tax Administration has prepared a Notice Announcement of Shifting the Averages of the Adjusted Comparative Tax Bases within a group of companies with windfall profits. According to the aforementioned Act, the Notice Announcement of Shifting the Averages of the Adjusted Comparative Tax Bases is one of the necessary conditions for effecting the shifting. The notice announcement is to be submitted by the representative taxpayer by the deadline for the submission by the taxpayer participating in shifting the average and whose time-limit is due to expire first. Under Section 20bd(9) of the Act, a taxpayers’ representative filing a notice announcement is a corporate income taxpayer that is part of a group of companies with windfall profits, is a tax resident of the Czech Republic and has been chosen by the group to file a notice announcement. The way the group decides on the taxpayers’ representative is not mandatorily prescribed by law, but it is advisable to have a document available to demonstrate the decision on the taxpayers’ representative by the relevant taxpayers.