Amendment to the Tax Code Approved

On 17 June, the President signed a new proposal for the amendment to the Tax Code. Thus, the legislative process was completed and the long-awaited amendment was approved. The amendment shall come into effect on 1 January 2021.


The key items included in the amendment are as follows:

Introduction of the MY taxex (in Czech: MOJE daně) portal

  • Planned introduction of electronic tax administration in connection with the launch of the MY taxes portal, which is primarily intended to facilitate communication with the tax administrator and ease the administrative burden.

System change and reduction of sanctions

  • The amendment reviews the system of sanctions in the Tax Code and significantly decreases interest rates (late interest, deferred amount interest), in some cases reducing them to half of the current value.

Prepayment for excessive deduction

  • The institutes of prepayment for excessive deduction allows for a partial payment of claimed tax deductions; the tax administrator will only retain the portion of deduction which raises doubt.

Change in inspection procedures

  • The amendment to the Tax Code simplifies the process of commencement and termination of a tax inspection for tax administrators, allowing them to apply a “correspondence” form of tax inspection to some extent. However, the period for tax assessment is suspended only by the actual start of inspection activities.
  • The amendment also allows tax administrators to transfer from the process of elimination of doubts to a tax inspection at any time.

Additional changes

  • Other important changes stipulated in the amendment include namely the introduction of an option to waive a penalty for delayed tax statement and determine tax forms through regulations.
Tax Code dReport newsletter

The Intrastat reporting will change as of 1 January 2022

In line with the Government regulation on the implementation of certain provisions of the Customs Act in the area of statistics of 23 August 2021, the Intrastat reporting will change with effect from 1 January 2022. The new Government regulation has been prepared in cooperation with the Czech Statistical Office and will replace the existing legislation, i.e. Regulation no. 244/2016 Coll. The main reason for the replacement of the existing legislation is the extensive change of the directly applicable EU legislation in the area of statistics relating to the trading of goods between the Member States. 

22. 9. 2021

OECD update on a two-pillar solution

The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (i.e., BEPS Action plan) has agreed on a two-pillar solution to address challenges arising from the digitalisation and globalisation of the economy. There are couple of changes in the current version plan, e.g., Pillar One shall be designed for all MNEs companies fulfilling specific turnover and profitability criteria (see below), while in the previous version of the plan Pillar One was mainly intended for technological giants. 

21. 9. 2021