Articles by: Alena Wágner Dugová

Tax 

Additional tax returns: when are you at risk of penalties?

It is a well-established rule for most taxable entities that when they file an additional tax return voluntarily, they will not be charged a penalty representing 20% of the additionally assessed tax. The purpose of this rule is to financially motivate taxable entities to voluntarily declare and pay omitted tax liabilities to the tax administrator. However, starting from 1 January 2021, this rule has undergone a significant change due to an amendment to the Tax Code. The General Financial Directorate has even issued a methodical guideline on this topic, explaining the change in more detail. 

21. 9. 2021
Tax 

Remission of penalties, interest and now also fines for the late filing of a tax return

The additional tax assessment by the tax administrator gives rise to the obligation to pay interest on arrears; in addition, this often entails penalties, which may, in total, exceed the amount of the additional assessment. The institute of individual remission of tax penalties represents the way to mitigate the penalty consequences of the additional tax assessment. Moreover, on 1 January 2021, the possibility of remitting the fine for a late tax return was enshrined in the Tax Code. 

27. 4. 2021
Tax 

What is the deadline for filing the income tax return for 2020?

As the new year arrives, the time for the preparation of financial statements and the income tax return for the past taxation period comes. This year, it is necessary to pay increased attention to the time limit for filing the tax return as the amendment to the Tax Code, which took effect on 1 January 2021, significantly rephrased the existing rules. According to the transitional provisions and the information of the Financial Administration of the Czech Republic, the new rules apply already to the 2020 taxation period. 

10. 2. 2021
Tax 

VAT news: tax deduction advance

An amendment to the Tax Code brings a new tax institute effective from 1 January 2021, which allows the payment of a tax deduction advance (“advance”) before the tax deduction is determined, i.e. before a tax assessment decision is issued. Although the possibility of obtaining a portion of the excessive deduction even before the tax procedure is concluded is positive for some VAT payers in terms of cash flow, we find it important to point out the difficulties that can be associated with the payment of the advance. 

22. 10. 2020