The Recovery Package in the context of tax changes
Following the Government announcement on the Recovery Package, the related amendment to the tax regulations was published. Below we summarise a selection of the most important changes in this area.
In December 2022, the government approved the capping of electricity and gas prices for households, small and medium-sized enterprises and now also for large enterprises. The price cap came into force on 1 January 2023. In order to claim the capped electricity and gas prices starting in January 2023, large enterprises must submit a Customer Declaration Form by 15 January 2023.
According to Government Regulation No. 298/2022 Coll., the capped prices will be applied to electricity and gas supplies made in the period from 1 January 2023 to 31 December 2023. Similar to the case of small and medium-sized companies, the capping applies up to 80 percent of the highest monthly consumption of the last five years. According to the Minister of Industry and Trade Jozef Síkela, this measure is intended to motivate businesses to save energy.
For large enterprises, a prerequisite for claiming a capped price for electricity or gas supply is the submission of a Customer Declaration according to the template published by the Ministry of Industry and Trade to their energy supplier. You can also obtain the template on your supplier’s website, including information on how to submit the form. In cases where a company declares that it generates electricity from gas, among other things, it is required to provide additional attachments, such as a statement of the thermal energy producer.
According to Government Regulation No. 298/2022 Coll., the declaration must be submitted by the applicant to the supplier by the end of the calendar month preceding the month for which it wishes to apply the discounted prices. Therefore, in order to claim the capped price for February 2023, the declaration must be delivered to the supplier by the end of January. There is an exception for the capped prices starting from January 2023 onwards, according to which the declaration must be delivered to the supplier by 15 January 2023. Declarations are only to be submitted once.
Price capping can be combined with subsidy aid from the Programme of Support for Increased Costs of Natural Gas and Electricity as a Result of Exceptionally Sharp Price Increases, which is open until 8 February 2023. However, the total state aid cannot exceed EUR 4 million per company, i.e. approximately CZK 100 million.
Although the conditions and procedure for the application of the capped energy prices appear to be clearly defined, we recommend everyone to carefully analyse and continuously monitor the mechanisms of the conditions, limits for public support and methodologies set by the Government Regulation and the Temporary Crisis Framework. Alternatively, do not hesitate to contact our experts in the Grants & Incentives department.
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