Tax 

The Minister of Finance is again remitting sanctions on late filing of the tax return and income tax payment

In connection with the current epidemic situation, the Ministry of Finance of the Czech Republic issued another decision on remission of taxes and related interest and fees due to an extraordinary event. The Minister of Finance’s decision remits the penalty for late filing and the interest on late payment.

The Minister of Finance remits the penalty for late filing and the interest on late payment which applies to the income tax payers who:

  • File the tax return in the basic three-month period (by 1 April 2021), if the tax return is filed and the tax payment is made on 3 May 2021 at the latest; or
  • File the tax return in the extended four-month period electronically (by 3 May 2021), if the tax return is filed and the tax payment is made on 1 June 2021 at the latest.

In this context, we would like to point out the following facts:

  • The decision does not extend the deadline for filing the income tax return; it merely remits the related penalties.
  • The measure does not apply to tax entities that are required by law to have their financial statements audited or that intend to file the tax return through an advisor by 1 July 2021.
  • The Minister’s decision applies only to the 2020 taxation period.
  • If the measure cannot be applied, it is possible to submit a request for extension of the deadline for tax return filing.

Under certain conditions, the Minister’s decision also remits other penalties for late fulfilment of obligations of personal income tax payers and also extends the remission of VAT on selected protective means (filtering half-masks, respirators etc.) until 3 June 2021.

To conclude, we would like to add that the measure does not apply to income tax prepayments. However, the prepayment amounts can still be reduced by submitting an individual request for determination of prepayments in a different amount.

The entire text of the decision on remission of taxes and related interest and fees due to an extraordinary event is available on the website of the Ministry of Finance.

Ministry of Finance Tax Return Income Tax VAT dReport newsletter