with regard to the current COVID-19 crisis

The Government of the Czech Republic has approved two liberation packages of measures regarding the tax area aimed at aiding individuals and businesses during the state of emergency, in particular

• General waiver of penalties and default interest for the late filing of personal and corporate income tax returns and tax payments until 1 July 2020 at the latest; 
• Waiver of penalties for late tax payments in all cases where the taxpayer individually applies for remission of default interest, tax deferment or a payment schedule, and demonstrates reasons in any way related to coronavirus;
• General waiver of penalties of CZK 1,000 (approximately EUR 40) for the late submission of a control report incurred between 1 March and 31 July 2020 and certain individual waivers of penalties for not filing a control report in these periods if related to coronavirus;
• General waiver of administrative fees for the request for remission or tax deferment;
• Suspension of all phases of electronic recording of sales (EET) during the state of emergency and the subsequent 3 months;
• Abolishment of advance payments of 2020 personal and corporate income tax due 15 June 2020;
• General waiver of penalties and default interest for the late filing of real estate acquisition tax returns and tax payments due between 1 March and 31 July 2020 until 31 August 2020 at the latest;
• Loss carryback – tax loss recorded in 2020 may be off-set against corporate income tax liabilities for 2018 and 2019 – this revolutionary measure needs to more precisely specified and is subject to approval by the Parliament. Unlike other cash-flow related measures, this may result in a lower tax burden);
• Limited relief to self-employed persons regarding their social security and health insurance contributions due during the next six months.
  
  

In addition, the Tax Procedure Code offers some options, in particular:

• A decrease in, or cancellation of, tax advance payments. The request may be file retroactively for advances already paid;
• An extension of filing and payment deadlines;
• Tax deferment or set-up of a payment schedule with almost a 50% reduction of default interest, i.e., 7% p.a. plus repo (which may be additionally remitted).
  
  

The document reflects the status as of March 25, 2020.
This document is for informational purposes only and may not be considered a legal opinion or advice on how to proceed in a particular case.