Tax reliefs in connection with COVID-19

What can you request for

The Czech tax office published a handbook for businesses in connection to coronavirus dssease. All businesses may request for:

• deferments of tax payments (more details you can find in the official information of the General Financial Directorate);
• reductions of advance tax payments;
• full exception from advance tax payments;
• remission from sanctions in the event of late payment (the remission from fines for late submission of tax return is granted generally for everybody);
• extention of the deadline for submitting of some tax returns and
• businesses will be allowed to deduct their tax loss retrospectively in the preceding years.

The postponement of the deadline for tax return submission relates to:

• personal and corporate income tax returns till 1 July 2020 (it also covers the deadline for the settlement of withholding tax) and
• real estate transfer tax return with the time period for submission of tax return expiring in the period from 31 March 2020 to 31 July 2020 till 31 August 2020.

The request for the postponement of the deadline is not possible for VAT returns. Nevertheless there are some reliefs relating to the late submitting:

• The tax office will not asses fines for late submission of VAT control statement amounting to CZK 1,000, arisen in the period from 1 March to 31 July 2020,
• some additional fines for late submission of VAT control statement during this period will be remitted at the payer´s individual request for reasons related to coronavirus.

If VAT return was submitted late, there is also an automatic remission from the fine for the late submission of tax returns also for payers who, based on an individually submitted request, were at least partially remitted a fine for not submitting the VAT control statement (CZK 10,000; 30,000; 50,000) due to coronavirus spread. Assuming that, this late tax return will be submitted no later than the day when the related VAT control statement was submitted.

For more details please visit the website of the Czech tax administration.