COVID 19 – Measures in the area of taxation

• The deadline for submitting the income tax declaration for 2019 is postponed for all taxpayers to 1. 7. 2020. The measure is to be realized by a waiver of interests and fines to all taxpayers, including legal entities.
• The waiving of the advance income tax payment due in June for all taxpayers. All taxpayers, who have the calendar year 2020 as tax period, are relieved of their duty to pay the first biannually or the second quarterly advance on income tax.
• The waiving of administrative fees for applications to the tax authorities up to 31. 7. 2020 regarding changes in tax payments. This applies to requests for the extension of payment deadlines or for payment in instalments, requests for the waiving of interests for late payment or postponed payment as well as to requests for the waiving of fines for the late submission of VAT control reports.
• The waiving of fines for the late submission of monthly VAT reports (automatic waiving of fines up to CZK 1.000) for all deadlines until 31. 7. 2020. The automatic waiving (no application required) of fines of up to CZK 1.000 for late submission of monthly VAT reports, which arise from 1. 3. 2020 until 31. 7. 2020. The waiving of higher fines that arise within this period is also possible, if the connection between the late submission and the corona virus pandemic is proven.
• The waiving of fines for late submission of real estate transfer tax declarations or late payment of real estate transfer tax for the period from 31. 3. 2020 until 31. 7. 2020 under the condition of the proper fulfilment of such obligations until 31. 8. 2020.

Besides the above mentioned measures, also the following legislation is under preparation:

• The temporary suspension of obligations under the Act on electronic registration of sales (EET). This would suspend the obligations of all taxpayers, irrespective into which of the phases of the introduction of the EET system they fall (the bill passed in the Parliament on 25. 3. 2020).

• Possibility to apply the tax loss in 2020 retrospectively also in the income tax declarations for 2018 and 2019 by submitting an amended tax declaration, in which case the thereby arising tax overpayments for 2018 and 2019 would be returned to the tax payers.

Please note, that all above stated information only serves as a quick overview for you in order to make you aware of these measures. We are of course ready to provide you with more detailed information and assistance with the application of these measures to your specific situation.