The original deadline for filing tax returns was 31 March 2020, however this has now been extended until 1 July 2020. Until the new deadline, it is possible to file a tax return and pay the tax without any penalty. Taxpayers are not required to put in a special request or prove any reasons related to the Coronavirus, this is an automatic extension on filing income taxes.
Taxpayers who, based on an individual request, are at least partially exempted from the interest on late payment, or have been allowed to delay the tax payment or to pay it in instalments for reasons related to the spread of the coronavirus, are also exempted from the fine for late taxation related to such payments.
Value Added Tax (VAT) payers will not be fined for failure to submit a control report, if the obligation to pay it arose in the period from 1 March 2020 to 31 July 2020.
All taxpayers will be exempted from the first administrative fee for the acceptance of a request for remission of interest on late payment and for acceptance of the request for remission of a fine for failure to submit a control report, provided that the request is submitted before 31 July 2020. All taxpayers will also be exempted from the second administrative fee for acceptance of a request for permission to delay a tax payment, or for its payment in instalments, or for amendment of this decision, provided that the request is submitted before 31 July 2020.
Tax offices have been instructed to accept all requests for postponement, remission of interest on late payment, interest on the postponed tax, and fines for failure to submit a control report in the amount of 10 000 – 50 000 CZK. Requests may be submitted free of charge until 31 July 2020.
The deadline extension for tax returns and tax payments applies to the self-employed and non-self-employed filing income tax returns. It also applies to taxpayers who have income from employment, rent or another source of income, or it could be a combination of these.
The same applies to businesses, if a business owner submits a tax return and pays the tax at any time before 1 July 2020, there will be no fines or interest on late payment. It is not necessary to request anything, however if the tax return is filed after the extended deadline, fines will be counted from 1 April 2020.
Learn more about the Czech Republic tax and payroll system with our Global Insight Guide to the Czech Republic.