Extraordinary tax measures in response to the spread of coronavirus in the Czech Republic II

Below is a list of the new series of measures relating to income taxes, VAT and real estate acquisition taxes which have already become available to all taxpayers, and of measures which will become effective as soon as the related Act is amended. 1. Already in effect:

• Prepayments on individual and corporate income tax due in June relieved – payers whose fiscal year corresponds to the calendar year will be relieved of the tax prepayments due on 15 June 2020. Those who run different fiscal years need to use other instruments available from the Tax Code, i.e. a request for changes in, or relief of, such prepayments.
• General amnesty on penalties for the late submission of real estate acquisition tax returns and late payment interest if payers are late with their real estate acquisition tax payment or prepayment or the deferred amount thereof – this amnesty applies to returns or payment obligations due between 31 March and 31 July 2020. This only applies if the tax returns are filed and the taxes duly paid before 31 August 2020.
• General amnesty on penalties for VAT payers for the late submission of a tax return – for a taxable period that is wholly or in part identical to the period for which the VAT control statement subject to the waiver of a fine for the failure to submit a control statement was submitted. This will only apply if the VAT return is submitted no later than on the day on which the delayed control statement is submitted.
• General amnesty for administrative fees – this is an administrative fee for a request for the refund of import taxes or relief on outstanding custom fees or tax or custom duty relief, provided that the application is filed by 31 July 2020 at the latest.

2. Measures which will require amendments to the relevant Act in order to become effective

• Introduction of what is termed Loss Carryback (the possibility of carrying back a tax loss) for individual and corporate income taxes – it will be possible to apply a tax loss posted for 2020 against the tax assessment base for 2019 and 2018. The amount in question can be claimed in the form of a supplementary tax return.
• Suspension of the obligation to register sales during the emergency period and the following three months by all businesses subject to all phases of the Electronic Record of Sales.

In the previous Newsletter we summarized the first set of measures, known as Liberation Package I. Click HERE for a summary of the measures implemented within this package. All measures are being announced at a very fast pace and their consequences are not always very well thought through. Many of the already valid measures which taxpayers may apply raise a number of questions and confusions. As soon as any further changes in, or clarifications of, some of the currently unclear measures become available, we will inform you in our newsletters. If you have any questions or need help with any details relating to the above measures, do not hesitate to contact us.