Liberation package for business persons in connection with the epidemics – tax relieves

In connection with the current epidemiological situation was published Financial Bulletin No. 4/2020. This bulletin contains the decision of the Czech Finance Ministry on alleviating certain tax obligations of business persons. Short summary:

Income tax: The deadline for the submission of tax returns for 2019 shall remain unchanged but if tax payers whose statutory deadline expires on 1 April 2020 file a tax return and pay tax by 1 July 2020, penalty for late submission of the tax return, default interest and/or interest on the deferred amount of tax will be waived. This applies to both individuals and legal persons. The waiver will be automatic without a need to apply therefore.  

Late submission of a VAT inspection statement without a call from the Tax Administrator: If a VAT payer files the inspection statement after the specified deadline without being called to do so by the Tax Administrator, the fine for the late submission of the inspection statements in the amount of CZK 1,000 incurred in the period from 1 March 202 through 31 July 2020 will be waived. The waiver will be automatic without a need to apply therefore.

– Other cases: Case-by-case applications need to be filed in any other cases. Reasons (connection with the epidemiologic situation) need to be proven in case of an application for waiver of default interest, interest on the deferred amount of tax, and interest on tax paid in advances. Where the tax entity filed a tax return or statement after the relevant deadline and paid tax after the deadline, and if the tax entity’s application for the waiver of default interest, interest on the deferred amount or interest on tax paid in advances is satisfied, the fine for late submission of the tax statement will also be waived automatically.

Administrative charges: Administrative charges for submission of applications for waiver of default interest and interest on the deferred amount of tax, applications for waiver of the fine for failure to submit the inspection statement filed by 31 July 2020, applications for deferred payment of tax and applications for payment of tax in advances filed by 31 July 2020 shall be waived.

Beyond the scope of the information of the Finance Ministry provided above we wish to draw attention to the fact that, under law, an application can be filed to get a relief of the duty to pay income tax advances, including the advance due on 16 March 2020. This may apply to most businesses as their business operation runs down.