Government Tax Liberation Package of 16 March 2020

The government approved the Tax Liberation Package on March 16, 2020:

Corporate income tax return

• flat waiver of the fine for late submission of personal and corporate income tax return and default interest until 1 July 2020 at the latest, without having to prove the reasons;
• waiver of the fine for late submission of any tax claim (tax return, statement or account) on the basis of an individually filed request for waiver of interest on arrears or delay or repayment of the tax, where a link with the coronavirus is shown, such as illness or quarantine of accountant or other key employees whose absence made it impossible to meet tax obligations.

VAT

• flat waiver of the CZK 1,000 fine for late submission of a control statement arising between 1 January and 31 July 2020;
• the General Financial Directorate also issued an instruction for other cases of waiver of fines for late submission of a control statement based on an individual request, if the late submission occurs in the period from 1 January to 31 July 2020 and a link with the coronavirus is proven.

Administrative fees

• flat waiver of administrative fees for requests for tax deferment or payment of tax in instalments, requests for waiver of interest on arrears or on the amount of the deferment, and requests for waiver of a fine for failure to submit a control report if submitted by 31 July 2020.

ERS (electronic records of sales)

• It is not legally possible to postpone the start of the 3rd and 4th wave of ERS, which will occur on 1 May 2020. However, in its control activities the Financial and Customs Administration will from 1 May proceed with maximum tolerance for three months and perform only an advisory function. In fact, business owners do not have to worry about sanctions during this period.

The full text can be found on the website of the Ministry of Finance of the Czech Republic.