Tax obligations until the end of January 2024
Tax obligations until the end of January 2024
On 31 January 2024, the statutory deadline for meeting certain tax obligations that may be relevant to you will expire. These include the following areas:
in the Real Estate Tax Act. Due to these legislative changes, you may be obliged to file a real estate tax return by the end of January 2024, even though there has been no real change (purchase/sale/significant renovation of the property) during 2023 that would trigger the obligation to file a return in the past. For an overview of the situations in which you are obliged to file a tax return in connection with the change in the Real Estate Tax Act (without a real change), please refer to the Tax Administration's information leaflet.
Check if you are required to file a property tax return for 2024.
If you have bought, sold or substantially redeveloped a property (building, land) in 2023 or if there has been any other change in ownership of the property (e.g. planning permission has been obtained, the property has been built, the building has been divided into units, etc.), there is an obligation to file a real estate tax return.
If you are not obliged to file a tax return and at the same time you own real estate, a payment order for real estate tax will be sent to your data box in spring 2024. From 3 October 2023, the tax administration launched a service for pre-filling tax returns with data from the tax office, which can facilitate the filing of your tax return for 2024 (more information HERE).
You may also find helpful the My Taxes portal - verification of tax returns against 2023 data in the Land Registry, which has been in operation since December 2022 (more information HERE).
However, you are only obliged to file a road tax return by the end of January 2024 if you owned or operated road vehicles of category N2, N3 or trailers of category O3 or O4 in 2023 which are registered in the register of road vehicles in the Czech Republic, while their maximum permissible weight (in the case of BA, BB and O category vehicles) or the maximum permissible weight of the combination (in the case of BC, BD bodywork) exceeds 12 tonnes in the case of BA, BB bodywork and 16 tonnes in the case of BC and BD bodywork for vehicles of category O.
Provisions until the end of 2023:
If withholding tax is not applied due to the exemption of income or the application of the provisions of double taxation treaties, the notification is submitted if the aggregate value of exempt income of the same type exceeded CZK 300,000 in the calendar month of the previous year. The obligation applies, for example, to the following types of income paid to non-tax residents: royalty income, profit shares, settlement shares, interest, gambling winnings, penalties from liabilities, income from trusts and family foundations.
Provisions from 1 January 2024:
If withholding tax is not applied due to the exemption of income or the application of the provisions of double taxation treaties, the following types of income paid to tax non-residents are subject to notification: income from royalties (without limitation), profit shares, settlement shares (without limitation) and interest (only if the amount paid in any month exceeds CZK 300,000 for one recipient).
If any of the above obligations may apply to you or if you have further questions, please do not hesitate to contact us. We will be happy to assist you in complying with these legal obligations.
Real estate tax for 2024
There are substantial changes in connection with the entry into force of the consolidation packagein the Real Estate Tax Act. Due to these legislative changes, you may be obliged to file a real estate tax return by the end of January 2024, even though there has been no real change (purchase/sale/significant renovation of the property) during 2023 that would trigger the obligation to file a return in the past. For an overview of the situations in which you are obliged to file a tax return in connection with the change in the Real Estate Tax Act (without a real change), please refer to the Tax Administration's information leaflet.
Check if you are required to file a property tax return for 2024.
If you have bought, sold or substantially redeveloped a property (building, land) in 2023 or if there has been any other change in ownership of the property (e.g. planning permission has been obtained, the property has been built, the building has been divided into units, etc.), there is an obligation to file a real estate tax return.
If you are not obliged to file a tax return and at the same time you own real estate, a payment order for real estate tax will be sent to your data box in spring 2024. From 3 October 2023, the tax administration launched a service for pre-filling tax returns with data from the tax office, which can facilitate the filing of your tax return for 2024 (more information HERE).
You may also find helpful the My Taxes portal - verification of tax returns against 2023 data in the Land Registry, which has been in operation since December 2022 (more information HERE).
Road tax
Although the Road Tax Act has also been amended by the consolidation package, the changes will not be reflected until the return to be filed in January 2025.However, you are only obliged to file a road tax return by the end of January 2024 if you owned or operated road vehicles of category N2, N3 or trailers of category O3 or O4 in 2023 which are registered in the register of road vehicles in the Czech Republic, while their maximum permissible weight (in the case of BA, BB and O category vehicles) or the maximum permissible weight of the combination (in the case of BC, BD bodywork) exceeds 12 tonnes in the case of BA, BB bodywork and 16 tonnes in the case of BC and BD bodywork for vehicles of category O.
Notification of exempt income received abroad
According to the transitional provisions, in 2023 the taxpayer can choose whether to follow the law that was in force until the end of 2023 (notification by the end of January 2024) or the already amended provisions.Provisions until the end of 2023:
If withholding tax is not applied due to the exemption of income or the application of the provisions of double taxation treaties, the notification is submitted if the aggregate value of exempt income of the same type exceeded CZK 300,000 in the calendar month of the previous year. The obligation applies, for example, to the following types of income paid to non-tax residents: royalty income, profit shares, settlement shares, interest, gambling winnings, penalties from liabilities, income from trusts and family foundations.
Provisions from 1 January 2024:
If withholding tax is not applied due to the exemption of income or the application of the provisions of double taxation treaties, the following types of income paid to tax non-residents are subject to notification: income from royalties (without limitation), profit shares, settlement shares (without limitation) and interest (only if the amount paid in any month exceeds CZK 300,000 for one recipient).
If any of the above obligations may apply to you or if you have further questions, please do not hesitate to contact us. We will be happy to assist you in complying with these legal obligations.