On 16 March 2020, the Government approved the tax measures to mitigate the effects of COVID-19. Basic measures to be implemented are:
- No penalty and late-payment interest will apply, as long as the tax return is filed by 1 July 2020. In fact, all taxpayers (individuals and entrepreneurs) will automatically be allowed to file their income tax return and pay this tax without penalty no later than 3 months later without having to prove the reasons related to coronavirus. The main objective is to prevent the tax authorities, respectively. in post offices the concentration of natural persons who are not obliged to submit tax returns electronically.
- In the case of other late tax filings, including the late filing of the control statements, taxpayers will not be subject to penalties, provided that they can demonstrate that the delay was caused by COVID-19 (e.g. illness or quarantine in connection with COVID-19).
- All taxpayers will be exempt from the second penalty of CZK 1,000 for a late filing of the control statement, without the need to demonstrate the connection with COVID19 and incurred between 1 March and 31 July 2020. The Directorate General for Finance will be instructed to individually waive fines for failure to submit a control report for the period from 1 March to 31 July if coronavirus is established.
- Taxpayers will benefit from a 75% reduction of the administrative fee for the deferral of tax payments or the payment of tax in instalments (i.e. the fee will be reduced from CZK 400 to CZK 100).
- Although the final stages of the electronic reporting of revenues (ERR) will still be introduced from 1 May 2020, the tax authorities will be more lenient in cases of noncompliance, where such non-compliance was demonstrably caused by COVID-19.
