The Czech Financial Administration announced several notices – providing information on tax payment deferments, penalty waivers, and various forms of tax relief – for citizens and businesses in light of the significant flooding on 18 September 2024.

Income tax payments

• Taxpayers who have difficulty with tax payments due to floods can request a deferment or an installment plan
• Tax prepayments can also be adjusted or waived
• Waivers for default interest and penalties are available for late filings or payments
• Costs related to aid provided in kind for disaster recovery are deductible for income tax purposes
• Requests for a waiver of tax accessories, including interest on arrears, interest on deducted amounts, and penalties for late tax claims
• Recipients of subsidies can request a waiver of both the levy and penalty payments
• Individuals and entities affected by floods are exempt from administrative fees associated with actions in tax proceedings
• The tax administrator may grant advances on taxes upon request or waive them entirely
• The deadline for filing a tax return may be extended based on certain concessions
• Monetary and in-kind donations from the floods are exempt from income tax
• Financial and other gifts received in connection with natural disasters are exempt from income tax natural and legal persons

VAT

Taxpayers can request a deferment of income tax payments, spread payments into installments, and seek waivers for interest and penalties related to late tax payments and submissions, including VAT ledger statements.  Monetary donations by VAT payers are exempt from VAT and do not need to be reported.

Real estate tax

Municipalities and cities affected by natural disasters may issue a generally binding decree or a measure of a general nature allowing flood-damaged real estate to be exempt from real estate tax land for a maximum period of five years. This tax exemption applies to land and buildings and must be enacted before 31 March 2025.