Abolition of real estate acquisition tax is nearly a done deal (No. 945)
On Tuesday, 15 September 2020, after the Senate had remitted it, the Chamber of Deputies passed for the second time a proposal to abolish the real estate acquisition tax. Now it awaits only the signature of the President of the Czech Republic and its publication in the Collection of Laws.
The abolition of this tax will apply retroactively to transfers of real properties for which the deadline for filling a tax return has expired on March 31, 2020 or later. For the time being, these cases have also been subject to the general pardon, which has waived penalties associated with late submission of tax return and payment of tax. We informed you about this measure in former e-service.
Practically, the above means that if the registration in the Cadastre of Real Estate was made in November 2019, the deadline for filling tax return and tax payment expired on March 2, 2020; therefore, the abolition of the tax and the general pardon do not appertain to such case.
However, if the registration of the real estate into the Cadastre of Real Estate took place in December 2019, the last day of the term for filling the return was March 31, 2020. In that case, the tax is discharged retroactively; therefore, it is not necessary to pay it.
Moreover, in the event that the real property was registered in the Cadastre of Real Estate in December 2019, the taxpayer filed the return by the end of March 2020 and also paid the tax, he/she may request a refund of the tax already paid.