Notes relating to submission of income tax returns by 18th August 2020 (LIBERATION PACKAGE III) (No. 927)
On 10th June 2020, in e-service No. 922 we have informed about the decision of the Minister of Finance to waive tax accessories for individual and corporate income tax due to an emergency measures (see Financial Bulletin No. 9/2020, items I., II IX, X, XI, XII and XIII, , items I., II IX, X, XI, XII and XIII, the so-called liberation package III; available only in Czech).
With reference to numerous questions arisen together with the possibility to submit income tax returns for 2019 until Tuesday 18th August 2020, please note:
The possibility to submit an income tax return as of 18th August 2020 applies to both individuals and legal entities. In case of the legal entities, it does NOT apply to those who’s tax period is the financial year and to the so-called selected entities (tax administrator is the Specialized Tax Office).
The possibility to submit an income tax return by 18th August 2020 applies to those who have a regular deadline for filing on 1st April 2020 and on 1st July 2020.
The decision of the Minister of Finance does NOT change the statutory deadline for submission of income tax returns; however, the decision waives the fines for late submission of returns and an interest for late payment of tax. The waiver of fines will apply automatically (no request necessary) if the return is submitted and the tax is paid no later than 18th August 2020.
Please note that if the deadline of 18th August 2020 is not met, fines and interest will be calculated from 1st April 2020 or 1st July 2020. The period from the statutory deadline to 18th August 2020 is the fine - free period for which fine and interest are waived automatically without a request (if the conditions are met).
The fine - free period for submitting tax returns will not apply in the case of submitting a return after 18th August 2020 (e.g. fine remission for delayed submission of the tax return more than 5 working days). Tuesday 18th August 2020 is not the legal deadline for submitting a return, but it is the end of the fine - free period. The same applies to interest on late payment. The usual 4 working days tolerance for the tax payment will apply at the set deadline (1st April or 1st July), not at the end of the fine - free period.
The deadline of 18th August 2020 is the latest for submitting a tax returns and payment of tax without fines, however, it is possible to submit tax returns and pay tax any time before this deadline. Please bear in mind that the tax return submitted and the tax paid after 1st April 2020 or 1st July 2020 (after the statutory deadline) means the LATE SUBMISSION return and the LATE TAX PAYMENT. Although, no fines are imposed for delays in compliance with the conditions.
Please note that the link leads to Czech version, unfortunately, English version is not available.