The CNB hiked interest rates again; beware of late payment of taxes!

At the meeting of CNB Bank Board on June 22, 2022, it was decided to further sharply increase the two-week repo rate, from the current 5.75% to 7.00%. The newly set interest rates have been already in force since June 23, 2022.

The increase in the main interest rate has an immediate impact on the calculation of interest on arrears under the Civil Code, therefore, also on the calculation of interest on late payment of taxes. From July 1, 2022, after increasing the repo rate to 7.00%, the amount of interest on arrears will be 15.00% p.a. (i.e. 8 percentage points + repo rate) in the event of late payment of taxes started in the second half of 2022. At present, the amount of interest on arrears is set at 11.75% p.a.

In connection with the deadline for filing income tax returns on July 1, 2022, for taxpayers who are subject to a statutory audit or whose returns are filed by a tax adviser within this extended deadline, any late payment may result in significant penalties. We recommend arranging the deferment of the tax or the distribution of the tax payment in installments with the tax administrator in advance, as the interest on the deferred amount is half the set amount. However, the first three days of delay are not interest-charged and interest on one tax, for one tax period, up to CZK 1,000 is not imposed. 

publikováno 01.07.2022