Ministry of finance passes judgment on remission of accessions and advance tax

Authors: JUDr. Martin Šubrt, Ph.D., LL.M., Mgr. Martin Dolnák, Mgr. Simona Mlýnek Štursová

On 26 October 2020, the Ministry of Finance of the Czech Republic published a Judgment on the Remission of Accessions and Advance Tax in its Financial Newsletter. The aim of this measure is to provide appropriate tax relief for entrepreneurs for whom more than a half of their income in the period from 1 June to 30 September 2020 was derived from retail sales and the provision of services on business premises, and whose business activities were directly affected by the government regulations adopted due to the COVID 19 pandemic. On the basis of this Judgment, tax-payers should be exempted from late charges that arose for value added tax for the September, October and November 2020 tax periods, or as the case may be, for the 3rd quarter of 2020, but only provided that the tax is paid to the state budget by the end of the year 2020.

Furthermore, according to the above Judgment, there will also be a remission of payments of advance taxes on income for the period from 15 October to 15 December 2020 and of road taxes which were due this year. This must be notified to the tax administrator (e.g. via email, not by data message).

Even before the publication of the above-mentioned Judgment, the Ministry of Finance had extended the effectiveness of some tax measures passed in the spring due to the COVID 19 pandemic, which thus also remain effective.

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