A large liberation tax package
People who find themselves in financial distress due to coronavirus may request one-time financial support (MOP COVID-19). This also applies to parents of children under 10 years of age who stay with them at home (on care-giver’s allowance) due to the current coronavirus situation. For the social benefit, household income is assessed. The application for the benefit must be justified. The Labor Office of the Czech Republic can provide a benefit to a client whose social and financial circumstances do not allow him to overcome a difficult situation.
Purpose/conditions for drawing:
1) Postponement of tax obligations to all entrepreneurs whose activities were immediately restricted or prohibited.
Entrepreneurs whose primary activity is subject to government bans or restrictions have now automatically deferred all VAT payments until the end of the year and waived deposits on income tax and road tax. All they have to do is send a notification to the Financial Administration that they meet the conditions of the General Pardon of the Minister of Finance. You can send it by email.
2) Institute for retrospective application of tax loss.
If the taxpayer already expects a tax loss for the tax period of 2020, he will be able to reduce his tax base retroactively for the tax period of 2019, and the tax office will pay him the funds as a matter of priority.
3) General waiver of the administrative fee for submitting applications to the tax or customs office.
The all-over waiver of the administrative fee for submitting applications to the tax or customs office includes the following situations:
- remission of interest on arrears
- remission of interest on a deferred amount
- waiver of a fine for failure to submit an inspection report
- refund of taxes on importation and remission of customs arrears
- confirmation of non-existence of arrears
4) Widespread exemption of VAT on gratuitous supplies of necessary protective equipment, for which the obligation to declare tax arise in the period from October to December.
The all-over VAT waiver for the gratuitous supply of necessary protective equipment, for which the obligation to declare tax arise in the period from October to December, covers the following situations:
- free delivery of goods (protective equipment, test kits, etc.)
- free delivery of goods for the production of disinfection
- free delivery of goods to healthcare professionals
- free delivery of goods to the components of the integrated rescue system, the Czech Army, or for the needs of social services
5) Taking into account the individual's difficult situation.
If necessary, it is, of course, possible to use the most common individual tools to take into account the difficult situation of tax subjects. The instruments include the ability to request tax deferral or distribution in installments, the ability to request a reduction or cancellation of deposits, the possibility to request an extension of selected deadlines or their return to the previous state, the possibility to apply for an individual waiver of interest on arrears, penalties, and fines for failure to submit an inspection report.
6) Reduction of VAT rates (rate 10%).
In the future faster recovery of the affected businesses will help the significant reduction in VAT, e.g. on draft beer, catering services, accommodation and cultural services, operation of ski lifts, access to sports events, and sports facilities (including saunas, fitness centers, and gyms).
7) Road tax reduction.
It will bring a direct decrease of 25% in fixed costs for operators of vehicles over 3.5 tons.
8) Abolition of real estate acquisition tax.
The abolition of the real estate acquisition tax has a positive effect on the real estate market and brings significant savings to buyers.
Method of applying: The right to this liberation is proved by the subject by submitting a notice to the relevant tax office, via a web application, or it can also be sent by e-mail.