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Czech Republic: Domestic Corporate Taxation

Filing Requirements and Payment of Tax

The tax period is defined as either the calendar year or another 12-month period coinciding with the foundation of a business (i.e. its economic year). Where a previous tax liability exceeded CZK30,000, a business must make advance tax payments in respect of a current year. Only businesses (including sole traders) that are defined as residents of the Czech Republic must complete a tax return.

The tax return must be submitted within three months of the end of the taxation period (i.e. for a calendar year by March 31). The return must be submitted to the relevant local tax authority governing the area in which a business is located. Forms are available in hard copy or online from the Finance Ministry website. Payment of tax due must be made within three months of the end of the tax period to which the return refers.

Tax penalties are imposed for late submission of returns and late payment of taxes, to the amount of 0.1% of the amount due for each day it is late. After the first 500 days, penalties accrue at the rate of 140% of the Czech National Bank discount rate. The deadline may be extended in certain circumstances, e.g. if a tax adviser has been appointed to submit the tax return on behalf of the legal entity.

 

 

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