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Czech Republic: Tax relief and economic relief measures (COVID-19)

Czech Republic: Tax relief and economic relief measures

Tax and financial relief measures continue as the authorities in the Czech Republic respond to economic challenges of the coronavirus (COVID-19) pandemic.

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The KPMG member firm in the Czech Republic prepared reports about the following COVID-19-relief measures.


Tax relief package

The Ministry of Finance announced tax relief for those operating in the retail and services sectors and that had to close their business premises beginning 22 October 2020. The tax relief relates to the road tax, income tax prepayments, and default interest related to value added tax (VAT). To claim the tax relief, more than half of the taxpayer’s income must derive from activities that were banned or curtailed by the government’s emergency measures. Taxpayers to which the relief applies must notify the appropriate tax authority about meeting the conditions for the relief. Requests for relief concerning the road tax and income tax prepayments do not waive the tax itself, and the relief concerning VAT does not cover the late filing of a tax return—both VAT returns and VAT ledger statements still have to be filed within the statutory deadlines. Read a November 2020 report


Rent programme launched

Following the reintroduction of measures restricting retail and the provision of certain services, the government launched a rent relief program as support for certain lease expenses. Lessees meeting the definition of eligible applicant will be entitled to compensation equal to 50% of rent for the period from 1 July 2020 to 30 September 2020. A key condition for obtaining this support is that the applicant was forced to close the premises due to the October government resolutions. Applications may be submitted until 21 January 2021. Read a November 2020 report


Extension of deadline for meeting general terms and conditions

The Ministry of Industry and Trade introduced a measure intended to help investors in response to the COVID-19 situation. In particular, they may apply for an extension of the deadline for meeting general terms and conditions by two years. A deadline may therefore be extended from the existing three years to five years. Applications for extensions will not be approved automatically. Applicants will have to prove that they have been unable to meet the selected statutory conditions within the original statutory deadline as a result of the COVID-19 situation. Read a November 2020 report

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