We would like to inform you about the approved tax package supporting further anti-crisis measures wich was signed by the President and is currently waiting for its announcement in the Collection of Deeds:
- It will be possible to claim a tax loss retrospectively, even for the two last tax periods preceding the tax period in which the loss arose. Therefore, if a company reports a tax loss for the financial year 2020, it will be able to reduce its tax base retrospectively by this loss for the financial year of 2019 and 2018. It will be possible to claim the tax loss retrospectively in maximum amount of CZK 30 million.
- The amendment also introduces the possibility of retrospective application of the tax loss expected in the current financial year before its assessment (i.e. already during the current financial year for which it arises). If the final loss is lower than the expected and claimed tax loss, the taxpayer will be obliged to file an additional tax return, pay the tax and pay interest on arrears.
- The package reduces value added tax on accommodation services, admission to cultural events and sporting events, admission to sports facilities and saunas. In all cases, the VAT rate is reduced to 10% from the current 15%.
- The package gives municipalities the opportunity to reduce real estate tax in selected cases by a generally binding decree.
- Road tax on vehicles with a maximum permissible weight of more than 3.5 tons is reduced by 25%. The change has been applied retroactively since the beginning of 2020, which will also be reflected in a reduction in this year’s tax advances.