Answer ... The general deadline for filing a corporate income tax return is three months following the end of the tax period. If the taxpayer’s financial statements are subject to a statutory accounting audit or if the tax return is prepared and submitted by an authorised tax adviser under a power of attorney granted by the taxpayer (and the power of attorney is submitted to the tax authorities within three months of the end of the tax period), the deadline for submission of the tax return is six months following the end of the tax period. At the taxpayer’s request, the tax authorities may extend the deadline for submission of the tax return by up to three months under certain conditions. If a foreign tax base and tax payments of a permanent establishment must be included in the local company’s tax calculation, the tax authorities may extend the deadline by up to 10 months.
Corporate income tax is payable by the deadline for filing the relevant tax return.
Answer ... The penalty for failure to file a tax return by the statutory deadline, which is automatically assessed, is set at 0.05% of the disclosed tax or 0.01% of the disclosed tax loss per calendar day. The penalty is calculated from the sixth working day after the deadline and is limited to 5% of the disclosed tax or tax loss.
If a corporate taxpayer fails to file a tax return upon the request of the tax authorities, its directors and officers may face criminal charges, depending on the amount of tax which should have been disclosed in the tax return and the relevant circumstances, such as any intent to avoid tax.
If the tax authorities find that additional tax is payable by a taxpayer, penalties and late payment interest will also be imposed. A penalty of 20% of the tax due applies if the tax is increased or if a tax deduction is decreased as a result of a tax audit. A penalty of 1% applies if a tax loss is decreased as a result of the tax audit.
Interest on late payments is calculated at the Czech National Bank repo rate (effective on the first day of the relevant half-year), increased by 14%. This interest charge is applicable for a maximum period of five years.
Answer ... The Czech Republic has adopted Directive IV on Administrative Cooperation (DAC IV Directive) and has thus implemented country-by-country reporting obligations for multinational taxpayers. The DAC IV Directive amended the directive on mandatory automatic exchange of information in the field of taxation and is focused on groups of multinational enterprises.
In addition, Czech resident taxpayers are required to inform the tax authorities of Czech source income paid to foreign tax residents which is subject to withholding tax in the Czech Republic, regardless of whether such income is exempt from tax or whether a respective double tax treaty prevents the Czech Republic from taxing such income.