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Dear readers,

Please find below our short news for May 2023:

• The Financial Administration published information on applying VAT related to trading in both valid and invalid coins from precious metals. The Financial Administration is currently analysing suggestions regarding this issue, and their outcome indicates that certain entities have failed to follow the correct procedure in applying VAT. You can find more information here.
  
  
• The Financial Administration informs that, as a matter of exception, they will not impose fines on selected tax entities for failure to file tax returns electronically. More information is available here.
  
  
• The Government of the Czech Republic introduced a consolidation package, i.e. an outline of measures that are to assist in consolidating public finance. You can find a summary of individual measures in the tax field as well as in other related areas on our blog. All proposals have to go through the whole legislative process; they are expected to become effective on 1 January 2024.
  
  
• The Czech Republic singed a double taxation treaty with the United Arab Emirates and the Republic of Rwanda. A standard legislative process is to follow, resulting in those treaties coming into force.
  
  
• A law on an extraordinary relief of certain debts (known as the “Tax Merciful Summer”) has been going through the legislative process, and was passed by the Senate in late May. This law will provide individuals with an opportunity to apply for waiver on tax accessories, i.e. interest, penalties or fines that were incurred before 30 September 2022, provided the application is filed by 30 November 2023 (the principal, to which such tax accessories are attached, will have to be paid by the same date, or it will be possible to pay it in instalments). Any arrears on tax and accessories with a single tax administrator below CZK 1,000 that were incurred before 30 September 2022 will cease to exist automatically (without filing the application). This law is anticipated to become effective as of 1 July 2023.
  
  
• The Ministry of Finance issued Financial Newsletter No. 7/2023, which contains a statement on the Double Taxation Treaty between the Czech Republic and the Republic of Colombia and on Preventing Tax Evasions in the Area of Income Tax (Collection of International Treaties No. 39/2015).

Michaela Kozminská                                       Lenka Kolmanová
kozminska@edmutilitas.cz                              kolmanova@edmutilitas.cz