Tax Merciful Summer 2023
The Act on Exceptional Relief and Extinction of Certain Tax Debts, known as Merciful Summer No. 3, will come into effect on 1 July 2023. This law will provide debtors with a chance to “get rid of” debts arising from penalties, interest and other tax accessories. Tax Merciful Summer No. 3 follows upon the previous Merciful Summers in 2021 and 2022.
Relieving Tax Accessories
The relief will apply to tax accessories, i.e. default interest, interest on deferred amounts, penalties, fines for late tax statements or costs of proceedings, including costs of seizing.
The accessories’ relief is conditioned upon paying the principal (tax arrears) no later than by 30 November 2023 and, at the same time, filing an application for the relief (electronically/in writing); this only applies to natural persons. Items to be relieved include accessories to principals originating prior to 30 September 2022. Debtors will be able to split the principal’s payment into instalments (in principals over CZK 5,000).
Extinction of Low-value Tax Arrears
The above-mentioned law also contains an unrestricted extinction of minor arrears of the tax alone (the extinction is automatic, without a need for filing an application); this applies to both natural and legal persons, and to individual arrears in the following levels:
- CZK 30 for arrears on tax on immovable assets; and
- CZK 200 in other cases.
This extinction only applies to cases where the total amount of arrears with a single tax administrator does not exceed CZK 1,000 and where the arrears arose no later than by 30 September 2022.
If you have any questions or need assistance with the application, please feel free to contact us. We are ready to help you!
Michaela kozminská Lenka Kolmanová
kozminska@edmutilitas.cz kolmanova@edmutilitas.cz![\"michaela-kozminska-23\"](\"/data/editor/michaela-kozminska-23.jpg\")
![\"Lenka](\"/data/editor/Lenka%20Kolmanov%C3%A1.jpg\")
