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Short News: January 2025
03. 02. 2025

Short News: January 2025

Dear Readers, please find below our Short News for January 2025:

  • Please be advised that the deadline for the filing of a tax return on immovable properties for the taxation period 2025 will expire on 31 January 2025. This tax is payable as follows:
    • As of 31 May 2025 where the resulting tax’s amount did not exceed CZK 5,000; and
    • The payment can be split into halves in the event of the resulting tax amounting to more than CZK 5,000: the tax’s first half needs to be paid by 31 May 2025 and the second one by 30 November 2025.
       
  • The deadline for the filing of a notification under DAC7 with the Specialised Tax Office also expires on 31 January 2025. The notification applies to digital platform operators with regard to an operation performed by a reported seller through digital platforms. A list of third states that have met conditions for information exchange is included in Financial Newsletter No. 16/2024. You can find more information here.
     
  • On 31 January 2025, another deadline to expire will be the deadline for the filing of a road tax return for 2024. Details on this filing can be found on the Financial Administration’s website here. Any tax arrears also have to be paid by 31 January 2025.
     
  • This year’s key deadlines concerning income tax:
    • The deadline for the filing of an application for the annual settlement of tax advances and tax benefits for the taxation period 2024 will expire on 17 February 2025.
    • The deadline for the filing of a tax bill for income tax on dependent activities for the taxation period 2024 (not electronically) will expire on 3 March 2025.
    • The deadline for electronic filing of a tax bill for income tax on dependent activities for the taxation period 2024 will expire on 20 March 2025.
    • The deadline for the filing of a tax bill for tax withheld at a special tax rate for the taxation period 2024 will expire on 1 April 2025.
    • The deadline for the filing of an income tax return and payment of tax for 2024 (a tax return filed within the basic deadline pursuant to Section 136 (1) of the Tax Code) will expire on 1 April 2025.
    • As of 2 May 2025, the deadline for the filing of an income tax return and payment of tax for 2024 will expire, if the tax return failed to be filed within the basic deadline pursuant to Section 136 (1) of the Tax Code and the tax return will be filed electronically.
    • As of 1 July 2025, the deadline for the filing of an income tax return and payment of tax for 2024 will expire, if the taxpayer is required to be audited or if the tax return failed to be filed within the basic deadline pursuant to Section 136 (1) of the Tax Code and was subsequently filed by an advisor.
       
  • Responding to changes in the VAT field since 1 January 2025, the Financial Administration published Information, which contains a basic summary of key information. The file can be found here. Additional information will be published later.
     
  • The Financial Administration published Information about proving provision of donations in connection with floods in 2024. So-called confirmation of the donation’s recipient is a standard piece of evidence documenting the donation’s recipient, value, subject matter, date, and purpose. More information is available here.
     
  • The Czech Social Security Administration Authority published Information about the most common mistakes in submitting a summary of the social security insurance premium and the premium’s payment, such as provision of incorrect payment details or the use of a wrong code of a district, for which the summary is filed.
     
  • The Ministry of Finance submitted a draft decree, which amends Decree No. 525/2020 Coll., on Income Tax Forms, as subsequently amended. Forms filed pursuant to the Tax Code will be declared to also include applications for the transmission of an outstanding amount paid by a taxpayer to payers in monthly tax bonuses, and an application for the transmission of an outstanding amount paid by a taxpayer to payers in a surcharge for a tax bonus from an annual settlement of advances and tax benefits pursuant to section 35d (5) and (9) of the Income Tax Act. 
     
  • The Financial Administration published Information about a change in the definition of net turnover and implications for a tax return appendix. According to the Ministry of Finance, the best procedure to adopt is to not disclose the net turnover for the previous accounting period in the income statement in the financial statements prepared for 2024. It would be time consuming to determine the net turnover for 2023 under the new methodology and it would be disproportionate to the information effect for the financial statements’ users.
     
  • A government bill, which amends certain laws in the tax administration field, is waiting for the second reading in the Chamber of Deputies (Parliamentary Press No. 784). A significant part of the bill involves an amendment to the Tax Code, which contains a set of partial changes to respond to the reform of the Customs Administration of the Czech Republic, judicial decisions, and development in related areas of the law. We continue monitoring the legislative process for you and will keep you informed.
     
  • The Government submitted a bill on a mandatory contribution for old-age pension products (Parliamentary Press No. 894). Employers should have a duty toward employees who carry out risk jobs classified in category three for selected working condition factors. The allowance for employees will amount to the level specified by that law (3% or 4% of the assessment base for the concerned period), for the employee’s supplementary pension scheme with a state allowance, or for the supplementary pension insurance. This law is anticipated to come into force on 1 July 2025.
     
  • The Financial Analytical Office published an updated list of high-risk third countries, and the FATF list was expanded to include Algeria, Angola, Lebanon, Monaco, Ivory Coast and Venezuela. On the contrary, Jamaica, Senegal and Turkey were removed from the list. However, Jamaica and Senegal remain in the list of the European Commission. The removed countries include Bulgaria and Croatia, which have been entered in so-called FATF grey list without being considered high-risk third countries. The updated list is available here.
     
  • The Financial Analytical Office published, due to frequent questions about a new regime of reporting a contact person, a statement on ambiguities in that new regime, which can be found here.
     
  • An amendment to the Energy Act (Parliamentary Press No. 656), which also contains proposed elimination of special write-offs in solar equipment pursuant to Section 30b of the Income Tax Act, was forwarded to the Senate.
     
  • An amendment to the Act on Certain Measures in Connection with An Armed Conflict (Parliamentary Press No. 727) passed the Senate and is ready to be signed by the President. The amendment, among others, extends the possibility to deduct the value of a free-of-charge supply while maintaining the maximum threshold of up to 30% of the tax base for the taxation periods 2022 through 2026. The amendment’s effect has been set to one day after the announcement.
     
  • The Senate passed a bill on digital finance (Parliamentary Press No. 694), the purpose of which is to implement European Union’s regulations in the field of digital finance (the DORA and MiCA regulations). The amendment also concerns the Income Tax Act, specifically the application of exemption of income from a transfer of cryptoassets for consideration under conditions similar to those that apply to securities. The effect has been set to one day after the announcement.
     
  • On 1 January 2025, an updated version of the European classification of economic activities CZ-NACE 2025 came into force, such classification containing a more detailed distribution of those activities. The purpose is to enhance the quality and foster analyses of statistic data, and to enable an improved comparison of economic activities among the EU member states. Additional information is available here.
     
  • The Ministry of Finance of the Czech Republic published three Financial Newsletters in January:
    • On 9 January 2025, they issued Financial Newsletter No. 1/2025, which contains a list of contractual states that are to inform reporting Czech financial institutions about data needed to correctly implement the joint reporting standard under the Act on International Cooperating in Data Administration;
    • On 10 January 2025, they issued Financial Newsletter No. 2/2025, which contains Information that Decree No. 433/2024 Coll. replaced, effective since 1 January 2025, Decree No. 367/2015 Coll., on Principles and Deadlines of Financial Settlement of Relationships with the National Budget, National Financial Assets and the National Fund; and
    • On 21 January 2025, they issued Financial Newsletter No. 4/2025, which includes Instruction No. GFŘ-D-66 Determining Uniform Rates for the Taxation Period 2024 pursuant to Section 38 of Act No. 586/1992 Coll., on Income Taxes, as effective until 31 December 2024.

Stela Bartošová
bartosova@clarksonhyde.cz