Tax Year

The standard tax year in the Czech Republic is the calendar year. Alternate tax years are allowed.

Tax Return Filing

Annual tax returns must be filed within 3 months following the close of the previous tax year. The deadline is extended by one month in case of electronic filing. The deadline may be extended to within 6 months following the close of the previous tax year if the return is prepared and filed by a registered tax advisor with a power of attorney.

The deadline is automatically extended to within 6 months of the close of the previous tax year when the taxpayer is subject to a mandatory financial audit. Taxpayers subject to mandatory audits include joint-stock companies if any one of the following conditions are met, and limited liability companies if any two of the following conditions are met:

• Annual turnover exceeds CZK 80 million;
• Total assets exceed CZK 40 million; or
• The average number of employees exceeds 50.

All banks and mutual funds, and foundations, and certain other non-profit organizations are subject to mandatory audit regardless of the above conditions.

If any errors are discovered by the taxpayer, they should file a supplementary return within 1 month of discovering the error.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, the deadline for filing of annual income tax returns for legal entities due on 1 April 2021 for the year 2020 is extended until 3 May 2021 for paper filings, and until 1 June 2021 for electronic filings with a waiver of associated penalties for late filing. The interest on late payment of tax is also waived provided the tax is paid within the extended due dates. A penalty waiver is also allowed for the submission of additional tax returns for 2019, if filed by 3 May 2021.

Tax Payments

Advance tax payments are required depending on the taxpayers’ previous year's tax liability.

If the tax liability exceeded CZK 150,000, quarterly advance payments equal to 1/4 of the previous year’s tax liability are required. If the tax liability exceeded CZK 30,000 up to CZK 150,000, semi-annual advance payments equal to 40% of the previous year’s tax liability are required.

Any outstanding balance due following the close of the tax year must be settled by the annual tax return deadline.

Availability of E-Filing

Tax returns and other forms may be filed electronically via the Czech tax portal (Czech language).