Practice-requested changes in the payment of income tax advances and in the deduction of tax losses



The approved Act No. 198/2020 Coll.  concerned (114 measures to help entrepreneurs) also amends and supplements the so-called LexKorona-Act No. 67/2020 Coll. on certain exceptional measures in the financial area in connection with the spread of the dangerous contagious human disease COVID-19, in particular in the field of payment of advances on corporate income tax and in the field of deduction of tax losses as follows:

  • waiver of the obligation to pay the difference in corporate income tax advances paid and payable from the beginning of the tax period (from 1 January 2020 for taxpayers applying the tax period of the calendar year) to the end of the calendar month in which the taxpayer’s period for filing the tax return expired (one month after the end of the pandemic) if the advances paid were lower than those resulting from the calculation according to the tax return for the previous tax period;
  • in the case of taxpayers applying the fiscal year as the tax period, the obligation to pay the difference in corporate income tax advances is also waived if the last day of the period for filing the corporate income tax return expires during the pandemic period, or if at least one month of the fiscal year expires within the period from 1 January 2020 to 31 December 2020;
  • the above change also applies to those taxpayers for whom the tax administrator has determined the income tax advances by decision on the basis of a request for payment of advances otherwise;
  • in the case of taxpayers with the fiscal year as the tax period, unapplied tax losses reported for tax periods ended in 2015 to 2018 may be deducted in the tax period for which the deadline for filing the tax return expires during the calendar year 2020. At the same time, such taxpayers may claim deduction of these losses in one tax period only if the deadline for filing the income tax return expires in 2020 for several tax periods. This change does not amend the original conditions for the deduction of unapplied tax losses between 2015 and 2018, which you were informed about in previous editions of our Newsletter.

 

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