TAX ADMINISTRATION (The Tax Code) and ADMINISTRATIVE FEES



TAX ADMINISTRATION (The Tax Code)

  • Service of files to the financial administration

Taxable entities not obliged to communicate electronically with the financial administration:
– If a file does not have a structured format, it may also be filed in another way (e.g. by email) and does not have to be sent by post in paper form as well.
– If a file has a structured format (a tax return, etc.), it should also be served within five days in paper form.
Taxable entities obliged to communicate electronically with the financial administration:
– Under applicable law, the procedure remains in force

  • Missing a deadline

Missing the statutory deadline will be pardoned if the act (registration, appeal, etc.) is carried out by the end of the calendar month following the end of the pandemic period at the latest.

The pardon for the missed deadline does not cover the filing of tax returns and the payment of individual taxes.

  • Service of documents by post from the financial administration in person

Conditions determined by the postal operator shall be used. The “fiction of service” of an item applies – if the item is not picked up by a natural person or legal entity, service shall occur on the final day of the deadline for collecting the stored item from the post office.

  • Tax inspection – suspension

A tax inspection (other than a tax inspection of the eligibility of an excess deduction) which began prior to the pandemic period (before 12 March 2020) shall be suspended (retroactively) and the suspension will last until the end of the calendar month in which the emergency situation is called off. The deadline for carrying out a tax inspection shall be extended by the suspension period.

A tax inspection (other than a tax inspection of the eligibility of an excess deduction) which begins during the pandemic period shall be suspended from the day following the day it begins until the day the pandemic ends.

With a tax inspection of the eligibility of an excess deduction which takes place during the pandemic period, the tax authority may issue a partial report. By issuing a partial report, the tax inspection is suspended until the end of the pandemic period. The tax authority may issue a partial report (and thus refund the excess deduction or part thereof that the tax authority is able to determine with certainty as being an entitlement), even if it does not include demonstrable inspection findings or an evaluation of the evidence.

  • Publication in financial administration lists

During the pandemic period, the financial administration will not be updating the public list of tax debtors, the list of VAT registered entities for whom there were grounds to cancel registration, nor the list of entities deleted from the list of VAT registered entities.

  • Suspension of tax proceedings

Tax proceedings (e.g. tax assessment procedures, etc.), which began prior to the pandemic period, shall be suspended, until the end of the pandemic period (regardless of whether or not the reasons for which the proceedings were suspended ceased to exist during the same).

Tax proceedings which begin during the pandemic period shall be suspended from the day following their commencement.

Proceedings in which a decision is made about refunding a tax overpayment or a claim pursuant to special regulations (e.g. an excess deduction) are not suspended. However, if the personal participation of another person (e.g. a witness hearing) is required for these proceedings, who does not agree to take part due to the pandemic, the tax proceedings shall be suspended by the relevant authorities until the end of the pandemic period.

  • Expiry of the right to levy tax & Limitation period and expiration of the right to recover tax arrears

The deadlines for expiry of the right to levy tax and to a limitation period, as well as the expiration of the right to recover tax arrears, shall be suspended (i.e., these deadlines will be extended to include the pandemic period).

  • Tax arrears

If, during the pandemic, taxpayers fail to pay tax, the due date for which falls within the pandemic period, the sum owed for this tax will not be considered tax arrears, provided that the taxpayers pay the same by the end of the calendar month following the end of the pandemic period.

  • Postponement of a tax execution procedure

During the pandemic period, a tax execution procedure shall be postponed and will continue after the end of the pandemic period. The legal effects of acts which have been carried out under a tax execution procedure to date shall remain effective.

  • Administrative offences and penalties

If taxpayers fail to file an income tax return or supplementary income tax return by a deadline that falls within the pandemic period, they will not be penalised, on condition that they fulfil their obligations by the end of the calendar month following the end of the pandemic period.

If taxpayers file a supplementary income tax return which increases their tax liability, the fine (3% p.a.) will only be calculated up to the day the pandemic period begins.

Taxpayers will not be levied interest on late payment if they have not paid income tax, an advance tax payment, withholding tax, or a sum withheld to guarantee tax payments, which became payable during the pandemic period, on condition that they will pay them by the end of the calendar month following the end of the pandemic period.

This provision only concerns income tax; penalties for VAT remain unchanged within the meaning of the applicable act.

ADMINISTRATIVE FEES

Payment of administrative fees

Administrative fees for the acts and proceedings of administrative authorities that are needed to mitigate the negative impact of the pandemic shall not be payable during the pandemic period.

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