Currently and until the end of September, the so-called «tax holiday» according to Act 182/2023 Coll. and the «insurance holiday» according to Act 181/2023 Coll. are in effect. This is an action from the state, which allows you to get rid of penalties and other costs related to taxes and social contributions not paid on time.
The tax holiday applies mainly to individuals. Legal entities can theoretically take advantage of the promotion only to pay off small tax debts, the liquidation of which is as automatic as for individuals and does not require the submission of an application.
Under the grace summer, an individual who has a tax debt or liability as of September 30, 2022 can apply for free repayment of the penalties associated with that debt, namely %, penalties and interest.
For example, if a late payment penalty is assessed, the tax must be owed as of September 30, 2022, and the tax must either already be paid or will be paid by the end of September. However, late payment penalties do not have to be paid prior to the filing of the application.
For other types of penalties, the condition that on 30.9.2022 the penalty has been assessed must be fulfilled. For example, if a tax return was filed late and the penalty is a late filing penalty, the penalty order is relevant no later than 30.9.2022. Similarly, for example, for penalties if tax has been additionally assessed.
The preferential tax period does not apply to penalties related to the VAT control report (Kontrolní hlášení).
You can use the form prepared by the tax office to submit your application — in this case it is formulář Žádost o prominutí příslušenství , available here. The application can be submitted now. Information about the preferential tax period is available here.
Example
An individual had to pay an advance payment of CZK 222,400 of personal income tax on September 15, 2022, but did not pay it until November 4, 2022. The interest for late payment of the tax is CZK 4,296 and the individual has not paid it yet. If one does not take advantage of the tax grace period, one will have to pay a penalty of CZK 4,296 or use a standard request for tax deferral, which may not be granted (since it is a deferral of an amount exceeding CZK 3,000). In addition, an administrative fee of CZK 1,000 will have to be paid for such a standard request. CZK).
The condition for using the tax relief period is that the debt to which the penalties relate must be paid off by the end of September 2023 without paying off the penalties themselves. In the example given, the tax debt was repaid on November 4, 2022, so the condition is met and the application can be submitted. In addition to the individual’s details etc., the application must specify:
- Tax: Income tax on individuals
- Tax period: 2022
- Indebtedness arose on the basis of: Accrual of tax
The application can be submitted electronically via the DIS+ tax portal or by mail, e-mail, post or by taking it directly to the tax office. You can fill in the application form here Tax Portal
The insurance benefit summer applies to unpaid insurance premiums due before October 1, 2022, as well as related penalties and enforcement costs. Using insurance grace summer is now easier than tax summer in that there is already a working application to check whether a person can use insurance grace summer. The application and information about the debt is available here ePortál ČSSZ .
Steps:
- It is sufficient to submit a notice via the ČSSZ e-portal not later than November 30, 2023, stating that you will pay off the arrears of insurance premiums or pay them in installments.
- Pay the debt by November 30, 2023. If you have sent an installment payment notice, pay the first installment by December 31, 2023 and each subsequent installment by the last day of the calendar month.
- Upon payment of the insurance premium due, fines and enforcement costs arising from this debt will be forgiven. You will be able to check this fact using the ČSSZ ePortal service.
Example 1
A hairdresser working as a self-employed person owes CZK 25,130 in insurance premiums that were due by October 1, 2022. At the same time, a penalty has already started to accrue on this debt, which currently amounts to CZK 1,205. The sole proprietor submitted a notification via the ČSSZ e-portal no later than November 30, 2023 that she would pay the arrears of insurance contributions in installments. Once the entire amount of the insurance contribution arrears has been paid, the penalty of CZK 1,205 will be forgiven.
Example 2
A limited liability company owes CZK 95,000 in insurance premiums due by October 1, 2022. As it did not pay the arrears, penalties began to accrue, which currently amount to CZK 23,200. It has even entered into compulsory extortion (exekuce) and the enforcement costs currently amount to CZK 1,500. The company has submitted a notice via the ČSSZ e-portal that it will settle the arrears of insurance premiums no later than November 30, 2023. After the payment of the arrears of insurance contributions, the company will be forgiven a fine in the amount of CZK 23,200 thousand and enforcement costs in the amount of CZK 1,500 thousand.
!!! The insurance benefit does not apply to arrears of insurance premiums, fines and enforcement fees collected through a bailiff (soudního exekutora), as well as to insurance premiums payable after September 30, 2022.
For individual entrepreneurs, debts for insurance contributions are not debts for unpaid advance payments. This action does not apply to debts on contributions to the health insurance fund.
Receiving timely information will save you a lot of money. DoMyTax clients always receive timely data on debts and opportunities to avoid paying penalties. We have been supporting entrepreneurs in the field of accounting services and tax issues for over 10 years.
