Deadline extended for filing real estate acquisition tax returns and paying the tax
The Czech Finance Minister’s decision published in Financial Bulletin 9/2020 provides for postponing the filing of real estate acquisition tax returns (which were otherwise due to be filed on 31 March 2020 or later) and paying the related real estate acquisition tax until 31 December 2020. The reason is that the tax is expected to be abolished retroactively.
Financial Bulletin 5/2020 of March 2020 included a decision to waive the penalties associated with the late filing of real estate acquisition tax returns and late payment of the real estate acquisition tax, which were subject to the deadline of 31 March 2020 to 31 July 2020 (the Land Registry made the registration in the period from December 2019 to April 2020). The condition was that the return would be filed and the tax (or tax advance) would be paid by 31 August 2020.
As the Czech government envisages abolishing the real estate acquisition tax, which will be effective retroactively and will apply to the tax set from the date above, the Finance Minister’s decision published in Financial Bulletin 9/2020 extends the possibility to postpone the deadline without penalties until 31 December 2020. The waiver concerns penalties related to the late filing of real estate acquisition tax returns and the late payment of the real estate acquisition tax, which were subject to the deadline of 31 March 2020 to 30 November 2020 (the Land Registry therefore makes the registration in the period from December 2019 to August 2020).
The actual goal is to reduce the administrative burden associated with the fact that real estate purchasers would have to pay this tax and the tax authorities would then have to return it prior to the adoption of the act which will abolish the real estate acquisition tax completely.