SUPERCEDED

VIII.   Tax Returns

Corporation and individual returns are due by March 31 of the following year. Extensions can be granted on application to the relevant tax office. Authorized tax practitioners can obtain extensions for an additional 3 months from the due date. However, such practitioners can incur heavy fines if the returns are not correct; which can result in conservative application of the tax law. (Technically the fine is levied on the taxpayer who then has redress against the tax advisor. However, the tax advisor can not limit the liability). Companies which have to be audited must file tax returns by June 30.

If a tax subject becomes aware that the tax liability is incorrect then an amended return must be filed and the tax paid (by the end of the following month). Any refunds must be paid by the Tax Office within 30 days after the request.

Individuals solely having Czech source employment income or Czech source income subject to withholding taxes are not required to file income tax returns.

Foreign exchange rates used in calculating wages are now based on rates published by the Czech National Bank for the last day of the preceding month.

Individuals only having employment income from abroad which is not taxable in the Czech Republic are not required to file income tax returns.

Employers can only prepare tax returns for employees if the employee has provided a signed declaration of their tax allowances.