Just as we pulled us together from the start of the New Year's bust, we are getting worried about taxes. The statutory deadline for submitting a tax return for natural or legal persons for the tax year 2018 will expire on April 1, 2019. On that date, a possible tax liability is also payable. How and when to file a tax return and pay a tax to avoid possible sanctions?
As stated above, the income tax return for 2018 is due at the latest on April 1, 2019. This means that it can be submitted on that day either electronically via the data box or personally at the filing office of the relevant Tax Office or surrendered for carriage at the post office. In the latter case, we recommend using recorded consignments with the option of tracking or even better so-called delivery note.
However, the choice is not possible for all of us. All legal entities are required to submit their return electronically in a special format specified by the tax administrator. Similarly, this also applies to individuals who have a data mailbox available. These also have the option, but the obligation to submit your tax return electronically. If they fail to meet this obligation, even at the tax administrator's call, they will be fined by a penalty of CZK 2,000.
Whoever gives the admission late may expect a fine. The fine for late tax claims amounts to 0.05% of the established tax liability or 0.01% of the tax loss determined for each day of delay, with a maximum of 5% of the tax or tax loss or the amount of CZK 300,000. However, the fine does not arise if you submit your admission within five business days, ie in this case no later than April 8, 2019. The fine will also be charged by the tax administrator if it does not exceed CZK 200.
Anyway, filing tax returns does not mean the end, it is also necessary to pay the tax. The expiration date will be the April 1, 2019. If you pay a tax non-cash, it is important to remember that the day of payment is considered as the day of crediting the amount to the tax administrator's account, not the date of the taxpayer's transfer. Therefore, it is recommended that you make a payment for your payment well in advance. Of course, the tax may also be paid in cash at the cashier's office.
Late tax reimbursement is again subject to sanctions. Interest on arrears of 15.75% p.a. will be charged for each day of delay starting from the fifth business day following the due date until the day of payment inclusive. Interest on late payment will not be prescribed again if it does not exceed CZK 200.
Another option is to use the services of a tax advisor as a representative in the field of income tax on the basis of the award of a power of attorney, which brings an advantage not only in the fact that the tax adviser assumes responsibility for the preparation and filing of the tax return, but also the extension of the deadline for submitting the return and reimbursement taxes up to three months, ie by July 1, 2019. Such power of attorney must be delivered to the local tax authority by the end of March 2019 at the latest. If you would like to use this option or would like to learn more about the possibilities of using deductions and income tax deductions, and therefore optimize your tax obligations, do not hesitate to contact our Crowe Advartis Accounting Company, we will be very happy to help with taxing your tax and compiling and submitting your tax return.