Newly starting from the 2020 tax period, those tax entities that will file their income tax returns in electronic form will have an advantage.
Starting from the 2020 tax period, legislators have decided, through an amendment to the Tax Code, to provide an advantage to those tax entities (both legal persons and individuals) that will file their income tax returns in electronic form (e.g. via a personal data box) and to extend the deadline for filing tax returns and for tax payments to 4 months from the end of the tax period, i.e. this year until 3 May 2021, compared to the previous 3 months. The period of 3 months from the end of the tax period will continue to apply to those taxpayers who file their tax returns in a hard copy.
Another advantage brought by the amendment to the Tax Code is for those taxpayers who decide to use the services of tax advisors, as now the power of attorney for representation by a tax advisor does not have to be delivered to the tax office within 3 months from the end of the tax period. In fact, the period for the possibility of granting to a tax advisor a power of attorney that must be delivered to the tax office no later than together with the tax return has been extended for those taxpayers who use the services of tax advisors. Taxpayers can thus decide without time pressure. Provided that the services of a tax advisor are used, the deadline for filing and paying income tax is 6 months from the end of the tax period, this year until 1st July 2021, without being necessary to send the power of attorney in advance.
To sum up the above changes for filing income tax returns, tax entities filing their tax returns as a hard copy and without a tax advisor must do so within 3 months from the end of the tax period. If tax entities file their tax returns in electronic form, the period is automatically extended to 4 months from the end of the tax period. If a tax entity fails to file its tax return even within this period, said tax entity can still use the services of a tax advisor, and the deadline for filing its tax return is extended to 6 months from the end of the tax period. Furthermore, the power of attorney for representation by a tax advisor can be sent to the tax office before or together with the filing of the tax return.
Our tax department will be happy to provide you with more detailed information.
Štěpán Hrubý
Tax Manager
ASB Czech Republic
E: shruby@asbgroup.eu
Lucie Berglová
Head of Tax Team
ASB Czech Republic
E: lberglova@asbgroup.eu