Annual reconciliation of income tax advances from dependant activities

With the arrival of 2021, it is necessary to ensure that the form, the Declaration of the taxpayer liable to personal income tax from dependent activities is signed by employees who wish to claim tax allowances in terms of the new year. The 2021 is a year of the tax revolution. There is a significant reduction in the tax burden due to the abolition of the super-gross salary and the introduction of a rate of 15% of the gross wage. The increased rate of 23% will in fact replace the existing solidarity surcharge. It will apply to income above 4 times the average gross wage, which corresponds to 141,764 CZK for next year.

Deadline for submission of first reports

Until 31 January 2021 certain CIT taxpayers are obliged to submit first reports on applied payment dates in commercial transactions. On 1 January 2020 provisions of the Act on amending certain acts in order to limit payment blockages introducing regulations mobilizing debtors to pay within the set deadline and discouraging them from imposing unjustified, extended payment deadlines entered into force.

New obligation for 2021 – TAX STRATEGY

As of 2021 (i) taxpayers with revenues exceeding EUR 50M annually as well as (ii) tax capital groups are obliged to prepare and publicise information about tax strategy realized in the tax year. This in fact means the obligation of preparation of a tax procedure describing the process of carrying out tax compliance.