The Czech government promoted a draft law to the Chamber of Deputies, which will allow the remission of any small tax arrears and accessions to taxes administered mainly by the tax and customs authorities. The draft envisages two different regimes – the extinction of small debts without a request, and the forgiveness of the debt at the request of the debtor. The possible remission only applies to debts incurred up to 30 September 2022.

Any arrears of tax or ancillary tax rights up to the amount of CZK 200, both for individuals and legal entities, will be forfeited without application, if the total amount with one tax administrator does not exceed CZK 1,000. Remission of arrears on request is only possible for natural persons. It applies only to the tax attributions, not to the tax itself. In addition, the debtors will only be able to request a waiver of attributions on the condition that they have paid the debt principal.

The government also promoted a similar bill for social security premiums and contributions to the state employment policy. The proposed wording will allow the penalty and enforcement costs due to unpaid insurance and security premiums to be waived.

The draft laws are only discussed in the Chamber of Deputies, therefore, the final wording may undergo partial changes. We are carefully monitoring the whole issue for you and will inform you in time about the final version of the waiver.