Filing or Extending Income Tax Return for 2017
The Czech Bookkeeping year for SROs, trade licenses and private individuals (employees) runs from the 1st of January till the 31st of December, after which there is a 3-month period to file the last year's Income Tax Return.
Therefore, filing an Income Tax Return for 2017 is possible between 1.1.2018 and 31.03.2018. After 31.03.2018 requests for extension will not be accepted by the Tax Office anymore.
After 31.03.2018 there is still a grace period of 5 days; the Tax Office may or may not penalize filing and/or paying taxes during that period. However, after the grace period there will be a penalty with an interest component that grows by the day.
If your expected Income Taxes are in the 1000s or 10.000s CZK, probably the penalty will be lower than the fee for a Tax Return Extension (as long as you file wihin a few weeks from the deadline). However, if you have a complicated Return and/or you do not have all required documents then it is better to extend. There is after 15.3.2018 simply not enough time anymore to start processing new Returns.
Extending your Tax Return means that we will get 3 months more to file (until 31.06.2018)
Our tax advisor will take responsibility for the correctness of the Tax Return. This is also the reasons why different extensions have different fees - checking an SRO CIT takes much longer than checking a PIT. His fee is included in the below extension fees.
What is the fee for Extending a Tax Return?
The fees for filing a Tax Extension are:
2500 CZK +VAT for a Personal Income Tax Return,
3500 CZK +VAT for a Trade License
5000 CZK+VAT for an SRO.
Note: Above are only the fees for extension - preparing and filing a Tax Return is subject to fees as listed on this websie, see Preparing & Filing an Income Tax Return
Deadlines for Extending the 2017 Income Tax Return31.03.2018 is a Saturday. It is possible to file for an extension after this date - it will be too late.
The Application for Extension, either sent as paper or electronically, must be in the Tax Office by 2.04.2018.
Any Application for Extension that arrives after 4.4.2018 will not be granted by the Tax Office (!)
Since we need time to process the Power of Attorney, The PoA must be returned by 30.3.2018 12:00 to our office, else we canot guarantee we can have it delivered in time at the Tax Office.
Penalties of AuthoritiesIn case you do not file or extend a Tax Return in time, the tax office, social office and public health care will impose penalties, which can range between 500 CZK to several 10.000s of CZK.
These penalties have an interest component, so they grow by the day!
No money to pay the Income Taxes / Social Charges / Health Insurance now? Extend!In case you do not have the money to pay the income taxes / social charges / health insurance for 2017 now, then one option is to apply for an Extension, so you will have 3 more months more to generate money.
Another benefit of extending is that penalties and interest do not start running after 31.3.2018.
These can quickly cost more money than the fee for extension.