Zálohy na daň z příjmů právnických osob v nestandardních situacích

Advances on corporate income tax in non-standard situations

This time we would like to focus on the payment of corporate income tax advances.

The Income Taxes Act states that the taxpayer is obliged to pay advances on the 15th day of the sixth and 12th month of the tax period in the case of half-yearly advances, or on the 15th day of the third, sixth, ninth and 12th month of the tax period in the case of quarterly advances. The due dates for advances are therefore based on the taxpayer's tax period.

The due dates for advances may change if the tax period changes (for example, as a result of a changeover to a fiscal year or vice versa, or a conversion). To illustrate, the following example is given. The taxpayer has a calendar year as a tax period and advances are due on 15 March, 15 June, 15 September and 15 December. If the calendar year is changed to a fiscal year ending on 31 January, the first advance payment after the change of the period is no longer due on 15 March but  on 15 April.

Furthermore, in practice, the tax period may be longer than 12 calendar months. The Income Taxes Act provides that the last advance is due in the 12th month of the respective tax period. It follows from the wording of the relevant provision that, even in a situation where the tax period lasts more than 12 months, a maximum of four tax advances are always paid.

This fact was also confirmed by the Coordination Committee in its meeting No 653/22.09.04.

In the case of non-standard tax periods, it is recommended to pay close attention to the due dates for advance payments.

At the same time, we would like to stress that the above brief commentary cannot replace a detailed tax assessment of a specific tax situation. We will be happy to assist you with these and other tax aspects.

If you have any questions, please contact the authors of this article or the EY tax team with whom you regularly work.

Authors:

Ladislava Zamazalová
Karolína Mikešová