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Initial draft amendment to the Tax Code

The Ministry of Finance is preparing an amendment to the Tax Code. An initial draft has been published as part of the comments procedure. The amendment contains a number of changes that could come into force during 2025 or from the beginning of 2026.

We briefly outline below a selection of those that caught our eye:

• Introduction of a fiction of delivery for informal communication with the tax authorities (e.g. e-mail). The effect of delivery would take place on the tenth working day from the date of sending the message by the tax authorities.
• Extension of the information obligation towards the tax authorities to information "necessary" for tax administration (so far only "essential" information).
• Explicit admission of the evidencing outside the tax proceedings.
• Breaking the time limit for tax assessment even in the case of a criminal offence committed by a person other than the relevant tax entity.
• Allowing the tax authorities to issue a notice to the guarantor within the time limit for payment of the tax, not only within the time limit for assessment.
• New regulation of the transfer of tax liability on the termination of a trust fund (the person who has received assets from the trust fund, up to the amount of the assets so received).
• Explicit prohibition of interest on interest, even on interest paid by the taxauthorities.
• Clarification that the basis for calculating the penalty for late filing of a tax return is the amount of tax determined in the proceedings directly related to the late filing of the tax return.
• Possibility to waive the penalty in full (now capped at 75%).
• Changes to the regulation of mass remittance of tax (newly by government decree and newly possible mass postponement as well).
• Further changes to the rules on delivery process (e.g. for situations of multiple data boxes), split administration and tax enforcment.

It is likely that during the legislative process some points of the amendment will be changed, others may be deleted or new ones added.

We will continue to monitor the development of the amendment and keep you informed of its progress.

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

Authors:

Jakub Tměj

Petr Sedláček