Approval of the amendment to the Tax Code by the Government

At the end of August, the Government approved an amendment to the Tax Code, which regulates the procedures of tax administrators and the rights and obligations of taxpayers. The amendment contains changes that will affect many provisions of the Tax Code as well as other laws, including the Criminal Procedure Code. Most of the provisions are expected to take effect from 1 July 2025.

Changes in the area of tax administration are in the process of being approved by Parliament:

• The possibility to waive penalties at 100% (currently only 75% can be waived),
• mass remission of tax or its accessories,
• mass deferral of tax or determination of whether interest will accrue and at what rate,
• exclusion of interest on interest - applies to all interest,
• cancellation of tax registration, which is done by means of a notice of change of registration details,
• on termination of the trust, the tax liability will pass to the person who received the assets in connection with the termination of the trust,
• changes concerning tax execution (subsidiary application of the Code of Civil Procedure, introduction of new institutes such as the possibility of pre-auctioning auctioned assets, inventory by registration, protected account or execution of virtual assets),
• changes concerning service abroad,
• the possibility to appeal against the tax administrator's decision on the taxpayer's objection,
• clarification of the procedural procedure in the event of the Supreme Administrative Court overturning a decision of a regional court,
• clarification of the content structure of the form submission.

Based on successful comments from the Chamber of Tax Advisors, it was deleted from the amendment:

Fiction of delivery or informal communication with the tax administrator - the possibility to deliver a notice from the tax administrator to the taxpayer via email and to consider it as duly delivered, including the start of the running of time limits.

Extension of the information obligation - the possibility for the tax administrator to request information from other public administration bodies or from natural or legal persons processing other data necessary for tax administration and thus to access information that is not strictly indispensable for a specific procedure.

Evidence - the possibility to process and evaluate information before the actual initiation of tax proceedings.

We will continue to monitor the legislative process and inform you of any changes. If you are interested in any of the new changes, please do not hesitate to contact the PKF APOGEO Tax team.

Author: Sabina Horáková