Amendment of the code of tax procedures

Act No. 218/2025 Coll., amending certain acts in the area of tax administration and the competence of the Customs Administration of the Czech Republic, amended Act No. 280/2009 Coll., the Tax Code, a procedural legal regulation governing tax administration and the rights and obligations of tax entities.

Below is an overview of some of the changes to the Tax Code, most of which are effective as of 1 July 2025 already.

• Penalty waiver

A positive change is the possibility of waiving the penalty in full. Until now, it was possible to waive penalties of up to 75% based on an assessment of the extent of cooperation provided by the taxpayer in the course of proceedings leading to the assessment of additional tax by the tax authority. The tax administrator may now also waive the penalty in whole or in part if the cause of its occurrence was justified in view of the circumstances of the case. Furthermore, a new reason for waiving penalties has been introduced, namely to prevent double punishment if the penalty arose after the final decision of the court imposing a penalty on the taxpayer for a tax offense related to the tax to which the penalty is accessory.

• New concept of the institute of mass waiver or deferral of tax or its accessories

A new institute of mass deferral of tax or its accessories has been introduced, which, like the institute of mass waiver of tax or its accessories, will be implemented in the form of a government decree instead of the existing decision of the Minister of Finance.

• Changes in tax enforcement

The relationship to the subsidiary application of the Civil Procedure Code has been clarified; new institutes have been implemented in tax enforcement (e.g., surcharges (buyer’s premium), inventory according to records, protected account or enforcement of virtual assets).

• Breaking the time limit for assessment of tax even in the case of an offence committed by a person other than the relevant tax entity

As a result of conduct that has been the subject of a final court decision on the commission of a tax offence, the tax may be assessed until the end of the second year following the year, in which the court decision becomes final, regardless of whether the time limit for assessing the tax has already expired. It is newly established that the tax can be determined in this way even if the act was committed by a person other than the tax entity, if this act has a direct impact on the tax of the tax entity.

• Changes to shared administration 

Possibility to request the customs office to enforce the payment of taxes, fees or other similar monetary obligations (applicable, for example, to local fees); clarification of procedural rules relating to requests for the enforcement of payments by the customs office.

• New regulation of the transfer of tax liability upon termination of a trust fund

The person who has received property from a trust fund is liable, up to the amount of the property thus received, for the fulfilment of the trust fund’s payment obligations that have not been fulfilled by the date of termination of the trust fund.

• Explicit prohibition of interest on interest – even on interest paid by the tax administrator
• Enabling the tax administrator to issue a request to the guarantor within the tax payment deadline, not only within the tax assessment deadline.
• Limitation of the consideration of overpayments when calculating default interest to only those recorded by the relevant tax administrator.

• Changes in international delivery

• Clarification of the concept of the structure of the form submission
• Explicit stipulation that the basis for calculating the penalty for late tax return filing is the amount of tax, tax deduction or tax loss determined in the assessment or reassessment proceedings relating to the late filing.
• Exercise of other powers in accordance with the Tax Code

Explicit confirmation of the possibility to apply the Tax Code also for “non-tax agendas”, which are usually dealt with in conjunction with tax agendas, if the law so provides or if the exercise of this competence is governed by this law.