Amount of interest on arrears from 1 January 2021

26. 2. 2021
Amount of interest on arrears from 1 January 2021

The amendment to the Tax Code, which came into force on 1 January 2021, brings with it a number of changes. One of them is the adjustment of interest on arrears. Until the end of 2020, under Section 252 of the Tax Code interest on arrears corresponded to the annual amount of the REPO rate set by the Czech National Bank (ČNB) on the first day of the relevant calendar half-year, increased by 14 percentage points. From 2021, if the tax is not paid on time, such a misdemeanour is sanctioned by interest on arrears, which, compared to the 5th day after the tax is due in 2020, applies from the 4th calendar day. Furthermore, its daily amount is now governed by the Civil Code, whereas Section 252 of the Tax Code in point 4) stipulates that interest paid by a tax entity corresponds to the ČNB’s REPO rate as before, but newly increased by 8 percentage points. So, the amount of interest on arrears for the second half of 2020 was 14.25% p.a. and for the first half of 2021 8.25% p.a. In conclusion, it should be mentioned that according to the transitional provision of this amendment, the new interest rate will only apply  to days of delay from 1 January 2021.


Need help?

We are here for you and we will be glad to advise you based on more detailed information and documentation. Do not hesitate to contact us to arrange a non-binding consultation meeting.

We give clear answers

In our communication with clients, we do not hide behind long quotations of laws, but give a clear and understandable answer.

We're thinking with you

We always solve a specific problem with respect to the overall needs of the client; we do not take our recommendations out of context.

Newsletter - Stay up to date

We deliver directly to your e-mail

Copy image to check against spam.
A test to determine whether or not you are a human user in order to prevent automated spam.
© Schaffer & Partner 2024 | Created by:
Move up