In connection with the extraordinary event – a tornado in the districts of Břeclav and Hodonín, the Finance Ministry published Financial Newsletter no. 26/2021 of 29 June 2021, which enables deferring some tax obligations. Deferral of tax obligations applies to taxpayers, who have their registered office or residence on the territory of administrative districts of municipalities with extended powers Břeclav and Hodonín, for which a state of danger was declared due to the extraordinary event (the tax administrator has the information about the residence and registered offices of entities, and the waiver therefore applies to them automatically) or who perform a majority of their activity on the territory of these administrative districts (this fact needs to be announced to the tax administrator).

More specifically, the following tax relief is involved:

• Waiver of the penalty for late submission of the income tax declaration for the taxable period of the year 2020 and late payment of tax (if the obligation is fulfilled on 31 August 2021 at the latest).
• Waiver of the fine for late submission of the value added tax declaration for May 2021, June 2021 and the Q2 of 2021, additional value added tax declaration, which the taxpayer is obliged to submit by 31 July 2021 and for late payment of tax (if the obligations are fulfilled on 25 August 2021 at the latest).
• Waiver of the fine for infringement of obligations relating to the control report, if the period for fulfilment of obligations relating to the report overlaps at least partially with the period of 25 June 2021 to 31 July 2021 (and under the condition that the duty is fulfilled on 25 August 2021 at the latest). This also applies to VAT payers from other parts of the Czech Republic, for whom as of 24 June 2021 a control report is being processed by a person residing or with registered office on the territory of administrative districts of municipalities with extended powers Břeclav and Hodonín and as a result of the extraordinary event, they were prevented from fulfilling obligations relating to the control report (this fact needs to be announced to the tax administrator).
• Waiver of the road tax prepayment due on 15 July 2021.          
• Waiver of the fine for not announcing exempted income under article 38w of the Income Tax Act (on the condition that the announcement will be submitted on 31 August 2021 at the latest).
• Waiver of income tax arising on grounds of income in the form of a subsidy and loan from the State Fund for Support of Investments for renewal of a dwelling affected by tornado.
  
  

Taxpayers, who have been affected by the natural element, but are outside the land register of the most afflicted municipalities, and the waiver of the finance minister therefore does not include them, may request the waiver individually.

Deferral of payment of social security premium for employers and self-employed persons affected by the tornado

Further help for entities affected by the tornado consists in deferral of social security payment. The Czech Social Security Administration will waive the penalty for late payment of obligatory social insurance for employers and self-employed persons from municipalities affected by the tornado, for the period of June to November 2021. The waiver of penalty automatically applies to employers and self-employed persons with permanent residence or place of performance of activities on the territory of administrative districts of municipalities with extended powers Břeclav, Hodonín and the municipalities of Blatno and Stebno in the district of Louny as of 24 June 2021. Employers and self-employed persons, who performed a majority of their activity in the mentioned areas as of 24 June 2021, will need to substantiate this fact for the respective local social security administration with a statutory declaration. The condition for waiver of the penalty is the payment of insurance premium by 31 December 2021 at the latest.