Coronavirus - Taxes 2020 - important information self-employed persons

In our previous article, we informed you that "Decision on waiver of tax accessories and administrative fees due to an extraordinary event", Ref. No.: MF-7108/2020/3901-2 (hereinafter referred to as “the Decision”), does not have the effect of extending the deadline for filing a personal income tax return as if it had been processed and filed by a tax adviser, but merely forgiving the penalties associated with late filing and related payment of the calculated tax. For this reason, the statutory deadlines for submitting the Reports on the Incomes and Expenses of the Self-Employed Persons for the year 2019 (hereinafter referred to as the “Report of Self-Employed Persons”) continue to apply and it was waiting on how the Czech Social Security Administration (the CSSA) and individual health insurance companies will approach the Decision. The first hints of the expected news are available on the websites of individual health insurance companies:

1. Všeobecná zdravotní pojištovna (VZP) – stated on March 17, 2020 that, in accordance with the approved package of measures of the Government of the Czech Republic and the Financial Administration procedure, it will allow submitting the Report of Self-Employed Persons for 2019 until August 3, 2020. Simultaneously it is recommended that the payers use an electronic form of submission through e-vzp app. In addition, VZP reports that if any payment delays and thus a penalty originate in relation to the coronavirus, payers will be allowed to apply for the so-called removal of the so called harshness of the law, where the applicant must clearly demonstrate that the delay in health insurance payments was directly related to the spread of the coronavirus.
2. Vojenské zdravotní pojišťovna (VoZP) – following the Government Resolution No. 225 of March 15, 2020, the VoZP will allow the later submission of the Report of Self-employed Persons, also without imposing a penalty for late submission. The following is stated with reference to the relevant Act: “However, pursuant to Section 24 (2) of Act No. 592/1992 Coll., it will be necessary to proceed as if the deadline for submitting the Report was not postponed. This means that the 2019 balance payment will be payable in due time and the late payment penalty will be assessed. However, if the self-employed person subsequently submits an application to remove the harshness of the law, the VoZP will comply with it and will forgive the penalty payment.”
3. Zdravotní pojišťovna Ministerstva vnitra ČR (ZP MV ČR) – briefly stated that in view of the current situation it will accept submissions of the Report of Self-Employed Persons until August 3, 2020, without applying penalties and "by self-employed persons and employers who are late in paying the insurance premium itself or the advances on insurance premium, it will be possible to reduce the penalty, with individual cases assessed individually."
4. Revírní bratrská pojišťovna (RBP) – stated on March 18, 2020: “At present it still stands that the deadline for submitting the Report of Self-employed Persons is May 4, 2020, despite the fact that the Financial Administration accepts submissions up to July 1, 2020, as the measures adopted by the Minister of Finances were not in the sense of setting a new deadline for filing the tax return . If the tax advisor prepares the tax return, the deadline for submission of the Report for the health insurance company is August 3, 2020. Within the scope of its legal possibilities, the RDF, the health insurance company, will not proceed to impose penalties. In the case of a penalty, the health insurance company must proceed pursuant to Section 53a of Act No. 48/1997 Coll. "

Similar opinions are not yet available for other health insurance companies and the Czech Social Security Administration. For up-to-date information, we recommend that you follow our website or the websites of the relevant health insurance companies.

Sources: 

• https://www.vzp.cz/o-nas/aktuality/vzp-prodluzuje-termin-podani-prehledu-osvc-do-3-srpna-2020
• https://www.vozp.cz/prehledy-osvc-lze-podavat-az-do-3-srpna
• https://www.zpmvcr.cz/platci/osvc/
• https://www.rbp213.cz/en/termin-podani-prehledu-osvc/a-1003/