Understanding the Preclusive Period for Tax Assessment in the Czech Republic

28.1.2026 | ARROWS law firm

Without you even knowing it, a critical deadline for your tax security may currently be running. In the Czech Republic, the Tax Authority's right to assess additional tax typically expires after three years, and at most after ten years. However, Czech law recognizes a number of situations where this period is extended or suspended. We will reveal which state actions paralyze this protection and why 2026 is the ideal time for a systematic review of your tax history under Czech legislation.

Fundamental Principle: The Preclusive Period for Tax Assessment as Protection for the Taxpayer

Every taxpayer in the Czech Republic has the right to a certain degree of legal certainty. This right is based on the preclusive period for tax assessment, which is one of the pillars of Czech tax legislation regulated by the Tax Code (Act No. 280/2009 Coll.).

The preclusive period means that after its expiry, the tax administrator's right to assess or reassess the tax expires entirely. Simply put: after this period expires, the Czech tax office cannot assess additional taxes without restriction, and the expiry of this right is taken into account ex officio under Section 148(1) of the Tax Code.

The basic length of the preclusive period for tax assessment in the Czech Republic is three years and begins to run on the day the deadline for filing a regular tax return expired. However, this three-year period is a general rule, and in practice, there are many situations that can significantly extend it. For taxpayers unfamiliar with the details of Czech tax law, this often results in the surprising appearance of the tax office with a reassessment several years after they thought they were already safe.

Our attorneys in Prague at ARROWS deal with the issue of limitation periods daily within our Tax Law and Disputes service and know exactly which situations can lead to the suspension or extension of these periods. Understanding these mechanisms is crucial not only for defense against an already initiated audit but also for preventive planning and documentation.

The Difference Between Preclusion and Limitation – and Why It Matters

Before we delve deeper into limitation periods, it is important to understand a fundamental legal distinction within Czech legislation. While a preclusive period means the expiration of the right itself—so the subjective right ceases to exist and the authority must take this into account on its own under Section 148 of the Tax Code—a limitation period (statute of limitations) means the right does not expire but becomes unenforceable if the debtor invokes the limitation.

In Czech tax law, it is necessary to distinguish between two basic phases:

Period for tax assessment (reassessment) – this is a preclusive period. If it expires, the authority cannot reassess the tax and you do not need to object; the state's right has ceased to exist.
Period for tax payment (collection of arrears) – here we speak of the limitation of the right to collect and enforce tax. In this case, the taxpayer must raise a statute of limitations objection if the authority attempts to collect an old debt after the deadline.

Both types of periods have significant consequences for taxpayers, and in 2026, it is advisable to systematically review all these deadlines.

The Three-Year Period – When Does It Actually Start and How Is It Calculated?

The preclusive period for tax assessment begins to run on the day the deadline for filing a regular tax return expired, as stipulated by Section 148(1) of the Tax Code. For taxpayers required to file a return, this is the day of the statutory filing deadline. For example, for individuals filing electronically in the Czech Republic, the deadline usually falls on May 2nd; for entities with a tax advisor, it is July 1st.

If the taxpayer was not required to file a tax return, the period for tax assessment begins on the day the tax became due. This is particularly important for specific taxes or situations where no filing obligation arises.

In practice, this means that if you are a legal entity and the deadline for filing your 2023 tax return was July 1, 2024 (with an advisor), the three-year period runs from that day and ends on July 1, 2027. If the Czech tax office delivers an additional tax assessment on July 2, 2027, its decision will be unlawful (unless another fact extending the period occurred).

Importantly, both the tax administrator and the Czech courts must take the expiry of this preclusive period into account ex officio. This means that even if you do not invoke the limitation yourself, the authority is not permitted to assess the tax after this date.

Special Calculation of the Period and the Influence of the Calendar Year

Unlike procedural deadlines for filing returns, where the deadline moves to the next business day if it falls on a weekend or holiday, the end of the preclusive period is a substantive legal date. According to the case law of the Supreme Administrative Court of the Czech Republic, the preclusive period ends upon the expiry of that specific day, regardless of whether it is a weekend or holiday. The tax office must therefore manage to issue and notify the decision (or perform the act) no later than this day.

Another important specific is that the running of the period does not respect transitions between calendar years. This means that, for example, a three-year period starting on April 1, 2024, will end on April 1, 2027.

FAQ – Legal Tips for Calculating the Tax Assessment Period

1. Exactly when does the three-year period for tax reassessment begin?

The period begins on the day the deadline for filing the tax return expired. That is, on the day of that deadline (e.g., April 1st or July 1st).

2. Is the end of the preclusive period extended by weekends?

If the end of the three-year period falls on a Saturday, its end is moved to the next following business day (Monday) in accordance with the rules for calculating time. The tax administrator thus has slightly more time to notify the decision if the period ends over a weekend.

3. Can I be sure that after three years, the tax can no longer be audited?

No. There are situations where the period is extended, interrupted, or stayed. More details are provided in the following sections of this article.

Extension of the Basic Three-Year Period – When Three Years Become Four or More

The Czech Tax Code explicitly defines situations in which the preclusive period for tax assessment is extended by one year. These extensions are not arbitrary – if any of the situations defined by law occur within the last twelve months before the expiry of the current period, the extension occurs by operation of law under Section 148(2) of the Tax Code.

Note: it is not enough for a taxpayer to file a supplementary tax return at any time – it must be done within the last twelve months before the current deadline expires. Therefore, if the standard three-year period ends on April 1, 2027, and you file a supplementary return on March 30, 2027, the period will be extended by another year, i.e., until April 1, 2028.

The second situation is the notification of a tax assessment decision (e.g., a supplementary tax assessment) within the last twelve months before the deadline expires. The third situation is the initiation of proceedings regarding an extraordinary legal remedy, a supervisory remedy, or proceedings to declare a decision null and void during this critical period.

Our Prague-based attorneys at ARROWS law firm can assist you with a thorough analysis of whether strategically filing a supplementary return is beneficial for you now, or whether it is better to choose a different course of action.

Practical example of deadline extension – chain extensions

Imagine a situation: you have income tax with an assessment period ending on April 1, 2026. On March 1, 2026 (i.e., within the last twelve months), the tax authority notifies you of a request to file a supplementary tax return (and you assess the tax based on this). At that moment, your deadline is extended by one year, i.e., until April 1, 2027.

However, this chain has a limit. Under Czech law, the ultimate deadline for tax assessment is always the expiration of ten years from the beginning of the initial assessment period according to Section 148(5) of the Czech Tax Code. There are exceptions, however: the period may also be extended in the event of a final court decision regarding a tax-related criminal offense – in such a case, the tax can be assessed until the end of the second year following the year in which the court decision became final.

Interruption of the period – how it starts counting from the beginning again

While an extension means the period is stretched by one year, an interruption of the period means something significantly more unfavorable: the period is annulled and begins to run entirely anew for the full length of three years.

As soon as the Czech tax authority delivers a notice of commencement of a tax audit (or records a protocol), the tax assessment period is interrupted and a new three-year period begins from the day this action was taken. In practice, this means that if you thought you would be safe in two months and a notice of a tax audit arrives, the "countdown" starts again from three years.

Other situations leading to interruption include filing a regular tax return (e.g., if you did not originally file one and are filing it late) or the notification of a request to file a regular tax return. In these cases, without exception, a new three-year period is calculated from the date of the action.

This rule has fundamental implications for taxpayers in the Czech Republic. A "wait and see" strategy can backfire if the authority initiates an audit just before the end of the period.

Suspension of the period – when the counting stops

In addition to extension and interruption, the Czech Tax Code also recognizes the concept of suspension (stavění) of the period. If the period is suspended, it does not run at all. After the obstacle is removed, the period continues from where it left off and will not end sooner than after a certain period, as regulated by Section 148(4) of the Czech Tax Code.

Therefore, if you are resolving a dispute with the tax authority before an administrative court, the tax assessment period does not run in the meantime. The period primarily does not run during proceedings conducted before a court in administrative justice regarding this tax according to Section 148(4)(a) of the Czech Tax Code.

The second common situation where the period is suspended is international legal assistance (see below). Furthermore, the period is suspended for the duration of criminal prosecution for a tax crime related to that specific tax.

Corporate debt and statutes of limitation – when the state's recovery period stops

It is also necessary to mention the difference between the period for tax collection (the period for paying tax) and the period for its assessment. While the assessment period protects you from the tax authority assessing additional tax, the payment period determines how long the tax authority has the right to enforce a tax debt. This period is six years from the tax due date according to Section 160(1) of the Czech Tax Code.

The court and the tax administrator will only take the statute of limitations into account if it is raised as a defense by the debtor. If you were to voluntarily pay a time-barred tax, the authority will not refund it. However, if you raise the statute of limitations defense, the right to enforce the debt expires.

The period for paying tax can be extended by actions aimed at collecting the tax (e.g., execution), with the absolute upper limit being twenty years from the tax due date (with the exception of secured arrears) according to Section 160(5) of the Czech Tax Code. If the tax claim is secured by a lien registered in a public register, the right to collect the tax does not expire for thirty years from the registration.

FAQ – Legal tips on extending and interrupting Czech tax deadlines

1. What is the difference between an extension and an interruption of the period?

An extension means the time is stretched by one year. An interruption means the counter resets and an entirely new three-year period begins (e.g., upon commencement of an audit).

2. When is the period suspended and why is it important?

The period is suspended, for example, during court proceedings or international legal assistance – time "stops" and continues after the obstacle is removed.

3. What specific actions by the tax authority interrupt the period?

Primarily the commencement of a tax audit and the notification of a request to file a regular tax return.

International cooperation and local investigations – hidden risks of period suspension

In recent years, situations where the tax assessment period is suspended in connection with international cooperation have become common. Specifically, these are situations where the Czech tax authority sends a request abroad to obtain information. In these cases, the period does not run from the date the request is sent until the date the tax authority receives a response or notification that the request has been processed.

According to the case law of the Supreme Administrative Court of the Czech Republic, however, international requests must be assessed materially. In practice, this means that if you think you will be safe in a few months and the tax authority sends a request abroad in the meantime, time stops. If the request was completely unnecessary, purposeful, or clearly could not bring relevant information, the Czech courts may decide that the suspension of the period did not occur.

Attorneys from ARROWS, a law firm in Prague, daily handle cases where clients are waiting for a response to an international request for legal assistance. In these situations, it is crucial to know how to defend yourself and support your defense with evidence regarding whether the request was justified under Czech law.

Tax Crimes and Effective Repentance in the Czech Republic

If the Czech Financial Administration identifies intentional large-scale tax evasion, the matter may shift into the realm of criminal law. Here, it is necessary to distinguish between two legal instruments: the expiration of criminal liability due to effective repentance (under the Czech Criminal Code) and the reduction of penalties (under the Czech Tax Code).

According to the Czech Criminal Code, criminal liability for tax evasion expires if the perpetrator voluntarily rectifies the harmful consequence and notifies the authority before the court of first instance begins to announce the verdict. This is a relatively generous deadline that allows for "redemption" even during the investigation process.

However, from the perspective of the Czech Tax Code and financial sanctions, if you file a supplementary tax return only after a tax audit has commenced, you will not avoid the standard penalty of 20% of the assessed tax according to Section 251(1)(a) of the Tax Code. If you correct the error yourself before the audit begins, no penalty arises (you pay "only" default interest under Section 252 of the Tax Code).

Our attorneys in Prague routinely assist clients with the preparation of supplementary tax returns to minimize risks in both criminal and administrative areas. The strategy therefore differs depending on whether you face "only" a tax assessment with penalties or potential criminal prosecution under Czech legislation.

When the Deadline is Extended – Defense Strategies and Verifying Legality

If the Czech tax authority notifies you of a tax audit or issues a decision on a tax assessment, you should first verify whether all statutory conditions were met and whether the limitation period has already expired.

In such cases, it is necessary to verify in detail the start of the limitation period, all actions interrupting or extending the period, and their validity. If it turns out that the decision on the tax assessment was issued or notified after the expiration of the preclusive period, such a decision is unlawful under the Czech legal system and must be annulled.

Our Czech legal team focuses on detailed chronology (limitation period audits).

How to Defend Yourself Procedurally – Appeals and Lawsuits in Czech Courts

If the Czech financial authority issues a decision on a tax assessment and you believe the period has already expired, the primary means of defense is an appeal under Section 109 of the Tax Code. The appeal is filed with the tax administrator who issued the decision within 30 days of delivery. In the appeal, it is necessary to object to the expiration of the preclusive period – although the authority is obliged to consider this ex officio, active defense is key.

Czech administrative courts assess whether the tax administrator acted in accordance with the law and whether a decision issued (allegedly) outside the deadline stands. If you are unsuccessful with an appeal at the Appellate Tax Directorate, the next step is an administrative lawsuit at a regional court according to Section 65 et seq. of the Code of Administrative Justice.

The attorneys at our Prague-based law firm have years of experience with litigation in Czech courts and help clients with argumentation and evidence strategies. In practice, these disputes are legally demanding.

Archiving Tax Documents – How Long You Must Keep Evidence in the Czech Republic

To effectively defend themselves, a tax subject must have documents available. However, archiving periods vary depending on the type of document and the status of the taxpayer.

If you are a VAT payer, you must, according to the Czech VAT Act, keep tax documents for 10 years from the end of the tax period in which the transaction took place. This ten-year period is crucial in practice, and it is safer to follow it for other taxes as well if you maintain accounting records.

For entities that are not VAT payers and do not maintain accounting (e.g., using flat-rate expenses), the minimum archiving period is linked to the period for tax assessment (the basic 3 years + any extensions). However, given the possibility of extending periods up to 10 years, we strongly recommend keeping documents for a longer duration.

Our Prague-based attorneys repeatedly see cases where tax subjects lack documents during an audit because they shredded them after three years. This leads to a failure to meet the burden of proof and subsequent tax assessment.

Electronic vs. Physical Archiving

In modern practice, it is important to follow the rules of electronic archiving. A document in electronic form must have guaranteed authenticity of origin, integrity of content, and readability throughout the storage period.

This can be achieved, for example, through qualified electronic signatures and time stamps, or by using a trusted repository. Simply saving a scan of an invoice to a disk without security may not stand as credible evidence of origin in a Czech court after several years.

Specific Situations – Tax Losses and Their Impact on the Limitation Period

A tax loss has a fundamental impact on the limitation period for tax assessment. According to the Czech Income Tax Act, the period for assessing tax for the period in which a tax loss arose ends simultaneously with the period for assessing tax for the last period in which this tax loss can be applied, as stated in Section 38r(2) of the Income Tax Act.

Furthermore, as a result of the possibility to apply a loss retrospectively, periods for previous years may also reopen. Since a tax loss can be applied in the 5 following tax periods, the period for the year the loss occurred "chains" and remains open much longer (realistically approx. 8 or more years).

Practical consequences: if you report a tax loss in 2024, the Czech financial authority can audit this year until the period for 2029 expires. A tax subject can avoid this extension by waiving the right to apply the loss within the deadline for filing the return for the period when the loss arose.

Our attorneys in Prague recommend performing an analysis before applying a loss to see if the tax savings outweigh the risk of keeping your accounts open for audit over the long term.

Practical Recommendation – How to Verify Your Tax Security in 2026

In 2026, it is an appropriate time to systematically review your tax history. We recommend the following procedure:

List your dates: Note when tax returns were filed for recent years (2020–2025), when payments became due, whether any supplementary returns were filed, or if tax audits were initiated under Czech law.
Calculate deadlines: For each year, determine the standard end of the three-year limitation period. Add extensions for supplementary returns (+1 year) or restart the period where a Czech tax audit has taken place.
Document audit: Verify that you have all (legible) documents available for all "open" tax periods in the Czech Republic.
Consider your strategy: If you are aware of risks in open periods, consult with our Prague-based attorneys regarding rectification options (supplementary tax returns) before an audit is initiated by the Czech Financial Administration.

Our attorneys in Prague handle such situations daily and can identify which tax risks remain active and which have already expired under the Czech legal system.

Executive Summary for Management

Standard Deadlines: The Czech Financial Office generally has 3 years to assess or reassess tax. This period is calculated from the tax return filing deadline. The maximum limitation period is 10 years (with exceptions for criminal offenses).

Extension Risks: Filing a supplementary tax return in the final year of the period extends it by 1 year. The initiation of a tax audit interrupts the period, and it begins to run anew in full (3 years) under Czech legislation.

Loss as a Risk: Reporting a tax loss keeps the "open" year of the loss active for the duration it can be claimed (approximately an additional 5-6 years).

Defense: A decision issued after the limitation period has expired is unlawful. However, it is necessary to actively defend your position (via appeal). Archive documents for at least 10 years (for VAT payers) to meet the burden of proof in Czech courts.

Prevention: A proactive audit of deadlines and archiving is more cost-effective than litigation. If you are unsure, request a legal analysis of tax deadlines from our Czech legal team.

Conclusion

Tax deadlines and preclusion are among the most complex topics in Czech tax administration. Although it may seem that a taxpayer is safe after three years, the reality is more complex. There are numerous situations where deadlines are extended, interrupted, or stayed.

2026 is the ideal time for a review of your tax history in the Czech Republic. This is not just about administration – it is about protection against financial risks that could jeopardize your business operations.

The attorneys at ARROWS law firm in Prague have extensive experience in resolving tax deadline issues. Our portfolio includes over 150 joint-stock companies and 250 LLCs (s.r.o.) that we have assisted with tax matters. ARROWS is insured for damages up to CZK 400 million, allowing us to provide comprehensive legal services with a strong professional background.

If you are unsure of your current standing in your tax history and what risks you may still face, contact us at office@arws.cz. Our Prague-based attorneys will help you with a detailed analysis of your situation and develop the best strategy moving forward.

FAQ – Frequently Asked Legal Questions on Tax Preclusion and Assessment Deadlines

1. If I filed my tax return on time, am I safe after three years?

The three-year period is the baseline, but it is not absolute. If you file a supplementary return in the last 12 months of the period or if the authority initiates an audit, the deadline changes. The maximum period is generally 10 years. For certainty, contact office@arws.cz.

2. What specifically does "interruption" of the deadline mean?

Interruption of the deadline means that the time elapsed so far is disregarded, and the period starts running again from the beginning (a new 3 years). This typically happens upon the initiation of a tax audit by Czech authorities.

3. How long am I required to archive tax documents?

VAT payers must keep documents for 10 years. For others, it is at least for the duration of the tax assessment period, which can exceed 3 years. We recommend 10 years for all entities operating in the Czech Republic.

4. What is "effective repentance" and how can it help me?

In Czech criminal law, effective repentance (paying the tax due before a court verdict) can result in the termination of criminal liability. In tax law, "voluntarily" filing a supplementary return before an audit avoids penalties (20%), leaving only the late payment interest to be paid.

5. Will an international request for assistance affect my deadline?

Yes, while an international request for assistance is being processed abroad, the deadline does not run (it is stayed). However, the request must be justified.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue. Although we ensure maximum accuracy of the content, legal regulations and their interpretation evolve over time. To verify the current wording of regulations and their application to your specific situation, it is essential to contact ARROWS law firm in Prague directly (office@arws.cz). We bear no responsibility for damages resulting from the use of this information without our prior individual legal consultation.**

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