Only a few days remain for a number of property owners to file their tax return. Neglect can sometimes cost you up to hundreds of thousands.
Anyone who bought, sold, or adjusted their own property in the past year should pay attention. There are only a few days left to file the tax return. In case you do not manage to do this on time, your fine can go up to several hundred thousand crowns.
Financial administration specialists set out to the regions in January to offer personal consultations and assistance in completing the tax return for everyone who bought, sold or modified their apartment, family house, cottage or land during last year. Therefore, in the last week of January, the financial offices will also have extended office hours.
The reason why this is happening is clear. The deadline for filing taxes, which is at the end of the month, is approaching. Official documents are often quite complicated and people therefore often do not know if this obligation applies to them. And if so, they often don't know how to proceed.
"Trips to municipalities are very popular among citizens. They especially appreciate the opportunity to get personal help with tax matters directly in their village,"
told the portal Seznam Zprávy the general director of the financial administration Simona Hornochová.
Beware of the coefficient changes
All of this is happening at a time when local coefficients, thanks to which this tax is calculated, are changing. The main novelty is the fact that municipalities can use a wider range for this coefficient, from 0.5 to 5. In the past, the mentioned range started at number 1. At the same time, the coefficient 1.5 is abolished.
For example, in the North Bohemian Jablonec, which is the second largest city in the Liberec region with more than 46 thousand inhabitants, they have had a regulation set up only the basic coefficient according to the size of the municipality to 2.5 since 2015. However, deputies added the coefficient 2 by regulation last year, doubling the entire tax. The owner of a family house with a developed area of 100 square meters with land, who last year paid 752 crowns in tax, will pay 3654 crowns this year.
"When we realize where the price levels have moved in recent years, how much it costs us today to maintain city property, how much cleaning costs us, how much winter maintenance costs us, I think it's no longer possible to manage with the amount we've been collecting for at least the past ten years,"
explained to LP-Life the mayor of the city Miloš Vele.
As a rule, the smaller the municipality in which you own property, the lower the coefficient that will apply to you. If the municipality does not set this value, a value of one is calculated. However, you should check everything, you can find the coefficient overview on the tax portal of the Financial Administration of the Czech Republic.
When calculating the tax, you must now also take into account the inflation coefficient, the value of which is currently 1. In your declaration, you must also show spaces such as garages or living spaces that are intended for renting to tourists.
What is important for filing a tax return?
And how is property tax calculated? It consists of two parts: it is a tax on buildings and units and moreover a tax on land. For buildings, it is necessary to determine the area or built-up area in square meters. Other important information includes, for example, the number of floors. The mentioned data, which can be found in the cadastre, is then multiplied by the aforementioned coefficient. The declaration is submitted to the local office in the region where the property is located. If you have more, you need to file a declaration separately in each of the mentioned regions.
There are several ways to submit your tax return. Perhaps the most used is the electronic form on the Tax Portal of the Financial Administration of the Czech Republic or Online Financial Office. You connect there with an electronic ID card with an activated chip, the MyID service, or through a banking identity. The form is sent electronically or via a data box. In the past, the form was often delivered to the office in person or by mail. These options can of course still be used now. But hand on heart: doesn't it seem a bit outdated to you?
The fine can reach up to 300 thousand crowns
How much will we pay? In most cases, the property tax will not exceed 5 thousand crowns. However, if this amount is higher, it can be split into several installments during the year.
But if no changes were made to your property in the past year, the tax will be automatically assessed. Submit your tax return in this case only in the spring after the financial office prompts you to do so.
Remember, however, that if you do not submit your tax return on time, you face a fine. For each day of delay, it is 0.05 percent of the total tax amount. But the penalty is only calculated from the sixth business day after the end of January. Those who would have to pay a fine that does not exceed a thousand crowns are at the same time winning. However, on the other hand, it does not mean that you should underestimate the aforementioned obligation. The maximum amount of the penalty can reach up to 300,000 crowns if you do not send the money by the end of May. The tax administrator decides on the obligation to pay the penalty on the basis of the payment order.
The fact that just last year, thanks to it, 23.1 billion crowns were collected, which is 85.6 percent more than the previous year, testifies to how substantial the income from property tax means for municipalities.
Sources: author's article, own questioning, Seznam News
