29. 7. 2022
Authors: Josef Žaloudek, Kateřina Havlínová
On 11 July 2022, the General Financial Directorate of the Czech Republic published a press release informing the public that targeted inspections had been carried out to examine the taxation of income from cryptocurrencies. Currently, the differences between the information on income received by the tax authorities from third parties and the income declared to tax authorities in 2019 and 2020 by the taxpayers themselves are being investigated.
This has revealed differences worth hundreds of millions of Czech crowns both for individuals and legal entities. The tax administration obtains information not only through foreign tax administrations, but also from findings obtained during audits of other taxpayers, such as those concerning forms of collective investment where individual investors/taxpayers receive income later when it is transferred to their bank accounts.
The tax administration has also announced that it will continue to focus on transactions involving cryptocurrencies and the taxation of income from cryptocurrencies as part of its inspection activities, not only in the case of cryptocurrency traders, but will also focus on crypto exchanges, miners and other entities whose services may be linked to the use of cryptocurrencies.
If you have any questions or doubts regarding the taxation of cryptocurrencies in your situation or are interested in verifying the correctness of the taxation of your cryptocurrency income from previous years, where late payment interest can reach substantial sums due to the significant increase in the Czech National Bank repo rate, please do not hesitate to contact us for a detailed assessment.