Recent changes in Czech real estate tax law affect some tax payers' obligation to file a tax return:
- The first change clarifies the circumstances in which a tax return must be filed for real estate which has been acquired but not registered by the deadline for filing tax returns (31 January). Where the application for registration has been made to the cadastral registry but not decided upon by 31 January, the new owner now has to file a tax return within 3 months after the month in which registration takes place. The return has to cover the whole tax period following the calendar year in which the application for registration is made.
- The second change provides that, where land categorised as "simplified evidence" in the cadastral registry (usually agricultural land) is subject to a lease, any real estate tax due is payable by the tenant and not the owner. Tenants also have to pay real estate tax for land leased from the Land Fund or some other State Funds. However, from 1 January 2005, some "simplified evidence" land has been reclassified as "ordinary cadastral evidence" land. For this year, owners of reclassified land have until 30 April 2005 instead of 31 January 31 2005 to file their tax returns.
Anyone wishing to check whether their land is categorised as "simplified evidence" land can do so at http://www.cuzk.cz/ - the website of the Czech cadastral authority.
