An amendment to the Tax Code brings a new tax institute effective from 1 January 2021, which allows the payment of a tax deduction advance (“advance”) before the tax deduction is determined, i.e. before a tax assessment decision is issued. Although the possibility of obtaining a portion of the excessive deduction even before the tax procedure is concluded is positive for some VAT payers in terms of cash flow, we find it important to point out the difficulties that can be associated with the payment of the advance.
Source: Deloitte CZ
