Top-up tax: tax return and information return form

Tax return

The tax return form consists of three parts (Czech top-up tax, allocated top-up tax, and a joint section for additional top-up taxes). Taxpayers shall use the relevant section of the return, which is to be filled in via annexes. Many calculations are automated, including the conversion of the currency of the financial statements to Czech crowns. 

The Czech top-up tax part of the return contains a calculation of the jurisdictional top-up tax for the Czech Republic and its allocation to the taxpayer filing the return; a special part is devoted to investment entities. The allocated top-up tax part of the return contains calculations under the Income Inclusion Rule (IIR) and the Undertaxed Profits Rule (UTPR). Attached to the return form are detailed instructions referring to the relevant provisions of the act and the relevant parts of the information return. The tax return form (same as the information return form) is only available in the Czech language and can only be submitted electronically in XML format. 

Information return

The information return form uses the standardised template contained in DAC 9. The instructions for filling it in are based on Appendix A to the GloBE Information Return published by the OECD in January 2025. The Czech regulation, the EU legislation, and the OECD interpretations have thereby been aligned.

A taxpayer of the allocated top-up tax (a Czech constituent entity of a multinational corporate group with a turnover exceeding EUR 750 million) shall primarily fill in the parts of the information return that would obligatorily be provided to the Czech Republic within the exchange of information, for the jurisdictions where the Czech Republic has the right to tax.

The Czech tax administration will obtain the relevant information for the administration of the top-up tax via the information return, or via the exchange of information (see below). The information return will also serve for the purposes of the Czech top-up tax, as it will not have a separate information return; for Czech top-up tax, taxpayers shall fill in the general information part, the safe harbour information, and the calculations relating to the Czech Republic and to entities subject to Czech top-up tax. 

Exchange of information

The DAC 9 directive allows to file a single EU-wide information return for the entire group. It shall be filed centrally either by the ultimate parent entity or by another designated entity within the group. The tax administrations of the other member states where the group operates will be notified of the member state in which the information return has been filed.

The decree takes over the OECD rules on the provision of the information return (the general and the relevant jurisdictional parts) to the tax administrations of other countries. They should mandatorily receive relevant information reflecting the level and extent of implementation of the minimum tax rules in the given state.
Centralised filing with subsequent exchange of information will also be possible vis-à-vis non-EU countries with whom a qualified agreement on the exchange of information for Pillar Two purposes has been concluded (the directive is a multilateral agreement on exchange of such information within the EU).

The Ministry of Finance has now initiated a comment procedure. Once comments have been received and processed, a final version of the decree will be prepared and published in the Collection of Laws.