Pillar 2: draft forms published by financial administration
The financial administration has published draft forms that are to be used to prepare top-up tax information returns and top-up tax returns. However, the final version of the forms, the method for completing them and the available filing options will only become known once the relevant decree is promulgated, which is currently subject to comment procedure.
Top-up taxes, known as Pillar 2, are intended to ensure that large corporate groups with consolidated revenues exceeding EUR 750 million pay tax of at least 15% in every country where they operate. If their effective taxation is lower, the difference is subject to top-up tax.
Top-up tax information return
The form for filing the top-up tax information return will be available on the MOJE daně portal. An integral part of it is an annex in XML format structured in line with the OECD template for the GloBE Information Return (GIR), which must be prepared by top-up tax payers. The form itself contains only basic identification information about the taxpayer and the group, and it should also be possible to use it to notify the fulfilment of conditions for the exemption from filing the information return for the purposes of the allocated and Czech top-up tax.
Based on the press release and the draft decree, it can be inferred that filing will only be possible via the MOJE daně portal and not through a data box. However, if the taxpayer is covered by an exemption from filing the information return, it should be possible to notify the tax authority of this fact in another manner as well, for example via a data box.
According to preliminary information from the financial administration (the press release itself does not address this issue), the exemption should apply where another company within the group has filed the top-up tax information return in another EU member state, despite the fact that the Czech Republic has not yet implemented the relevant directive on administrative cooperation (DAC 9).
For the sake of completeness, we note that two situations may basically arise in terms of the scope of information to be stated in the information return (filed in the form of an XML annex):
- The full-scope top-up tax information return for the entire group will have to be submitted by taxpayers who are the ultimate parent entity performing consolidation in the Czech Republic.
- The reduced-scope top-up tax information return will have to be submitted by taxpayers who are not the ultimate parent entity, but the Czech Republic does not have access to the information return filed for the group in another country through international exchange of GloBE information. In that case, the information return should contain only information for the Czech jurisdiction, i.e. the information that the Czech Republic would have obtained through international exchange of GloBE information.
The deadline for filing top-up tax information returns or notifications for the initial period of 2024 is 1 July 2026 (the press release refers to the end of June, which we understand to be an approximate date given the context of information included in the press release relating primarily to the content of the forms and the filing method).
Top-up tax return
The top-up tax return will be filed exclusively electronically, using the prescribed form with the required structure and mandatory data. Unlike the information return, it should also be possible to file the tax return through a data box. The form will be the same for both Czech and allocated top-up tax, but it should not be possible to file it for both taxes at the same time. Even if the tax liability is zero, two separate tax returns, one for the allocated top-up tax and one for the Czech top-up tax, will therefore need to be submitted.
According to the financial administration’s tax calendar, the deadline for filing top-up tax returns for the initial period of 2024 is 2 November 2026 (the press release refers to the end of October, which we understand to be an approximate date given the context of information included in the press release relating primarily to the content of the forms and the filing method).
The press release on top-up tax and the draft forms are available on the financial administration’s website.
We have informed you about other aspects of filing top-up tax information returns and top-up tax returns here.