How to pay off debt to the state without interest and fines?
26.07.2023
26.07.2023
The Milostivé léto campaign is back in the Czech Republic till November 30th. People who owe the state money will be allowed to repay it without paying interest, fines, or enforcement fees.
How does it work? The government will not charge fines, interest, and enforcement fees if you pay the principal (initial amount of the debt). The Milostivé léto project can be applied to both newly registered debts and those that have already been repossessed. The promotion, however, does not apply to bailiff-collected debts or obligations incurred after September 30, 2022.
The Milostivé léto campaign runs in the Czech Republic from July 1, 2023, until November 30, 2023.
In 2023, the campaign will cover the following types of debt:
– debt on social insurance contributions;
– failure to pay taxes and customs duties;
– debts to Czech courts and the Czech Prison Service;
– local taxes (if the municipality, region, or city of Prague allows them to be forgiven by a local council decision).
Find out how much money you owe and to whom if you wish to take advantage of the Milostivé léto offer. More details on how to proceed can be found at milostiveleto.cz.
You may also contact customer service at 770-600-800.
What to do if…
You are in debt in taxes
Submit an application to the state authorities for the write-off of the costs of paying tax arrears under the Daňové milostivé léto program (sample applications are here) and pay the debt (principal amount). For amounts more than 5,000 Czech crowns, you can apply for installment payments. But keep in mind that if you are late on your payment or pay a different amount, you will no longer be able to take advantage of the privileged tax conditions.
Similarly, if you do not apply through the Daové milostivé léto campaign but merely make a payment, the procedure may not be recognized by the authorities, and the relevant funds may not be withdrawn. More information is available at https://milostiveleto.cz/dane/.
Debts of up to 200 Czech crowns separately and up to 1,000 crowns in total will be immediately eliminated, even without application or payment, for both individuals and legal entities.
You have a debt to the Social Security Administration
Apply for the cancellation of social insurance debt using the Czech Social Security Administration’s electronic application and pay the principal amount. For amounts over 5,000 Czech crowns, you can apply for an installment payment, similar to a tax debt, but please note that if you delay payment or pay a different amount, you will no longer be able to use the opportunity.
Similarly, if you do not apply for the Milostivé léto but only make a payment, the Social Security Administration may reject the procedure and refuse to absolve the obligations. More information can be found on this page https://milostiveleto.cz/socialni-pojisteni/
Fines and enforcement costs will be automatically forgiven as of September 30, 2022, if no premium debt is submitted with the relevant Social Security Administration. If premiums are paid before July 1, 2023, fines and penalties will be automatically removed.
You have a debt to the court
By certified mail, send a request to the appropriate court or prison service (where you served your sentence), inform them of the amount owed, and then apply for the right to participate in the Milostivé léto programme. More information and sample applications can be found here.
You have a debt to the municipality
Check to see if your municipality is a part of the Milostivé léto 2023 program. The overview of resolutions approved by the council may be accessed on the website (registered municipalities will be gradually added to the list on the milostiveleto.cz website).
You can ask any questions by email at jakprezitdluhy@clovekvtisni.cz, by phone at 770 600 800 (Mon-Fri: 9–17), or in person to consultants in the regions.
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