After a year's break, we are once again facing the Summer of Grace - a state event aimed at debt relief for citizens. Debtors can easily and cheaply resolve their debts to the state administration. We will advise you how to take advantage of this chance.
What debts are affected?
This year, the state will forgive various penalties incurred due to late payment of tax and social security obligations.
The state will forgive debtors:
- Penalties,
- interest on late payments,
- late filing penalties,
- other tax charges (e.g. costs of proceedings, including execution costs).
In addition to penalties, it will also be possible to forgive small tax debts directly (in the order of tens or lower hundreds of crowns). The reason for this is the redundant administration associated with the management of such small debts.
The legislation to implement the Summer of Grace was signed by the President of the Republic on 7 June 2023.
How to take advantage of the Summer of Grace?
- The main condition is the payment of the amounts owed, no later than 30 November 2023.
- Subsequently, submit an application for extraordinary forgiveness. You have from 1 July to 30 November 2023.
The application can be submitted in writing or electronically. You usually file the document with the government agency to which you owe the debt. The detailed procedure for processing the application can be found on the milostiveleto.cz website, which serves as an information signpost. Further details can also be found on the ČSSZ website.
Gracious summer in numbers
There have been two rounds of this event in the past. Ironically, neither took place during the summer months. In parallel, the SOS Gracious Summer collection was also held to help debtors pay the principal of their debts. How did the previous events turn out?
TheGracious Summer I took place at the turn of 2021 and 2022. According to the Executors' Chamber of the Czech Republic, the inaugural year of the event led to 42,000 foreclosures being stopped, and 15,000 people were completely rid of their debts. In total, the state forgave debts amounting to CZK 1.55 billion.
Gracious Summer II was held in the autumn of 2022. Interest was relatively low. According to official statistics, the state waived debts of CZK 370 million and bailiffs stopped over 9,100 foreclosures.
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