Sitting down with top tax advisor Martin Tužinský

I’m sitting down with top tax advisor Martin Tužinský and we’re brainstorming the new changes in the Income Tax Act effective from 1 January 2024. We’ll stop by the advance tax payments. If you don’t pay them, you should❗ The tax office will find you anyway 😁 Let’s give you one word problem where you’re sure to get your engines revved 👨‍💻. You get the result of tax liability and advance payment when you add all the variables together ➕, subtract ➖, multiply by ✖ and maybe divide by ➗- to others so that you don’t have to pay it/them 🤗 31/3/2024 – filed DPPO for 2023 from which advance payment liability of €1450 / quarter 2Q/24 – 4Q/24 – advance payment of €1450 (total of €4350) 30.6.2025 – you file DPPO for 2024 in the extended period from which the tax liability arose 920 Eur The amount of taxable income (revenue) was 250 000 Eur – so you should pay the minimum amount of tax i.e. 1920 Eur. And now that, you have paid 4350 Euros (advance payments), you have incurred tax liability of 920 Euros but you should pay the minimum tax amount of 1920 Euros. So, if you do the math, it works out that: 2430 Eur – the tax office should refund you as an overpayment on the advance payments paid during 2024 1000 Eur – the difference between the minimum tax and the actual tax liability you carry forward to the year 2025 – 2027, where, assuming that your tax liability is higher than the minimum, you will be able to deduct the difference. At the same time, you must not forget the obligation to pay advance tax (1Q-2Q/25), which is calculated on the filed DPPO from 2023. We did not incur the obligation to pay advance tax on the filed DPPO for 2024. For the 1Q-2Q/25 prepayments already paid, you can claim a refund from the Tax Office or you can deduct them when filing the 2025 DPPO. “Every first” accountant recommends – Have a healthy business and pay more tax than the minimum 😊