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Publication of financial statements for a branch plant through the tax authorities

In today's alert, we would like to share with you some practical aspects concerning the publication of financial statements for a branch through the tax authorities. 

Entities that are registered in the public register are obliged to publish their financial statements (and, where applicable, their annual report) by depositing them in the Collection of Deeds.

As you may have noticed, with effect from 1 January 2021, accounting entities that do not submit their financial statements through the Czech National Bank have been allowed to request the tax administrator to submit the financial statements contained in the tax return to the relevant Registry Court instead of the accounting entity.

We would like to draw your attention to the fact that this option applies only to business corporations within the meaning of the Act on Corporations, and these are only commercial companies and cooperatives.

In practice, this means that the financial statements for a branch of a foreign founder cannot be filed with the Commercial Registry through the tax administrator, but must be filed directly by the accounting entity with the relevant Registry Court.

For the sake of completeness, we would like to add that according to the Act on Public Registers of Legal and Natural Persons, the relevant foreign person (the founder of the Czech branch) is in principle obliged to publish its accounting records through the Collection of Deeds.

The above brief commentary cannot replace a detailed tax assessment of the particular tax situation.

If you have any questions, please contact the authors of this article or the EY tax team with whom you regularly work.

Authors:

Ladislava Zamazalová

Iuliia Potridennaia