Deloitte: Czechs will Spend 181 Days Working to Pay Taxes as this Year’s Tax Freedom Day Falls on 30 June

Praha, 4 February 2019 – This year, taxpayers in the Czech Republic will spend 181 days working to pay taxes, which is one day more than last year; after final recalculation, it was 180 days in 2019. According to Deloitte’s calculations, Tax Freedom Day will fall on 30 June 2019. Approximately the same case as in the Czech Republic will apply to the UK and Norway. Taxpayers will have to spend the most days paying taxes to the government in Denmark, while the fewest in Romania and Bulgaria.

Taxes in Practice: Increased Administrative Work, More Stringent Audits and Frequent Changes to Legislation 

Taxpayers and remitters have been experiencing an increase in the number of tax requirements in the long term. Businesses spend a rather lengthy amount of time on tax compliance, which is also for the reason that, in a number of cases, they do not merely explain the misstatements in their reports, but also clarify misstatements made by their business partners. A well-designed information system that respects all local specifics and frequent changes in legislation and interpretations could be a solution, but this is a very expensive matter for large and multinational companies.

Tax authorities assess the overall economic and tax situation of the taxpayers/remitters based on a more detailed analysis of the data in tax returns and reports and other information sources. This places greater demands on correct systems setup as well as on the skills, knowledge, and regular training of taxpayers’ employees.

Tax Freedom Day

Tax Freedom Day is a simple and easily comprehensible demonstration of the tax burden in the economy. The method used for calculating the date of Tax Freedom Day divides the year into two parts, in a ratio corresponding to the proportion of the government sector’s total taxable income to net national income. Calculations for prior years are always updated in reviewing the statistical offices’ data used in the calculation.

The number of days for which taxpayers in the selected countries of the EU need to work to pay taxes to the government and the date of Tax Freedom Day: