An amendment of Act no. 120/2001 Sb., on Court Executors and Enforcement Activities (Enforcement Code) brings about a change for Act no. 586/1992 Sb., on Income Taxes (ITA), into which a new credit has been added on grounds of stayed distrainment. These are receivables, which were subject to distrainment, but the value of the receivable reaches a maximum of CZK 1,500 without accessories. If a distrainment is stayed, the creditor is newly entitled to compensation reaching 30% of the original debt. This will not be a compensation of the debt that the creditor would receive, but he will only be able to deduce it from the income tax. Natural persons as well as legal entities will be entitled to the deduction.

The credit per one stayed distrainment may reach a maximum of CZK 450. If the creditor had no tax obligation for the respective year, when the distrainment was stayed, he will be granted compensation, but unfortunately, he will receive nothing. The amendment of the Enforcement Code will be in effect from 1 January 2022, and executors can probably be expected to begin delivering the first summons to creditors at the beginning of the year 2022.

A new amount of penalty for late payment of social and health insurance has also been approved. The penalty will newly be measured according to the amount of late payment interest from the Civil Code. When the amendment takes effect from 01 January 2022, the new amount of interest will reach 8 % + the repo rate of CNB (as of 6 August 2021 it reaches 0.75%).