A tax subject is penalized and given a late payment interest, if the subject fails to observe the due date of tax. This sanction is provided for in Section 252 Tax Code as the repo interest rate set by the Czech National Bank current on the first day of the relevant calendar half-year increased by 14 percentage points. And it is the repo interest rate which has experienced a substantial increase since the beginning of 2018 (see table below).

In August this year already, the repo interest rate has reached more than twice its value from January 1, 2018.

Because the first day of the calendar half-year decisive for the rate of late payment interest effective from January 1, 2019 has not come yet, we cannot say whether the above stated changes are final. If there are changes in the future, the previous development suggests further increase. The changes to the repo interest rate will also affect the deferred interest rate.