The Czech National Bank released another decision to change the interest rates effective from 5 November 2021 as follows:
- the Lombard rate was increased by 1.25 % to 3.75 %,
- the Discount rate was increased by 1.25 % to 1.75 %,
- the two-week repo rate was increased by 1.25 % % to 2.75 %.
The two-week repo rate has a direct impact on the tax area, specifically for the calculation of interest on arrears applied in contractual relations and outstanding tax payments.
Interest on arrears is calculated as the multiple of the due amount and the interest on arrears rate determined by the Czech National Bank for the first day of the calendar half-year in which the delay occurred, increased by 8 percentage points multiplied by the number of days in arrears and divided by the number of days in the calendar year. The total interest on arrears rate for the period beginning the 1 January 2022 will be 10.75 % p.a.