The Financial Administration of the Czech Republic is a system of state administration bodies that are subordinate to the Ministry of Finance. It was established by Act No. 456/2011 Coll., on the Financial Administration of the Czech Republic, as amended, which also governs its status and competences [1].
Structure
The Financial Administration of the Czech Republic consists of three types of bodies: the Generální finanční ředitelství, the Odvolací finanční ředitelství and the financial offices [1]. The Generální finanční ředitelství is headed by a director general, who is represented by a deputy director general. Their selection, appointment and dismissal are governed by the Civil Service Act [1]. The Odvolací finanční ředitelství is headed by a director, represented by a deputy director, whose selection and appointment are governed by the same act [1]. Each financial office is run in a similar way, with a director at its head represented by a deputy director [1].
Within the scope of the financial offices, territorial branches are set up as organisational units of the financial office. Territorial branches that are not located at the seat of a financial office are determined by Decree of the Ministry of Finance No. 189/2023 Coll. Territorial branches at the seat of a financial office are determined by the organisational rules. The head of a territorial branch or branches is the director of a section or the director of a department of the territorial branch, who is directly subordinate to the director of the financial office [1].
Status
The Generální finanční ředitelství, the Odvolací finanční ředitelství and the financial offices have the status of administrative authorities and are therefore entitled to exercise public authority on behalf of the state within their sphere of competence [1]. Since 1 January 2011 the Generální finanční ředitelství has had the status of an accounting entity and is thus entitled to manage state property independently, including on behalf of the subordinate Odvolací finanční ředitelství and the financial offices. For the purposes of managing state property, these subordinate bodies have the status of its internal organisational units [1]. The internal operation of the Financial Administration is governed by its organisational rules, which are approved by the director general [1].
Scope and competences
The core agenda of the Financial Administration is tax administration [1]. Specifically, this covers personal income tax and corporate income tax under Act No. 586/1992 Coll., on Income Taxes, as amended. The administration also includes value added tax under Act No. 235/2004 Coll., on Value Added Tax, as amended, which is administered in parallel by the Celní správa České republiky [1].
The other taxes administered include road tax under Act No. 16/1993 Coll., on Road Tax, as amended, and real estate tax under Act No. 338/1992 Coll., on Real Estate Tax, as amended [1]. The Financial Administration also administers real estate acquisition tax under Act of the Senate No. 340/2013 Coll., on Real Estate Acquisition Tax [1]. The agenda also includes the former real estate transfer tax, inheritance tax and gift tax, regulated by Act No. 357/1992 Coll., on Inheritance Tax, Gift Tax and Real Estate Transfer Tax, as amended [1].
In addition to tax administration, the Financial Administration, by its own definition, carries out a broader range of other agendas [1].