Sberbank in the Czech Republic and related tax liabilities

On 28 February 2022, the Czech National Bank (CNB) launched steps toward the revocation of the banking licence of Sberbank CZ, a.s. This is a result of a deterioration of the bank's liquidity situation owing to a significant outflow of deposits. The CNB has issued a preliminary measure preventing the bank from disposing of assets and liabilities (including the provision of new loans and accepting deposits).

Clients' deposits in Sberbank CZ are insured by law up to the amount of EUR 100,000 per client (approximately CZK 2.5 million). The insurance covers both personal deposits and corporate deposits. Deposits made by municipalities and regional authorities are insured only if the municipalities and regional authorities receive revenues from taxes and fulfil certain other legal conditions. The Financial Market Guarantee System is organising the pay-out of deposit compensation, and the pay-out is scheduled to start on 9 March 2022.

The financial administration has reacted to the current international situation and has stopped all money transfers from the Financial Offices to accounts with Sberbank CZ (for example, refunds of tax overpayments or compensation bonuses). Taxpayers who are entitled to a tax overpayment refund or a compensation bonus should report any change to their bank account number to their respective Financial Office. This may be done by submitting an "Announcement of a change in registered data". If any taxpayers cannot pay their tax liabilities because their money is deposited in Sberbank CZ (and is thus inaccessible), we recommend that they contact their respective tax administrator and agree on an individual solution. One possible solution is a deferment of deadline for paying any due tax. More information is available here (in Czech only).