Decree No. 106 / 1974 Coll.
Decree of the Federal Ministry of Finance implementing the Act on Agricultural Taxation
Valid
Effective from 01.01.1975
106
DECLARATION
Federal Ministry of Finance
of 6 November 1974
implementing the Agricultural Tax Act
The Federal Ministry of Finance, pursuant to § 57 and for the implementation of § 7 (2), § 8 (b), § 15 (1) and (2), § 50 (6) of Act No. 103 / 1974 Coll., on Agricultural Tax (hereinafter referred to as the Act):
(k § 2 of the Act)
(1) Agricultural land which has been used for other purposes (e.g. afforestation, construction, transport) is exempt from taxation from the year following the year in which the land was permanently withdrawn from agricultural production by decision of the competent authority on the basis of which the land will be removed from the property register as agricultural land.
(2) Economic areas used are fish ponds, land of ponds that are flattened and water areas in which algae, reeds, orobennes or other technical aquatic plants are grown.
(to Article 3 of the Act)
(1) The taxpayer shall claim exemption in a tax return or notification.
(2) Those parcels which are kept in the real estate register as agricultural land and on which the land has been cultivated before the reclamation has been reclamated shall be considered to have been surface-extracted, or have been estuaries, roads, etc. Furthermore, the land held in the real estate register as agricultural land which has not been cultivated for a significant degree of degradation (e.g. by a hit of tree seeds) and which after reclamation are again suitable for agricultural production.
(3) Where certain parcels have been partially planted with noble vine species and partly hybrids, only part of the area belonging to noble vine species shall be exempted if it is at least 1 / 4 ha.
(4) Land on which quarters, dairies or spindles have been planted shall be regarded as intensive fruit orchards.
(5) Land temporarily withdrawn from agricultural production (e.g. landfill, sand extraction) shall be exempt from tax from the year following the year in which the land was temporarily withdrawn from agricultural production by decision of the county national committee concerned.
(6) The land in the management and use of national committees and their budgetary organisations, including state conservation and conservation bodies, shall be considered to be those which are directly used by them.
(k § 4 of the Act)
(1) Land tax payers are organisations and citizens that are registered in the real estate register (1) as land users. If the property user is not registered in the property register, the taxpayer is the one who actually uses the land.
(2) If the register of real estate is registered as a user of a social organisation or its organizational component (Fruit and Gardening Association, Small Economic Animal Breeders Association, etc.), which has left the land to its members to set up a garden, the tax payers are individual members.
(k § 5 of the Act)
(1) The land is intended for recreational purposes (Section 5 (2) (b) of the Act) if there is or will be a holiday cabin or a recreation garden set up on it.
(to Section 7 of the Act)
(1) The areas which cannot be fully used for agricultural production shall be considered to be sown areas, airport parcels, military zones, permanently contaminated parcels exceeding 5% of the total area, parcels damaged by exhalation effects, parcels destroyed and parcels in protection zones established under the specific regulation.2)
(2) The tax authority shall decide on the reduction or remission at the request of the taxpayer; taking into account in particular the extent to which the land cannot be fully used for agricultural production, the period during which the land was withdrawn from agricultural production (Section 3 (c) of the Act), the extent to which the crops were damaged or destroyed by flooding, the duration of the year carried out on the land of water management, etc.
(k § 8 of the Act)
Other state economic organisations of agricultural production and agricultural services (Section 8 (b) of the Act) which are liable to profit tax are:
1. breeding and seed goods and undertakings;
2. large feeders,
3. machinery and tractor stations,
4. repair shops for agricultural machinery,
5. agricultural supply and purchasing undertakings, Agricultural needs, n., Agroservice, n., Tachov (organisation of agricultural supplies and purchases),
6. national breeding undertakings;
7. state fishing,
8. biovets,
9. District agricultural construction enterprises;
10. Chmelarship, o. p., Žatec,
11. Sempra, o. p., Prague,
12. Semex, vegetable and flowery seed, n., Bratislava,
13. peat plants, n., Bratislava,
14. peat, n., Sobelslav,
15. Enterprise pre šľachtenie a popiovanie hydiny, n., Chorvátsky Grob,
16. Poultry shop Xaverov, o. p., Horní Počernice,
17. Hydinarsky štátny majetok, o. p., Bratislava,
18. Majetok stalej celoštátnej poľnohodárskej výrobky, n. p., Nitra,
21. Wholesale of laboratory animals, n., Prague-Lysolai.
(k § 9 of the Act)
(1) The newly built common agricultural holdings and agri-chemical undertakings shall be regarded as enterprises which have been established after 1.1.1975, except for those to which the assets of the degraded organisations have been transferred.
(2) The common agricultural holding with predominantly agricultural production is the one for which the revenue from the crop and livestock production was more than 50% of the total sales in the year applicable to taxation (Article 12 (3)); they are not taken into account for investments acquired under their own control.
(3) The facts applicable to the exemption will be indicated in the tax return by the taxpayer.
(4) The five-year exemption period ends on the last day of the month in which 60 months have elapsed since the start of the organisation.
(to Article 11 of the Act)
(4) The share of profits (losses), sales, revenues and costs (Section 11 (4) of the Act) is distributed to the various associated organisations in the manner agreed in the cooperative agreement; (3) If the method of distribution of sales, revenues and costs is not so determined, they are distributed in the same proportion as profit.
(k § 12 of the Act)
(1) The contributions and subsidies (Paragraph 12 (1) (a) of the Law) which the taxpayer is not obliged to pay under the law are those which it provides under a voluntary commitment, such as those of voluntary interest or special-purpose associations, but not, however, those of the Directorate-General's compulsory contributions to cover the costs of their activities. The contributions paid under the rules shall also be deemed to be compulsory contributions to cooperative farmers' associations.
(2) The cost of entertainment and gifts above the set limit shall also be considered as other free of charge. For cooperative organisations [§ 8 (a) of the Act], the amount defined in the discussion of the plan by the competent district agricultural administration in agreement with the District National Committee shall be considered as a set limit.
(3) Paid periodic penalty payments shall also be considered as non-refunding.4)
(4) The subsidies and subsidies intended to cover costs are in particular stabilising subsidies and special-purpose subsidies for the operation of apprenticeship education and special-purpose subsidies.
(k § 13 of the Act)
(1) The deductible item is a land tax of the amount actually paid in the tax period.
(3) The deductible item under Paragraph 13 (2) (b) of the Act is, for example, the shares of the member organisations in the economic result of the joint farms and the amounts received from the reallocation of funds. However, the deductible item is not the shares of member organisations in the profit or loss of exempt organisations (Sections 9 and 58 (2) and (3) of the Act).
(to Section 32 of the Act)
(1) An occasional activity where the means of production used for basic agricultural production is generally used at a time when they cannot be fully used in such production, such as ferrying and closening.
(2) By-production is an activity which is either the continuation of basic agricultural production, limited to the processing of products of its own holding (butter, curd, grape wine, etc.), or which is occasional production carried out without foreign workers, e.g. the domestic production of wooden tools and shirt-making products.
(3) An occasional activity or by-production shall not be considered to be such an activity or production which is carried out in separate establishments, in particular for the purpose of setting up establishments, or where it is not limited to the processing of products of its own economy, or where it is carried out to such an extent that it goes beyond the occasional and secondary activities. 5)
(4
(to Article 33 of the Law)
(1) The average profitability standards apply to the land on which the basic agricultural production is carried out, with the exception of the land devoted to the cultivation of specific crops [Paragraph 32 (3) (a) of the Law].
(2) In order to determine which of the established average profitability standards will be used for the calculation of income subject to tax, the natural habitat in which the land (the largest part of it) serves agricultural production is decisive.
(3) The income from the occasional activity and by-production shall be taxed in such a way that the tax calculated shall be increased accordingly in accordance with Article 36 (2) (a) of the Law.
(4) The tax on the land used for the cultivation of special crops and the tax on the production of specialised livestock (Section 33 (4) of the Act) is the income actually obtained from any sale (cash income) and the value of the products consumed by the taxpayer and members of his household or intended for their own consumption (in kind) after deduction of the expenditure incurred in achieving them in the year preceding the year on which the tax is levied. The expenditure incurred to obtain revenue shall not be expenditure on improvement and reproduction of assets and depreciation or impairment and loss of property.
(5) Expenditure incurred to obtain income, if not demonstrated by the taxpayer, shall be deducted from the income from vine cultivation by a flat-rate amount of 40%, from the cultivation of other special crops by a flat-rate amount of 30% and from the specialised livestock production (Section 32 (3) of the Act) of 50% of the income actually obtained (both cash and in kind).
(6) The purchase prices applicable in the year preceding the year to which the tax is charged shall be applicable for the assessment of the actual revenue. Where lowest prices or framework prices are set, the lowest price shall apply; if the highest is set, the price actually achieved shall apply.
(to Section 36 of the Act)
(1) In order to increase or reduce the tax, the operative event shall be 1 January of the year to which the tax is levied. Changes occurring during the year shall not be taken into account.
(2) An increase in the tax may be applied, or the tax may be reduced even if more than one person operates agricultural production on a common account for which at least one of the conditions for the increase or reduction of the tax are met.
(3) Revenue which may give rise to an appropriate tax increase of up to 50% is defined as revenue:
(a) the pursuit of an occasional activity and by-production where it is closely related to basic agricultural production (Section 32 of the Act);
(b) the sale of agricultural products directly to consumers, such as fruit, vegetables, animal products;
(c) disproportionately high; income from agricultural production which substantially exceeds those calculated according to average profitability standards shall be considered as such.
(4) For the tax increase, the revenue achieved in the year preceding the year to which the tax is levied is decisive.
(5) The tax authority may reduce the tax by up to 50% accordingly:
(a) a taxpayer who, on 1 January of the year on which the tax is levied, completed the 65th year of his age;
(b) a taxable person whose capacity to work is altered and who, for the purposes of the agricultural tax, is considered to be a taxable person who receives an invalidity or partial invalidity pension or whose medical condition is in accordance with the conditions for granting such a pension. A fact justifying the altered working capacity shall be demonstrated by the taxpayer by submitting an application for an invalidity or partially invalidity pension and by confirming to the Post Office that the pension is paid to him; if he does not receive such a pension, he shall prove the medical condition by a certificate issued by the social security assessor of the District National Committee;
(c) the taxpayer, if it is required by local circumstances, in particular if he operates agricultural production on land which is significantly worse than the rest of the land in the municipality, could not, without his own fault, have acquired all the land or is dependent on his or her family's or family's nutrition mainly on income from agricultural production and cannot obtain additional income from secondary activity as a result of local circumstances.
(6) Both the increase and the tax reduction are calculated on the basis of Article 35 of the Act.
(k § 40 of the Act)
(1) Changes in the classification of municipalities in natural habitats occurring during the year are decisive in measuring the land tax on all taxpayers and the income tax of citizens on agricultural production for the next year.
(2) The changes occurring during the year in the area of the land under management are not taken into account in the assessment of the land tax and of the income tax of citizens from agricultural production for the current year.
(k § 41 of the Act)
If the five-year period of exemption ends during the year (Article 7 (4)), the taxpayer shall calculate the profit tax by deducting one twelfth of the year-round tax from the tax for each month and the month in which the exemption took place.
(to § 45-48 of the Act)
(2) If there are changes to the plan during the year affecting the amount of the advances calculated, the taxpayer shall be obliged to submit a new calculation of the advances to the tax administration within eight days and to pay monthly advances according to the new calculation. The amount of monthly advances due shall not change.
(3) When calculating the profit tax, the balance sheet profit shall be adjusted after the end of the quarter by the deductible and deductible items (Sections 12 and 13 of the Law) according to the facts from the beginning of the year to the end of the quarter for which the calculation is made.
(4) If the tax authority finds that the taxpayer has calculated the advances by a lower amount, it shall issue a decision setting new advances according to its own calculation and requiring the taxpayer to pay the difference within 15 days. If the taxpayer has calculated the advance payment by a higher amount, the difference shall be settled mutatis mutandis in accordance with the last sentence of Paragraph 45 (2) (a) of the Law.
(5) The tax administration authority may provide otherwise for advances, in particular in the case of organisational changes or changes in the structure of the activities of the organisation affecting the level of tax liability. Monthly advances may also be determined on the basis of a schedule to be made by the organisation under its quarterly monthly obligation for each month.
(to Section 49 of the Act)
(1) If the cooperative authorises the new member to carry out, by the end of the year, the income from agricultural production on its own account and not on the account of the cooperative, it is obliged to pay tax for the whole year.
(2) Departure of instalments pursuant to Section 49 (1) of the Act shall be made by the tax authority without application on the basis of a notification (Section 39 of the Act).
(to Section 50 of the Act)
(1) If a taxpayer changes the tax already charged, a penalty payment (Paragraph 50 (4) of the Law) is calculated on the difference between the tax calculated in the additional payment notice and the tax already charged.
(2) Penalties shall not be imposed if they are less than 10 CZK.
Efficacy
This Decree shall take effect on 1 January 1975.
Minister:
Lér, CSc.
1) Decree No. 23 / 1964 Coll., implementing Act No. 22 / 1964 Coll., on the registration of real estate.
2) For example, Act No. 138 / 1973 Coll., on Water (Water Act), Act No. 110 / 1964 Coll., on Telecommunications, Act No. 22 / 1958 Coll., on Cultural Monuments, Act No. SNR No. 7 / 1958 Coll., on Cultural Monuments, Act No. 40 / 1956 Coll., on Nature Conservation, and Act No. 1 / 1955 Coll. SNR, on State Nature Conservation.
3) Article 5 of Decree No. 2 / 1972 Coll., on cooperative relations in the development of specialisation and concentration of agricultural production.
4) Article 8 of Decree No. 11 / 1965 Coll., on the management of packaging in the supply of products.
5) In these cases, income from this activity is subject to the public income tax pursuant to Act No. 145 / 1961 Coll.
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Regulation Information
| Citation | Decree No. 106 / 1974 Coll., implementing the Act on Agricultural Tax |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 06.11.1974 |
|---|---|
| Effective from | 01.01.1975 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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