Act No. 113 / 1966 Coll.
Law on Pension Tax of Cooperative and Other Organisations
Valid
Effective from 01.01.1967
113
THE LAW
of 14 December 1966
on pension tax for cooperative and other organisations
The National Assembly of the Czechoslovak Socialist Republic decided on this law:
Tax obligation
(1) The pension tax payable by cooperatives and other organisations (hereinafter referred to as "tax") is:
(a) folk cooperatives *), with the exception of single agricultural cooperatives, construction housing cooperatives and production cooperatives for citizens with altered working capacity with more severe health damage;
(b) cooperative undertakings, with the exception of undertakings for development and research;
(c) joint cooperatives * *),
(d) the basic components of voluntary social organisations of gardeners and fruit farmers, breeders of small-scale economic animals, hunters, fishermen and beekeepers, where they may acquire rights and undertake, undertakings (economic facilities) of such organisations and undertakings (economic facilities) of body unity registered in the company register;
(e) public limited liability companies, with the exception of foreign trade undertakings;
(f) organisations other than socialist, if they are legal persons.
(2) Taxes on taxpayers who have their head office in the country shall be made on income from sources abroad only if they do not demonstrate that they have been taxed on similar taxes abroad.
(3) Taxpayers residing abroad pay income tax, whose source is in the territory of the Czechoslovak Socialist Republic.
Tax base
(1) The basis of the tax is:
(a) for production cooperatives [§ 1 (1) (a)] and for cooperative associations [§ 1 (1) (b)] gross income obtained during the tax period, reduced by contributions from the cooperative association from basic resources and stocks and by interest on loans from the long-term loan fund;
(b) in the case of commercial undertakings of a cooperative of production [Paragraph 1 (1) (b)], gross income obtained during the tax period, reduced by contributions from the cooperative association of production from basic resources and interest on loans from the long-term loan fund;
(c) for consumer cooperatives [§ 1 (1) (a)] and for undertakings of the Union of consumer cooperatives [§ 1 (1) (b)] gross income obtained during the tax period, minus interest on loans from the mutual credit fund;
(d) for the companies of the Central Board of Cooperatives (§ 1 (1) (b)), gross income obtained during the tax period, reduced by contributions to the Central Board of Cooperatives from basic resources and stocks and by interest on loans granted by the Central Board of Cooperatives;
(e) for joint cooperatives (Paragraph 1 (1) (c)), gross income obtained during the tax year;
(f) for other cooperative organisations [Paragraph 1 (1) (a)], the balance sheet profit on all activities and on the management of all assets achieved during the tax period, increased by the increases in the basic fund on non-taxed assets, by the tax charged on profit or expense, where applicable, and reduced by the subsidies received;
(g) for the basic components of voluntary social organisations, undertakings (economic establishments) of such organisations and undertakings (economic establishments) of physical units [Paragraph 1 (1) (d)], the profit from economic activity achieved during the tax period, plus the tax charged on profits, where applicable, and reduced by the subsidies received;
(h) in the case of public limited liability companies and other legal entities [Sections 1 (1) (e) and (f)]
1. Profit from all activities and management of all assets achieved in the tax year, plus tax and depreciation of basic funds charged to profit or to cost, where applicable, and of costs not shown;
2.30% of the gross wage costs if the taxable amount referred to in point 1 would be less than 30% of the gross wage costs or if the taxpayer shows a loss; gross wages cost means the sum of all amounts incurred by the taxpayer during the tax period for wages, salaries and any remuneration for the work carried out by him, including sickness insurance. It does not decide whether or not part of the wages, wages and remuneration have been subject to payroll tax. Reimbursement of expenditure paid to workers in connection with the performance of their duties shall not be included in gross wages costs.
(2) The tax is also based on the liquidation surplus.
(3) The basis of the tax on taxpayers who do not keep their accounts separately on the taxed activities is the difference between the income from that activity and the expenditure incurred to achieve them in the tax period, increased by the tax charged on profit or expense, and reduced by the subsidies received.
(4) For the taxpayers referred to in points (a) to (c) of paragraph 1, the tax base is further reduced by interest on bank loans (except for an increase in the breach of the credit agreement).
Tax rates
(1) The rates of taxation are as follows:
| a) | u výrobních družstev a podniků svazu výrobních družstev | 16 % základu daně, |
(b) in the case of commercial undertakings of the cooperative production association, 18% of the tax base;
| c) | u spotřebních družstev, podniků svazu spotřebních družstev a podniků Ústřední rady družstev | 14 % základu daně, |
| d) | u společných družstevních podniků: | |
| 1. se zemědělskou výrobou | 8 % základu daně, | |
| 2. s prodejem výrobků | 14 % základu daně, | |
| 3. s nezemědělskou činností (výroba, služby) | 16 % základu daně, | |
| e) | u ostatních družstevních organizací | 50 % základu daně, |
| f) | u podniků (hospodářských zařízení) tělovýchovných jednot [§ 1 odst. 1 písm. d)] | 40 % základu |
| u základních složek dobrovolných společenských organizací a podniků (hospodářských zařízení) těchto organizací [§ 1 odst. 1 písm. d)] | ||
| z prvních 80 tis. Kčs základu daně | 10 %, | |
| ze zbytku základu daně | 20 %, |
| g) | u Československé obchodní banky | 50 % základu daně, |
| u ostatních poplatníků [§ 1 odst. 1 písm. e) a f)] | ||
| z prvních 80 tis. Kčs základu daně | 77 %, | |
| ze zbytku základu daně | 92 %. |
(2) Liquidation surpluses are taxed:
| a) | u poplatníků uvedených v odstavci 1 písm. a) až d) | 50 %, |
| b) | u ostatních poplatníků sazbami uvedenými v odstavci 1 písm. e) až g). |
(3) The rates of taxation referred to in paragraph 1 (a) to (d) include sickness insurance; the tax rate for consumer cooperatives includes insurance against sickness insurance and for consumer cooperatives.
Tax premium
For consumer cooperatives, a premium of 0,3% of the retail turnover of shops established in cities after 1 January 1967, with the exception of construction shops, is added to the tax.
Tax administration
(1) The County National Committees are responsible for the tax administration.
(2) Local jurisdiction shall be governed by the place where the taxpayer was established at the end of the tax period or at the end of the activity.
Payment of tax
(1) All taxpayers pay tax, including increases and accessories, to the budgets of the local regional national committees.
(2) Production and consumer cooperatives, associations of cooperatives, companies of the Central Council of Cooperatives and joint cooperatives pay advances on the tax on the gross income obtained, adjusted in accordance with § 2 (1) (a) to (e), by the 20th day following the end of the month for which the tax is payable, at the rates set out in § 3 (1) (a) to (d). The advance on the tax is increased by the premium provided for in Section 4. The advance on the tax for December shall be due by 5 February of the following year.
(3) The other cooperative organisations shall pay the advance on the profit tax shown in the quarterly accounting statement by 20 days after the end of the quarter for which the tax is payable at the rate specified in Paragraph 3 (1) (e).
(4) Undertakings (economic establishments) of body units pay the advance on the profit tax shown in the quarterly accounting statement by the 20th day following the end of the quarter for which the tax is payable at the rate specified in § 3 (1) (f).
(5) The Czechoslovak Commercial Bank pays a tax advance of 1 / 12 of the planned profit tax for the current year by the end of the month for which the tax is paid at the rate referred to in § 3 (1) (g).
(6) Other taxpayers pay a tax advance for the current year of 1 / 4 of the last annual tax liability until the end of the last month of the quarter for which the tax is payable.
(7) The taxpayers are obliged to pay the difference between the tax corresponding to the return and the tax advances paid by 31 March following the end of the year for which they submitted the return (§ 8 (1)).
(8) Upon entry into liquidation, the taxpayer will pay the difference between the tax granted and the advances paid within three months of the date of entry into liquidation (Section 8 (4)).
(9) The tax on the liquidation surplus will be paid by the taxpayers by the end of the month following the end of the liquidation (Section 8 (5)).
(10) If the tax liability for the previous year for the basic components of voluntary social organisations and for undertakings (economic establishments) of such organisations is less than 1000 Kcs, the taxpayer shall pay the full amount as a tax advance by 30 November of the year for which the tax is paid instead of the mandatory quarterly advances.
(11) The district national committee shall determine the amount of quarterly tax advances to the new taxpayers referred to in § 1 (1) (d) to (f), taking into account the expected (planned) profits of the taxpayer.
Penalties
If the tax (tax advance) has not been paid on time, the taxpayer shall pay a penalty of 0,1% of the amount due for each day of delay.
Tax return
(1) The taxpayer shall submit the tax return to the local competent national committee by 31 March following the end of the tax period.
(2) The taxpayers referred to in Article 1 (1) (e) and (f) are required to submit a VAT return for the year in which they declared their balance sheet losses.
(3) The taxpayers referred to in Paragraph 1 (1) (d), with the exception of undertakings (economic establishments) of body stores, are not obliged to submit a return if they did not carry out an economic activity subject to tax or if the taxable amount is below the amount of CZK 1000.
(4) Upon entry into liquidation, when merged, etc., the taxpayer shall be obliged to submit a tax return for the preceding part of the year within three months of entry into liquidation.
(5) After the end of the liquidation, the body responsible for the liquidation shall be obliged to lodge a tax return on the surplus of liquidation by the end of the following month. The confession must be supported by an initial and final liquidation balance and a statement of the use of the liquidation surplus.
(6) If the return has not been submitted in time, the tax established under paragraphs 3 and 4 may be increased by up to 10%.
Tax assessment
The amount of the tax shall be charged to all taxpayers by the local district national committee with a payment rate after the end of the tax year.
(1) The basis of the tax is rounded up to 100 Kčs.
(2) The tax, tax increases and tax accessories are rounded up to the whole crown.
Limitation
(1) The tax cannot be levied and enforced after three years from the end of the calendar year in which the taxpayer was obliged to submit the VAT return.
(2) Where an action to measure or recover tax is carried out, the limitation period shall run again from the end of the year in which the taxpayer was informed of the act.
Tax control
(1) The County National Committees examine the correctness and completeness of the tax returns and the timeliness, accuracy and completeness of the tax payments.
(2) The taxpayers are obliged to provide the supervisory authorities with explanations and evidence of the facts relevant for the assessment of the tax and to do whatever is necessary to facilitate and accelerate the control.
The creation of tax liability
(1) An organisation which may acquire rights and commit itself from the date on which it was registered shall be liable to tax on that date; the other organisations are established on the date of their establishment.
(2) Within 15 days, the payer shall notify the local competent national committee of the start or termination of his activity.
Final provisions
The provisions on proceedings relating to taxes and charges shall apply, save as otherwise provided in this Law. *)
The Ministry of Finance may
(a) allow the tax to be paid in a different way and within periods other than those provided for in Article 6;
(b) to take measures to prevent double taxation of the same tax base;
(c) to take measures to prevent irregularities which might arise in the implementation of this Law or, where justified, to permit relief or exemption;
(d) to lay down provisions for the implementation of this Act.
(1) The following shall be deleted:
1. Act No. 75 / 1952 Coll., on the Pension Tax of Cooperatives and Other Organisations, as amended by Act No. 59 / 1956 Coll.,
2. Decree of the Ministry of Finance No. 128 / 1960 Coll., implementing the Act on Pension Tax of Cooperatives and Other Organisations, as amended by Decree No. 82 / 1962 Coll.
(2) The tax for the calendar year 1966 shall be determined in accordance with the current rules.
This Act shall take effect on 1 January 1967.
Novotný v. r.
Laštovka v. r.
Lenárt v. r.
*) § 77 of Economic Code No. 109 / 1964 Coll.
* *) § 33 of Act No. 49 / 1959 Coll., on Uniform Agricultural Cooperatives.
*) Decree No. 16 / 1962 Coll.
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Regulation Information
| Citation | Act No. 113 / 1966 Coll., on Pension Tax of Cooperative and Other Organisations |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 27.12.1966 |
|---|---|
| Effective from | 01.01.1967 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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