Decree No. 114 / 1971 Coll.
Decree of the Federal Ministry of Finance implementing the Pension Tax and Social Security Act
Valid
Effective from 01.01.1972
114
DECLARATION
Federal Ministry of Finance
of 13 October 1971
implementing the Pension Tax and Social Security Act
The Federal Ministry of Finance provides, pursuant to Section 37 of Act No. 113 / 1971 Coll., on Pension Tax and Social Security Contributions ("the Act '):
Pension tax payers
(K § 2 of the Act)
(1) Article 2 (1) (b) of the Act also applies to economic organisations of the urban economy for which the same economic regime is applied as for economic organisations of municipal services and local industry. *)
(3) Other socialist organisations [Paragraph 2 (1) (f) of the Act], where their relationship to the State budget is not regulated by other legislation, * *) are in particular:
(a) any basic organisation of social organisations operating a permanent economic activity;
(b) undertakings or economic establishments of social organisations.
(4) Organisations other than socialist organisations which are legal persons [Paragraph 2 (1) (g) of the Act] shall mean, in particular, church organisations, associations, foundations, limited liability companies, etc. The tax liability of these organisations shall be without prejudice to the establishment of a national administration on their assets.
(5) Production and labour cooperatives for citizens with more severe health damage (Section 2 (2) (a) of the Act) are:
- Karko, Ústí nad Labem
- The horizon, Gottwaldov
- The sky, Košice
- The horizon, Pilsen
- Horizon, Prague
- Dawn, Bratislava
- Giara, Elen.
Only those establishments which employ predominantly (over 50%) citizens with more severe health damage and fulfil the condition that at least 80% of workers are citizens with altered working capacity are regarded as economic (special) equipment of the disabled associations [Paragraph 2 (2) (a) of the Act].
(6) The organisations referred to in Section 2 (2) (e) of the Act and their economic establishments are exempt from pension tax only on condition that they make payments to their higher authorities of at least 65% (Section 16 of the Act) on the basis of profit tax (Section 4 of the Act) or 20% on the basis of a profit tax not exceeding 80 000 Kčs (Section 22 (1) of the Act). *)
Subject matter of profit tax
(K § 3 of the Act)
(1) Continuous economic activity means a profit-making activity, if the revenues and revenues generated by it exceed 80 000 CZK in the tax period, regardless of the duration of the profit. A permanent economic activity shall always be regarded as a business activity by organisations which have been granted trade reductions.
(2) An activity which is limited to carrying out its own mission under the Statutes (except for economic activity towards profit) is not regarded as a permanent economic activity of social organisations within the meaning of the Act.
The continued economic activity of social organisations, with the exception of their economic facilities (enterprises), is also not: the operation of recreation of the Revolutionary Trade Union Movement for their own workers and workers of the associated organisations (including their family members), the exchange of recreation of the Revolutionary Trade Union Movement, children's recreation (including exchange), schools in nature, training in recreational facilities of the Revolutionary Trade Union Movement for their own employees, as well as the activity of cultural establishments of the Revolutionary Trade Union Movement operated under the approved principles of the Central Council of the Czech Revolutionary Trade Union Movement, including the operation of cinemas, except the permanently operated business activities (Article 7) of these establishments (the continuous commercial activity is not considered as retail and public catering to which are not granted to trade precipitation) and activities which are the business of economic organisations. Furthermore, the ongoing economic activity of social organisations is not the organisation of sports matches, competitions, physical and cultural events, the organisation of occasional dance and tours, the restocking and restocking in the country, the spraying of trees and the pressing of fruit for members. The operation of the Sazka and Sporka groupings and the activity of the winter stadium is not considered to be a permanent economic activity, as long as the activity is carried out by body unity.
(3) For economic establishments (enterprises) of social organisations, permanent economic activity means all activities and revenues resulting therefrom.
Income Tax Basis
(K § 4 of the Act)
(1) A condition for duly kept accounts shall also be the accounting of costs and revenues in their temporal and economic context.
Subordinated liabilities
(K § 5 of the Act)
(1) The contributions and subsidies (Paragraph 5 (1) (a) of the Act) which the taxpayer is not obliged to pay under the legislation are those which it provides on the basis of a voluntary commitment, such as contributions to voluntary interest or special-purpose associations, but not, for example, contributions paid by the Directorate-General to cover the costs of their activities. The contributions paid under the regulations shall be deemed to be the membership contributions paid by the higher cooperative organisations, the cooperative contributions paid by the cooperative associations and the Central Council of Cooperatives at the prescribed level, the membership contributions paid by the Central Council of Cooperatives to the International Cooperative Association and the contributions paid by the District Agricultural Association.
(2) The cost of entertainment and gifts above the set limit shall also be considered as other free of charge.
(3) Paid periodic penalty payments shall also be considered as non-refundable periodic penalty payments. *)
(K § 11 and § 13-15 of the Act)
(1) Charges mainly engaged in commercial activities (Section 11 (1) of the Act) are organisations for which sales from commercial activities over the previous calendar year make more than half of the sales of the organisation from production activities, non-production activities and subsidies increasing sales; for organisations whose tax obligations have arisen during the tax period, the relevant proportion of these sales is in the organisation's plan. Retail and wholesale activities, public catering, accommodation services, tourism services, promotional, advertising and advertising services (including market research, commercial art and arrangement) are considered to be commercial activities. However, the business activity of the undertakings and the activities of the undertakings Collecting the raw materials shall not be regarded as business.
(2) Where the taxpayers referred to in Article 2 (1) (a) to (c) and (f) of the Act, with the exception of joint cooperatives and melodies cooperatives, operate both commercial and non-commercial activities, the rates applicable to the activity prevailing shall apply to them. For the assessment of the predominant activity, the volume of sales from commercial and non-commercial activities in the previous tax year shall be determined; However, in the case of taxpayers under § 2 (1) (b) of the Act, the revenues from the supply of spare parts to repairers are not taken into account.
(3) The list of selected activities (Section 15 (2) of the Act) is set out in Annex 1.
(4) The social security contribution of 10% for organisations with predominantly non-commercial activities listed in Annex 1 shall be calculated on the basis (Section 10 (2) of the Act), which corresponds to the share of sales for selected activities (services) of the total sales and revenues of the organisation. This proportion is calculated to the nearest hundredth (without rounding).
Income Tax Discounts
(K § 22 of the Act)
(1) The list of preferred teaching fields for the provision of tax rebates on apprenticeship income is set out in Annex 2.
(2) Discounts on apprenticeship education are granted according to the actual status of apprentices as at 31 December of the calendar year for which the tax is charged.
(3) Inter-business boarding school means teaching apprentices in a separate vocational boarding school. It is not decisive if there is a teaching ground in the administration of the taxpayer or other organisation; teaching can be combined with practical training of apprentices (cyclic teaching). Teaching is a group teaching in a teaching centre under the guidance of a separate teaching master or other staff responsible for teaching.
(4) The newly created cooperatives of disabled persons or enterprises of disabled persons will be reduced by 30% (Section 22 (3) of the Act) on presentation of a certificate of their character issued by the competent association or by the central sectoral authority, on the basis of the opinion of the competent Ministry of Labour and Social Affairs or the authority entrusted by it.
(5) Invalidity cooperatives or enterprises shall notify a change in the character of the cooperative or undertaking within 15 days to the competent authority responsible for the administration of the tax.
(6) The list of selected activities (services) is set out in Annex 1.
(7) The share of the sales for the selected activities (services) shall be calculated from the sum of the sales for the selected activities from the production and non-production activities to the total sales and revenues with a precision of one hundredth (without rounding).
(8) The percentage of the profit tax rebate under Paragraph 22 (4) of the Law is calculated by multiplying the percentage of sales for the selected activities (services) by 0,4; However, this discount may amount to a maximum of 40% of the profit tax attributable to the sales of selected activities (services).
For year-on-year growth of sales for selected activities (services) against the previous year (period), the percentage discount (40%) on the profit tax
| při přírůstku tržeb za vybrané činnosti v % | zvyšuje o % |
|---|---|
| do 4 | 1,— à |
| nad 4 do 10 | 4,— + 2,— à |
| nad 10 | 16,— + 3,— à, |
where the factor "à 'is equal to the percentage of annual revenue gains for selected activities exceeding the lower limit of the relevant band to the nearest hundredth.
The resulting percentage of the calculated discount shall be set to the nearest hundredth (without rounding) and may not exceed 70% of the profit tax attributable to the sales for the selected activities (services).
(9) The share of sales for selected activities and the annual growth of these sales shall be calculated by maintaining methodological and organisational comparability with the current year in the calculation.
Payment of tax and social security contributions
(K § 29 of the Act)
(1) The annual financial plan of the organisation is the basis for the calculation of the monthly advances on profits tax and the social security contribution. Pending approval of this plan by the superior authority, the organisation's preliminary plan shall apply.
(2) If, during the year, changes to the financial plan affecting the amount of the advances calculated are made, the taxpayer shall, within eight days, submit a new calculation of the advances to the tax administration and 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 5 and 6 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) In calculating the advance on the profit tax, account shall be taken of the reduction provided for in Article 22 (2) and (3) of the Act. The discount on apprenticeship education shall be calculated from the situation planned on 31 December of the current calendar year and shall not be taken into account during the tax period.
(5) Taxpayers who are entitled to a tax reduction pursuant to Article 22 (4) of the Act or whose rate of profit tax increases pursuant to Article 17 of the Act pay monthly advances on the profit tax according to the planned composition of activities. The calculation of profit tax after quarter shall determine how much this reduction or increase is based on the actual composition of the activities.
(6) If the tax authority finds that the taxpayer has calculated the advances under the plan incorrectly or on the basis of an incorrectly determined plan, it shall issue a decision setting new advances on its own calculation and requiring the taxpayer to pay the difference within 15 days.
(8) In the case of taxpayers, the tax administration authority shall, at the request of the taxpayer, determine the monthly tax advance of 1 / 3 of the quarterly obligations resulting from the distribution of the year-round tax liability per quarter on the basis of seasonal fluctuations in profit-making for the previous year. 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. Similarly, other justified cases may be followed.
(K § 31 of the Act)
Penalties imposed by an increase in tax or social security contributions (Section 31 (2) of the Act) shall be imposed both on the difference between the tax or social security contribution calculated by means of a payment scale higher than the tax or social security contribution calculated by the taxpayer himself in the declaration and on the differences determined by the additional payment rate based on the check or revision made after the measurement. If the taxpayer has not paid the difference, including the increase (Paragraph 31 (2) of the Law), within 15 days of delivery of the payment notice, he shall be obliged to pay the penalty payment from the arrears to the payment deadline provided for in Article 31 (1) of the Law.
(K § 36 of the Act)
The starting-up of the activities of a newly built organisation which is responsible for the exemption provided for in Article 36 (2) (f) of the Act shall be considered to be the date on which the activity tax was started.
This decree shall take effect on 1 January 1972.
Minister:
Doc. Ing. Rozechek, CSc.
Příloha č. 1
Annex No 1 to Decree No 114 / 1971 Coll.
LIST
selected activities (services)
(1) Selected activities (services) within the meaning of Articles 15 (2) and 22 (4) of the Act are the following:
| Činnost | Číselný statistický znak*) |
|---|---|
| Ze zemědělství: | 1 |
| - zahradnictví celkem | 11 |
| Z průmyslových činností: | 2,3 |
| - opravy pneu, duší včetně vyvažování pneumatik, opravy dopravních pásů a gumárenských výrobků s výjimkou protektorování | 25 část |
| - opravy rozhlasových, televizních přijímačů a reprodukčních přístrojů včetně oprav jejich doplňků | 261 rozšíř. |
| - opravy výrobků automobilového průmyslu | 262 |
| - opravy elektrických spotřebičů a chladniček pro domácnost | 263 |
| - opravy ostatních výrobků strojírenského a kovodělného průmyslu poskytované obyvatelstvu**) nebo prováděné v obytných domech***) | 264 část |
| - opravy výrobků dřevozpracujícího průmyslu | 282 |
| - zakázková výroba pleteného ošacení†) (obor 702, 705) pro obyvatelstvo**) | 31 část |
| - opravy výrobků textilního průmyslu | 312 |
| - zakázkové šití osobního prádla†) | 321 rozšíř. |
| - zakázkové šití oděvů†) (včetně oborů 703, 715 až 717) s výjimkou šití oděvů z kožešin | 322 rozšíř. |
| - opravy výrobků konfekčního průmyslu | 323 |
| - opravy obuvi | 332 |
| - opravy sedlářských a brašnářských výrobků, galanterních výrobků z usní a z jiných hmot a kožešnických výrobků | 333 |
| - opravy sportovních potřeb | 34 část |
| - vázání knih a preparátorské práce pro obyvatelstvo**) | 34 část |
| Ze stavebnictví: | |
| - opravy a práce stavebního charakteru poskytované obyvatelstvu**) s výjimkou dodávek staveb na klíč | 41 a 42 část |
| - opravy a neinvestiční práce stavebního charakteru prováděné v obytných domech,***) školských a zdravotnických zařízeních a v domovech důchodců | 41 a 42 část |
| Ze služeb: | |
| - ostatní dopravní služby, tj. vodní doprava, přívozy, potahová doprava, parkování, servisní služby, odtahová služba, technické prohlídky vozidel a rozvážková služba; nezahrnuje se půjčování osobních vozidel a motocyklů a garážování | 513 část |
| - praní a ostatní prádelenské služby | 521 |
| - čištění a barvení včetně impregnování | 522 |
| - holičské, kadeřnické a kosmetické služby; nezahrnuje se vlásenkářská a kosmetická výroba | 523 |
| - lázeňské a rekreační služby | 524 |
| - půjčování, zprostředkování a podobné služby pro obyvatelstvo,**) tj. půjčování spotřebních předmětů kromě motorových vozidel, cestovní a informační služby, zprostředkování sňatků a ostatní zprostředkovací služby, inzerce, služby písáren a rozmnožoven, hlídací služby a služby úschoven; nezahrnují se propagační práce a služby, překladatelské a tlumočnické služby | 525 část |
| - zprostředkovatelské služby v pohřebnictví | 526 část |
| - fotoslužba pro obyvatelstvo**) | 527 část |
| - kominictví | 528 část |
| - úklidové služby pro obyvatelstvo**) účtované za hodinové zúčtovací sazby | 5291 část |
| - vnější úprava obcí, tj. čištění obcí, odvoz popele, fekálií a odpadků, úprava sadů a parků a ostatní služby spojené s úpravou obcí | 53 |
| - ostatní služby, tj. čištění bot, služby veřejných hygienických zařízení, přeprava zavazadel osobami (nosiči), propůjčování tržních stánků, provoz místních vah a ladění hudebních nástrojů | 54 část |
| Z ostatních výrobních činností: | 6 |
| - pohostinství | 6 část |
| - řezání a štípání dřeva | 6 část |
| Z ostatních nevýrobních činností: | |
| - ubytovací služby včetně služeb poskytovaných ve stanových a srubových táborech a autokempincích | 7 část |
| - činnost samostatných učňovských zařízení s celostátně soustředěnou výchovou | 7 část |
(2) The selected activities (services) within the meaning of Articles 15 (2) and 22 (4) of the Act for regional organisations for the development and implementation of new technology in the local economy (KORT) are those referred to in paragraph 1 of this Annex and those activities carried out for national committees, organisations managed by national committees and production cooperatives.
(a) the implementation of new technology, technology and organisation of work, within the scope of the activities defined by the managing authority;
(b) the implementation of prototypes, improvements and inventions for machinery, equipment and apparatus, including a verification series, to the extent specified by the managing authority.
(3) The selected activities (services) within the meaning of Articles 15 (2) and 22 (4) of the Act are activities referred to in paragraph 1 of this Annex for regional transport centres where they are carried out in the framework of the basic mission of these organisations and also activities of mobile transport children's playground.
Příloha č. 2
Annex No 2 to Decree No 114 / 1971 Coll.
LIST
Preferred teaching fields for providing tax rebates on apprenticeship income
0309 - vulcaniser
0405 - blacksmith (including artist group blacksmith)
0420 - lift fitter
0424 - Operating locksmith
0425 - Cooling mechanic
0429 - building locksmith
0431 - balance sheet
0435 - stoker
0437 - bodywork
0451 - automotive mechanic
0463 - watchmaker
0471 - galvaniser
0501 - wiring electrator
0601 - bricklayer
0603 - carpenter
0611 - Container of construction parts
0612 - stonemason
0614 - tile
0617 - roofer
0618 - plumber
0619 - glassware
0621 - painter of rooms
0623 - painter and painter
0625 - varnish
0628 - chimney sweep
0805 - carpenter
0808 - upholstery
0809 - cooper and packaging
0810 - wheeler
0813 - Lathes of wood and non-metallic materials
0814 - Framer
0931 - bookkeeper
1022 - dye maker for laundry, dry cleaning and dyeing
1033 - chemist for laundry, dry cleaning and dyeing
1051 - Hatter (for boys only)
1053 - female tailor (for boys only)
1054 - male tailor (for boys only)
1111 - furrier
1113 - Gloves
1115 - purse
1116 - farmer
1154 - Footwear
1158 - shoe repairman
1202 - baker
1221 - industrial feeder
1302 - poultry breeder
1307 - gardener
1308 - farmer-mechanizer
1321 - repairman of agricultural machinery
1325 - breeder
1411 - road driver
1553 - cook-waiter
1571 - barber and hairdresser (for boys only)
16 - artisanal artisanal production
Teachers - people with changed skills are always included in preferred teaching fields.
*) This also applies to organisations for which both the budgetary and economic system is applied, if most of the revenues are generated by the organisation of the urban economy from economic activity.
* *) Act No. 111 / 1971 Coll., on contributions to state budget and social security contributions. Part of Act No. 112 / 1966 Coll., on Agricultural Tax.
*) The basic organisations of these social organisations and their economic facilities, however, are always liable to the pension tax in accordance with § 2 (1) (f) of the Act if they are engaged in a permanent economic activity.
* *) Order used to be. State Commission on Finance, Prices and Wages No. 47 / 1967 Coll., on Prices, as amended, amending and supplementing it.
* * *) An additional contribution of the basic amount is the contribution without increase (penalty).
*) § 8 of Decree No. 11 / 1965 Coll., on the management of packaging in the supply of products.
* *) Decree No. 22 / 1967 Coll., on invoicing and payment of supplies for investment construction and supply of geological works, as amended by Decree No. 136 / 1970 Coll.
* * *) Act SNR No. 116 / 1970 Coll., on pension tax and social security allowance. Act No. 120 / 1970 Coll., on Pension Tax and Social Security Contribution.
†) Act No. 41 / 1964 Coll., on Housing Management.
*) Part of Act No. 112 / 1966 Coll., on Agricultural Tax.
* *) Account 400 - Sales from production activities.
* * *) Account 408 - Investment Activation.
* * * *) Account 410 - Sales from non-production activities.
†) Account 429 - Subsidy increasing sales
† †) From account 400 - Sales from production activities.
† †) From account 410 - Non-production sales.
*) For the purposes of the Act on Pension Tax and Social Security, it is considered: the sub-specifications of individual activities according to numerical characteristics, unless their content is specified in more detail by the list of selected activities, are specified in the Czech Statistical Guidelines and Guidelines No 16 MH-VD, valid in 1970.
(a) activities paid by the population, including sales from the sale of unprocured contracts or products subject to repair or service, at the price of the service repair; (b) guarantees for the population paid by organisations, including the State Insurance Company; (c) revenue for cash (Section 15 of Decree No. 204 / 1964 of the Ministry of Finance Coll., on invoicing and payment of supplies of a non-investment nature).
* * *) The houses referred to in paragraphs 1 and 2 of § 59 of Act No. 41 / 1964 Coll., on Housing Management are considered as residential houses.
†) The more detailed content of custom production is set out in the Guidelines and Guidelines of Czech Statistics No. 16 MH-VD valid in 1970, except for series products retrofitted according to customer's individual wishes.
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Regulation Information
| Citation | Decree No. 114 / 1971 Coll., implementing the Act on Pension Tax and Social Security |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 20.10.1971 |
|---|---|
| Effective from | 01.01.1972 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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