What is Act Slovak National Council No. 116 / 1970 Coll.?

Act of the Slovak National Council No. 116 / 1970 Coll., on Pension Tax and Social Security Contribution — Law of the Slovak National Council on Pension Tax and Social Security.

When it became Act Slovak National Council No. 116 / 1970 Coll. effectiveness?

Act Slovak National Council No. 116 / 1970 Coll. became effective 01.01.1971.

Is Act Slovak National Council No. 116 / 1970 Coll. still valid?

Yes, Act Slovak National Council No. 116 / 1970 Coll. is still valid and effective.

Act Slovak National Council No. 116 / 1970 Coll. - Law of the Slovak National Council on Pe...

116

THE LAW

Slovak National Council

of 3 December 1970

on pension and social security contributions

The Slovak National Council decided on this law:

§ 1

Preliminary provisions

This Act is governed by the Federal Assembly of the Czechoslovak Socialist Republic Act No. 101 / 1970 Coll., laying down the principles for the laws of the National Council on Pension Tax and Social Security,

1. pension tax, which is:

(a) income tax (profit tax);

(b) the pension tax on the volume of wages (hereinafter referred to as the "wage tax");

2. social security contributions.

§ 2

Taxpayers

(1) The pension tax payers are:

(a) state economic organisations principally engaged in commercial activities and their Directorate-General (s), with the exception of sales and supply organisations and foreign trade organisations;

(b) cooperative organisations (cooperatives, their higher organisations, cooperative undertakings, including foreign trade undertakings, joint cooperatives and mellioration cooperatives) with the exception of single agricultural cooperatives;

(c) economic organisation of municipal services, local industry, collection of raw materials, regional organisation for the development and introduction of new technology in the local economy and regional transport centres;

(d) district (urban) construction undertakings and district agricultural construction undertakings;

(e) organisation of agricultural services;

(f) other socialist organisations, their economic facilities (enterprises), where they are engaged in a permanent economic activity and whose relationship to the state budget is not regulated by other legislation; *)

(g) organisations other than socialist, if they are legal persons;

(h) companies of commercial and civil law, institutes and foundations, undertakings of public corporations, associations of persons and other entities established abroad, with the exception of natural persons.

(2) The following shall be exempt from pension tax:

(a) production and working cooperatives for citizens with more severe health damage and cooperative facilities ensuring the selection of their members;

(b) housing housing cooperatives, folk housing cooperatives, county construction housing cooperatives and other housing cooperatives in respect of income from cooperative housing construction and maintenance of their own housing fund;

(c) associations of housing cooperatives other than income from their own permanent economic activity;

(d) artistic associations, cultural funds and socialist organisations representing authors or performers, as well as undertakings operated by such associations, funds and organisations, in so far as their activities relate to the mission of such organisations;

(e) organisations run economically by the higher authorities of the National Front organisations, the Communist Party of Czechoslovakia, the Revolutionary Trade Union Movement and the Union for Cooperation with the Army and their economic facilities directly involved in the budget of the social organisation in which they were set up, provided that the higher authorities of the social organisations determine the contributions at least equivalent to the profit tax under this law.

ČÁST PRVNÍ

Income Tax

§ 3

Subject matter

(1) For the taxpayers referred to in Paragraph 2 (1), with the exception of point (f), all activities and revenues arising therefrom are subject to tax.

(2) For the taxpayers referred to in Article 2 (1) (f) and (2) (c) and (e), a permanent economic activity and income arising therefrom are subject to tax.

(3) For the taxpayers referred to in § 2 (2) (b), the permanent economic activity and income generated by it are subject to tax, excluding income from cooperative housing construction and maintenance of their own housing fund.

(4) For the organisations referred to in Paragraph 2 (2) (d), a permanent economic activity which is not related to the mission of such organisations and the revenue derived therefrom is subject to tax.

(5) In the case of taxpayers who have their head office in the country, income from foreign sources is not subject to tax if they prove that they have been taxed by a similar tax abroad.

(6) In the case of taxpayers who have their registered office abroad, only the income whose source is in the territory of the Slovak Socialist Republic is subject to tax.

§ 4

Tax base

(1) The basis of the profit tax on taxpayers referred to in Article 2 (1) (a) to (f) and (2) (b) to (d) is the net profit generated from the activities of the taxpayer pursuant to Article 3 and from the management of the property declared in the duly kept accounts, plus the items to be added (hereinafter referred to as "the items to be added") and reduced by the items to be deducted (hereinafter referred to as "the deductions").

(2) The balance profit consists of revenues from production activities, the transfer of products, works and services, the activation of investments, the activation of material, the sales of non-production activities, all other revenues, as well as the price increases (reductions) and subsidies increasing sales, changes in stocks and the accrual of earnings after deduction of the shortfall in revenue (purchase prices of stocks sold, turnover taxes, sales of basic assets, etc.) and total costs including financial costs and compulsory contributions to state funds.

(3) Subsidies and price interventions are considered to increase sales.

(4) In the event that the taxpayer does not make a profit, the basis of the profit tax shall be the amount of the deductible items in excess of the deductible items; If the taxpayer recognises a loss, the basis of that tax is the amount of deductible items, exceeding the sum of losses and deductible items.

(5) For the taxpayers referred to in Paragraph 2 (1) (g), the taxable amount is:

(a) the profit or loss on the activity and on the management of the assets, plus tax under this Act, including accessories which have reduced the profit, on depreciation of the principal funds charged to the loss of profits, if they exceed the depreciation rate fixed for socialist organisations, on unproven costs and on costs not necessary to achieve or secure income;

(b) 30% of the gross wage costs where the taxable amount referred to in paragraph 5 (a) would be less than 30% of the gross wage costs or where the taxpayer shows a loss.

(6) For the taxpayers referred to in § 2 (1) (h), the taxable amount is:

(a) revenue from licences and similar fees and receipts for technical assistance;

(b) revenue from copyright and operating rights;

(c) any other revenue, after deduction of costs necessarily incurred in the country for achieving, securing and maintaining them;

(d) 30% of the gross wage costs where the taxable amount referred to in paragraph 6 (a) (ii) applies. (c) they would be less than 30% of the gross wage costs or if the taxpayer shows a loss.

(7) For debtors in liquidation and for debtors who have died without carrying out the liquidation, where the basis of the profit tax cannot be determined in the appropriate manner, the basis of that tax is the surplus in liquidation.

§ 5

Subordinated liabilities

The attributable items are:

(a) items charged in the taxpayer's cost

1. Contributions, provided that the taxpayer is not obliged to pay them under the legislation and that they have not been recognised by special regulations as a cost item, subsidies, gifts and other free-of-charge dedication;

2. the creation and / or change of reserves, not complying with legislation;

3. catering expenditure, for cooperative foreign trade undertakings only catering expenses and gifts above the limit set by the Ministry of Finance of the Slovak Socialist Republic in agreement with the relevant central bodies of cooperatives;

4. items whose cost, contrary to legislation, has been reduced by the balance sheet profit;

5. fines and periodic penalty payments paid;

6. the amounts charged to the refund for discharges of uncleaned or poorly cleaned waste water;

7. the fees charged, including the air pollution premium;

8. the negative difference between the manks created and the mank substitutes accepted for organisations having predominantly commercial activities;

(b) the unpaid loss of catering;

(c) subsidies intended to cover the costs of agricultural service organisations, joint cooperatives and melliorative cooperatives;

(d) non-taxed allocations to profit-making funds and used for purposes for which the organisation's own funds may be used under the legislation;

(e) the amounts spent on protective clothing, footwear and equipment above the standards laid down by the regulations or above the laid-down range of workers and the value of benefits in kind beyond the rules or above the laid-down range of workers.

§ 6

Deductible items

(1) The deductible items, if they are not charged under the legislation in the cost or income formation of the taxpayer, are:

(a) the land tax paid; *)

(b) contributions to the technical development fund established with the higher economic management bodies;

(c) the contribution to the Geological Work Fund provided for by specific provisions;

(d) compensation paid for the temporary withdrawal of agricultural land in geology.

(2) The deductible items are as follows:

(a) special-purpose export premiums where they are included in the profit;

(b) the profit from the catering;

(c) the fines and periodic penalty payments received and the amounts already taxed on a profit or similar tax on another taxpayer and the items already taxed on the same taxpayer if they are part of the profit;

(d) a contribution to corporate housing up to 50% of the budget price, according to the actual implementation of the construction in the current year and up to the same amount of the repayment of loans for corporate housing, drawn up until 31.12.1970;

(e) subsidies granted to cooperatives and enterprises of disabled persons and associations of housing cooperatives, where they are included in profit;

(f) remuneration for the Red Government and the Central Council of the Czechoslovak Revolutionary Trade Union Movement or for the Battalion, or their standards, on an equal footing if they are included in the profit;

(g) bonuses on the nature of premiums for agricultural service organisations, joint cooperatives and melliorative cooperatives, where they are included in profit.

ČÁST DRUHÁ

Income tax

§ 7

The tax on wages is collected as:

(a) tax on the total amount of wages; or

(b) individual wage tax.

§ 8

Tax base

(1) The tax on the total amount of wages shall be based on the volume of all wages to be paid in the current year, including other personal expenses and profit and loss shares paid.

(2) The tax on individual wages is based on the annual individual wage of the worker, in excess of CZK 30 000.

(3) An individual salary of a worker shall be considered as an individual salary in the current year of the wage to be paid, including other personal expenses, paid shares in profit or loss and additional remuneration, reduced by any remuneration referred to in paragraph 4.

(4) The tax base on the volume of wages does not include the remuneration paid to the best workers and collectibles of the amount received by the organisation as a reward to the Red Battalion of the Government and the Central Council of the Czechoslovak Revolutionary Trade Union Movement or to the Battalion, or the standard of equal treatment.

§ 9

Tax rate

(1) The rate of tax on the total wage volume is:

při přírůstku průměrných mezd proti předchozímu roku v %	sazba daně v % z celkového objemu mezd
od 0 do 3	0,5 à,
nad 3 do 5	1,5 + 1,— à,
nad 5 do 7	3,5 + 1,5 à,
nad 7 do 10	6,5 + 3,— à,
nad 10	15,5 + 6,— à,

where the factor "à 'is equal to the percentage of the increase in average wages exceeding the lower limit of the relevant tax zone with a precision of one hundredth.

(2) The average wage of the current year is the share per worker calculated from the wage volume (Section 8), reduced by the wage charged for the productive work of apprentices, and the actual average number of employees in the current year. The average wage of the previous year shall be determined in such a way as to maintain methodological and organisational comparability with the current year.

(3) The rate of tax on individual wages is the difference between the annual wage and the amount of CZK 30 000 at the annual wage

do 36 000 Kčs	15 %
do 42 000 Kčs	25 %
do 48 000 Kčs	40 %
do 54 000 Kčs	60 %
do 60 000 Kčs	80 %
nad 60 000 Kčs	100 %.

ČÁST TŘETÍ

Social security contribution

§ 10

(1) The social security contribution shall be paid to the public budget by taxpayers subject to pension tax pursuant to Article 2 (1) (*).

(2) The basis for the calculation of the contribution is the volume in the current year of the salaries to be paid, including other personal expenses, profit and loss shares paid and additional remuneration, reduced by any remuneration provided for in Article 8 (4).

(3) Social security contributions include sickness insurance. * *)

ČÁST ČTVRTÁ

Amount of tax and social security contributions by taxpayer group

ODDÍL PRVNÍ

Trade

§ 11

(1) The rate of profit tax on taxpayers with a predominantly commercial activity, with the exception of the taxpayers referred to in paragraphs 2, 6 and 8, in § 2 (1) (e), (g), (h) and 2 (b) to (e), and with the exception of joint cooperatives and melliorative cooperatives

při rentabilitě %	činí %
do 5	20
nad 5 do 15	20 + 2 à
nad 15 do 18	40 + 1,5 à
nad 18 do 23	44,5 + 1,2 à
nad 23 do 28	50,5 + 1 à
nad 28 do 33	55,5 + 0,8 à
nad 33 do 40	59,5 + 0,6 à
nad 40 do 50	63,7 + 0,4 à
nad 50 do 55	67,7 + 0,3 à
nad 55 do 59	69,2 + 0,2 à
nad 59	70.

(2) The rate of profit tax on consumer cooperatives' organisations with predominantly commercial activities

při rentabilitě %	činí %
do 5	10
nad 5 do 15	10 + 2 à
nad 15 do 30	30 + 1 à
nad 30 do 50	45 + 0,5 à
nad 50	55.

(3) Profitability is calculated as the ratio of balance sheet profit (not adjusted for deductible and deductible items) to total costs (including financial). For selected organisations that have their own production plants, the total costs are reduced by the consumption of the basic raw materials in these plants.

(4) The factor "à" referred to in paragraphs 1 and 2 is equal to the percentage of profitability exceeding the lower limit of the relevant tax zone with a precision of one hundredth.

(5) The calculated profit tax is reduced by the discounts set out in Section 22.

(6) For foreign trade cooperatives, the rate of tax on profits is 65%.

(7) The rate of tax on the liquidation surplus is 50%.

(8) The rate of profit tax applicable to branches, associations of undertakings and associations of cooperatives is 50%.

§ 12

(1) Fees with a predominantly commercial activity, including foreign trade cooperatives, pay a tax on the total wage volume.

(2) Fees with a predominantly commercial activity pay a social security contribution of 10% and cooperatives of 25% on the basis of Article 10 (2).

ODDÍL DRUHÝ

Services, local production and local construction

§ 13

(1) The rate of profit tax on taxpayers with activity predominantly non-commercial, except for the taxpayers referred to in paragraph 5, § 2 (1) (e), (g), (h) and 2 (b) to (e), and with the exception of joint cooperatives and melliorative cooperatives

při rentabilitě %	činí %
do 15	30
nad 15 do 18	30 + 3 à
nad 18 do 22	39 + 2 à
nad 22 do 26	47 + 1,5 à
nad 26 do 30	53 + 1 à
nad 30 do 35	57 + 0,8 à
nad 35 do 40	61 + 0,6 à
nad 40 do 55	64 + 0,4 à
nad 55	70.

(2) For taxpayers with predominantly non-commercial activities, profitability is calculated as the ratio of balance sheet profit (not adjusted for deductible and deductible items) to the sum of balance sheet profit (not adjusted) and wage costs including other personal expenditure.

(3) The factor "à" referred to in paragraph 1 shall be equal to the percentage of the increase in profitability exceeding the lower limit of the relevant tax zone with a precision of one hundredth.

(4) The calculated profit tax is reduced by the discounts set out in Section 22.

(5) The rate of profit tax applicable to branches, associations of undertakings and associations of cooperatives is 50%.

(6) The rate of tax on the liquidation surplus is 50%.

§ 14

(1) Charters with predominantly non-commercial activities pay individual wage tax, with the exception of district (urban) construction companies, district agricultural construction companies, branch (general) directorates, associations of undertakings, associations of cooperatives, research institutes of cooperatives and regional organisations for the development and introduction of new techniques in the local economy and regional transport centres, which pay a tax on the total wage volume.

(2) For production cooperatives, additional remuneration shall not be included in the individual wage of the worker unless the sum of the additional remuneration paid for the entire tax period exceeds 2,5% of the cooperative's wage resources. If the total of such remuneration exceeds 2,5% of the cooperative's wage, the full additional remuneration shall be included in the worker's individual wage.

§ 15

(1) Fees with activities mainly non-commercial, with the exception referred to in paragraph 2, pay a social security allowance of 25% on the basis of Article 10 (2).

(2) The social security contribution of 10% of the basis referred to in Article 10 (2) shall be paid by the Directorate-General, the associations of undertakings, cooperative associations, research institutes of cooperatives, social organisations (their enterprises and economic establishments), cooperatives and disabled undertakings and other organisations with predominantly non-commercial activities for selected activities (services).

§ 16

(1) The rate of profit tax for the organisations referred to in § 2 (2) (b), (d) and (e) is 65% and for the organisations referred to in § 2 (2) (c) 50% of the base referred to in § 4.

(2) The taxable persons of the profit tax referred to in paragraph 1 shall pay the individual wage tax on workers carrying out activities subject to profit tax, with the exception of associations of housing cooperatives which pay the tax on the total wage volume.

ODDÍL TŘETÍ

Agriculture

§ 17

(1) For agricultural service organisations, joint cooperatives and melliorative cooperatives, except those referred to in paragraph 7:

při rentabilitě %	činí sazba daně ze zisku %
do 10	10
nad 10 do 25	10 + 0,5 à
nad 25 do 35	17,5 + 1 à
nad 35 do 45	27,5 + 1,25 à
nad 45	40.

(2) Profitability is calculated as the ratio of the balance sheet profit (not adjusted for deductible and deductible items) to total costs, including financial costs.

(3) The factor "à" referred to in paragraph 1 is equal to the percentage of profitability exceeding the lower limit of the relevant tax zone with a precision of one hundredth.

(4) For agricultural service organisations, joint cooperatives, melliorative cooperatives and agricultural supply and purchase organisations, the rate of profit tax shall be increased by 1% for each 1% share of non-agricultural revenues, up to a maximum of 50%.

(5) The maximum rate of profit tax, including the increase, is 70%.

(6) The tax calculated shall be reduced by the discounts provided for in Paragraph 22 (2).

(7) The rate of profit tax applicable to branches, associations of undertakings and cooperative associations is 50%.

(8) The rate of tax on the liquidation surplus is 50%.

§ 18

(1) The taxpayers mentioned in this section, with the exception of joint cooperatives and melliorative cooperatives, pay a tax on the total wage volume.

(2) Joint cooperative undertakings and mellioration cooperatives pay individual wage tax.

§ 19

The taxpayers referred to in this section pay a social security contribution of 10% of the part of the base referred to in Paragraph 10 (2), which is attributable to the share of revenues from non-agricultural activities.

ODDÍL ČTVRTÝ

Organisations other than domestic socialist organisations

§ 20

(1) For the taxpayers referred to in Paragraph 2 (1) (g), the rate of the profit tax is 65%.

(2) For the taxpayers referred to in Paragraph 2 (1) (h), the rate of the profit tax is:

(a) 15% of the base referred to in Article 4 (6) (a);

(b) 25% of the base referred to in Article 4 (6) (b);

(c) 65% of the base referred to in Article 4 (6) (c) or (d).

§ 21

The taxpayers referred to in Article 2 (1) (g) and (h) shall pay an individual wage tax on wages and remuneration paid on the territory of the Slovak Socialist Republic (Section 8 (3)) and pay a social security allowance of 25% (Section 10 (2)).

ČÁST PÁTÁ

Common provisions

§ 22

Income Tax Discounts

(1) If the profit tax base does not exceed 80 000 CZK, the profit tax rate is 20% (including an increase under Paragraph 17 (4)) for all taxpayers, if it is more favourable to them.

(2) A discount is granted to taxpayers on the income tax on apprenticeship education in the Czech Republic as follows:

	pro preferované činnosti	pro ostatní činností
	ročně Kčs
na každého učně v 1. roce výuky
při internátní výuce mimo podnik	5000	3000
při soustředěné výuce v podniku	3000	2000
při individuální výuce	2000	1000
na každého učně v 2. roce výuky (při tříleté učební době)
při internátní výuce mimo podnik	3000	2000
při soustředěné výuce v podniku	2000	1500
při individuální výuce	1500	1000

(3) For cooperatives or disabled enterprises and social organisations (their businesses and economic establishments), the profit tax is reduced by 30%.

(4) Fees with predominantly non-commercial activities, with the exception of social organisations (their businesses and economic establishments), are reduced by 40% by the profit tax on the sales of selected activities.

§ 23

Administration of pension and social security contributions

(1) Pension tax administration ("tax"),

(a) whose revenue is entered in the budget of the national committees, the Regional National Committee (National Committee of equal application),

(b) the proceeds of which flow to the State Budget of the Slovak Socialist Republic or the State Budget of the Federation are carried out by the District (City) Financial Administration. *)

(2) The management of the social security contribution is carried out by the tax authorities.

(3) The tax administration and social security contributions of foreign-based taxpayers whose source of income is in the territory of the Slovak Socialist Republic are carried out by the National Committee of the Slovak Socialist Republic of Bratislava.

(4) Local jurisdiction, if it is a domestic taxpayer, shall be governed by the place of the taxpayer's seat at the end of the tax period or by the termination of his tax activity.

§ 24

Establishment and termination of tax and social security contributions

(1) The tax and social security contributions are payable on the date on which the taxable person is subject to the tax and ceases to be liable.

(2) In the case of the taxpayers referred to in Article 2 (1) (h), the tax and social security contribution shall be payable on the date on which they began to carry out their economic activity or, where appropriate, on the date on which they are paid or credited to them.

Citation	Act of the Slovak National Council No. 116 / 1970 Coll., on Pension Tax and Social Security Contribution
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	14.12.1970
Effective from	01.01.1971
Effective until	-
Status	Valid

Act Slovak National Council No. 116 / 1970 Coll.

Law of the Slovak National Council on Pension Tax and Social Security

Contents

§ 1

§ 2