Act No. 145 / 1961 Coll.
Public income tax Act
Valid
Effective from 01.01.1962
145
THE LAW
of 30 November 1961
on public income tax
The National Assembly of the Czechoslovak Socialist Republic decided on this law:
The economic conditions for taxing private income and other income of the population have changed in the development of socialist production relations. The newly created conditions are therefore adapted to the taxation of these revenues and, at the same time, to the simplification of their taxation and to the tax on the income of the population, which also replaces the current trade tax.
Tax obligation
The income tax of the population shall be paid by natural persons on their income, excluding income:
(a) work and work-related relationships and pensions;
(b) of the literary and artistic activity of persons who are literary, artistic or scientific, or widows and minors by such persons; and
(c) agricultural production.
Exemption
(1) Diplomatic representatives mandated in the Czechoslovak Socialist Republic, other persons enjoying privileges and immunities under international law, and professional consuls, shall be exempt provided they are not Czechoslovak nationals and reciprocity is guaranteed.
(2) In addition, citizens whose income from the provision of services under the authorisation of the National Committee1) does not exceed CZK 6000 in the year applicable to taxation are exempt.
Tax period
The tax shall be charged per calendar year after its expiry. The tax fixed by the flat-rate amount (Section 9) shall be measured for the current calendar year.
Tax base
(1) The basis on which the tax is levied is the difference between the total income of the taxpayer (both in cash and in kind) and the expenses incurred to obtain income.
(2) Revenue from the provision of services on the basis of the authorisation of the National Committee shall be taxed separately from other taxpayers' income. In determining the taxable base, the following revenue shall be deducted from the amount of CZK 6000:
(a) 20% as a flat-rate amount for expenditure in kind, provided that the taxpayer does not prove that the expenditure is of a higher amount by reliable evidence;
(b) an amount of 6000 CZK, if the taxpayer has two or more dependants and they are not recognised as dependent with another taxpayer or with another tax.
(3) Revenue from buildings resulting from spouses (comrades and cooperatives) and their minor children living in the common household are added up and taxed together. If the taxpayer who indicates in his tax return the income from the buildings has other income-subject taxes, all of these revenues are taxed together.
If the taxpayer is engaged in a gainful activity with employees and if the taxable amount established in accordance with Article 5 is less than 30% of the gross wage cost of those employees, the taxable amount shall be equal to 30% of the gross wage cost; However, a spouse or spouse and minor children shall not be considered as employees.
Tax rate
(1) The income tax shall be:
on the tax base
| přes Kčs | do Kčs | |
|---|---|---|
| 3 000 | 5 % | |
| 3 000 | 6 000 | 10 % |
| 6 000 | 8 000 | 600 Kčs a 15 % ze základu přesahujícího 6 000 Kčs |
| 8 000 | 12 000 | 900 Kčs a 25 % ze základu přesahujícího 8 000 Kčs |
| 12 000 | 18 000 | 1 900 Kčs a 35 % ze základu přesahujícího 12 000 Kčs |
| 18 000 | 28 000 | 4 000 Kčs a 45 % ze základu přesahujícího 18 000 Kčs |
| 28 000 | 46 000 | 8 500 Kčs a 55 % ze základu přesahujícího 28 000 Kčs |
| 46 000 | 18 400 Kčs a 65 % ze základu přesahujícího 46 000 Kčs. |
(2) The income from the provision of services on the basis of the approval of the National Committee makes the income tax on the population
| při základu daně | u poplatníků, kteří vyživují alespoň jedno dítě nebo je vychovali2) | u ostatních poplatníků | ze základu daně přesahujícího Kčs | |
|---|---|---|---|---|
| přes Kčs | do Kčs | |||
| 3 600 | 5 % | 5 % | ||
| 3 600 | 7 200 | 10 % | 10 % | |
| 7 200 | 20 000 | 720 Kčs a 20 % | 720 Kčs a 24 % | 7 200 |
| 20 000 | 30 000 | 3 280 Kčs a 25 % | 3 790 Kčs a 28 % | 20 000 |
| 30 000 | 40 000 | 5 780 Kčs a 28 % | 6 590 Kčs a 32 % | 30 000 |
| 40 000 | 60 000 | 8 580 Kčs a 42 % | 9 790 Kčs a 48 % | 40 000 |
| 60 000 | 80 000 | 16980 Kčs a 56 % | 19 390 Kčs a 64 % | 60 000 |
| 80 000 a výše | 28180 Kčs a 70 % | 32 190 Kčs a 80 % | 80 000. | |
A dependent or raised child shall only be taken into account for one taxpayer and one tax.
(3) The tax is not measured if, after an increase or reduction (§ 10), less than 20 CZK.
If the taxpayer operates any business (craft, trade, innkeeper, boatyard etc.), the National Committee shall increase the tax in accordance with § 7 by up to 30%, but not less than 800 CZK.
(1) A flat-rate amount may be fixed for small business operators and folk entertainment, door-to-door and nomadic business operators without the taxable amount being determined in the manner set out in Section 5.
(2) A flat-rate amount may also be fixed for taxpayers who provide services on the basis of the authorisation of the national committee.
Tax increases and reductions
(1) Tax pursuant to § 7 increases
(a) 40% to taxpayers who do not support any person; and
(b) 20% to taxpayers who support one person.
(2) The tax is reduced by 30% to taxpayers who support more than three persons, but not more than 1200 CZK. The tax will only be reduced if the taxpayer has not been reduced for the same reason.
The tax, including the increase provided for in Sections 8 and 10, must not amount to more than 85% of the tax base.
Tax-free minimum
The tax shall not be measured if the taxable amount does not exceed CZK 2400 and if the taxpayer is dependent solely on the income subject to the tax.
Tax rebate
Invalidity and old-age traders, as well as citizens who provide services on the basis of the authorisation of the National Committee, if those citizens receive full retirement pension, invalidity pension (except partial), social, widower or years' service pension, the national committees may authorise partial or total exemptions.
Paragraph 6, 8 and 10 shall not apply to the determination of tax pursuant to Articles 7 (2) and 9 (2).
General provisions
(1) The income tax on the population is the budget income of local national committees.
(2) The tax administration is carried out by a local national committee in whose territory the taxpayer is resident.
Confession
(1) Anyone who is obliged to pay a public income tax and who has not been charged a flat-rate tax (Paragraph 9) is obliged to submit a VAT return for the previous year by 31 January.
(2) If the income subject to the tax is only income from buildings, renting and subletting and does not exceed the tax base of 3000 CZK, the tax rule applies for two years without submitting a declaration.
(3) If the taxpayer does not submit the confession on time, the tax may be increased by up to 10%.
If the taxpayer begins or ceases to engage in business or receive income subject to tax, he shall be obliged to notify the national committee within 15 days.
Tax assessment
(1) The competent national committee in whose territory the taxpayer was resident on 31 December of the year for which the tax is levied is responsible.
(2) The national committee shall inform the taxpayer of the assessment of the tax by means of payment.
Appeals
An appeal against a payment notice may be lodged by the payer within 15 days of its receipt by the national committee which issued the payment notice.
Payment of tax
(1) The taxpayer shall calculate the tax himself and pay it to the competent national committee by 31 January following the end of the year for which the tax is charged.
(2) The flat-rate tax (Paragraph 9) is payable at the same time until 31 July of the current year.
(1) The taxpayer shall be obliged to pay quarterly tax advances for the current year if he carries out or receives revenue subject to that tax, at the rate of one quarter of the last annual tax liability. Tax advances shall be payable by the end of the first month following the end of the calendar quarter.
(2) Quarterly tax advances are not liable to be paid by taxpayers to whom a flat-rate tax has been fixed for the current year (Section 9), as well as by those whose annual tax obligation does not exceed 100 CZK.
Penalties
If the tax (tax advance) has not been paid on time, the taxpayer shall be obliged to pay a penalty of 5% of the tax arrears (tax advances) with the related payment dates.
Obligations
The National Committee may require taxpayers who engage in gainful activities to keep daily records of revenue and expenditure and to keep documents.
Tax control
(1) The National Committees shall examine the timeliness, accuracy and completeness of the payment of the tax and the correctness and completeness of the tax returns.
(2) The taxpayers shall be entitled and obliged to cooperate in the control, to provide the inspection authorities with explanations and evidence, to submit documents and aids concerning the facts relevant for the assessment of the tax and to do whatever is necessary to facilitate and accelerate the control.
Synergies
(1) Socialistic organisations are obliged to assist national committees in the assessment, collection and enforcement of tax. In order to ensure this synergy, the National Committee may impose in particular on socialist organisations,
(a) in the event of payment to private parties of payments for supplies of goods, work or services, to reduce tax advances;
(b) to pay the taxpayer his supplies, work or services in his sole account at the State Savings Bank.
(2) The paying organisation shall be responsible for the correct implementation of the deduction and early payment of the advance on the income tax of the population and for the correct implementation of the remuneration to a single current account of the taxpayer.
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 a measure or recovery operation is carried out, the limitation period shall run again from the end of the calendar year in which the taxpayer was informed of the act.
Final provisions
Empowerment
(1) The Government may exempt or grant tax relief to certain groups of taxpayers in whole or in part.
(2) Ministry of Finance
(a) issue the provisions necessary for the implementation of this Act;
(b) to regulate the procedure relating to that tax;
(c) may exempt certain types of income and allow certain taxpayers to benefit from the exemption or exemption, where appropriate;
(d) may take measures to prevent irregularities and hardships which could arise from this law.
(1) A tax under this Act shall be charged for the first time on income generated by the tax obtained in 1961.
(2) If the activity subject to the tax has ceased before 1 January 1962, the public income tax and trade tax shall be determined in accordance with the rules in force at the time of the tax waiver.
Acts No. 78 / 1952 Coll., on the income tax of the population, and No. 79 / 1952 Coll., on business tax, as amended by the Regulations, are repealed.
This Act shall take effect on 1 January 1962.
Novotný v. r.
Fierlinger v. r.
Broad v. r.
1) Decree of the Government of the Czech Republic No. 154 / 1982 Coll., on the provision of services to citizens by permission of the National Committee. Decree of the Government of the SSR No 158 / 1982 Coll., on the provision of services to citizens on the basis of the permission of the National Committee.
2) Article 17 of Decree No. 128 / 1975 Coll., implementing the Social Security Act.
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Regulation Information
| Citation | Act No. 145 / 1961 Coll., on Population Income Tax |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 12.12.1961 |
|---|---|
| Effective from | 01.01.1962 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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