Decree of the Ministry of Finance No. 146 / 1961 Coll.
Decree of the Ministry of Finance implementing Act No. 145 / 1961 Coll., on the Income Tax of the Population
Valid
Effective from 01.01.1962
146
DECLARATION
Ministry of Finance
of 8 December 1961
implementing Act No. 145 / 1961 Coll., on Population Income Tax
According to Article 26 (2) of Act No. 145 / 1961 Coll., the Ministry of Finance provides:
Tax obligation
K § 2
(1) Natural persons resident or resident in the Czechoslovak Socialist Republic for at least one year are subject to domestic and foreign income tax regardless of nationality. Natural persons who do not reside in the Czechoslovak Socialist Republic or who do not stay for at least one year are subject to tax only on the income of which the source is in the Czechoslovak Socialist Republic.
(2) Revenue received from abroad shall be exempt from tax if it has been taxed abroad with the same or similar tax. This provision does not apply to income from countries with which the Czechoslovak Socialist Republic has negotiated double taxation agreements. If income received from a foreign country can be taxed under double taxation agreements in the second Contracting State in which it is a source, tax paid abroad shall be deducted at the request of the taxpayer. However, the amount of tax to be deducted may not exceed the amount of tax that may be collected under the Double Taxation Agreement by the State from which the income was received, nor the proportion of the Czechoslovak tax calculated from the annual total of all the income subject to the tax, which is equal to the total income received from abroad. Foreign currencies for the purposes of this tax shall be converted into Czechoslovak crowns in accordance with a special rule.
(3) Dani's income is both cash and in kind. In kind, income includes both the value of the products consumed by the taxpayer and the members of his household or intended for their own consumption, and the performance in work or any other property benefits.
(4) In particular, Dani shall be subject to income from trade, craft and other gainful activities if they are not carried out in working or similar terms, income from domestic property, land not forming part of agricultural production subject to agricultural tax, as well as income from the use of property and rights. Dani is also subject to interest on securities and loans, but not to interest on savings deposits and interest on the foreign exchange accounts of natural persons established with foreign exchange banks and held as deposits in foreign currency.
(5) Dani is also subject to income from the sale and use of collections acquired by the taxpayer by collecting activities. The collection activity is considered to be a tax activity for each item (collection, purchase, finding, etc.), including any modification and arrangement to the collection. In such cases, the basis of the tax is the difference between the total revenue and the expenditure incurred to achieve it for the current and previous years.
(6) For heirs of literary and artistic persons, excluding widows and minor children of such persons, the income from and use of the inherited copyright and the proceeds from the sale of property produced by the deceased (e.g. paintings, statues) is subject to tax. When taxing income from the sale of inherited property, only the difference between the income from the realisation and the value found when dealing with the inheritance is included in the tax base.
(7) The following shall not be included in the taxable income:
(a) insurance premiums accepted under the insurance contract for personal and property insurance, possibly from compulsory insurance;
(b) amounts received by inheritance, gift or other free of charge, except in the cases referred to in paragraph 6;
(c) the amounts received from the disposal of the property belonging to the taxpayer, if not for sale in accordance with paragraph 5 and for the sale of speculation (cf. paragraph 20);
(d) winning tickets and winning holding books and betting and games revenue,
(e) compensation for damage suffered;
(f) remuneration for personal needs under the Law on Family Law (including between divorced spouses) and state child contributions (Sections 11 to 14 of Act No. 69 / 1952 Coll.),
(g) aid granted by cultural funds established under § 73 of Act No. 115 / 1953 Coll., on Copyright Law,
(h) income from Czechoslovak state prices, from Czechoslovak competitions, honorary pensions of national artists and income exempted under special statutory provisions;
(i) revenue from the collection of medicinal plants purchased by pharmaceutical plants;
(j) income from the organised collection of waste materials by school youth and children preparing for a future occupation;
(k) income not exceeding 6000 CZK: from the collection of waste materials by persons other than those referred to in (j), from the sale of hay harvested on land other than those on which citizens are engaged in agricultural production establishing a tax liability on the income of citizens from agricultural production, from the collection of forest crops and from the cultivation and collection of snails.
K § 4
Tax period
(8) If, during the year, the taxpayer ceases to carry on business or receive income subject to tax, so that the total loss of his tax liability occurs, the tax may be charged to him before the end of the year in which his tax liability ceased to exist. In this case, the tax shall be payable within 15 days of delivery of the payment notice.
K § 5
Tax base
(9) In determining the taxable base, account shall be taken only of the revenue and expenditure effected in the calendar year for which the tax is charged. The taxation of revenue from speculative sales shall be carried out in accordance with paragraph 20. If the taxable income is the result of the taxpayer's activities for several years, the tax administration may divide the taxable amount into as many parts as the activity has lasted for but not more than three years. In such cases, the tax on total income shall be determined by the sum of the tax calculated on the basis of the distributed bases for each year.
(10) Credits and stocks at the beginning and end of the year are not to be looked at. However, when tax liability ceases to exist, the remaining stocks, together with income achieved in the year in which the tax liability ceased to exist. The remaining stocks shall be valued at the amount likely to be achieved when they are realised at the time of the loss of tax liability. The same applies to claims if they are not impenetrable. If stocks that have been taxed at the end of the tax obligation are later transferred free of charge to the Socialist sector, the National Committee shall, at the request of the taxpayer, exclude the value of the stocks originally taxed on the basis of the tax base at the latest three years after the end of the year in which the tax occurred.
(11) The total revenue of the taxpayer is understood as the sum of revenue from all sources of income. In the case of gainful income, the taxpayer shall be the person who carries out the activity and receives revenue from it. A person who assists in the gainful activity of a taxpayer shall not be distributed the total income obtained from that activity. The remuneration for the relief is a separate taxable income for that person. If the gainful activity is jointly carried out by more than one person, or if the income from the use of property and rights of more than one person is shared, one tax entity shall be made up and the tax shall be charged to any person of the same person. In addition to income from the joint gainful activity and income from buildings resulting from spouses (comrades and cooperatives) and their minor children, other income shall not be added up and taxed together, but the tax shall be levied and imposed on the person who receives the tax income. However, if one person has different types of income, they shall be added together and shall be taxed together.
(12) Each of the persons jointly taxed shall be liable by hand to pay the full tax prescribed in a common and undifferentiated manner.
(13) For taxpayers who keep accounting records corresponding to the accounting rules on their activities, the tax base shall be the difference between revenue and costs for the calendar year for which the tax is charged. In doing so, individual items of income and cost are assessed in terms of taxable and deductible terms as well as income and expenses of taxpayers who do not keep accounts.
(14) The expenditure incurred to achieve income is expenditure relating to some of the sources of income and has to be made to achieve income from that source. Such expenditure is, for example, expenditure on raw materials and materials for artisans and tradesmen, expenditure on rent and maintenance of special operating rooms, expenditure on heating, electricity, fuel and expenditure on routine inventory repair, expenditure on boatmen to maintain towing animals, rent and stable maintenance, inventory repair etc.
(15) However, the expenses incurred to obtain income are not expenses for the personal use of the taxpayer and his family, wages and fees paid to the spouse and other dependants, which assist the taxpayer in his professional activities, expenses for improving and increasing the taxpayer's assets, depreciation, loss of assets, insurance premiums of all kinds (except the taxpayer's contribution to sickness insurance for his employees), taxes and charges (excluding home tax and former business taxes), fines, periodic penalty payments, etc.
(16) If the expenditure incurred to obtain income from a source exceeds the income obtained from that source, it may be deducted from the total income of the taxpayer only up to the amount of income obtained from that source. Therefore, the loss incurred for a source of income cannot be compensated for the income from other sources. If the taxpayer has more than one building, all buildings of the same kind (for example, two tenancy houses, but not an apartment house and a family house, for which the house tax is charged according to the built-up area) belonging to the same owner can be considered as one source of income. Under this assumption, losses from one house can be deducted from the yield of the other house.
(17) The income from buildings is the rent actually received within the meaning of Section 10 of the Home Tax Act. The income from buildings is therefore not the price of the use of buildings or parts of buildings which the taxpayer uses with his family or has left to other persons for free. Nor is the income from buildings the cost of the use of service and in-kind apartments left to the taxpayer's employees free of charge or for a salary included in the salary, where the expenditure on such staff can be considered to be incurred in achieving the income tax. The income from the buildings is, however, the payment paid by the landlord for a larger apartment than it is due in kind.
(18) As expenses incurred to obtain income from buildings can be deducted from the rental tax paid, as well as expenditure incurred to maintain and manage buildings and interest on hypothetical debts. For buildings from which the rent is paid on special rental accounts of public savings banks, the amount transferred from these accounts to repair accounts shall also be deducted. Amortisation and insurance of buildings cannot be deducted as expenses incurred to obtain income. If the building is not fully leased, expenditure may be deducted from the rent only by a proportional part of the leased part of the building.
(19) If the taxpayer cannot prove the expenditure incurred to obtain income by reliable documents or if it is the taxpayers who usually do not record the expenditure and do not keep the documents, the expenditure may be deducted from the income obtained by a lump sum, namely:
(a) for sublet income up to two thirds;
(b) for revenue from collector's activities and the collection of wood from areas affected by calamity up to 50%;
(c) for income from domestic animal husbandry and wood collection, if not for the case referred to in (b) up to 40%;
(d) for income for the disposal of prepared animals and for temporary accommodation up to 30%;
(e) for income in other cases not listed above up to 10%.
(20) Dani is subject to speculative sales revenue. The income from speculative sales shall be taken to be income from the realisation of the items which the taxpayer has procured in order to sell or exchange them with profit. The basis of the tax is the difference between the price of the transfer and between the purchase or production and acquisition expenses for the current and earlier year.
K § 7
Tax rate
(21) For the calculation of the tax, the base is rounded up to 100 CZK.
(22) The tax is rounded up to the top of the crown.
K § 8
(23) The tax shall be increased if the taxpayer carries on any gainful activity after business, i.e. continuously and with a view to making a profit. It is irrelevant to the tax liability whether or not it is a business activity. It also does not decide whether the business is the exclusive profession of the taxpayer or whether it is carried out as a secondary profession, possibly in addition to a job in employment. In determining the amount of the premium, account shall be taken only of the income from the gainful activity carried on after business activities, provided that the income from other sources is taxed at the same time as that income.
(24) The tax increase provided for in Section 8 shall not be imposed on taxpayers who are engaged in a single and minor activity, as well as on taxpayers who are engaged in private teaching (foreign languages, music, etc.), doctors, dentists and other members of the so-called free professions and masters of violins. The increase in the tax pursuant to Section 8 shall not be prescribed for cameras unless they sell newspapers and magazines in their own newspapers and exceed the population income tax base of 15 000 Kcs.
(25) Where only part of the year has been operated, the minimum amount of increase shall be determined in accordance with Article 8, mutatis mutandis, for the period during which the business was operated in the year. If the business was operated, for example, from 15 January to 10 September, the minimum amount will be reduced from 800 CZK to 600 CZK as the business was not operated in October to December. In the case of seasonal trades (e.g. seedling), no such adjustment shall take place.
K § 9
Determination of the tax by a lump sum
(26) For the purposes of the assessment of the tax, taxpayers who, in fact, for the last two years or as provided for in the current year, have not exceeded the tax base and do not exceed the amount of CZK 20 000 shall be regarded as small traders; in the same way, taxpayers engaged in a gainful activity shall be assessed on the basis of an authorisation issued. 1) People's entertainment operators are mainly swing operators, carousel operators, shooting rooms etc.
(27) The flat-rate amount shall be determined by the National Committee according to the scope of the activity, the expected income and taking into account the other factors relevant to taxation, in particular also taking into account the tax increases provided for in Sections 8 and 10 and the tax reductions provided for in Section 10.
K § 10
Tax increases and reductions
(28) For tax increases and reductions, the operative event shall be 31 December of the year for which the tax is charged. If the tax liability was incurred before the end of the year for which the tax is charged, the operative event is at the time of the tax waiver.
(29) The following shall be recognised as dependants:
(a) - underage and mature children of the taxpayer (own, adopted, grandchildren, foster children), to whom the child allowance or education allowance belongs, if they live with the household taxpayer. Where, in those cases, children's allowance or education allowance is set at two or more children, only one child shall be recognised from the total number of such children for the purposes of this tax on the dependant;
- underage children (own, adopted, grandkids, foster parents' care) who are not entitled to child or educational allowances if they live with a household taxpayer, regardless of their own income;
- adult children (own, adopted, grandchildren, foster parents' care) who do not benefit from child or educational allowances if they live with a household taxpayer and do not have their own income exceeding 8280 CZK per year;
(b) - the spouse or spouse, or, where appropriate, the spouse or type, if they live with a household taxpayer, regardless of their own income;
(c) - children from divorced marriages, children from marriage in which the taxpayer - without being divorced - does not live with a spouse in the same household, and children born outside the marriage, if they do not live with a household taxpayer, as well as the spouse (spouse) who is divorced with or without divorce does not live with him in the same household, if they are paid by a maintenance worker designated or approved by a court. If maintenance has not been determined or approved by the court, those persons shall be recognised as dependants if they have been paid maintenance at least at the rate of the tax relief resulting from the recognition of those persons as dependants. However, wives and young children to whom a taxpayer pays maintenance fees shall be recognised as dependent only if they do not have their own income in excess of 8280 CZK per year;
(d) - other persons, including persons who are not related to the taxpayer, who live with him in the common household and who do not have their own income in excess of CZK 8280 per year.
The temporary stay of persons referred to in points (a) and (b) outside the common household with the taxpayer shall not be a fault in recognising such persons as being dependent on them.
In determining the level of income of persons who are recognised as dependants, no account shall be taken of the increase in the pension for helplessness, child allowance and education allowance, maternity allowance, the allowance for the child's needs in foster care, the maintenance allowance provided to the child, the orphan's pension, children preparing for the future occupation for the scholarship, unless there is a nature of compensation for earnings, the value of free internals and the diet and clothing provided free of charge in accordance with the provisions on the physical provision of youth preparing for the future occupation, the value in kind provided to university students in the exercise of military duties, and occasional earnings.
(30) Children who are not entitled to child or educational allowances shall be recognised as dependants, provided that the conditions for their recognition are met, and that the taxpayer submits to the national committee, within the time limit for submitting the VAT return for the previous year, a statement stating that neither his or any other person or organisation is entitled to the allowance for such children nor to the education allowance.
(31) The same person may be recognised as a dependent person only for one taxpayer and for the same taxpayer only for one tax. The tax shall be reduced only if, for the same reason, the taxpayer has not been reduced by the wage tax or the agricultural tax.
K § 12
Tax-free minimum
(32) If the tax base exceeds 2400 CZK, the tax shall be levied on the whole amount, not just on an amount exceeding 2400 CZK.
K § 13
Tax rebate
(33) A tradesman who receives an invalidity pension or a partial invalidity pension under social security rules or whose medical condition complies with the conditions for granting such a pension shall be regarded as an invalid.
(34) A tradesman who has completed the 65th year of his age in the year applicable to taxation shall be deemed to be elderly.
(35) The facts justifying the tax rebate should be applied to the public income tax return for the year in question. At the same time, the taxpayer is obliged to demonstrate facts justifying the right to a tax reduction. Invalidity shall be demonstrated by a decision granting an invalidity or partial invalidity pension or by an opinion of the head of the doctor of the social security assessment service. If disability is permanent, the assessment is valid once submitted for years to come.
General provisions
Article 15
Confession
(36) By 31 January, the grant must be submitted to the competent local national committee (Article 17 of the Law and paragraph 42 of this Decree) by any natural person who, in the last year alone or with the persons with whom he is jointly taxed, has received a tax in excess of the amount of income paid after deduction of the expenditure incurred to achieve the amount of CZK 400. In addition, everyone who has been invited to do so by the national committee shall be obliged to submit a confession.
(37) If there is income from buildings, the taxpayer (spouse, species or mate) is obliged to declare the income from the buildings of the second spouse (spouse or partner) and minor children living in the same household.
(38) If the taxpayer receives income from buildings, hire of goods or sublease, a tax rule is applied on a basis not exceeding 3000 CZK per calendar year for the following year, unless the taxpayer requests a return by filing a return not to be re-assessed or changes in the circumstances applicable to the assessment of the tax (for example, a change in the number of dependants, obtaining additional income subject to tax).
(39) The tax increase referred to in Article 15 (3) is calculated on the basis of the resulting tax, i.e. the tax increase including the increase referred to in Article 8 and 10, or the reduction provided for in Article 10.
K § 16
(40) If, during the year, the taxpayer has ceased to operate or receive income subject to tax, so that the total loss of his tax liability has occurred, he is obliged, at the same time as the notification under Paragraph 16 of the Act, to submit to the national committee a tax return for the current year.
(41) The notification obligation shall not apply to taxpayers who have only a random (one-off) tax on income which is not normally repeated. However, the obligation to lodge a VAT return after the end of the year is not affected.
K § 17
Tax assessment
(42) If the tax liability was incurred before the end of the year, the local national committee, in whose territory the taxpayer was resident at the time of the termination of the tax obligation, is responsible for measuring the tax.
K § 19
Payment of tax
(43) The difference between the amount which the taxpayer was obliged to pay under Paragraph 20 of the Act on advances and the amount that the taxpayer calculated after the year as a tax liability is due until 31 January.
(44) If, according to the payment notice, the tax is higher than that calculated by the taxpayer himself, or if it is a tax calculated by an additional payment order, the taxpayer shall pay the difference within 15 days of delivery of the payment notice.
K § 20
(45) The last annual tax liability shall be the amount calculated by the taxpayer as the tax for the previous year and, upon delivery of the payment notice, the amount determined by that measurement.
(46) If the tax is prescribed by a payment order higher than the tax calculated by the taxpayer himself, the taxpayer shall be obliged to pay the advances already due at the amount corresponding to that prescribed by the payment order within 15 days of its delivery.
(47) If the taxpayer has been subject to tax for only part of the year in the past year, the National Committee shall calculate what tax would be if it were subject to tax for the whole year and shall determine quarterly tax advances for the current year in accordance with the annual tax obligation thus established.
(48) The National Committee may provide for tax advances (Section 20 of the Act) taking into account the expected income of the taxpayer and the other ratios relevant for the assessment of tax (for example, the number of dependants, family ratios). New taxpayers shall be provided for tax advances in particular in cases where later collection of the tax could be jeopardised.
(49) The National Committee may, on request, reduce the tax advances if the tax on the taxpayer's income has decreased substantially in the current year against the previous year.
(50) The advance paid shall be counted against the tax payable by the taxpayer in accordance with Article 19 (1) of the Act until 31 January following the end of the year for which the tax is charged, or on the tax to be charged to the taxpayer by means of a payment scale.
(51) If the taxpayer has ceased to operate or receive income subject to tax, so that the total loss of his tax liability has occurred, he shall not be obliged to pay advances on tax starting with the calendar quarters following the total loss of tax liability.
K § 22
Obligations
(52) The National Committee may impose on taxpayers who pursue a gainful activity:
(a) keep a daily record of revenue and other income from, and expenditure related to, the activity, both in cash and through the current account with the money institution, with the figures of each document concerned;
(b) to be numbered in order to start with number 1 for each year with the documents relating to the alert referred to in (a);
(c) keep the records and documents referred to in (a) and (b) for a period of five years following the year to which they relate.
(53) The National Committee shall impose an obligation on the National Committee in particular in cases where the taxpayer carries out a more profitable activity, where the control of taxable income (such as an establishment in a larger city, type of trade) is made more difficult or where there is a risk of tax evasion.
K § 24
Synergies
(54) At the request of the National Committee, the Socialist organisations are obliged to reduce the advances on the income tax of the population when paying compensation to individual taxpayers for supplies of goods, work and services, in relation to the reimbursement of unpaid wage, literary, artistic or agricultural taxes. The obligation to deduct advances on the income tax of the population shall not be imposed by the national committee if it is about remuneration for the supply of agricultural products (including medicinal plants), for the supply of forest crops (blueberries, mushrooms, etc.) and for the collection of waste materials.
(55) The National Committee may require that a deduction be made up to 50% of the remuneration paid; indicate to which account the haircut is due. No reduction shall be made unless more than 400 CZK is paid for the whole agreed delivery, work or service.
(56) The payment advance shall be paid by the paying organisation to the national committee responsible for the beneficiary's residence, indicating that it is an advance deduction on the income of the population and indicating the exact address of the beneficiary and the amount of the payment from which the advance payment has been deducted. The reduced advance must be paid if more than 200 CZK, not later than 3 days after the payment, otherwise not later than 3 days after the month in which the payment was made.
(57) In addition, the National Committee is entitled to impose on the Socialist organisation a fee for its supplies, works or services, if it exceeds 100 CZK, on the sole current account of the taxpayer set up with the State savings bank in whose district the taxpayer is resident. Before referring the remuneration to a single current account of the taxpayer, the paying organisation shall deduct the advance on the public income tax referred to in paragraphs 54 to 56 of this Decree.
Final provisions
K § 28
(58) Trade tax payments for 1961 shall be counted against the income tax for 1961. Trade tax payments for 1960 and earlier years, if completed in 1961, shall be deducted from the income obtained when measuring 1961.
Efficacy
(59) This Decree shall take effect on 1 January 1962; it shall be used for the first time in determining the population income tax for 1961.
First Deputy Minister:
Succharda v. r.
1) According to the principles No. 20 / 1965 Coll., for the provision of certain services and repairs on the basis of the authorisation of the National Committee, under Decree No. 104 / 1965 Coll., on private teaching in the field of art and foreign languages, with amendments under Act No. 146 / 1971 Coll., Reg. B, pol. 26 and No. 159 / 1971 Coll., as amended by Decree No. 105 / 1971 Coll.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Decree of the Ministry of Finance No. 146 / 1961 Coll., implementing Act No. 145 / 1961 Coll., on the Income Tax of the Population |
|---|---|
| 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.
Comments 0