Act No. 157 / 1989 Coll.
Act on Pension Tax and Amendments to Act No. 172 / 1988 Coll., on Agricultural Tax, and Act No. 116 / 1985 Coll., on the Conditions of Activity of Organisations with an International Component in the Czechoslovak Socialist Republic (Act on Pension Tax)
Valid
Effective from 01.01.1990
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157
THE LAW
of 13 December 1989
on pension tax and amendments to Act No. 172 / 1988 Coll., on Agricultural Tax, and Act No. 116 / 1985 Coll., on the conditions of activity of organisations with an international element in the Czechoslovak Socialist Republic
(Pension Tax Act)
The Federal Assembly of the Czechoslovak Socialist Republic decided on this law:
Preliminary provisions
This law provides for:
(a) pension tax;
(b) payroll tax.
PENSION TAX
Taxpayers
(1) Pension tax is subject to:
(a) state-owned enterprises the founders of which are national committees;
(b) housing, consumer and production cooperatives and other cooperatives, their associations, the Central Council of Cooperatives and cooperative undertakings; 1)
(c) social organisations, their undertakings and economic establishments;
d) Central of the Czech Advocacy and the Centre of the Slovak Advocacy and the Regional (Urban) Association of Advocates;
(e) undertakings with foreign equity; 2)
(f) an association with legal personality where at least half of its members are liable to a pension tax;
(g) other organisations whose relationship to the State budget is not regulated by other generally binding legislation and natural persons engaged in private business registered in the company register; 3a)
h) organizations with an international element in the Czechoslovak Socialist Republic; 3)
(i) foreign-based entities and natural persons engaged in private business incorporated in a company register, 3a) resident abroad.
A more detailed definition of the taxpayers referred to in points (c) and (i) shall be laid down in the implementing act.
(2) With the exception of securities income, pension tax is exempt from:
(a) the selection facilities and Sazka;
(b) artistic associations, cultural funds and organisations representing authors or performers, undertakings and establishments operated by such associations, funds and organisations;
(c) national wealth funds. (3b)
(3) Pension tax is not subject to:
(a) State-owned enterprises the founder of which are national committees and which make a profit payment in the form of a levy established on the basis of a financial plan or which are subject to a profit tax under the Agricultural Tax Act; 4)
(b) budgetary and contribution organisations.
Subject matter of pension tax
(1) The subject of the pension tax shall be all activities and revenues resulting therefrom, with the exceptions set out in paragraphs 2, 4 to 6.
(2) For housing cooperatives and their associations, with the exception referred to in paragraph 4, social organisations and international organisations in the Czechoslovak Socialist Republic, pension tax is subject to income resulting from permanent economic activity.
(3) For the purposes of this Act, permanent economic activity shall mean:
(a) in the case of social organisations, any activity aimed at making a profit where the resulting gross income and income exceed, in aggregate, 500 000 CZK during the tax period. The revenue from a permanent economic activity shall not include revenue from an activity which is limited to the fulfilment of their basic mission;
(b) in an organisation with an international element (3), all activities aimed at making a profit if the gross income and income resulting therefrom exceed, in total, CZK 250 000 in the tax year. The revenue from a permanent economic activity shall not include revenue from an activity which is limited to the fulfilment of their basic mission;
(c) for housing cooperatives and their associations, all activities except the construction, operation and maintenance of cooperative housing funds and cooperative garages, including repairs carried out in housing of members of housing cooperatives, provided that their gross income and revenues exceed, in aggregate, the amount of CZK 250 000 during the tax period. Income from permanent economic activity does not include income from the remuneration for the use of cooperative flats which are in the management of housing cooperatives and, for folk housing cooperatives, nor income from renting non-residential premises.
(4) For housing cooperatives which are principally engaged in activities for customers other than housing cooperatives that are owners of the cooperative housing fund, all activities and revenues arising therefrom are subject to the tax, except for the income from the remuneration for the use of cooperative housing in the management of those cooperatives.
(5) For churches and their organisations, the pension tax is not the subject of contributions from members of churches, gifts, proceeds of church collections and payments for church acts.
(6) For the taxpayers referred to in Paragraph 2 (1) (i), the income generated by the activities carried out in a permanent establishment in the territory of the Czechoslovak Socialist Republic and all other income, the source of which is in the territory of the Czechoslovak Socialist Republic, unless otherwise provided for in the international treaty which the Czechoslovak Socialist Republic is bound by.
(7) A permanent establishment is considered to be an establishment for the pursuit of activities in the territory of the Czechoslovak Socialist Republic. Construction sites, construction and assembly works, including repairs, shall be considered a permanent establishment only if their duration (regardless of the tax period) exceeds 6 months.
(8) For the taxpayers referred to in Paragraph 2 (2), income on securities is subject to pension tax.
(9) The details of paragraphs 6 and 7 are laid down in an implementing regulation.
Pension tax base
(1) The basis of the pension tax on the taxpayers referred to in § 2 (1) (a) to (h) is the profit from the activities forming the subject of the tax, recorded in the accounts and increased by:
(a) amounts by which costs have been increased or revenues reduced in breach of law;
(b) the difference by which the periodic penalty payments and fines paid exceed the penalties received, the fines and the compensation for the penalties paid;
(c) air pollution charges, including the premium; 5)
(d) surpluses for basic charges for waste water.6)
The details of the definition of the pension tax base for the taxpayers referred to in Article 2 (1) (a), (b) and (g) as well as for point (a) shall be laid down in an implementing act.
The amounts referred to in points (c) and (d) shall be increased by the pension tax base only if they have been included in the costs.
(2) The basis of the pension tax referred to in paragraph 1 is reduced by:
(a) income from securities on which the pension tax has been collected by means of a deduction;
(b) the amounts which have already been subject to the same pension tax for the same taxpayer if they are part of the profit.
(3) Expenditure of which the extent or amount of which is covered by public undertakings by generally binding legislation, with the exception of wage and other personal costs, shall be included in the costs, to the maximum extent and to the amount specified in these Regulations, for the calculation of the pension tax base for the taxpayers referred to in Article 2 (1) (b) to (h). This provision shall not apply to taxpayers for whom the extent or amount of expenditure has been adjusted by cooperative associations or central bodies of social organisations in agreement with the Federal Ministry of Finance or the Ministry of Finance, Prices and Wages of Republics.
(4) In the case of taxpayers who are subject to tax, the income resulting from a permanent economic activity (Paragraph 3 (2)), only costs necessarily incurred to obtain and secure the income which is subject to tax are recognised as costs. The method of recognising costs where they are not separately monitored by activity shall be laid down in an implementing act.
(5) For the taxpayers referred to in § 2 (1) (a) to (h) who do not show profits or show losses, the basis of the pension tax is the sum of the amounts referred to in paragraph 1 in excess of the sum of the losses reported and the amounts referred to in paragraph 2.
(6) In the case of debtors in liquidation and debtors who have not been wound up, where the basis of the pension tax cannot be determined in accordance with the preceding paragraphs, the basis of the pension tax is the surplus.
(7) The basis of the pension tax for the taxpayers referred to in Article 2 (1) (i) is:
(a) revenue from licence fees and similar fees and revenue for technical assistance and services;
(b) revenue from copyright and operating rights;
(c) income from interest, rent and dividends;
(d) any other income subject to pension tax, minus the costs necessarily incurred to achieve and secure them. The basis of the pension tax cannot be lower than that which would have been achieved by the same or similar scope of activity of an organisation based in the territory of the Czechoslovak Federal Republic.
The details of the provisions of points (a), (b) and (d) shall be laid down in the implementing act.
Pension tax rate
(1) The rate of the pension tax is based on the pension tax base:
(a) 55% for banks and insurance undertakings established as cooperatives (1) and for banks and insurance companies established as public limited companies (2);
(b) 55% for cooperatives for foreign trade;
(c) not exceeding 200 000 Kčs 20% and of an amount exceeding 55% for the taxpayers referred to in § 2 (1) (a) to (g). The exemption shall consist of taxpayers for whom the rate of pension tax referred to in points (a), (d) and (h) applies.
(d) not exceeding 200 000 Kčs 20% and of an amount exceeding this amount of 40% for the taxpayers referred to in Article 2 (1) (e) whose share of the foreign participant (s) in the capital is more than 30% and for the taxpayers referred to in Article 2 (1) (h);
(e) 40% for the taxpayers referred to in Article 2 (1) (i) on the basis of the pension tax base referred to in Article 4 (7) (d);
(f) 30% for the taxpayers referred to in Article 2 (1) (i) on the basis of the pension tax base referred to in Article 4 (7) (a);
(g) 25% for taxpayers referred to in Article 2 (1) (i) on the basis of the pension tax base referred to in Article 4 (7) (b) and (c);
(h) in the case of consumer cooperatives, including cooperative associations of consumer cooperatives with a predominantly commercial activity, and in the case of taxpayers with a predominantly public catering and public accommodation service, the detailed definition of which is laid down in the implementing regulation;
| při rentabilitě | ze základu důchodové daně |
|---|---|
| do 8 % | 10,– % |
| nad 8 % do 12 % | 10,– % + 4,– % à |
| nad 12 % do 15 % | 26,– % + 3,– % à |
| nad 15 % do 20 % | 35,– % + 2,– % à |
| nad 20 % do 30 % | 45,– % + 1,– % à |
| nad 30 % | 55,– % |
The profitability is calculated as the ratio of the pension tax base to the total costs to the nearest tenth (without rounding). The factor "à 'is equal to the percentage of profitability (calculated to the nearest tenth) exceeding the lower limit of the relevant tax zone;
(i) 25% for taxpayers based in the territory of the Czech and Slovak Federal Republic on the basis of tax, which is the income from securities whose source is in the territory of the Czech and Slovak Federal Republic and the pension tax is collected by withholding.
(2) The rate of the pension tax on the liquidation surplus is 55%.
Discounts on pension tax
(1) State-owned enterprises of which the national committees are established, with the exception of the taxpayers referred to in § 5 (1) (h), production cooperatives and housing cooperatives referred to in § 3 (4), other cooperatives, natural persons engaged in private business referred to in § 2 (1) (g), with the exception of those for which the rate of pension tax is fixed in § 5 (1) (h), cooperatives set up by production cooperatives, housing cooperatives and associations of production and housing cooperatives is reduced by a percentage of the reduced performance of 0,3 points and the overall profitability calculated as a profit-to total cost ratio of more than 12%, by 0,2 points.
(2) The percentage of reduced performance of services to the population in the total reduced performance referred to in paragraph 1 shall be calculated to the nearest tenth (without rounding).
(3) The production cooperatives of disabled persons and undertakings and economic establishments of disabled persons associations, as well as natural persons engaged in private business referred to in Article 2 (1) (g), shall be reduced by the amount of the pension tax by 4000 CZK for each worker with a reduced working capacity and by 8000 CZK for each worker with a reduced working capacity with a disability. For the calculation of the total amount of the discount, the average converted number of these workers in the tax period (rounded up to the totals) is determined.
A more detailed definition of this group of taxpayers and the method of calculating the average number of employees shall be laid down in the implementing act.
(4) The headquarters of the Czech Advocate General and the Centre of the Slovak Advocate General are reduced by 0,3 points for each percentage of the public service performance defined in the implementing regulation. The percentage of these services shall be calculated to the nearest tenth (without rounding).
_
Taxpayers
(1) The taxpayers referred to in Article 2 (1) (a), (b), (d) to (g) and companies and economic facilities of social organisations, with the exception of those referred to in paragraph 2, shall be subject to the wage tax.
(2) The tax on the volume of wages referred to in paragraph 1 shall not apply to housing cooperatives and their associations, except for housing cooperatives referred to in Article 3 (4), churches, church organisations, religious societies, foundations, equipment providing selective recreation, artistic associations, cultural funds and organisations representing authors or performers and national wealth funds.
Tax base
(1) The tax base on the volume of wages is the amount of wage resources settled for payment in the current year, reduced by fees granted under copyright and industrial law8) settled for payment in the current year.
(2) The salary tax also includes sickness insurance. 9) The wage tax is part of the taxpayer's costs.
Tax rate
(1) The rate of the wage amount tax is 50% of the wage base with the following derogations:
(a) 20% for the state enterprises of Czechoslovak automotive transport, for the medical cosmetics institutes, for the Czechoslovak Chamber of Commerce and Industry, for the Central Council of Cooperatives, for associations of production and consumer cooperatives, for the tourism organisations, for the Czech Republic's Centre for Agriculture and Nutrition and for the Slovak Republic's Ministry of Agriculture and Nutrition, for the enterprises and economic facilities of the central bodies of social organisations with the activities of publishing and publishing companies and for the central bodies of social organisations in the economic competence of the Ministry of Agriculture and Nutrition of the Czech Republic and the Slovak Republic, and for enterprises and equipment operated by artistic associations, cultural funds and organisations representing authors or performers and for the enterprises of the Sazka;
(b) 20% for taxpayers providing services, from the part of the payroll tax base referred to in Article 8, which covers the types of services defined in the implementing regulation, which also provides for the calculation of that part of the wage tax base;
(c) 10% for disabled production cooperatives and for undertakings and economic establishments of disabled associations as well as natural persons engaged in private business, who employ mainly disabled citizens.
(2) The rate of the wage amount tax referred to in paragraph 1 (b) shall not be payable by the taxpayer.
Salary tax rebates
(1) Fees liable to pay tax (Paragraph 7 (1)), with the exception of production cooperatives of disabled persons and enterprises and economic establishments of disabled persons, as well as natural persons engaged primarily in private business employed by citizens with altered capacity, are reduced by:
(a) an amount of CZK 12 000 for each worker with a reduced working capacity with a disability;
(b) an amount of CZK 3000 for each worker with a reduced capacity of work, up to a percentage of three and a half per cent of the staff with a reduced capacity of work from the total number of workers converted, and an amount of CZK 8000 for each worker with a reduced capacity of work exceeding three and a half per cent.
(2) For the calculation of the discount referred to in paragraph 1, the average recalculated number of workers with more disabled working capacity and workers with reduced working capacity in the tax period (rounded up to whole numbers) shall be determined. The method of calculating the average number of staff converted shall be laid down in the implementing regulation.
(3) The tax on the volume of wages after deduction of the discounts referred to in paragraph 1 may not amount to less than 10% of the taxable amount of the wage volume (Paragraph 8 (1)).
COMMON PROVISIONS
Tax registration and notification obligation
(1) Taxpayers in respect of whom pension tax is the subject of income from all activities are required to register with the administration of pension and wage tax (the tax administration) within 15 days of their establishment or registration in the company register (3a).
(2) Within 15 days of the date on which the tax administration of the taxpayer referred to in paragraph 1 has taken place, the tax authority shall notify the tax authority of its successor or liquidator and, failing that, the authority which has decided to cancel.
(3) Taxpayers whose income is subject to tax on a permanent economic activity are required to register with the tax authority within 15 days of the date on which the authorisation to operate the economic activity took effect and, if the decision of the administration is required to operate it, within 15 days of the date on which the legal authority took its decision. If no authorisation is granted, it shall do so within 15 days of the date on which the profit-making activity started. The termination of a permanent economic activity or withdrawal of an authorisation shall be notified to the taxpayer within 15 days of the date on which the activity was terminated or the decision to withdraw the authorisation became final.
(4) The taxpayers referred to in Article 2 (1) (i) are required to register with the tax authority within 15 days of the date of establishment of the permanent establishment in the territory of the Czechoslovak Socialist Republic and to provide the information provided for by the implementing regulation in the application. The cancellation of a permanent establishment shall be notified at least 30 days in advance. The notification shall indicate the expected amount of tax.
(5) The taxpayers referred to in paragraphs 1 and 3 shall notify the tax authorities of the change of their registered office within 15 days of the date on which it occurred.
Fine
(1) The tax authority may impose a fine of up to 50 000 CZK on taxpayers who have failed to fulfil the obligations laid down in Article 11. The imposition of fines shall take account in particular of the gravity, duration and consequences of the infringement.
(2) The procedure for imposing a fine shall be followed in accordance with the administrative rules. 10)
(3) The proceedings for the imposition of a fine may be initiated within one year from the date on which the tax authority became aware of the failure to fulfil its obligations under Paragraph 11, but no later than three years from the date on which those facts occurred.
(4) The proceeds of the fines are entered in the budget to which the pension tax and the wage tax apply.
Tax period
The tax period shall be a calendar year.
Tax return
(1) The taxpayer shall be obliged to submit a pension and wage tax return (hereinafter referred to as "return ') to the tax authority in whose tax administration the payment was based on 31 December of the tax period, before 15 February following the end of the tax period and to attach to it the accounts and other necessary supporting documents. The taxpayers referred to in Article 3 (2) for whom a permanent economic activity is subject to pension tax (Article 3 (3)) shall only submit returns if they are subject to tax. The tax administration authority may, where justified, extend the deadline for filing the return until the end of February at the latest after the end of the tax period.
(2) The taxpayer is obliged to calculate the pension tax and the wage tax itself in the return, including any exemptions, advantages and discounts, and to quantify their amount.
(3) Taxpayers based in the territory of the Czechoslovak Socialist Republic may deduct from the pension tax a similar tax paid abroad, but not more than the amount of the pension tax attributable under this Act to foreign income.
(4) If the revenue comes from a State with which the Czechoslovak Socialist Republic has concluded a double taxation agreement, double taxation shall be excluded under this Treaty. However, the pension tax paid in the second Contracting State shall be charged no more than the amount which may be collected in the second Contracting State in accordance with the Double Taxation Treaty.
(5) If the taxpayer fails to carry out the liquidation, his successor or the institution which has decided to cancel shall be obliged to submit a declaration for the last part of the tax period by the end of the following month after his expiry.
(6) In the event of liquidation, the tax liability and the obligation to submit a return shall be maintained annually until the end of the liquidation. After the end of the liquidation, the liquidator shall submit by the end of the following month a declaration for the past part of the tax period and indicate the surplus in the declaration. The confession shall be accompanied by evidence of the initial and final liquidation balance and of the use of the liquidation surplus.
(7) When the permanent establishment on the territory of the Czechoslovak Socialist Republic is abolished, the taxpayers referred to in Paragraph 2 (1) (i) shall be required to submit a return no later than the end of the following month for the preceding part of the year.
(8) If, within three years of the time limit laid down in paragraph 1, the taxpayer finds that the return submitted is incomplete or incorrect, he shall be obliged to submit an additional return by the end of the month following that finding. The taxpayer has the same obligation even if he finds that the pension tax or the wage tax is to be higher than the one that was charged. An additional return shall not be submitted in cases where the financial authorities of the Republic or the Federal Ministry of Finance find out that it is incomplete or incorrect.
(9) If the return or additional return has not been submitted in time, the tax administration may increase the pension tax and the wage tax by up to 10%. In the case of an additional return, the basis for this increase in the pension tax and the wage tax shall be the amount of the difference between the amount of the tax and that part of it which was indicated in the return previously submitted or has already been assessed.
Tax assessment
(1) Pension tax and salary tax shall be charged by the tax authority after the end of the tax period; in the cases referred to in Paragraph 14 (5) to (8), the tax authority may charge the pension tax and the salary tax even before the end of the tax period.
(2) The facts relevant for the assessment of pension and wage taxes are assessed separately for each tax period.
(3) The tax authorities of the taxpayer shall inform the taxpayer of the measurement of the pension tax and the wage amount by means of a payment account.
(4) Where a taxpayer makes a change in the amount of the pension tax or the salary tax, the tax administration authority shall inform the taxpayer of the newly adjusted amount of the pension tax or of the salary tax by an additional payment margin.
Payment of tax
(1) The monthly advance payments for the pension tax shall be paid by the taxpayers who are obliged to submit the statement of profit or loss on a monthly basis no later than the third day before the end of each month, with the exceptions referred to in paragraphs 2 and 4 as follows:
(a) in January, one twelfth of the planned annual tax obligation;
(b) in February, at the amount of the pension tax calculated on the profit shown in the profit statement for January;
(c) in the following months, the difference between the pension tax calculated on the profit shown in the profit statement from the beginning of the year and the advances due from the beginning of the year, except for the advance due in January.
(2) Other taxpayers shall pay monthly contributions to the pension tax no later than the third day before the end of each month of one twelfth of the planned (foreseen) annual tax liability. After the end of each quarter, except the IVth quarter, the taxpayer shall calculate, with the exception of taxpayers who do not compile profit statements, the amount of the pension tax on the profits shown in the profit statement from the beginning of the year and the difference in which the tax is higher or lower than the sum of the tax advances due since the beginning of the year, shall be settled with the advance due in the first month of the following quarter.
(3) Fees for which the pension tax for the past tax period was less than CZK 400 000 shall, at the latest on the third day before the end of the first month following the end of the period I, II and III, pay the advance on the pension tax on a quarterly basis, at the amount of the pension tax calculated on the basis of the profit recognised from the beginning of the year after deduction of the advance payments previously due. If these taxpayers do not draw up a statement of the result of the management, advances shall be paid for the first, second and third quarters of the tax liability of the previous tax period. The newly created taxpayers for whom the planned (projected) annual tax liability is less than CZK 400 000 pay advances for the first, second and third quarters of the planned (anticipated) annual tax liability.
(4) Taxpayers whose pension tax for the past tax period was less than 100 000 Kčs and newly created taxpayers whose planned annual tax liability is less than 100 000 Kčs do not pay advances and will pay the annual tax within the deadline for submitting the return.
(5) In calculating the advances on pension tax, including the profitability applicable to the rate, no account shall be taken of the items increasing and decreasing profits [Sections 4 (1) (a) to (d) and 2 (a) and (b)] or of the expenditure referred to in Section 4 (3). The discount provided for in Paragraph 6 (1) shall be calculated on the basis of the planned composition of the activities for the advance on the pension tax.
(6) The tax administration authority may impose an obligation on foreign-based taxpayers to deposit a reasonable advance on the start of activity in cases where it is not secured by a deduction from the debtor to ensure the pension tax.
(7) Where an excess payment of the advance on the pension tax is made to the taxpayer, with the exception of the month of December or the fourth quarter, it shall be settled with the nearest payment of the advance on the pension tax, or may be settled at the request of the taxpayer on the advance on the salary tax, or may be recovered.
(1) The taxpayers shall be required to pay monthly advances on the wage amount tax no later than the third day before the end of each month as follows:
(a) in January, one twelfth of the planned annual tax obligation;
(b) in February, at the level of the wage amount tax calculated on the basis of the monthly wage base;
(c) in the following months, the difference between the tax on the volume of wages calculated on the taxable base of the volume of wages from the beginning of the year and the advances due from the beginning of the year, except for the advance due in January.
(2) Advances on the salary tax in February and the following months may be reduced by one twelfth of the planned annual rebate under Section 10.
(1) Where the pension tax and the wage amount tax calculated in the return are higher than the advance payments paid, the taxpayer shall be obliged to pay the difference within the time limit set for the submission of the return. If the advances paid are higher than the pension tax and the wage amount tax calculated in the return, the excess payment for the past tax period shall be settled for the advance payment of the pension tax and the salary tax in the current year or shall be repaid to the taxpayer upon request.
(2) The difference resulting from the additional return is payable by the taxpayer within the time limit set for the submission of the additional return (Paragraph 14 (8)).
(3) If the pension tax and the wage amount tax fixed by the payment balance are higher than that calculated in the return, the taxpayer shall pay the difference within 15 days of the date of delivery of the payment notice.
(4) In justified cases, the tax authority may, at the request of the taxpayer, provide otherwise for advances; the taxpayers referred to in Paragraph 2 (1) (i) may be required to lodge an advance in order to secure the pension tax at the beginning of the activity. For natural persons engaged in private business that have become taxpayers pursuant to § 2 (1) (g) and (i) during the tax period, advance payments shall be determined by the tax authority.
Pension tax levied by withholding
(1) The tax on income from royalties and similar fees, on technical assistance and services, on copyright and operating rights, on interest, rent and profit participation (dividends) referred to in § 4 (7) (a) to (c), which are payable by the taxpayers referred to in § 2 (1) (i), is levied by deduction. A deduction of the amount referred to in § 5 (f) and (g) shall be made by the debtor who has his registered office or residence in the territory of the Czechoslovak Socialist Republic and who pays, signs or attributes the remuneration which is the basis of the pension tax (hereinafter referred to as the debtor).
(2) The debtor may be foreign trade undertakings or public limited liability companies which act as a contracting party instead of or next to domestic customers in international trade, as well as other entities authorised for foreign trade and foreign economic services.
(3) The debtor shall pay the deducted pension tax to the competent authority in charge of the administration of the tax no later than 15 days after the date of payment or payment of the amount due to the debtor. Such information shall be notified to the tax administration, including the disclosure of the amount paid or credited to the taxpayer (s) and the legal basis for its commitment.
(4) If the debtor fails to make a deduction of the pension tax or does not pay the deducted pension tax in time, it shall be enforced as a debt. Where the debtor undertakes to pay the pension tax on the taxpayer referred to in Article 2 (1) (i) in justified cases, he shall pay the pension tax on the basis referred to in Article 4 (7) (a) at 42,8% and on the basis referred to in Article 4 (7) (b) and (c) at 33,3%.
(5) The taxpayer's tax liability in respect of the income referred to in paragraph 1 is deemed to have been met by a withholding payment of the pension tax.
(6) In order to secure the pension tax on other income-subject pension tax [Paragraph 4 (7) (d)] for the taxpayers referred to in § 2 (1) (i), debtors are required to deduct an advance of 5% under the conditions set out in paragraphs 1 to 4.
(7) The tax authority may, if required by the provision of a pension tax, increase the advance referred to in paragraph 6 to up to 10%, or decide that the advance will be lower or not be reduced. In order to ensure pension tax on income from construction and assembly works, the debtor may authorise the provision of pension tax in the manner agreed in the contract with the taxpayer referred to in § 2 (1) (i). A decision to change the amount of the advance may not be appealed against. The tax administration authority may consider the pension tax on other income subject to pension tax to be a reduced amount.
Penalties
(1) If the pension tax or the salary tax (including its increase pursuant to Paragraph 14 (9)) has not been paid in due time and in full, the taxpayer is obliged to pay a penalty payment of 0,1% of the arrears of the pension tax or of the salary tax recorded on the due dates for each day of delay. The same amount of penalty shall be paid by the debtor who did not pay the full and timely pension tax levied by withholding or, where appropriate, an advance on that tax.
(2) If the taxpayer indicates in the return (additional return) a pension tax or a wage tax of less than that which he should have indicated, the tax administration shall prescribe a penalty payment of 10% of that difference. From the difference between the additional declaration made on the basis of the results of the internal control or control of the founder or, where applicable, the founder, carried out in accordance with the special rules and the pension or wage tax already applied, he shall prescribe a penalty payment of half the amount. Any discrepancies identified during the inspection carried out by the external control authorities shall be deemed to be those identified by those authorities.
(3) The periodic penalty payments referred to in paragraph 2 shall also be made on the basis of the difference between the newly adjusted amount of the pension tax and the amount of the wage tax, communicated to the taxpayer by an additional payment rate and the amount of the pension tax already calculated and the amount of the wage tax.
(4) The periodic penalty payment rules referred to in the preceding paragraphs shall be communicated to the payer or, where appropriate, to the debtor by means of payment. The penalty shall be payable within 15 days of the date of receipt of the payment notice. The fee or, where applicable, the debtor may lodge an appeal against the payment notice relating to the periodic penalty payment order within 15 days of its delivery. The appeal has no suspensory effect.
(5) Penalties should not be imposed if they do not exceed 100 CZK.
(6) The tax authority may waive, reduce or waive the periodic penalty payments under the conditions and to the extent laid down in the generally binding legislation issued by the Federal Ministry of Finance, the Ministry of Finance, the Czech Republic's prices and wages and the Ministry of Finance, the Slovak Republic's prices and wages.
Rounding
The pension tax and the wage tax will be rounded up to hundreds of Cds and their foundations will be rounded up to thousands of Cds. The increase in pension and wage tax (§ 14 (9) as well as the periodic penalty payment (§ 20) will be rounded down to the whole tens of CZK. Advances for pension tax and wage tax will be rounded down to thousands of KDS. The basis of the withholding tax shall be rounded up to hundreds of Cds down and the withholding tax (advance payment on that tax) to tens of Cds up.
Termination of the right to tax and periodic penalty payments
(1) Pension tax, wage tax and periodic penalty payments cannot be calculated or enforced after three years from the end of the calendar year in which the debtor was obliged to submit a return or, where applicable, the debtor to reduce the pension tax or the advance on that tax.
(2) If, within that period, an action is carried out to measure or recover the pension tax, to tax on the volume of wages or periodic penalty payments, the period of measurement or recovery shall run again from the end of the year in which the debtor or the debtor was informed of the act; However, no later than 10 years from the end of the tax period in which the taxpayer was obliged to submit a return or, where applicable, the debtor may reduce the pension tax or the advance on that tax, the tax to be charged and recover the pension tax, the wage and periodic penalty payments.
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Regulation Information
| Citation | Act No. 157 / 1989 Coll., on Pension Tax and on Amendments to Act No. 172 / 1988 Coll., on Agricultural Tax, and Act No. 116 / 1985 Coll., on the Terms and Conditions of Activities of International Organisations in the Czechoslovak Socialist Republic (Pension Tax Act) |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 22.12.1989 |
|---|---|
| Effective from | 01.01.1990 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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