Act No. 159 / 1968 Coll.
Pension Tax Act
Valid
Effective from 01.01.1969
159
THE LAW
of 18 December 1968
on pension tax
The National Assembly of the Czechoslovak Socialist Republic decided on this law:
Taxpayers
(1) Pension tax ("tax") is subject to:
(a) cooperatives, cooperative associations and cooperative undertakings;
(b) joint cooperative undertakings; *)
(c) the economic organisation of municipal services, local industry and the undertakings Collecting raw materials and corporate associations and the undertakings of such associations;
(d) public limited liability companies with the exception of foreign trade organisations;
(e) other socialist organisations, their undertakings and special-purpose equipment engaged in a permanent economic activity, provided that their relationship with the State budget is not regulated by other legislation; * *)
(f) organisations other than socialist, if they are legal persons;
(g) 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) Dani is not subject to:
(a) single agricultural cooperatives, construction housing cooperatives, folk housing cooperatives, district construction housing cooperatives in terms of income from cooperative housing, production and working cooperatives for citizens with more severe health damage and association facilities providing selective recreation of their members;
(b) artistic associations, cultural funds and socialist organisations representing authors or performers, as well as undertakings operated by such organisations;
(c) organisations economically managed by the higher authorities of the National Front, the KSČ and the ROH and the Swaziland, with the exception of the basic organisations thus managed by these social organisations.
Subject matter
(1) For the taxpayers referred to in Article 1 (1) (a) to (d) and points (f) and (g), all activities and revenues arising therefrom are subject to tax.
(2) For the taxpayers referred to in Paragraph 1 (1) (e), a permanent economic activity and revenues arising therefrom are subject to tax.
(3) For 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.
(4) In the case of taxpayers having their registered office or place of management abroad, only the income whose source is in the territory of the CSSR shall be taxed.
Tax base
(1) The basis of the tax is:
(a) for the taxpayers referred to in Article 1 (1) (a), (b), (c), (e), with the exception of cooperative and corporate associations:
1. profit less subsidies received and increased by a tax which reduced profits;
2. wages paid;
(b) for cooperative and corporate associations:
profit reduced by the subsidies received and increased by the tax which reduced the profits;
(c) for the taxpayers referred to in paragraph 1 (d), (f):
1. profit from all activities and management of all assets, plus tax, which has reduced profits, by depreciation of the basic funds charged against profits, if they exceed the depreciation rate fixed for socialist organisations, by unproven costs and by costs not necessary to achieve or secure revenue;
2.30% of the gross wage costs if the taxable amount pursuant to (c) (1) would be less than 30% of the gross wage costs or if the taxpayer showed a loss;
(d) for taxpayers referred to in § 1 (1) (g):
1. the sum of all revenue, minus the costs necessarily incurred in the country to achieve and ensure them and to maintain them;
2.30% of gross wage costs if the taxable amount according to subparagraph (d) (1) would be less than 30% of gross wage costs or if the taxpayer showed a loss.
(2) For taxpayers in liquidation, the tax base is the liquidation surplus.
Tax rates
(1) Tax
(a) for the taxpayers referred to in Article 1 (1) (a), (b), (c), (e) - with the exception of cooperative and corporate associations - where those taxpayers are principally engaged in commercial activities:
| při rentabilitě | ze zisku | z mezd | |
|---|---|---|---|
| přes | do | ||
| 10 % | 5 % | - | |
| 10 % | 15 % | 10 % a 0,8 % za každé 1 % dosažené rentability | 3,5 % |
| 15 % | 20 % | 10 % a 0,8 % za každé 1 % dosažené rentability | 4,5 % |
| 20 % | 40 % | 10 % a 0,9 % za každé 1 % dosažené rentability | 4,5 % |
| 40 % | 10 % a 0,95 % za každé 1 % dosažené rentability nejvýše však 55 % z tohoto zisku | 4,5 % | |
Profitability is calculated as a percentage of the profit-to-total own costs
(b) for the taxpayers referred to in § 1 (1) (a), (b), (c), (e) - with the exception of cooperative and corporate associations - where those taxpayers are principally engaged in non-commercial activities:
| při rentabilitě | ze zisku | z mezd | |
|---|---|---|---|
| přes | do | ||
| 15 % | — | 4 % | |
| 15 % | 30 % | — 4 % a 0,4 % za každé 1 % rentability přesahující | 15 % |
| 30 % | 50 % | 1,5 % za každé 1 % rentability přesahující 30 % | 10 % |
| 50 % | 90 % | 30 % a 0,5 % za každé 1 % rentability přesahující 50 % | 10 % |
| 90 % | 50 % a 0,2 % za každé 1 % rentability přesahující 90 % nejvýše však 70 % | 10 % | |
Profitability is calculated from the profit-to-pay ratio.
(c) for cooperative and corporate associations:
| u Svazu výrobních družstev a podnikových svazů uvedených v § 1 odst. 1 písm. c) | 50 % základu daně |
| u Svazu spotřebních družstev | 35 % základu daně |
| u Svazu bytových družstev | 10 % základu daně |
| u ostatních svazů | 25 % základu daně; |
(d) for taxpayers referred to in § 1 (1) (d), (f), (g):
| ze základu daně do 80 000 Kčs | 20 % |
| z částek přesahujících 80 000 Kčs základu daně | 60 % |
(2) The tax on the liquidation surplus is:
| a) | u poplatníků uvedených v § 1 odst. 1 písm. a), b), c), e) | 50 % |
| b) | u ostatních poplatníků ze základu daně do 80 000 Kčs | 20 % |
| z částek přesahujících 80 000 Kčs základu daně | 60 % |
Tax increase
(2) The Ministry of Labour and Social Affairs provides a basis for calculating wage increases with the Ministry of Finance for organisations with predominantly commercial activities.
(3) The taxpayers referred to in § 1 (1) (a), (b), (c), (e) - with the exception of cooperative and corporate associations - mainly engaged in non-commercial activities, the tax on each individual annual wage of the worker - including the share of economic results and other personal expenses - shall be increased from a difference exceeding the basic wage amount of thirty thousand CZK as follows:
| Roční mzda pracovníka | Zvýšení daně z rozdílu mzdy nad základní částku |
| do Kčs 36 000,- | 15 % |
| do Kčs 42 000,- | 25 % |
| do Kčs 48 000,- | 40 % |
| do Kčs 54 000,- | 60 % |
| do Kčs 60 000,- | 80 % |
| nad Kčs 60 000,- | 100 % |
(4) The competent national councils may, at their request, grant an appropriate advance reduction on such an increased tax up to the rates applicable prior to the application of this law, to taxpayers who ensure an increased range of services and supplies of consumer funds on exceptional shifts or exceptional measures.
(5) For the taxpayers referred to in Paragraph 1 (1) (e), the tax increase is calculated only on the individual annual wages of the taxable workers.
Tax rebates and exemptions
(1) A discount is granted to taxpayers on the tax on the education of apprentices in the Czech Republic as follows:
| pro preferované činnosti | pro ostatní činnosti | |
|---|---|---|
| za každého učně 1. rokem: | ročně v Kčs | |
| při internátní výuce mimo podnik | 5 000 | 3 000 |
| při soustředěné výuce v podniku | 3 000 | 2 000 |
| při individuální výuce | 2 000 | 1 000 |
| za každého učně 2. rokem: | ||
| (při tříleté učební době) | ||
| při internátní výuce mimo podnik | 3 000 | 2 000 |
| při soustředěné výuce v podniku | 2 000 | 1 500 |
| při individuální výuce | 1 500 | 1 000 |
(2) For cooperatives or disabled undertakings, for joint cooperatives engaged in agricultural production and for organisations referred to in Article 1 (1) (e), the tax calculated in accordance with Article 4 (a) or (b) shall be reduced by 30%.
(3) Newly established organisations may be exempt from payment of tax by the end of the calendar year in which they were founded. The local competent district national committee shall decide on the application of the taxpayer. The exemption shall cease to apply if such an organisation ceases within 3 years of its establishment.
Tax administration
The tax administration shall be carried out by the district national committees; local jurisdiction shall be governed by the place of residence of the domestic taxpayer at the end of the tax period or at the end of his or her activity.
Tax return
(1) The taxpayer is obliged to submit a tax return to the local competent national committee by 31 March following the end of the tax period (Paragraph 9 (2)) and to calculate the tax itself.
(2) Upon entry into liquidation or termination without execution of liquidation, the taxpayer or, where applicable, his successor in title, shall be required to submit a VAT return for the preceding part of the year within three months of the entry into liquidation or, where applicable, the termination.
(3) After the end of the liquidation, the body responsible for the liquidation shall be obliged to lodge a tax return on the surplus of liquidation by the end of the following month. The confession must be supported by an initial and final liquidation balance and a statement of the use of the liquidation surplus.
(4) If the return has not been submitted in time, the tax established under Sections 4 and 5 may be increased by up to 10%.
Tax assessment and tax period
(1) The tax shall be determined by the local district national committee with a payment rate after the tax period has expired.
(2) The tax period is a calendar year.
(3) The tax shall not be measured if it amounts to less than 100 CZK.
(1) The tax base is rounded up to 100 CZK.
(2) The profitability (§ 4) is determined as a percentage to one decimal place.
(3) The tax, tax increases and tax accessories are rounded up to the whole crown.
Payment of tax
(1) The tax referred to in Article 4 is paid in monthly advances, each month before the 20th day after the month has elapsed. The advance on the tax for December shall be due by 5 February of the following year.
(2) If the tax has been applied for the past annual period of less than 200k, the advances are paid on a quarterly basis, every 20 days after the end of the quarter. The advance payment for the IV quarter tax shall be due by 5 February of the following year.
(3) The taxpayers are obliged to pay the difference between the tax calculated in the return (Paragraph 8 (1)) and the tax advances paid by 31 March following the end of the year for which they submitted the return.
(4) Upon entry into liquidation, the taxpayer will pay the difference between the tax granted and the advances paid within three months of the date of entry into liquidation (Section 8 (2)).
(5) The tax on the liquidation surplus will be paid by the taxpayers by the end of the month following the end of the liquidation (Paragraph 8 (3)).
(6) The local competent district national committee shall determine the payment of tax advances to new taxpayers, taking into account the expected (planned) profits of the taxpayer.
Penalties
If the tax (tax advance) has not been paid on time, the taxpayer shall pay a penalty of 0,1% of the amount due for each day of delay.
Tax limitation
(1) The tax cannot be levied or recovered after three years from the end of the calendar year in which the taxpayer was obliged to submit the VAT return.
(2) Where an action to measure or recover tax is carried out, the limitation period shall run again from the end of the year in which the taxpayer was informed of the act.
Tax control
(1) The County National Committees examine the correctness and completeness of the tax returns and the timeliness, accuracy and completeness of the tax payments.
(2) The taxpayers are obliged to provide the supervisory authorities with explanations and evidence of the facts relevant for the assessment of the tax and to do whatever is necessary to facilitate and accelerate the control.
The creation of tax liability
(1) The tax obligation arises from the date of the start of the tax on the activity.
(2) For the taxpayers referred to in Paragraph 1 (1) (g), the tax shall be incurred on the date on which they began to operate in the country or, where appropriate, on which they are paid or credited to them the income subject to that tax.
(3) The taxpayer shall within 15 days notify the local competent district national committee of the beginning and termination of the tax paid on the activity.
Final provisions
(1) The provisions on taxation and taxation procedures shall apply to proceedings relating to that tax, save as otherwise provided in that law. *)
(2) The provisions of § 4 to § 8 of Act No. 83 / 1966 Coll., on the fourth Five-Year Plan for the Development of the National Economy of the CSSR, and the provisions issued for their implementation, do not apply to taxpayers under this Act.
(3) For the taxpayers referred to in § 1 (1) (a) and § 1 (c), the provisions of Act No. 131 / 1968 Coll., on income and wage increases do not apply.
The authorities of the Czech Socialist Republic and the Slovak Socialist Republic may:
(a) by way of derogation to amend provisions which do not lay down guidelines, that is to say, Articles 7 to 12 and 14;
(b) determine the share of the revenue of the tax which will be the budget revenue of the national committees;
(c) take measures to prevent double taxation of the same tax base;
(d) provide, on a case-by-case basis, that measures may be taken to prevent hardships and irregularities and, where appropriate, to authorise relief or further exemptions;
(e) establish, in cooperation with the competent authorities, a heading of preferred teaching fields for the provision of training discounts.
(1) The following shall be deleted:
(a) Act No. 113 / 1966 Coll., on Pension Tax of Cooperative and Other Organisations;
(b) Article 6 of Act No. 8 / 1968 Coll., on the State Budget for 1968 and on certain other financial measures;
(c) Government Decree No. 118 / 1966 Coll., on the stabilisation levy on production and consumption cooperatives;
(d) Government Decree No. 17 / 1968 Coll., amending and supplementing Government Decree No. 118 / 1966 Coll.
(2) The gross income tax and, where appropriate, the profit achieved in the calendar year 1968 shall be measured in accordance with the current rules.
This Act shall take effect on 1 January 1969.
Freedom v. r.
Srkovský v. r.
Ing. Cernik v. r.
*) § 33 of Act No. 49 / 1959 Coll., on Uniform Agricultural Cooperatives.
* *) Act No. 83 / 1966 Coll., on the Fourth Five-Year Plan for the Development of the National Economy of the CSSR, Act No. 131 / 1968 Coll., on the income and salary gains and Government Decree No. 100 / 1966 Coll., on the Planning Management of the National Economy.
*) Decree No. 16 / 1962 Coll.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Act No. 159 / 1968 Coll., on Pension Tax |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 22.12.1968 |
|---|---|
| Effective from | 01.01.1969 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0