Act No. 168 / 1998 Coll.
Act amending Act No. 586 / 1992 Coll., on Income Tax, as amended, and Act No. 337 / 1992 Coll., on Tax Administration and Fees, as amended
Valid
Law
Effective from 16.07.1998
Text versions:
01.01.2011
16.07.1998
168
THE LAW
of 18 June 1998
amending Act No. 586 / 1992 Coll., on Income Taxes, as amended, and Act No. 337 / 1992 Coll., on the Administration of Taxes and Fees, as amended
Parliament has decided on this law of the Czech Republic:
Act No. 586 / 1992 Coll., on Income Taxes, as amended by Act No. 35 / 1993 Coll., Act No. 96 / 1993 Coll., Act No. 157 / 1993 Coll., Act No. 196 / 1993 Coll., Act No. 323 / 1993 Coll., Act No. 42 / 1994 Coll., Act No. 85 / 1994 Coll., Act No. 114 / 1994 Coll., Act No. 248 / 1995 Coll., Act No. 149 / 1996 Coll., Act No. 18 / 1997 Coll., Act No. 151 / 1997 Coll., Act No. 209 / 1997 Coll., Act No. 210 / 1997 Coll., Act No. 248 / 1995 Coll., Act No. 39 / 1996 Coll.
1. in Paragraph 4 (1) (k), the words "Foundation funds" shall be inserted after the words "Foundation."
2. In the second sentence of Article 6 (3), the words "other than those in which the employee resides' shall be inserted after the words" products'.
3. In Article 7, the following paragraph 13 is added:
"(13) If the business or other self-employed activity is terminated (interruption) and the taxpayer charging in the double-entry accounting system pays the amounts of the premiums pursuant to § 23 (4) (d) and § 24 (2) (f) after the specified date, he may submit an additional tax return for the tax liability lower. Similarly, the legal successor of the taxpayer with the income referred to in Article 7 shall proceed in the event of the death of the taxpayer. '.
4. In Article 10 (5), the words "the expenditure referred to in Article 24 (2) (r) and (w) 'are replaced by the words" the acquisition price of the share and the purchase price of the other securities'.
5.Paragraph 15 (10), including footnotes 54), 55), 56), 58), 59), 60) and 61) shall read as follows:
"(10) The amount of the tax base may be deducted from the amount which is equal to the interest paid by the taxpayer in the tax period on the loan from the building savings (4a) and the interest on mortgage loans (53) by the bank, 54) reduced by the State contribution granted under the special legislation55) or by another loan granted by the building saver (56) and by the bank in connection with a loan from the building savings or mortgage loan, and the taxpayer used to finance housing needs, provided that the taxpayer does not carry out housing construction in the context of his business and other self-employed activities or lease. Housing needs for the purposes of this Act are:
(a) building of an apartment building, 58) a family house, 59) an apartment under a special rule of law (60) or a change (32) of a building resulting in a new apartment from ineligible housing spaces, provided that such premises have not been or have not served as a dwelling for at least 5 years, or from areas serving purposes other than housing, including superstructure or soil installation, provided that the housebuilding's housebuilding decision becomes legal within 4 years of the conclusion of a credit agreement to finance housing needs;
(b) purchase of land if the construction referred to in (a) is built on it using a loan to finance residential needs;
(c) purchase of a house, family house or apartment under special legislation;
(d) payment of a member's share to a legal person established for the purpose of building and buying houses or apartments;
(e) maintenance (61) and modernisation of an apartment building, family house or apartment owned by special legislation;
(f) settlement of joint ownership of spouses or the settlement of joint heirs where the settlement is subject to payment of the share associated with the acquisition of an apartment, a family home or an apartment house.
54) § 1 of Act No. 21 / 1992 Coll., on Banks, as amended.
55) Decree of the Government No. 244 / 1995 Coll., laying down the conditions for State financial support for mortgage lending of residential buildings, as amended by Decree of the Government No. 276 / 1996 Coll.
56) § 2 of Act No. 96 / 1993 Coll.
58) § 43 of Decree No. 83 / 1976 Coll., on general requirements for construction.
59) Paragraph 44 (1) of Decree No. 83 / 1976 Coll., as amended.
60) Act No. 72 / 1994 Coll., which regulates certain co-ownership relations with buildings and certain ownership relations with apartments and non-residential premises and complements certain laws (the Law on Housing), as amended by Act No. 273 / 1994 Coll. and the Constitutional Court found No. 280 / 1996 Coll.
61) § 86 of Act No. 50 / 1976 Coll., on Territorial Planning and Construction Regulations (Construction Act). '
6. in Article 15, paragraph 11 shall be added, including footnotes 62) and 63):
"(11) Where the participants in a credit agreement for the financing of housing needs are more than one-year-old (62) living in one household, the deduction shall be applied either by one of them or by each of them, equally. Where more than one person living in different households is a participant in a credit agreement, the sum of the interest paid shall be divided equally into individual households and the proportion of the household interest may be applied by the members of the household according to the first sentence. If the object of the housing requirement referred to in paragraph 10 (a) to (c) is concerned, the taxable amount may be reduced only during a tax period, during which the taxpayer has owned the housing requirement and, when the legal power of the housekeeping decision is acquired, 63) he has used the housing house, family house or an apartment owned for his permanent residence or the residence of his spouse, his descendants, parents or grandparents. In the year of acquisition of ownership, however, it is sufficient that the subject of the housing needs was owned by the taxpayer at the end of the tax period. The amount by which the taxable amount is reduced in accordance with paragraph 10 shall not exceed CZK 300,000 and, when applying a non-taxable amount to two or more members of the household, the value of the relevant proportion of this maximum amount attributable to each of them. If interest is paid only for part of the year, the taxable amount may not exceed one twelfth of that maximum amount for each month of interest payment.
62) § 8 (2) of the Civil Code, as amended by Act No. 509 / 1991 Coll.
63) § 76 et seq. of Act No. 50 / 1976 Coll. '.
7. In Article 19 (1) (r), the words "rental of works of art," and the words "copyright and patent rights," shall be replaced by the words "which are part of the assets of foundations and which are incorporated";
8. In Article 23 (3), at the end of the last sentence, the words "or parts thereof 'are added and the following sentence, including footnote 19f, is added:" If a tax entity is required to submit a tax return under special legislation 19f) during the tax period, the amounts of social security insurance premiums, the contribution to the state employment policy and public health insurance premiums shall be the amounts by which the economic result will be increased if they are not paid by the date for the tax return.
19f) § 40 of Act No. 337 / 1992 Coll., as amended. '
9. in Article 23 (4) (d):
"(d) amounts already taxed by the same taxpayer under this law. These amounts shall also be the amounts of social security premiums, the contribution to the state employment policy and the public health insurance premiums, by which the economic result referred to in paragraph 3 has been increased if they are paid. Similarly, this applies to the legal successor of a taxpayer who has died without carrying out a liquidation, provided that such amounts of insurance premiums and contributions are paid for the payer who has died without carrying out a liquidation. In this case, the condition is not that the amounts already taxed at the same taxpayer, '.
10. In Article 24 (2) (f), at the end of the sentence of the last sentence, "until the date for filing the tax return," shall be replaced by "by 31 January of the year following the end of the tax period or part thereof." The following sentences shall be added: "If the tax entity is obliged to submit the tax return in accordance with the special legislation 19f) during the tax year, this premium and contribution shall be the expense (cost) only if they are paid by the date for filing the tax return. This premium and contribution paid after that date or after the deadline for the submission of the 1997 tax return are the expenditure (cost) of the tax period in which they were paid, unless they have already affected the tax base in previous tax periods. Similarly, this shall apply to the legal successor of a debtor who has died without carrying out the liquidation, provided that the premium and contribution are paid for the debtor who has died without carrying out the liquidation, '.
11. in Article 24 (2) (r), including footnote 25a,
"(r) the sum of the value of the securities as defined by the specific legislation, 25a) sold in the tax year, up to the amount of the total revenue from their sale. If the sum of the values of these securities sold is higher for the tax period than the sum of the revenues of their sale, this difference may be used as an expense (cost) for no more than the following three tax periods, in each tax period, at the maximum amount by which the sum of the revenues of the sale of those securities exceeds the sum of the value of the securities in that individual tax period. In the event of the termination of the payer without the execution of the liquidation, or part thereof, which has not been applied by the payer who has died without the execution of the liquidation, he may use as expenditure (cargo) the legal successor of the payer who has died without the execution of the liquidation under the same conditions as if the termination had not occurred without the execution of the liquidation. Similarly, this provision shall be applied where there is a tax return obligation for part of the tax period. For the purposes of this provision, the value of the security shall be:
1. the acquisition price of shares and provisional certificates (Section 24 (7)) but, for shares and provisional certificates acquired as from 1 January 1998, increased by the price of the option applied,
2. the purchase price 20) of other securities, increased by the price of the option applied as from 1 January 1998 and, in the case of fees charged in the double-entry system, increased by the outstanding accrued aliquot interest income for the entire holding period, 20)
25a) § 1 (1) (a) to (d), (f) and (l) and § 4 (4) of Act No. 591 / 1992 Coll., as amended. § 17 of Act No. 248 / 1992 Coll., as amended. '
12. in Article 24 (2) (w), the words "increased by the price of the option applied as from 1 January 1998" shall be inserted after the words "on sale";
13. In Article 24 (2) (y), the following sentence is inserted after the words "acquired by transfer or deposit.": "The outstanding part of the claim for a debtor with his registered office or resident abroad, which was not subject to conversion under Act No. 499 / 1990 Coll., or was not subject to the provisions of this paragraph, but was subject to an export financing scheme in the context of the completion of claims for government credits as set out in Annex 2 to the Government of the Czech and Slovak Federal Republic Resolution No. 192 / 1991, may be used as an expense (expense) to achieve, secure and maintain income either in one-off or sequentially, with the exception of claims acquired by transfer or deposit."
14. in Paragraph 24 (2) (z):
"(z) the price of the purchase (20) of the notes charged under the special legislation20) as a security, increased by the taxpayer in the duplicateaccounting system by the accrued aliquot interest income, up to the amount of the income from its sale,"
15. in § 24 (2) (zg):
"(zg) the right of option under a special law, 20) but when selling the right of option is the value of option20) or the value of the right of option on 31 December 1997 under a special law, 20) if the right of option was acquired before 31 December 1997, expenditure (cost), except as referred to in points (r) and (w), up to the amount of the income from its sale, ';
16. In Article 24 (2), the dot at the end of point (zg) is replaced by a comma and the following point (zh) is added:
"(zh) the amount of reimbursement of travel expenses up to the maximum amount laid down by the special legislation, 5) which, for the purposes of this law, also means subsistence allowances for domestic work up to the upper limit of the diet and, for foreign travel, allowance for allowance up to 40% of the allowance and an increase of up to 15% of the allowance for staff defined by the special legislation.5) ';
17. the following shall be added at the end of Paragraph 25 (1) (c): "and, with the exception of warrants, in the application of priority law,"
18. in Paragraph 25 (1) (w), point 2 is deleted and the numbering of point 1 is deleted and the comma is replaced by a dot at the end of point 1. In the second sentence, the words "points 1 and 2 'are deleted.
19. in Paragraph 25 (1) (zb), the figure "20 000" is replaced by "40 000."
20. in Paragraph 26 (2) (a), the figure "20,000" is replaced by the figure "40,000."
21. in Paragraph 26 (3) (c), the figure "20 000" is replaced by "40 000."
22. in Article 27 (a), the figure "20,000" is replaced by "40,000."
23. In Paragraph 33 (1), the words "and from the 1998 tax period, the amount of CZK 40 000" shall be added after the words "CZK 20 000."
24. Article 38h (1) shall be added to point (d) as follows:
"(d) one twelfth of the forecast amount of annual interest as the non-taxable amount referred to in Article 15 (10), rounded down to the nearest hundred koruna per calendar month, but not more than one twelfth of the limit laid down in Article 15 (11), provided that the taxpayer pays credit instalments equal to the amount set by the building savings bank or bank. At the beginning or termination of the repayment of the loan during the year, the monthly reduction shall be established as the amount of the expected annual interest spread evenly over the calendar months in which the loan will be repaid. ';
25. the following points (d) and (e) are added at the end of point (c):
"(d) that they pay monthly instalments of a loan to finance housing needs at the level set by the building saver or bank;
(e) whether and to what extent another person is entitled at the same time to deduct interest on the tax base or on the basis for calculating the advance on tax paid in the tax period on a loan from a building savings bank, a mortgage loan or another loan granted by a building savings bank or a bank in connection with a loan from a building savings bank or mortgage loan. "
26. in Article 38l (1), at the end of point (g), the dot is replaced by a comma and the following point (h) is added:
"(h) the first credit agreement referred to in Article 15 (10);
2. a statement of ownership in the case of a loan granted for the purposes referred to in Article 15 (10) (a), (b), (c), (e) and (f);
3. confirmation by a legal person of the duration of membership and use of his / her apartment in the case of a loan granted for the purpose referred to in Article 15 (10) (d), (e) and (f);
4. after completion of the construction by a final approval decision,
5. a statement of ownership confirming the ownership of the house, family house or apartment owned in the cases referred to in Article 15 (10) (a), (b), (c), (e) and (f) throughout the tax period. ';
27. in the first sentence of Article 38l (2), the words "and (h)" shall be added in the first sentence after the words "(c) to (f)" and at the end of the sentence of the second sentence, the words "and the validity of the document referred to in paragraph 1 (h) (1) shall be subject to the submission by the taxpayer of, within the same time limit, a certificate of a building savings bank or bank of an expected interest on a loan from a building savings bank or a loan from a building savings bank or a loan from a building savings bank or another loan from a building savings bank or bank in connection with a loan from a building savings bank."
Final provision
Article I shall already apply for the 1998 tax year.
Efficacy
This Act shall take effect on the day of its publication.
Zeman v. r.
Havel v. r.
Tošovský v. r.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Act No. 168 / 1998 Coll., amending Act No. 586 / 1992 Coll., on Income Tax, as amended, and Act No. 337 / 1992 Coll., on Tax Administration and Fees, as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 16.07.1998 |
|---|---|
| Effective from | 16.07.1998 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0