Act of the Czech National Council No. 173 / 1969 Coll.
Act of the Czech National Council on corporate taxes and social security contributions
Valid
Effective from 01.01.1970
Zobrazeno prvních 200 z celkem 243 ustanovení tohoto předpisu.
Zobrazit celý předpis →
Pro stažení celého znění použijte tlačítko Stáhnout výše.
173
THE LAW
Czech National Council
of 22 December 1969
on corporate taxes and social security contributions
The Czech National Council decided on this law:
Preliminary provisions
This law governs
(a) corporate taxes on profits, capital tax and wage tax;
(b) social security contributions.
Taxpayers
(1) The taxpayers of profit tax and capital tax are:
(a) state economic organisations for which the volume of industrial or construction activities or the sum of such activities exceeds half of the total output;
(b) a branch (Directorate-General), provided that at least half of the subordinate organisations are subject to taxation under (a);
(c) the organisation of external trade;
(d) domestic limited-liability companies;
(e) organisations under a contract of association, (*) if at least half of their founders or members are organisations referred to under (a) to (d).
(2) All State economic organisations, foreign trade organisations, domestic public limited companies and organisations referred to in paragraph 1 (e) shall be liable for the wage tax.
(3) Corporate tax payers are not pension tax organisations, * *) the pension part of the agricultural tax * * *) and organisations for which a special relationship with the state budget has been established according to the current rules †) on the date of application of the law. Tax on profits and capital taxes are not subject to the Central Railway Administration organisations.
PROFIT TAX
Tax base
(1) The basis of the profit tax is the balance sheet profit generated from all activities of the taxpayer and from the management of all assets, recognised in duly kept accounts, increased by the items to be added (hereinafter referred to as "deductible items') and reduced by the items to be deducted (hereinafter referred to as" deductible items'). In the event that the taxpayer does not make a profit, the basis of the profit tax shall be the amount of the deductible items in excess of the deductible items; If the taxpayer recognises a loss, the basis of that tax is the amount of deductible items, exceeding the sum of losses and deductible items.
(2) The balance profit consists of revenues from production activities, the transfer of products, works and services, the activation of investments, the activation of material, the sales of non-production activities, other revenues, as well as price increases (reductions) and subsidies increasing sales, changes in stocks and balances on accruals, minus shortcuts in sales and revenues (purchase prices of stocks sold, turnover taxes, sales of basic assets, etc.) and total costs including financial costs and compulsory contributions to state funds.
(3) Subsidies and price interventions are considered to increase sales. The sales also include subsidies, interventions and contributions granted on the basis of invoices.
(4) The detailed content of each component of profit-making within the meaning of paragraph 2 shall be laid down in the accounting rules uniformly for the entire Czechoslovak Socialist Republic.
Subordinated liabilities
The deductible items for profit are:
(a) items charged in the taxpayer's cost
1. contributions, provided that the taxpayer is not obliged by law, subsidies, gifts and other free of charge to pay them;
2. the creation or, where appropriate, the change in the stocks of reserves not complying with the legislation;
3. catering expenditure, for foreign trade organisations only catering expenses and gifts above the limit approved by the Government of the Czechoslovak Socialist Republic;
4. items whose cost, contrary to legislation, has been reduced by the balance sheet profit;
5. fines paid and periodic penalty payments;
6. the amounts charged to the refund for discharges of uncleaned or poorly cleaned waste water;
7. the fees charged, including the air pollution premium;
(b) repayments of capital tax and unpaid loss of catering;
(c) amounts received as part of the reallocation of funds in the coal industry due to different natural and positional conditions;
(d) non-taxed allocations to funds, shortening the production of profits and used for purposes for which the organisation's own funds may be used under the legislation;
(e) loyalty allowances to miners above or above the specified heading (*), amounts spent on protective clothing, footwear and equipment above the standards of the prescribed regulations or of the specified heading (s) of workers and the value of natural benefits beyond the regulations or of the specified heading of workers.
Deductible items
(1) The following items shall be deductible from profit unless they are legally charged in the cost or income formation of the taxpayer:
(a) the capital tax paid;
(b) the land tax paid; *)
(c) compensation paid for the temporary withdrawal of agricultural land in geology;
(d) a contribution to the technical development fund set up by the Directorate-General for Trade;
(e) contribution to the Mines Damage and Compensation Fund;
(f) the contribution to the Geological Work Fund provided for by specific provisions.
(2) The deductible items are as follows:
(a) special-purpose export premiums where they are included in the profit;
(b) the profit from the catering;
(c) the fines and periodic penalty payments received and the amounts already taxed on profits or similar taxes on another taxpayer and the items already taxed on the same taxpayer if they are part of the profits;
(d) a contribution of up to 50% of the budget price for corporate housing according to the actual implementation of the construction in the current year and up to the same amount of the repayment of loans for corporate housing, drawn up until 31.12.1969;
(e) amounts granted in the framework of the reallocation of funds in the coal industry due to different natural and positional conditions;
f) Rewards to the Red Government and the Central Council of the Czechoslovak Revolutionary Trade Union Movement or to the Battalion, or to the Standards, are equal if they are included in the profit.
Tax rate
The rate of profit tax is 65% of the tax base (Section 3), with the following derogations:
(a) 40% for organisations principally engaged in the production of building materials, in the production of structures or parts, and for food industry organisations (excluding organisations principally engaged in the manufacture of machinery or packaging);
(b) 50% for energy organisations involved in a single electricity system whose main activity is the generation or distribution of electricity or heat (excluding plant power plants);
(c) 60% for mining organisations whose main activity is the extraction or modification of solid fuels, or ores or the searching and extraction of nutrients, and for gas organisations principally engaged in the production, distribution or storage of heating gases;
(d) 85% for those cash institutions which are equity companies and have a general reserve fund set up at the level specified by the statutes.
For taxpayers who are resident in the country, income from foreign sources shall not be subject to profit tax if they have been taxed by similar tax abroad.
_
Tax base
The basis of the wealth tax is the taxpayer's wealth.
Charger's name
(1) The names of the taxpayer are:
(a) in the case of basic funds and investments not completed, the status of the fund of basic funds and investments and the status of the building fund;
(b) in the case of circulation funds, the state of the turnover fund and the state of all other funds of the organisation, except the fund of cultural and social needs, the fund of technical development, the fund of damages and compensation in mining and the fund of geological works, where the contribution to that fund is a deductible item for the profit tax [Paragraph 5 (1) (f)]; in the case of domestic equity companies, equity capital;
(c) retained earnings and provisions not complying with the legislation.
(2) The property of the taxpayer shall be deducted:
(a) residual price
1. the basic means used as separate establishments *) mainly for housing, health, rehabilitation, educational, cultural and physical purposes, for recreation of own employees (including pioneering recreation ROH) or for racing meals and accommodation;
2. separate basic means to improve the purity of water and air, to ensure safety or to protect the health of workers;
3. Basic appropriations used exclusively for civil defence purposes and specific tasks;
4. the basic means of preservation, intended for specific tasks;
5. public road transport;
6. the basic funds transferred to temporary use and used for the purposes referred to in Nos 1 to 3.
The residual price of the basic funds referred to in paragraphs 1 to 6 shall be deducted from the taxpayer's assets only at the level covered by the basic funds and investments;
(b) funds deposited in special accounts and bound by the Government's decisions (e.g. minimum reserve);
(c) the price of stocks of civil defence material and of stocks for specific tasks the storage of which has been specifically imposed on the taxpayer if they are covered by one of the farm funds;
(d) unpaid loss;
(e) the price of the land, if included in the basic funds.
Tax rate
The capital tax rate is 5% of the tax base; for permanent organisations, Czechoslovak seagoing, Brno fairs and exhibitions, and for organisations referred to in § 6 (b) and (c), the rate shall be 2%.
The average state of assets in the tax period is decisive for determining the tax liability.
If the taxpayer has a fortune abroad, he can deduct from the capital tax the amount of a similar tax on that property paid abroad.
_
Tax base
The taxable amount of wages shall be based on the amount of all wages charged in the current year, including other personal expenses and profit and loss shares paid. The basic salary tax does not include the fees charged to the best workers and collectibles of the amount received by the organization as a reward to the Red Battalion of the Government and the Central Council of the Czechoslovak Revolutionary Trade Union Movement or to the Battalion, or to the standard of equal status.
Tax rate
(1) The rate of taxation on the wage volume is:
| při přírůstku průměrných mezd proti předchozímu roku v % | sazba daně v % z objemu mezd |
|---|---|
| od 0 do 3 | 0,5a |
| nad 3 do 5 | 1,5 + 1 a |
| nad 5 do 7 | 3,5 + 1,5a |
| nad 7 do 10 | 6,5 + 3 a |
| nad 10 | 15,5 + 6 a, |
where the factor "a 'is equal to the percentage of the increase in average wages exceeding the lower limit of the relevant tax zone with a precision of one hundredth.
(2) The average wage of the current year is the share per worker, calculated from the wage volume (Paragraph 13), reduced by the wage charged for the productive work of apprentices and the actual average number of employees in the current year. The average wage of the previous year shall be determined in such a way as to maintain methodological and organisational comparability with the current year.
CONTRIBUTION TO SOCIAL SECURITY
Fees for profit tax and capital tax pay a social security contribution of 25% of the volume in the current year of paid wages and other personal expenses and shares in profit or loss. The remuneration to be paid under the second sentence of Section 13 shall not be included in the basis for calculating the social security contribution. Social security contributions include sickness insurance. *) The social security contribution is part of the taxpayer's costs.
COMMON PROVISIONS
Tax administration
The management of corporate taxes and social security contributions are carried out by financial administrations, * *) with the exception of corporate tax administration and social security contributions by organisations managed by national committees, which are carried out by national committees. * * *) Their local jurisdiction is governed by the seat of the taxpayer.
Tax period
The tax period shall be the normal calendar year. Business taxes shall be charged after its expiry.
Tax return
(1) The taxpayer is obliged to submit a return on corporate taxes on a form issued by the Ministry of Finance to the locally competent financial administration (the locally competent national committee) entrusted with the management of the first level (hereinafter referred to as the "Financial Administration (National Committee)") by the end of February after the end of the tax period (§ 17) and to attach to it the accounts and other documents on the form of return.
(2) If the organisation does not carry out the liquidation, its successor shall be obliged to submit a tax return for the preceding part of the year by the end of the following month.
(3) The taxpayer is obliged to calculate the tax on his own in the return and also to provide any exemptions, advantages and discounts and to quantify their amount in the crowns.
(4) If the return has not been filed in time, the tax levied may be increased by up to 10%.
In the event of liquidation, the tax liability and the obligation to submit annual corporate tax returns shall continue until the end of the liquidation. On completion of the liquidation, the body responsible for the liquidation shall submit by the end of the following month a declaration for the preceding part of the year and indicate the surplus in the profit tax return. The confession must be supported by an initial and final liquidation balance and a statement of the use of the liquidation surplus. The liquidation surplus shall be added to the profit tax base of the year in which the liquidation was completed.
Tax assessment
(1) Corporate taxes shall be charged by the Financial Administration (National Committee).
(2) The basis of the tax and the basis of the social security contribution are rounded up to 100 Kčs; tax, tax increase (§ 18 (4)), periodic penalty payments and social security contributions shall be rounded up to the whole crown.
(1) Financial management (National Committee) shall inform the taxpayer of the measurement of corporate taxes by means of payment.
(2) The taxpayer may appeal against the payment notice to the Financial Administration (National Committee) which issued the payment notice within 15 days.
(3) The appeal does not have suspensory effect.
Payment of taxes
(1) The payer shall pay monthly advances on corporate taxes no later than the third day before the end of each month, namely:
(a) a profit tax of one twelfth of the year-round tax liability calculated on the profit planned for the current year. The financial administration (National Committee) shall determine the amount of monthly advances to new taxpayers, taking into account the planned profits of the taxpayer. At the end of each quarter (except for the last quarter), the taxpayer shall calculate the amount of the profit tax actually achieved over the past period since the beginning of the year. If the calculated tax is higher than the advance paid, the difference shall be paid with the advance due in the first month of the following quarter. At the same time, he is obliged to report to the Financial Administration (National Committee) how he calculated the tax. Where the calculated tax is lower than the advance paid, the excess shall be settled for advances due in the following months;
(b) for a capital tax of one twelfth of the year-round tax obligation calculated on the average state of the capital in the tax year; the average value of the assets shall be calculated from the sum of the book value of the assets at 1 January and the planned value of the assets at 31 December of the current year;
(c) a tax on the amount of wages of one twelfth of the planned annual amount.
(2) The taxpayer is obliged to submit to the Financial Administration (National Committee) by 29 January each year a calculation of the annual duty on profit, capital and salary.
(3) In justified cases, in particular for seasonal taxpayers, the financial administration (National Committee) may provide for advances in another way.
(4) The difference between the advances paid and the tax calculated by the taxpayer in the return is due within the time limit set for the submission of the return (Paragraph 18 (1)).
(5) The difference between the tax calculated by the taxpayer in the return and the tax determined by the payment scale shall be paid by the taxpayer no later than 15 days after delivery of the payment notice.
(6) The excess resulting from the difference between the tax paid by the taxpayer and the tax fixed by the payment balance shall be settled on delivery of the payment notice to the taxpayer's tax due or closest to the company tax due or, where applicable, the advance payment.
(1) If the company tax (including the increase in tax pursuant to Paragraph 18 (4)) has not been paid on time, the taxpayer is obliged to pay a penalty payment of 0,1% of the amount due for each day of delay.
(2) The periodic penalty payment is an accessory to the amount of the tax due or to the amount of the social security contribution due.
Limitation
(1) Business taxes may not be levied or enforced after three years from the end of the calendar year in which the taxpayer was obliged to submit a tax return.
(2) The social security contribution shall not be recovered after three years from the end of the calendar year in which the organisation was obliged to pay the contribution.
(3) Where an act is carried out to measure or enforce the tax or to recover the social security contribution, 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 taxpayer is obliged to notify the financial administration (national committee) within 15 days of its establishment.
(2) Financial administrations (national committees) check the accuracy and completeness of tax returns and the timeliness, accuracy and completeness of corporate tax and social security contributions.
(3) The taxpayers are obliged to provide the supervisory authorities with explanations and evidence of the facts relevant for the assessment of taxes and to do whatever is necessary to facilitate and accelerate the control.
Management
In the case of corporate taxation and social security contributions, the provisions on taxation and taxation procedures shall apply, save as otherwise provided in this Law. *)
Paragraphs 19 and 25 (3) shall apply mutatis mutandis to social security contributions. The contribution calculated by the payer himself shall be payable without measurement in monthly instalments by the payer, no later than 15 days after the end of each month, to a special account of 25% of the amount of the wages and other personal expenses charged and of the economic outturn paid.
EXEMPTIONS, ADVANTAGE AND BENEFITS
The government may, if not for taxpayers under federal authority
(a) extend, for a profit tax, the heading of deductible items (Section 5), where appropriate, to modify or abolish some of the specified items, up to a maximum of 3% of the tax base of all taxpayers;
(b) fully exempt from the tax on profits and capital taxes of newly built enterprises for the planned period of construction, partly exempt from the tax on profits and capital taxes of enterprises which are substantially expanding, in particular by building new plants, for the planned period of construction;
(c) identify the places and sectors (sectors) or, where appropriate, individual organisations in which the wage tax will not affect increases in the wage volume resulting from employment growth;
(d) determine the conditions under which the increase in average wages resulting from employment reductions will not be taxed;
(e) reduce the rate of pay tax in each of the tax bands by a maximum of 1% in line with wage-policy objectives and the need for differentiated rates of average wage growth in each sector and, where appropriate, organisations;
(f) in cases justified by specific conditions and economic effectiveness, to authorise the payment of corporate taxes by the Directorate-General or by a similar economic operator for the production unit as a whole, or to allow, as an experiment, to tax the profits and, where appropriate, the assets of the production unit as a whole, and to be liable to tax the profits or capital taxes for the whole production unit, to be the branch (general) Directorate-General or similar economic operator; if these economic management bodies are subject to organisation in the Slovak Socialist Republic, an agreement with the competent authority of the Slovak Socialist Republic shall be required to be issued;
(g) approve, in certain selected organisations or branches, the experimental examination of profit tax at a progressive tax rate determined according to the organisation's profitability and the approval of further methods of taxation of corporate wages;
(h) authorise discounts on capital tax and profit tax on taxpayers engaged in activities of the public interest, for a profit tax of up to 35% of the differences between income and expenditure on that activity and for a capital tax of up to the amount of the tax payable on the actual assets which serve that activity;
(ch) lay down the conditions under which surpluses for the removal of uncleaned or poorly cleaned waste water, as well as charges and surpluses for air pollution shall not be added to the profit for the purposes of calculating the profit tax;
(i) authorise, in the food industry sector, capital tax rebates up to the amount of this tax on that part of the value of stocks of selected product types covered by the turnover fund; the types of such products are specified by the Ministry of Finance in agreement with the Ministry of Agriculture and Nutrition.
The Ministry of Finance may, if not for taxpayers under federal authority
(a) authorise discounts on capital tax and profit tax to taxpayers for which the total tax liability on such taxes shall be more than 85% of the tax base on profits not reduced by capital tax, up to a maximum of 85% of the total tax on such taxes;
(b) decide, in the cases at issue, on the method of taxation;
(c) in agreement with the Ministry of Labour and Social Affairs to determine the starting level of wages for the purposes of the wage tax
1. for newly created organisations and in cases of reorganisation;
2. in organisations, places or sectors (or sectors), if the government so decides;
(d) take measures to avoid double taxation of the same taxable amount for the same taxpayer;
(e) take measures to prevent hardness and irregularities on a case-by-case basis.
TRANSITIONAL AND FINAL PROVISIONS
The amount of the discount on the levy on basic funds granted or promised in connection with the authorisation of a subsidy for the development of less developed areas, *) may be deducted from the capital tax until the end of the period provided for, provided that the basic means serve the purpose with which the grant was linked.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Act of the Czech National Council No. 173 / 1969 Coll., on corporate taxes and social security contributions |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.12.1969 |
|---|---|
| Effective from | 01.01.1970 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0