Decree No. 184 / 1968 Coll.
Decree of the Ministry of Finance implementing the Law on Income Tax on Literary and Artistic Activities
Valid
Effective from 29.12.1968
184
DECLARATION
Ministry of Finance
of 28 December 1968
to implement the Act on Income Tax on Literary and Artistic Activities
In agreement with the Ministry of Culture and Information, the Ministry of Finance provides, pursuant to Article 16 (2) of Act No. 36 / 1965 Coll., on Income Tax from Literary and Artistic Activities, and Article 5 (3) of Act No. 160 / 1968 Coll., amending and supplementing the Act on Income Tax from Literary and Artistic Activities ("the Act '):
Tax obligation
(to § 1 to 3 of the Act)
(1) The income from the creative activity of literary and artistic and the income from the activity of performers is subject to a tax on the income of literary and artistic activities (hereinafter referred to as "the tax") only if the activity is performed outside the employment relationship and results in literary, scientific and artistic works, or artistic performances, where such works and performances are subject to copyright.
(2) The income received by the taxpayer from his employer for the literary and artistic activity in the field covered by his contract of employment is subject to payroll tax. The payroll tax shall also be subject to fees paid to the taxpayer in addition to the regular salary because it has exceeded, in terms of the amount of performance in the field of activity covered by his contract of employment, the time specified in the contract.
(1) If the surviving spouse is married who has income from the copyright or the rights of performers inherited from her husband, or is in a common household with the species, that income shall be subject to a public income tax.
(2) Where the income referred to in the preceding paragraph is borne by a person who has lived with a deceased household artist for at least a year as a partner and, after his death, he or she is married or living in a common household with a species, that income shall be subject to a public income tax.
(1) Where the income from literary and artistic activity is derived from abroad and has been shown to have been taxed in a foreign country by the same or similar tax, it is not subject to taxation in the domestic territory.
(2) Paragraph 1 shall not apply to revenue for the use of copyright in works of literary, artistic or scientific works and to the rights of performers for the use of artistic performances (except in the case of performance income), provided that such revenue is derived from States with which the Czechoslovak Socialist Republic has negotiated a double taxation contract.
(3) If the revenue referred to in paragraph 2 can be taxed under double taxation contracts in the second Contracting State in which it is a source, the tax paid abroad shall be deducted at the request of the taxpayer from the tax calculated domestically.
(4) However, the amount of tax to be deducted pursuant to paragraph 3 may not exceed the amount of tax which may be collected under the double taxation agreement by the State from which the income was received or by a proportion of the Czechoslovak tax calculated on the annual aggregate of all the income of the tax charged to the total income received from abroad.
(1) Teaching in any field of activity from which income is taxed on income from literary and artistic activities is not an activity under the law; the activity under the law is therefore not mainly teaching music, dancing, etc. Teachings of a teaching nature such as instruction, courses, racing schools, etc. Income from such activities is subject to payroll tax.
(2) Income from the field of used art, photography and industrial retutions is taxed on income from literary and artistic activities if they are the result of artistic creative activities and as such are recognised and verified by the bodies of the Association of Czech or Slovak Artists. Photographs used in periodical printing, literary works or works in the field of promotional graphics, where photographs are essential and inseparable parts of those works, there is no need to verify the Union. In such cases, it shall decide whether the photograph is an artistic, editor-in-chief or any other responsible editor appointed by him to do so.
Exemption
(K § 4)
Where the price or remuneration paid in a contest includes a remuneration for work or artistic exercise or, where applicable, for the use thereof, the titular holder shall determine which part of the price or remuneration paid is due to the remuneration for work or artistic exercise (its use).
Payment of remuneration
(K § 5)
(1) Beneficiaries of royalties whose total annual net income has not in any of the last two years exceeded the amount of CZK 25 000 shall, on request of the clearing centre, issue a certificate of that fact. The licences shall be valid for the current year as well as for the following years, unless the measures provided for in paragraph 2 are taken.
(2) If the income of a taxpayer subject to a tax on the income of literary and artistic activities in a given year exceeds the amount of 25 000 Kčs, he shall be obliged to notify the clearing centre, which, after consulting the relevant Union, shall decide whether or not the card referred to in the previous sentence will continue to be left to the payer.
(3) The organisations paying the remuneration for the activity which is subject to the compulsory mediation (* *) show the full amount of the remuneration to the place which has facilitated the activity. The intermediate organisation shall proceed with the reimbursement of the remuneration under Section 5 (1) of the Act.
(4) The sum of the remuneration received from citizens in the year applicable to taxation must be notified to the clearing centre by 15 January next year.
(5) The accounts centre is:
a) Copyright Protection Organisation of the Czech Fine Arts Fund in Prague as regards rewards paid to creative and executive artists who are resident in Czech regions,
(b) Slovak Fine Arts Fund in Bratislava, as regards remuneration paid to creative and executive artists who are resident in Slovakia.
(6) An organisation referring to tax advances to the clearing centre shall simultaneously send a list of the fees for each taxpayer, indicating for each taxpayer his surname and name (including the cover name), address of his residence, his national identification number, the type and amount of gross remuneration and the amount of deductible items, the amount of the deducted contribution to the cultural funds and the amount of the tax advance for the preceding period of time (Section 12 (1) of the Act).
(7) If the settlement centres find that, in view of the total amount of remuneration, an advance of 10% of the remuneration to cover the sum of the remuneration from the beginning of the year and would result in any arrears for the taxpayer, they shall impose on organisations which regularly or to a greater extent pay the fee to the taxpayer to detain and pay to the clearing centre a higher appropriate percentage of remuneration. The paying organisations are required to refer to the remuneration of the advance payment at the rate determined by the clearing centre from the receipt of the order until the end of the calendar year. The settlement centre shall also send a copy of the order to the payer.
(8) Except in the cases referred to in § 5 (1) (a) of the Act, the payer shall deduct the tax directly on payment of the remuneration without requiring the payer to submit a confirmation of the clearing centre, provided that the remuneration for the work or performance of the 100 CZK and not for the operating fee or remuneration for the activity subject to the compulsory mediation.
(9) Foreign currencies for the purposes of this tax shall be converted into Czechoslovak crowns in accordance with a special rule.
(10) Of the remuneration referred to in Paragraph 3 (2), which, up to the amount laid down by the International Double Taxation Convention, has been levied abroad, the domestic organisation does not deduct tax in the cases provided for in Section 5 (1) (a) of the Act.
Tax base
(K § 6)
(1) When calculating the tax by the clearing centre, the revenue subject to the tax up to 50 CZK shall be rounded down to the whole of the hundreds and over 50 CZK to the whole of the hundreds. If the tax is deducted by the payer, the remuneration shall be rounded down after deduction of the deductible amounts under Article 7 (1) of the Act to the full 10 CZK.
(2) The income taxable shall not be the reimbursement of travel expenses paid by the payer, in addition to remuneration, if the taxpayer carries out literary or artistic activity as determined by the payer outside his permanent residence. Where a remuneration is agreed, including compensation for travel expenses, the total amount shall not be excluded as income not subject to tax.
(3) Only reimbursement of travel expenses paid under special rules, * * *), up to the amount laid down by those rules, shall be regarded as income not subject to tax.
Deductible items
(K § 7)
(1) Where the taxpayer has remuneration from different fields of literary and artistic activity, the deductible amount for each remuneration shall be determined separately depending on the work or artistic exercise for which remuneration is paid.
(2) The payer shall, in case of doubt, demonstrate to the payer, or to the clearing centre, what kind of remuneration to establish the deductible item correctly.
(3) In order to compensate for the costs associated with the acquisition of the work, a deductible amount of 30% of the remuneration [Paragraph 7 (1) (a) (2) of the Law] is deducted from the remuneration for photographic works used in the periodical press (Paragraph 4 (2) of the Decree).
(4) The following tax exemptions are granted to persons who are literary and artistic persons participating in social security on the basis of insurance premiums (1) and to whom the clearing centre calculates the tax (Section 6 (5) of the Decree):
(a) the premiums paid shall be deducted from the income achieved in addition to the deductible items referred to in Article 7 (1) of the Act;
(b) for persons who are not at the same time involved in social security for another reason, (2) the sum of 1000, - CZK for each month for which premiums have been paid, but not more than 6000, - CZK for the years 1991 and 1992, and 1500, - CZK for each month for which premiums have been paid.
(5) The amount of premiums paid shall be demonstrated by the taxpayer to the clearing centre by 31 January after the end of the year for which the tax is calculated.
(1) The following shall be recognised as a dependent person:
(a) children under the conditions laid down in § 7 of Decree No. 161 / 1976 Coll., implementing the payroll tax law,
(b) a spouse (spouse) or spouse (type) and his or her parents (spouse, spouse, partner), if these persons do not have their own income exceeding the annual gross 8280 CZK, live with a common household taxpayer and the taxpayer provides them with an apartment, diet and dressing,
(c) a wife (husband) who does not live with a household taxpayer, but for whom the taxpayer pays maintenance fees intended or approved by a court, unless he has his own income exceeding the annual gross income of 8280 CZK.
(2) A temporary stay outside the common household (e.g. for reasons of treatment, studies, learning, military service) is not a failure to consider such persons to be dependent. When determining the amount of the own income of persons who can be recognised as a dependent person, the income referred to in § 7 (8) (a) to (g) of Decree No 161 / 1976 Coll., implementing the payroll tax law, shall not be taken into account.
(3) The same person may be recognised as dependent only on one taxpayer and on the same taxpayer only on one tax. If the taxpayer is subject to a payroll tax in addition to this tax, a discount on dependants will always be granted for the payroll tax. When collecting tax on income from literary and artistic activities, dependent persons shall not be taken into account.
(4) If the discount on dependants granted to the taxpayer for the payroll tax would be lower than the discount on dependants for the income tax on literary and artistic activities, the clearing centre shall reduce the fee application on the payer's settlement pursuant to Article 11 (2) of the Decree by the calculated tax on the difference between the discount on the salary tax and the discount on the income tax on the literary and artistic activities. The settlement centre will reduce the tax only if the taxpayer proves, by confirming his employer, how much he has been deducted from his salary tax in the past year and how much he would have been deducted if he had not been granted any allowances for maintenance.
(5) The status of 31 December of the year for which the tax is calculated shall be decided by the taxpayer for the dependants.
(6) The right to a reduction due to maintenance of persons will be exercised and demonstrated by the taxpayer in a similar manner to that of payroll tax 7) until 31 January following the end of the year for which the tax is calculated.
Tax rate
(K § 8)
(1) If the net income of the taxpayer exceeds 25 000 CZK per year, the tax shall be levied only in addition to the tax deducted by the payer up to a total net income of 27 300 CZK per year by an amount exceeding 25 000 CZK.
(2) The remuneration to foreign exchange foreigners is paid directly to the taxpayer by the organisations, if not for activities subject to compulsory mediation (Section 6 (3) of the Decree). Unless otherwise provided for in the International Double Taxation Treaty, a tax of 25% shall be deducted from the remuneration without taking into account the remuneration already paid and the deductible items under Section 7 of the Act. Similarly, remuneration shall be paid to foreign exchange foreign exchange foreign exchange nationals, which are intermediary organisations.
(3) The tax is rounded up to 50 halos for the whole crown down and over 50 halves for the whole crown up.
Method of collection
(K § 9 to 12)
(1) From the remuneration received from citizens, which the taxpayer is obliged to notify the clearing centre (Section 5 (2) of the Law and Section 6 (4) of the Decree), the tax is calculated by adding to the other remuneration notified to the clearing centre and calculating the tax in question and collecting and collecting the clearing centre from the payer after the end of the year in accordance with Section 12 (2) of the Law.
(2) The right to deduct foreign tax in the cases referred to in Article 3 (3) shall be exercised by the taxpayer in the notification of the total annual income submitted pursuant to Article 9 (3) of the Act to the clearing centre, showing the facts relevant to the deduction of foreign tax collected abroad.
(3) By the end of February at the end of each year, the clearing centre shall carry out, for each taxpayer whose income subject to this tax after deduction of the items referred to in Section 7 (1) of the Act exceeded 25 000 CZK in the previous year, the calculation of the tax, the settlement of all tax advances received with the calculated tax as well as the deduction of tax collected abroad (Section 3 (3)), and any overpayments if they exceed 10 CZK in return to the taxpayer. If there is an overpayment of not more than 10 CZK or an underpayment, it shall settle it with advances made in subsequent periods or invite the payer to pay the underpayment directly to the clearing centre. If the taxpayer does not pay the outstanding fee for the invitation, the settlement centre shall request the district national committee responsible for the payment of the tax due according to the place of residence of the payer.
(1) Both the settlement centre and the payer who pays the remuneration directly to the taxpayer [Paragraph 5 (1) (a) of the Act] are obliged to keep records of each taxpayer, from which all facts determining the amount of the remuneration and the tax deducted and paid can be established. The record shall contain the following information: the name and surname of the taxpayer, the address of his place of residence, the birth number, the type and amount of gross remuneration paid to him during the year, including their annual total, the amount of the tax withheld, the amount of the deducted contribution to the cultural funds and, for fine arts remuneration, the amount of deductible appropriations. On the reverse of the fee note by which it pays the tax deducted, it is obliged to indicate the amount it has deducted in total to all taxpayers during the period for which it pays the tax.
(2) By 15 March after each year, the settlement centre and the payer, who pays the fees directly to the taxpayer [Paragraph 5 (1) (a) of the Act], shall send to the district national committee on a form issued by the Ministry of Finance a report on the remuneration paid and the tax deducted and paid on the income of literary and artistic activities in the previous calendar year.
The settlement centre or the payer may deduct the tax which he did not tax on the taxpayer in addition, unless the limitation period provided for in Article 14 of the Act has elapsed.
Final provisions
(K § 16 to 18)
(1) The tax under this Act shall be levied on arrears and advances paid to or credited to a taxpayer after 1 January 1969, even if they are payments and advances for the remuneration of works delivered or performed before that date.
(2) At the request of the author, the Ministry of Finance, or the authority empowered by it, shall, after consulting the relevant artistic association, adjust the tax on the remuneration for significant original works of literary, artistic or musical works on which the author has been demonstrably working for more than one year, so that the amount of the tax corresponds to the average remuneration for the work of the author in each of the years in which he worked.
(3) From 1969 onwards, Decree No. 37 / 1965 Coll. is repealed for the implementation of the Act on Income Tax from Literary and Artistic Activities, as amended by Decree No. 145 / 1965 Coll.
This Decree shall take effect on the day of its publication; it shall be used for the first time for the calculation of income tax on literary and artistic activities on income achieved after 1 January 1969.
Minister:
Ing. Succharda v. r.
* *) Decree of the Ministry of Education and Culture No. 71 / 1958 Ú. l., laying down the conditions for the performance of professional theatre artists in non-theatre performances, as amended by Decree No. 176 / 1958 Ú. l. and Decree No. 74 / 1964 Coll. and Decree No. 89 / 1958 Ú. l., which provides for compulsory mediation for certain fields of artistic activity as amended by Decree No. 74 / 1964 Coll.
* * *) Decree No. 96 / 1967 Coll., on Reimbursement of Travel, Moving and Other Expenditure.
*) Decree No. 24 / 1967 Coll., implementing the payroll tax law.
1) Decree No. 161 / 1976 Coll., implementing the payroll tax law.
1) Article 145b of Act No. 100 / 1988 Coll., on Social Security, as amended by Act No. 110 / 1990 Coll.
2) Paragraph 1 of the Decree of the Government of the Czech Republic No. 257 / 1990 Coll., on the temporary reduction of the amount of social security contributions for persons performing an artistic activity.
7) § 16 of Decree No. 161 / 1976 Coll.
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Regulation Information
| Citation | Decree of the Ministry of Finance No. 184 / 1968 Coll., to implement the Act on Income Tax from Literary and Artistic Activities |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 29.12.1968 |
|---|---|
| Effective from | 29.12.1968 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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