Act No. 244 / 1994 Coll.
Act amending and supplementing the Act of the Czech National Council No. 593 / 1992 Coll., on reserves for determining the income tax base, as amended
Valid
Law
Effective from 30.12.1994
Text versions:
30.12.1994
244
THE LAW
of 8 December 1994
amending and supplementing the Act of the Czech National Council No. 593 / 1992 Coll., on provisions for determining the income tax base, as amended
Parliament has decided on this law of the Czech Republic:
Act of the Czech National Council No. 593 / 1992 Coll., on reserves for the determination of the income tax base, as amended by Act No. 157 / 1993 Coll. and Act No. 323 / 1993 Coll., is amended as follows:
1. In Article 2, the word "balancing 'is replaced by" balancing'.
2. In Article 5 (2), the words "with the prior approval of the Ministry of Finance 'shall be inserted after the words" the Financial Office'.
3. Paragraph 6, including Notes 7 to 11, reads as follows:
Insurance provisions
(8) With the exception of the provision for insurance periods other than insurance periods, 9), for the purposes of determining the income tax base, the creation of provisions that are expenditure (costs) on the achievement, reinsurance and maintenance of income is recognised as:
(a) non-life insurance provisions (10) at an amount not exceeding 60% of the prescribed non-life insurance premiums;
(b) provisions for life insure11) at an amount which may not exceed the amount of liabilities calculated in accordance with the methods laid down in the special regulation8) resulting from life insurance payable under the insurance contracts concluded.
7) Act of the Czech National Council No. 185 / 1991 Coll., on Insurance, as amended by Act No. 320 / 1993 Coll.
8) Decree of the Ministry of Finance No. 52 / 1994 Coll., which provides for the creation, use and location of technical provisions of the insurance undertaking.
9) § 2 of Decree No. 52 / 1994 Coll.
10) Paragraph 14 (1) (a) of Act No. 185 / 1991 Coll., as amended by Act No. 320 / 1993 Coll.
11) Paragraph 14 (1) (b) of Act No. 185 / 1991 Coll., as amended by Act No. 320 / 1993 Coll. '.
4. in Article 7 (4) and (5):
"(4) The amount of the provision for the repair of tangible assets shall be determined on the basis of the individual tangible assets intended for the repair and the nature of the correction. The amount of the reserve in the tax period shall be equal to the share of the budget of the correction costs and the number of years elapsing from the beginning of the reserve creation until the estimated start of the correction. In the case of movable goods, the provision for the correction of individual tangible assets may consist in relation to the volume of its performance in technical units; in that case, the amount of the reserve in the tax period shall be equal to the product of the share of the correction budget per unit of the estimated volume of output and of actual output for the tax period.
(5) If an income tax payer finds a fact justifying a change in the amount of the reserve, it must make an adjustment to its amount from the tax period in which it becomes aware. '
5. the following paragraph 6 is added to Article 7:
"(6) The provision for corrections to individual tangible assets must not consist of only one tax period."
6. In the heading under Section 8 and Section 8 (1), the word "balancing 'is replaced by" balancing'. In Article 8 (3), the word "balancing 'is replaced by the word" balancing'.
7. At the end of Paragraph 9 (1), the words "permanent agricultural cultures and melliorative interventions' and Article 9 (2) are deleted:
"(2) The provision for cultivation activities may be made by the taxpayer of income tax according to the amount of timber harvested in m3. The amount of this reserve shall be determined by the taxpayer himself in the budget for the costs of growing. ';
8. Paragraph 11 shall become paragraph 1 and the following paragraph 2 shall be added:
"(2) Provisions established in accordance with the applicable accounting rules before 1 January 1993 and transferred to 1993, as well as the years following 1993, shall be used to cover the expenditure (s) for which they were created. If the reasons for which they were created are omitted, those provisions shall be abolished in the relevant tax year in favour of the proceeds. ';
(1) The provisions of this Act apply for the first time for the 1995 tax period.
(2) The provision on reserves in insurance under Section 6 of the Czech National Council Act No. 593 / 1992 Coll., on reserves for the determination of the income tax base, as amended by this Act, applies for the first time for the tax period 1994.
(3) For the provision for the repair of tangible property, the creation of which began before 1 January 1995, the method of making the reserve pursuant to Article 7 (4) of the Czech National Council Act No. 593 / 1992 Coll., on reserves for the determination of the income tax base, as amended by this Act, applies only to the creation of the remaining part of the reserve after the effective date of the Act.
This Act shall take effect on the day of its publication.
Uhde v. r.
Havel v. r.
Klaus v. r.
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Regulation Information
| Citation | Act No. 244 / 1994 Coll., amending and supplementing the Act of the Czech National Council No. 593 / 1992 Coll., on provisions for determining the income tax base, as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.12.1994 |
|---|---|
| Effective from | 30.12.1994 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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