Full text of Act No. 28 / 1996 Coll.
Act of the Czech National Council on Income Taxes (full text as seen from later amendments and additions)
Valid
Declared full text
Text versions:
15.02.1996
Contents
§ 1
ČÁST PRVNÍ
§ 2
§ 3
§ 4
§ 5
§ 6
§ 7
§ 8
§ 9
§ 10
§ 11
§ 12
§ 13
§ 14
§ 15
§ 16
ČÁST DRUHÁ
§ 17
§ 18
§ 19
§ 20
§ 21
ČÁST TŘETÍ
§ 22
§ 23
§ 24
§ 25
§ 26
§ 27
§ 28
§ 29
§ 30
§ 31
§ 32
§ 33
§ 34
§ 35
§ 36
§ 37
§ 38
§ 38a
§ 38b
§ 38c
§ 38d
§ 38e
§ 38f
ČÁST ČTVRTÁ
§ 38g
§ 38h
§ 38ch
§ 38i
§ 38j
§ 38k
§ 38l
§ 38m
§ 38n
ČÁST PÁTÁ
§ 39
ČÁST ŠESTÁ
§ 40
§ 41
§ 42
Čl. IV
Čl. IV
Čl. III
Čl. V
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28
_
Announces
The full text of the Act of the Czech National Council of 20 November 1992 No. 586 Coll., on Income Taxes, as follows from the amendments made by the Act of the Czech National Council of 21 December 1992 No. 35 Coll., by the Act of 25 February 1993 No. 96 Coll., by the Act of 19 May 1993 No. 157 Coll., by the Act of 10 July 1993 No. 196 Coll., by the Act of 3 December 1993 No. 323 Coll., by the Law of 16 February 1994 No. 42 Coll., by the Law of 24 March 1994 No. 85 Coll., by the Law of 27 April 1994 No. 114 Coll., by the Law of 29 June 1995 No. 149 Coll., by the Law of 8 December 1995 No. 32 Coll., by the Law of 20 April 1995 No. 87 Coll., by the Law of 26 May 1995 No. 118 Coll.
THE LAW
Czech National Council
on income taxes
The Czech National Council decided on this law:
This law governs
(a) income tax on natural persons;
(b) corporation tax.
TAX FROM THE REVENUE OF PHYSICAL PERSONS
Taxes on personal income tax
(1) The taxable persons are natural persons ("taxpayers").
(2) Taxpayers who are resident or usually resident in the Czech Republic have a tax liability which covers both income from sources in the Czech Republic and income from sources abroad.
(3) The taxpayers not mentioned in paragraph 2, or those covered by international agreements, shall have a tax liability which applies only to income generated from resources in the Czech Republic (§ 22). However, taxpayers who reside in the territory of the Czech Republic only for the purpose of study or treatment and foreign experts (paragraph 5) who reside only for the purpose of providing professional assistance have a tax obligation which applies only to income generated from resources in the territory of the Czech Republic, even if they usually reside in the territory of the Czech Republic.
(4) The fees normally present on the territory of the Czech Republic are those who stay here for at least 183 days in the relevant calendar year, continuously or in several periods; within a period of 183 days, each starting day of stay shall be counted. A residence in the Czech Republic is for the purposes of this law a place where the taxpayer has a permanent apartment in circumstances from which his intention to stay permanently in this apartment can be assumed.
(5) A foreign expert is a natural person residing abroad who has been seconded by a foreign entity as an expert (expert) with specific knowledge to provide professional assistance to persons with their registered office or residence in the Czech Republic or a permanent establishment.
Subject matter of natural person income tax
(1) The subject of the income tax on natural persons (hereinafter referred to as "tax ') shall be:
(a) income from dependent activities and functional benefits (Section 6);
(b) income from business and other self-employed activities (Section 7);
(c) income from capital assets (Section 8),
(d) rental income (Section 9);
(e) other revenue (Section 10).
(2) Income within the meaning of paragraph 1 shall mean income from both monetary and non-monetary gains and from exchange.
(3) Non-monetary income shall be valued at the usual price at the place and at the time of completion, according to its type and quality, and, where appropriate, its state and extent of wear, unless otherwise provided for in this Law or in a special regulation.
(4) The tax is not applicable
(a) income generated by the acquisition of shares or units under a special law, (1) by inheritance, issue of m2) or by the donation of immovable property or movable property or property rights, with the exception of income accruing from them, and with the exception of donations received in connection with the pursuit of an activity under Paragraph 6 or with an enterprise or other self-employed activity; the subject of tax on natural persons, on educational and health establishments and on facilities for the protection of abandoned animals, or on endangered species, but income is not derived from the acquisition of a gift in connection with the operation of such activities,
(b) loans and loans.
Exemption
(1) Exemptions shall be granted:
(a) income from the sale of apartments or houses with a maximum of two apartments, including associated parcels, where the seller owned them and was present at the same time for at least two years immediately prior to the sale. The exemption shall not apply to income from the sale of such apartments or houses where they are or have been included in commercial property for the pursuit of business or other self-employed activities within two years of their removal from commercial property,
(b) revenue from the sale of real estate, flats or non-residential premises not referred to in (a), if the period between acquisition and sale exceeds five years. In the case of sale of real estate, flats or non-residential premises acquired by inheritance from a deceased who has been a relative in a series of direct or spouse, the period of five years shall be reduced by the period during which the property was evidently owned by the deceased or the deceased if the property was acquired by successive inheritance in a series of direct or spouse. The exemption shall not apply to income from the sale of real estate, flats or non-residential premises, including those referred to in paragraph 1 (g), provided that they are or have been included in commercial property for the pursuit of business or other self-employed activities, within five years of their being set aside. Furthermore, the exemption does not apply to revenue accruing to the taxpayer from the future sale of real estate, apartment or non-residential premises, carried out within five years of the acquisition, and from the future sale of real estate, flat or non-residential premises, carried out within five years of their decommissioning, even if the purchase contract is concluded only five years after the acquisition or five years after the disposal,
(c) revenue from the sale of movable goods. The exemption shall not apply to revenue from the sale of motor vehicles, aircraft and ships, provided that the period between acquisition and sale does not exceed one year. The exemption shall not apply to income from the sale of movable property, including income from the sale of movable property referred to in paragraph 1 (g), provided that they are or have been included in the commercial property for the pursuit of the business and other self-employed activities of the taxpayer within five years of their being excluded from the business property,
(d) the compensation received, the compensation for non-property damage, the performance of property insurance and the performance of liability insurance, except for compensation for loss of income and payments from property insurance which has been or is included in the commercial property for the pursuit of business or other self-employed activities;
(e) revenue from the operation of small hydropower plants up to 1 MW, wind power plants, heat pumps, solar installations, biogas plants, biodegradable plants, geothermal energy facilities (hereinafter referred to as "installations"), in the calendar year in which they were first put into service and in the next five years. The first entry into service shall also be considered to be cases where the installation has been reconstructed if the revenue from the operation of such equipment has not already been exempted. The period of exemption shall not be interrupted even in the case of withdrawal due to technical evaluation (§ 33) or repair and maintenance,
f) the price from the competition, from the advertising competition, from the advertising composition and the price from the sports competition with a value not exceeding 10 000 CZK, except for the price from the sports competition for taxpayers where the sport activity is a business (§ 10 (8)). However, the tender price and the similar price from abroad shall be exempt entirely if it has been donated in full by the beneficiary for the purposes set out in Sections 15 (8) and 20 (5),
(g) compensation received under special rules, (2) revenue from the sale of immovable property, movable property or securities issued under special regulations (2) and interest on government bonds issued in connection with the rehabilitation proceedings for redress;
(h) income obtained in the form of sickness insurance benefits and services (sickness care), 42) pension insurance, 43) state social assistance, 44) social security, 45) benefits from the application of the State policy instruments of employment46) and generalhealth insurance 47) and benefits from foreign compulsory insurance of the same kind; However, if it is income in the form of a regularly paid pension, only an amount of CZK 120,000 per year is exempt from tax from the sum of such income,
(ch) income received as part of maintenance or compensation for such income under the Family Act;
(i) welfare benefits and services, state social support benefits and state benefits (contributions) provided for by specific regulations;
(j) remuneration paid to health care authorities for blood collection and other biological materials from the human organism;
(k) scholarships (2a) from the state budget, aid and contributions from the funds of foundations and civil associations (48), including non-monetary benefits, except payments received for loss of income and payments having the character of revenue pursuant to Sections 6 to 9;
(l) benefits from the insurance of persons, other than those from the insurance of a certain age exceeding the principal,
(m) performance provided by the armed forces to soldiers of basic (replacement) service, pupils of non-active schools and soldiers in reserve called for exercises under special regulations, 3)
(n) disciplinary fees paid to members of the armed forces and corps under special regulations, 3)
o) social benefits under the Law on certain service conditions of services3) and benefits related to the termination of the service of members of the armed security corps;
(p) services provided to citizens in connection with the performance of civil service, 4)
(r) revenue from the transfer of cooperative member rights, the transfer of shareholdings in the transformed cooperative (13) or the transfer of shareholdings in companies, not involving the sale of securities, exceeds the period between acquisition and transfer of five years. The exemption shall not apply to income arising from the transfer of members' rights to the cooperative or from the transfer of participation in companies, provided that they have been acquired from the commercial property of the taxpayer within five years of the end of his business or other self-employed activity. Furthermore, the exemption shall not apply to revenue accruing to the taxpayer from the future transfer of the members' rights of the cooperative, from the transfer of an additional share in the transformed cooperative or from the transfer of a participation in companies within five years of the acquisition and future transfer of the members' rights of the cooperative or from the transfer of a participation in companies acquired from its business assets, provided that the income from such transfer is generated within five years of the termination of the business or other self-employed activity of the taxpayer, even if the transfer contract is concluded only five years after the acquisition or the end of the business or other self-employed activity;
(s) interest on deposits from building savings, including interest on State aid under special law, 4a)
(t) government bond interest income, 4d)
(u) the income generated by the acquisition of ownership of the apartment as a replacement for the release of the apartment and the refund (severance) for the release of the apartment paid to the user of the apartment on condition that he has used or used the refund for the provision of housing not later than one year following the year in which he accepted the refund (severance); its receipt shall be notified by the taxpayer to the tax administrator by the end of the tax period in which it was received,
(v) the interest income of the taxpayers referred to in Article 2 (3) which they derive from bonds issued abroad by taxpayers established in the Czech Republic,
(w) revenue from the sale of securities acquired by the taxpayer under the coupon privatisation; income from the sale of other securities if the period between acquisition and sale exceeds three months. The exemption does not apply to income from the sale of securities which are or have been included in commercial property within six months of the end of the business and other self-employed activity (§ 7) and to income from capital assets (§ 8),
(x) income arising from the write-off of the settlement obligations made under the Special Act, 19a)
(y) the economic result (profit) or the difference by which the revenue exceeds the expenditure resulting from the liquidation of the bankruptcy, 19a)
(z) interest income on mortgage bonds, 4d)
(a) interest on overpayments attributable to the administrator (49) and interest on overpayments attributable to the social security authority (50)
(zb) subsidies from the state budget, from the budgets of cities, municipalities, higher territorial units and state funds for the acquisition of tangible capital assets 20) or its technical evaluation.
(2) The exemption referred to in paragraph 1 (e) shall not apply where the taxpayer renounces the exemption by notifying the tax administrator not later than within the time limit for filing the tax return for the tax period in which those resources and equipment were put into service. the exemption in that case shall not apply even to the lease of such facilities or to the transfer of ownership of such resources and equipment to another owner.
(3) For the purposes of the income tax on natural persons, commercial property means the sum of assets (items, claims and other rights, and the money of valued other values) owned by the taxpayer, which have been or is charged.
Tax base and tax loss
(1) The basis of the tax is the amount by which the revenue generated by the taxpayer in the calendar year (hereinafter referred to as the "tax period") exceeds the expenditure evidently incurred to achieve, secure and maintain it, unless otherwise provided for in the various types of income (Sections 6 to 10).
(2) In the case of a taxpayer who receives at the same time two or more of the types of income referred to in paragraphs 6 to 10 during the tax period, the taxable amount shall be the sum of the sub-bases of the tax determined by type of income, using the provisions of paragraph 1.
(3) If, according to the accounts, expenditure exceeds the revenue referred to in paragraphs 7 and 9, the difference is a loss. The loss adjusted pursuant to § 23 ("tax loss') shall be reduced by the sum of the sub-bases of the tax determined on the basis of the types of income referred to in § 7 to 10, using the provisions of paragraph 1. This loss, or part thereof, which cannot be applied to taxation of income in the tax period in which it was incurred, may be deducted from the sum of the sub-bases of tax determined by type of income referred to in paragraphs 7 to 10 in the subsequent tax periods provided for in paragraph 34.
(4) Revenue accruing to a taxpayer not accounting in the double-entry system in the 15 days preceding the beginning or 15 days after the end of the tax period to which it belongs shall be treated as income generated in that tax period. If there is evidence of income that is economically attributable to both the past tax period and the following tax period, it shall be regarded as income of the tax period to which the taxpayer assigns it. The assessment of expenditure shall be treated mutatis mutandis. The income from dependent activity and functional benefits (Section 6) resulting from the taxpayer not more than 31 days after the end of the tax period for which they were obtained shall be considered as income generated in that tax period.
(5) The tax base does not include income exempt from tax and income for which it is further established that the tax is levied at a special tax rate under Paragraph 36 on the tax base.
(6) The income included in the tax base (sub-tax base) in the previous tax periods, which has been repaid, shall be reduced by income (income) or increased by expenditure (costs) in the tax period in which its recovery took place, provided that there is a legal basis for its recovery and that the income is not recorded in the taxpayer's accounts when determining the tax base (sub-tax base) pursuant to § 7 and 9. In the case of amounts used as expenditure (cargo) in previous tax periods for which there is a legal basis for repayment by the beneficiary, these amounts shall be increased by revenue (revenue) or reduced by expenditure (costs) in the tax period during which recovery took place, provided that the refund was not recorded in the taxpayer's accounts when determining the taxable base (sub-taxable basis) in accordance with § 7 and 9. The income from dependent activities and functional benefits included in the tax base (basis for calculating the tax advance) for which there is a legal basis for recovery shall be reduced for the taxpayer by the income from dependent activities and functional benefits in the calendar month or in the following calendar months in the tax period in which the refund took place.
(7) In the case of a taxpayer with income pursuant to paragraphs 7 and 9, account shall be taken of the stocks acquired in the calendar year preceding the year in which he began his activity or of the stocks obtained from the inheritance after the deceased who had the income referred to in paragraphs 7 or 9, provided that the heir continues to operate the deceased no later than six months after his death. The same applies mutatis mutandis to other expenditure necessarily incurred in connection with the start of the activity.
Revenue from dependent activities and functional benefits
(1) Revenue from dependent activities
(a) income from the current or former employment, professional or member relationship and the similar relationship in which the payer is obliged to follow the instructions of the payer in the course of his work for the payer's income. These revenues are also income for the work of pupils and students from practical training,
(b) income for the work of members of cooperatives, shareholders and managers of limited liability companies and commanditists of limited companies, even if they are not obliged to follow orders from another person in the course of their work for the cooperative or company;
(c) remuneration of members of statutory bodies and other legal entities;
(d) the income of the taxpayer resulting from the exercise of the dependent activity or function, even if they are paid as compensation for the loss of such income by the payer for which the payer does not perform the dependent activity or function.
(2) The taxpayer with income from dependent activities and functional benefits is hereinafter referred to as "employee," the income payer as "employer."
(3) The revenue referred to in paragraph 1 shall mean revenue on a regular or one-off basis, whether or not it is a legal claim to it, whether it is received from the employer by the employee or by a person to whom the right has been transferred under the special rules, 4b) and whether it is paid or credited to good or consists of a different form of performance by the employer for employees who are liable for dependent income. The income shall also mean the amount by which the employee's remuneration for goods or services provided by the employer or for rent is lower than their normal price (§ 3 (3)) or the amount referred to in § 6 (6) or the price charged by the employer for comparable goods or services to other customers.
(4) Revenue accruing from employers having their registered office or resident in the Czech Republic and income from taxpayers as defined in Section 38c, following a reduction under paragraph 13 (a), is a separate tax base for taxation at a special tax rate (§ 36), in the case of income under paragraph 1 (a) and (d) and under paragraph 10, the aggregate amount of which for the same employer shall not exceed CZK 5000 in the calendar month. This applies to income generated by employees from an employer for whom the employee does not apply tax-free amounts on the basis for calculating the tax advances or on the basis for calculating the tax and has not signed the tax declaration (§ 38k).
(5) If the revenue referred to in paragraph 4 is derived from sources abroad, the tax base (sub-base of tax) shall be that provided for in Article 5 (2).
(6) If the employer provides the employer with a motor vehicle for service and private use free of charge, an amount of 1% of the entry price (Paragraph 29 (1)) of the vehicle shall be considered as the employee's income for each calendar month of delivery. If it is a hired vehicle, the input price of the vehicle shall be based on the original owner, even if the subsequent purchase of the vehicle occurs.
(7) They are not regarded as income from dependent activities and the subject of tax, other than income which is not subject to tax pursuant to Paragraph 3 (4), are not:
(a) reimbursement of travel expenses provided in connection with the exercise of dependent activity up to the amount laid down in the special regulation; (5) where the employer pays higher compensation, amounts which exceed the amount laid down in the special regulation shall be taxable income as referred to in paragraph 1, even if this special regulation does not limit the payment of higher refunds;
(b) the value of personal protective equipment, washing, cleaning and disinfection equipment provided to the extent provided for in the specific regulation, 5a) including the cost of maintaining personal protective equipment and work equipment, as well as the value of the uniforms provided, including their maintenance allowances;
(c) the amounts received by the employer's employer in order to give them up on his behalf or the amounts by which the employer pays the staff member the declared expenses he has incurred for the employer, as if directly incurred by the employer;
(d) compensation for the wear of own tools, equipment and items needed for the performance of the work provided by employees under the Labour Code.
(8) Where the employer pays the employer's expenditure (compensation) referred to in paragraph 7 (b) to (d) a flat-rate amount, such expenditure shall be deemed to have been declared up to the flat-rate amount laid down in the special rules or the flat-rate laid down in the collective agreement or in the employer's internal rules, provided that the flat-rate amount has been established by the employer on the basis of actual expenditure calculations. The same procedure shall be followed by the employer in determining the flat-rate in cases where the conditions under which the flat-rate has been fixed have changed. If they are flat-rate using their own tools, equipment and items necessary for the performance of the work of the employee, which would otherwise be amortised, they shall be recognised only to the extent that the employer would apply depreciation of comparable tangible assets on a level playing field in subsequent years of depreciation.
(9) In addition to the income referred to in Section 4, tax exemptions are also granted:
(a) the amounts spent by the employer on training staff related to his business; the exemption does not apply to amounts paid to employees as compensation for income foregone,
(b) the value of meals provided as non-monetary benefits by the employer to workers for consumption at the workplace or in the framework of competitive meals provided through other entities;
(c) the value of non-alcoholic beverages provided as non-monetary benefits by the employer to workers for consumption at the workplace;
(d) non-monetary benefits provided by the employer to employees of the fund of cultural and social needs, the social fund or the profit (income) after tax, in the form of the possibility of using recreational, medical and educational facilities, pre-school facilities, racing libraries, gym and sports facilities or in the form of a contribution to cultural programmes and sports events; However, if foreign recreation is provided, including foreign tours, a staff member shall be exempt from the value of non-monetary benefits in aggregate of a maximum amount of CZK 10,000 per calendar year. The performance of the employer shall also be assessed by the staff member for the family members of the staff member,
(e) the amounts which the employer is obliged to pay under the Specific Regulations (21) for social security insurance, the contribution to national employment policy and health insurance;
(f) an advantage granted by an employer engaged in public transport of persons to its employees and their family members in the form of free or discounted tickets;
(g) income of members of housing cooperatives from the personal performance of self-help cooperative housing construction not paid in cash but credited to their membership shares;
(h) income generated by the acquisition of employee shares under the special regulation22) below the nominal value, with the exception of income accruing from them and income accruing from the sale (repayment) of such shares, above the acquisition value which is considered to be income from capital assets [Paragraph 8 (3) (a)];
(ch) income from dependent activities carried out in the territory of the Czech Republic, resulting from the taxpayers referred to in Article 2 (3) from employers having their registered office or resident abroad, provided that the taxpayers do not stay in the territory of the Czech Republic for more than 183 days in a calendar year, or not for income from activities carried out in a permanent establishment (§ 22 (2)),
(i) the value of non-cash donations provided from the fund of cultural and social needs under the relevant regulation, 6a) for employers not covered by this regulation, the value of non-cash donations provided under similar conditions from social funds or from profit (income) after tax, up to an aggregate amount of CZK 2000 per year for each employee;
(j) cash performance for equipment and equipment provided to members of the armed forces and corps under special regulations, 6b)
(k) compensation for loss of service income (salary) granted to members of the armed forces and corps under special regulations, 6c)
(l) the value of the transitional accommodation, not for work-related accommodation, provided as non-monetary benefits by the employer to employees in connection with the performance of the work, unless the municipality of the transitional accommodation is identical to the municipality where the employee resides;
(m) wage compensation paid under special rules 6d) equal to the difference between sickness insurance benefits;
(n) income generated by the return of employee shares (bonds) up to the amount of the difference between the nominal value paid and the selling value on issue, provided that the difference was taxed on acquisition before 1 January 1993;
(o) compensation for pension losses granted under the Labour Code for the period before 1 January 1989 and paid after 31 December 1992;
(p) the monetary advantage resulting from the provision of interest-free loans or loans with interest below the normal rate of interest by the employer of the fund of cultural and social needs in accordance with the special regulation (6a) and, for employers not covered by this regulation, from the social fund or from the profit (income) after tax, where the repayable loans granted to the employees for housing purposes are up to CZK 100,000 or to bridge the difficult financial situation up to CZK 20,000;
(r) the monetary contribution to the renewal of granted in kind of uniform customs formalities;
(s) a special surcharge granted in foreign currency to members of the armed forces seconded to UN peacekeeping forces outside the territory of the Czech Republic (6e) for the duration of their stay abroad;
(t) a monetary contribution to the renewal of the granted uniform legal requirements of a member of the fire brigade;
(u) severance grants pursuant to Decree No. 19 / 1991 Coll., on the employment and physical security of workers in the mining industry who are not fit for work in the long term, paid to workers who have been reassigned or released for medical reasons for occupational risk, occupational disease, accidents at work or diseases arising from or deteriorating from the effects of the working environment.
(10) Functional benefits are:
(a) the functional salaries of members of the Government, members of the Czech National Council and the salaries of the Heads of Central Government Authorities;
(b) remuneration for the performance of duties in the institutions of the municipalities, other local authorities, state bodies, civil and interest associations, chambers and other institutions.
(11) They shall not be regarded as a functional benefit and shall not be the subject of a tax on the reimbursement of expenses rendered in connection with the performance of a function to which entitlement under the special rules arises, except for the reimbursement of income foregone. The income of experts and interpreters shall not be regarded as a functional benefit as an activity carried out under specific regulations. 6f)
(12) Paragraphs 7, 8 and 9 shall apply mutatis mutandis to transactions provided in connection with the performance of functions.
(13) The basis of the tax (sub-base) shall be income from dependent activity or functional benefits, with the exception referred to in paragraphs 4 and 5, reduced by:
(a) the amount of social security premiums, the contribution to the national employment policy and the general health insurance premium, which is, under the special rules (21), payable by the employee; for staff covered by compulsory foreign insurance of the same type, contributions to such foreign insurance,
(b) 25% of the income from the dependent activity of the taxpayers referred to in Article 2 (5).
Revenue from business and other self-employment
(1) Entrepreneurship income is
(a) income from agricultural production, forestry and water management, 7)
(b) business income, 8)
(c) income from other business according to special rules;
(d) the shares of the shareholders of the public commercial company and the associates of the limited partnership company in profit.
(2) Revenue from other self-employed activities, in so far as they do not fall within the income referred to in Section 6, is:
(a) revenue from the use or provision of industrial or other intellectual property rights, copyright rights, including related rights of copyright law, 9), including revenue from the issue, reproduction and dissemination of literary and other works,
(b) income from the pursuit of an independent profession which is neither business nor business under special rules;
(c) the remuneration of experts and interpreters for their activities under special rules. 6f)
(3) The basis of the tax (sub-base) is the revenue referred to in paragraphs 1 and 2 with the exception referred to in paragraph 8. This revenue shall be reduced by the expenditure incurred to achieve, secure and maintain it, with the exception of the revenue referred to in paragraph 1 (d). Paragraph 23 to 33 shall apply to the determination of the tax base (sub-tax base). The revenue referred to in Article 22 (1) (c), (f) and (g) (1) and (2) to the taxpayers referred to in Article 2 (3) is a separate tax base for taxation at a specific tax rate (Article 36).
(4) The basis of the tax (partial tax base) of a public company's shareholder is part of the public company's tax base established in accordance with § 23 to 33. This part of the tax base shall be determined in the same proportion as the distributed profit under the social contract, otherwise equal to the work.9b) If, according to § 23 to 33, a public company shows losses, part of that loss is distributed to the shareholder as well as the taxable amount.
(5) The basis of the tax (sub-base of tax) of the complementary company is part of the tax base of the limited company established pursuant to § 23 to 33 per complementary company. This part of the tax base shall be determined in the same proportion as the part of the profit attributable to the complementary under the social contract, otherwise equally. (c) If, according to § 23 to 33, a limited liability company shows losses, a part of that loss is distributed to the ancillary company in the same way as the tax base.
(6) The revenue referred to in paragraph 1 (d) shall be reduced by social security contributions, the contribution to the State employment policy and the general health insurance premiums paid by a member of a public commercial company or an associate of a limited partnership, provided that such insurance is not paid as a cost of a public commercial company or a limited partnership, but only up to the amount of the premium calculated at the rate without increasing it from the maximum base for such insurance.
(7) Social security contributions, contributions to state employment policy and general health insurance premiums paid by a public commercial company for associates or a limited partnership for associates or associates shall be exempt from tax.
(8) The income of authors for contributions to newspapers, magazines, radio or television from sources in the Czech Republic is a separate tax base for taxation at a special tax rate (§ 36), provided that the income referred to in paragraph 2 (a) is not more than CZK 3000 in the calendar month.
(9) If the taxpayer does not apply the expenditure evidently incurred to achieve, secure and maintain income, he may apply the expenditure, with the exception referred to in Article 12, amounting to:
(a) 50% of income from agricultural production, forestry and water management, 7)
(b) 30% of the revenue referred to in paragraph 2 (a), with the exception of revenue referred to in paragraph 8;
(c) 25% of business income, other business income under the special rules and income referred to in paragraph 2 (b) and (c).
(10) Where the taxpayer applies the expenditure referred to in paragraph 9, the amounts of expenditure shall include all expenses incurred by the payer in the context of the achievement of income from business and other self-employed activities, other than social security contributions and contributions to national employment policy and general health insurance premiums, 21) which the taxpayer may apply in addition to the proven amount, but only up to the amount of premiums calculated at the rate without increasing it from the maximum basis for such insurance under a special rule. 21)
(11) If the property or movable property is a joint ownership of a spouse who is used for business or other self-employed activity (paragraphs 1 and 2) by one or both spouses, the property or the movable property shall be entered in the property by one of the spouses. Where the property or movable property is held by one of the spouses but is also used by the other of the spouses for business or other self-employed activities (paragraphs 1 and 2), expenditure (costs) relating to such immovable property or movable property which is attributable to a part of the immovable property or movable property used for the business or other self-employed activity of the two spouses may be divided between the two spouses in the proportion in which they use it in their activities under paragraphs 1 and 2. Revenue from the sale of immovable property or movable property in the non-joint ownership of spouses shall be taxed on the part of the spouses who had such property or movable property included in the commercial property. After the completion of the business or other self-employment activity, the procedure laid down in Section 10 (5) of the Act shall be followed.
(12) The revenue referred to in Article 7 (1) (d) shall not be regarded as revenue and shall not be the subject of a tax on the reimbursement of travel expenses paid to members of public commercial companies and to associates of limited liability companies up to the amount laid down in the special regulation. 5)
Revenue from capital goods
(1) The revenue from capital goods, in so far as they are not income pursuant to Article 6 (1) or 7 (1) (d), are:
(a) profit shares (dividends), interest and other benefits on securities or participation in limited liability companies and limited companies, and profit shares and similar benefits from cooperative membership;
(b) shares in silent partnership profits from participating in business unless they are used to supplement the deposit minus the share of losses up to the original amount;
(c) interest, winnings and other income on deposits in holding books, interest on funds in holding accounts;
(d) income from the deposit certificates and the equivalent deposits made to them;
(e) supplementary pension benefits with State contribution 9a) less the contributions paid and the State contribution to supplementary pension schemes;
(f) benefits from insurance against a certain age, less premiums paid. Paragraph 10 (7) shall apply to the calculation of the tax base,
(g) interest and other income on loans and loans granted, interest on current account deposits and interest on the value of the amount of the deposit paid in the contractual amount of the members of public companies. Interest on current account deposits which are not intended for business under the terms of the Bank (spore accounts, foreign exchange accounts, etc.) shall be assessed in accordance with point (c),
(h) income from notes (e.g. discount amounts of notes, interest on the exchange sum).
(2) The participation referred to in paragraph 1 (a) shall, for the purposes of this Act, be understood to mean a monetary and non-monetary contribution to the business.
(3) In addition, income from capital goods shall be considered as income from capital goods:
(a) the difference between the nominal (nominal) value of the bond, including the deposit note or the deposit, paid to it in equal terms with the value of the employee's share at the time of its return and the selling value at the time of issue; in the case of early buy-back, the buy-back price shall be used instead of the nominal value;
(b) revenue from the sale of the right to buy in securities.
(4) The revenue referred to in paragraph 1 (a) to (f) and paragraph 3 (a), in so far as the revenue referred to in § 6 (1) or § 7 (1) (d) is not derived from resources within the territory of the Czech Republic, is a separate tax base for taxation at a specific tax rate (§ 36). If this income comes from sources abroad, it is, not reduced by expenditure, the basis of tax (sub-tax base).
(5) The revenue referred to in paragraph 1 (g) and (h), not reduced by expenditure, is the basis of the tax (sub-base). The revenue referred to in paragraph 3 (b) shall be reduced by the purchase price of the right to buy.
(6) Interest and other income arising from savings deposits received by the employer from its employees or received by the bank from its employees on derogatory terms than from other natural persons are a separate tax base for taxation at a specific tax rate (§ 36).
(7) The supplementary pension benefit with a State contribution (9a) is considered to be the tax base for taxation at a specific tax rate after the reduction by the contributions paid and the State contributions to the supplementary pension scheme. If the benefit is paid regularly for a specified period, these contributions shall be distributed equally over the period of benefit. If the period for receiving the benefit is not defined by the supplementary pension contract, the difference between the median length of the life 14) and the age of the supplementary pension participant at the time when the benefits start to be received for the first time shall be established.
Revenue from renting
(1) In the absence of revenue referred to in paragraphs 6 to 8, rental income is:
(a) income from the rental of immovable property (parts thereof) or apartments (parts thereof);
(b) income from the rental of movable property, other than occasional leasing provided for in Article 10 (1) (a).
(2) The income referred to in paragraph 1 resulting from the joint ownership of spouses shall be taxed only on one of them.
(3) The basis of the tax (sub-base of tax) is the revenue referred to in paragraph 1, less the expenditure incurred to achieve, secure and maintain it (Section 5 (2)). Paragraph 23 to 33 shall apply to the determination of the tax base (sub-tax base). The income from the lease to the taxpayers referred to in § 2 (3) is, with the exception of the income from the rental of real estate or housing, a separate tax base for taxation at a specific tax rate (§ 36).
(4) If the taxpayer does not apply the expenditure evidently incurred to achieve, secure and maintain revenue, he may apply it at the rate of 20% of the revenue referred to in paragraph 1.
(5) Where the taxpayer applies the expenditure referred to in paragraph 4, the amounts of the expenditure shall include all the expenses incurred by the payer in the context of the achievement of the rental income referred to in Article 9.
(6) Charters having rental income and applying for such income the actual expenditure incurred in achieving, securing and maintaining them shall keep records of the income and expenditure incurred in achieving, securing and maintaining income in a time sequence, the registration of tangible and intangible assets that can be amortised, the registration of the creation and use of the reserve for the repair of tangible assets, where they create it, the records of claims and liabilities in the tax period in which the lease is terminated, and the payroll notes when they pay wages. However, where taxpayers decide to charge in a system of simple or double-entry accounting, even if they are not required under accounting regulations (20), they shall apply these rules, if they are to do so throughout the tax period, when both the movable and immovable property of which they are charged are not considered to be commercial property within the meaning of the income tax.
Other revenue
(1) The other revenue resulting from the increase in assets, in the absence of revenue under § 6 to 9, is in particular:
(a) income from occasional activities or the occasional hire of movable property, including income from agricultural production which is not operated by an entrepreneur (self-employed farmer);
(b) income from the transfer of own property, movable property and securities, with the exception referred to in Section 4;
(c) income from the transfer of a participation in a limited liability company, a limited partnership or a share in the capital of a cooperative, including shares in a transformed cooperative (13), with the exception referred to in § 4;
(d) income from inherited industrial and other intellectual property rights, including copyright and related rights, 10)
(e) received alimony, pensions (11) and similar recurring benefits, with the exception referred to in Section 4;
(f) the share of a member of a trading company, with the exception of a member of a public company, an associate of a limited partnership or a member of a cooperative, in the liquidation balance of the company or cooperative;
(g) the share of settlement in the event of the termination of the participation of a member of a trading company, with the exception of a member of a public trading company and an associate of a limited partnership, or in the event of the termination of membership of a cooperative and other interest in the assets of the cooperative, 13)
(h) lotteries, betting and other similar games and competition and composition wins with the exception referred to in paragraph 3 (b) and § 4;
(ch) prices from competitions and sports competitions with the exception referred to in § 4.
(2) The income referred to in paragraph 1 resulting from the joint ownership of spouses shall be taxed on one of them.
(3) In addition to the revenue referred to in Section 4, tax is exempt:
(a) the revenue referred to in paragraph 1 (a), provided that their total of the taxpayer does not exceed CZK 6000 in the tax year;
(b) prizes from lotteries, bets and similar games operated on the basis of permits issued under special regulations. 12)
(4) The basis of the tax (sub-base of tax) is income less expenditure evidently incurred to achieve it. Where the expenditure relating to each type of income referred to in paragraph 1 is higher than the income, the difference shall not be taken into account. If the income referred to in paragraph 1 (h) and (ch) comes from sources abroad, the basis of tax (sub-base of tax) shall be income not reduced by expenditure. If there is income from agricultural production, expenditure may be used in accordance with Section 7 (9) (a). Revenue resulting from instalments on the basis of a contract of sale concluded or an advance on the basis of a contract for the future sale of the property shall be included in the sub-base of tax for the tax period in which they were achieved.
(5) In the case of revenue referred to in paragraph 1 (b), expenditure shall be the price resulting from the valuation of the case for which the debtor has been established and, if the matter is inherited or donated, the price determined for the purposes of the tax on inheritance or donation. If the tangible assets are amortised under Paragraph 26 et seq., which has been included in the commercial property for the pursuit of a business or other self-employed activity or have been used for hire, the expenditure shall be the balance price referred to in Section 24 (2) (b). If it is an exchange or a win-win case, the price is based on the normal value at the place and at the time of its acquisition (§ 3 (3)). The expenditure shall also be the amounts evidenced for the technical evaluation, correction and maintenance of the case, including other expenditure relating to the execution of the sale, with the exception of expenditure on the personal need of the taxpayer. The value of the taxpayer's own work on the items he has produced or evaluated himself shall not be taken into account in determining expenditure. In addition to the expenditure referred to in Article 24 (2) (r) and (w), the expenditure relating to the sale and payment of securities market trading may be used. Expenditure in excess of revenue referred to in paragraph 1 (b) and (c) in the tax period in which repayments or advances for the first time arise for the sale of movable, security, real estate, future sale of real estate or for the sale of a holding in a limited company, limited company, joint venture or debt, 12a), with the exception referred to in Article 4, may be made in that tax period up to the amount of that income. Where income is generated in other tax periods, the same procedure shall apply, up to the total amount that can be applied under this provision.
(6) In the case of revenue referred to in paragraph 1 (c), (f) and (g), the expenditure shall be the acquisition price of the share. The issue is not a share of the cooperative's assets transferred in the context of the transformation of cooperatives under the special rule (13), with the exception of the share or part thereof which is a substitute under the special rules, (2) and with the exception of another share of the cooperative's assets, (13) if it is issued in kind or in cash.
(7) A pension under the special legislation11) is considered as a taxable base (sub-base) after a reduction by the amount of the purchase price evenly distributed over the period of retirement. This period is found to be the difference between the median length of life 14) and the age of the taxpayer at the time when the pension begins to receive for the first time. The income provided by the employer to its employees, including former employees, is revenue under Section 6.
Contents
§ 1
ČÁST PRVNÍ
§ 2
§ 3
§ 4
§ 5
§ 6
§ 7
§ 8
§ 9
§ 10
§ 11
§ 12
§ 13
§ 14
§ 15
§ 16
ČÁST DRUHÁ
§ 17
§ 18
§ 19
§ 20
§ 21
ČÁST TŘETÍ
§ 22
§ 23
§ 24
§ 25
§ 26
§ 27
§ 28
§ 29
§ 30
§ 31
§ 32
§ 33
§ 34
§ 35
§ 36
§ 37
§ 38
§ 38a
§ 38b
§ 38c
§ 38d
§ 38e
§ 38f
ČÁST ČTVRTÁ
§ 38g
§ 38h
§ 38ch
§ 38i
§ 38j
§ 38k
§ 38l
§ 38m
§ 38n
ČÁST PÁTÁ
§ 39
ČÁST ŠESTÁ
§ 40
§ 41
§ 42
Čl. IV
Čl. IV
Čl. III
Čl. V
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Regulation Information
| Citation | Full text of Act No. 28 / 1996 Coll., Act of the Czech National Council on Income Taxes (full text as shown by later amendments and additions) |
|---|---|
| Regulation Type | Declared full text |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 15.02.1996 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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