Act No. 316 / 1996 Coll.
Act amending and supplementing Act of the Czech National Council No. 586 / 1992 Coll., on Income Tax, as amended
Valid
Law
Effective from 01.01.1997
Text versions:
01.01.1997
31.12.1996
316
THE LAW
of 13 December 1996
amending and supplementing the Act of the Czech National Council No. 586 / 1992 Coll., on Income Tax, as amended
Parliament has decided on this law of the Czech Republic:
Act No. 586 / 1992 Coll., on Income Taxes, as amended by Act No. 35 / 1993 Coll., Act No. 96 / 1993 Coll., Act No. 157 / 1993 Coll., Act No. 196 / 1993 Coll., Act No. 323 / 1993 Coll., Act No. 42 / 1994 Coll., Act No. 85 / 1994 Coll., Act No. 114 / 1994 Coll., Act No. 259 / 1994 Coll., Act No. 32 / 1995 Coll., Act No. 87 / 1995 Coll., Act No. 118 / 1995 Coll., Act No. 149 / 1995 Coll., Act No. 248 / 1995 Coll., is amended and supplemented as follows:
1. In Article 4 (1) (d), the text "from the insurance of property which was or is included in the business property for the pursuit of a business or other self-employed activity or lease 'is replaced by" accepted as compensation for damage caused to property which was included in the business property for the pursuit of the business or other self-employed activity at the time of the loss of property for hire and, in addition to the performance of the liability insurance for damage caused in connection with the business or other self-employed activity of the taxpayer and for damage caused by the person for the hire,'.
2. in Article 4 (1) (f), "Article 20 (5)" is replaced by "Article 20 (8)."
3. in Article 4 (1) (k), the following shall be inserted after the words "including non-monetary benefits," including note 2b: "social assistance provided by the employer from the cultural and social needs fund 2b) to the nearest survivors and social assistance to the nearest survivors of the social fund (profit after tax) under similar conditions for employers not covered by this Regulation;
2b) § 9 (1) of Decree of the Ministry of Finance No. 310 / 1995 Coll., on the Fund of Cultural and Social Needs. '
4.
"(t) grants from the state budget, from the budget of cities, municipalities, higher territorial units, state funds and subsidies from grants awarded to the acquisition of tangible investment assets (20) or its technical evaluation,"
5. Paragraph 4 (1) (w), including footnote 13a, reads as follows:
"(w) income 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 six months. The exemption does not apply to income from the sale of securities that 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). Furthermore, the exemption does not apply to income from the sale of securities acquired by a member of a limited liability company, a commuter of a limited company or a member of a cooperative in the conversion of a commercial company or cooperative into a public limited company under special law, 13a) within five years of the acquisition of such securities,
13a) Sections 69 and 256 of the Commercial Code. '
6. in Paragraph 4 (1) (za), the end of the comma shall be replaced by a dot.
The letter (zb) shall be deleted.
7. In Paragraph 4 (3), the following sentence is added at the end: "The date on which assets are removed from the property of the payer shall be the date on which the taxpayer last charged the property. 20)."
8. The following sentences shall be added at the end of Paragraph 6 (2): "The employer shall also be the taxpayer referred to in Paragraph 2 (2) or Article 17 (3), for whom the staff members perform the work according to his orders, even if the income for the work is paid by reason of the contractual relationship through a person established or residing abroad. In view of other provisions of the law, the income thus paid shall be considered as income paid by the taxpayer referred to in § 2 (2) or § 17 (3). Where the employer's remuneration includes an amount of brokerage to a person having his registered office or residence abroad, at least 60% of the total remuneration shall be regarded as the employee's income. ';
9. In Paragraph 6 (6), first sentence, the words "paragraph 1 'are deleted.
10. In Paragraph 6 (6), the following sentence is added at the end: "Value added tax is always included in the entry price for the purposes of this provision. '
11. the following text shall be added at the end of Paragraph 6 (7) (b): "the value of the working clothes intended by the employer for the performance of the employment, including the contribution to its maintenance,"
12. in Paragraph 6 (13), point (b) is deleted and the designation (a) is deleted and at the end of the comma is replaced by a dot.
13. in Paragraph 7 (2) (c), "remuneration" is replaced by "revenue."
14. in Article 7 (9) (b), at the end of "paragraph 6" is replaced by "paragraph 8."
15. In Paragraph 10 (3) (a), "CZK 6000" is replaced by "CZK 10,000."
16. In Paragraph 15 (1) (a), "CZK 26 400" is replaced by "CZK 28 800."
17. In Paragraph 15 (1) (b), the amount "CZK 13 200" is replaced by "CZK 14 400."
18. In Paragraph 15 (1) (c), "CZK 12,000" is replaced by "CZK 16800" and "CZK 26400" is replaced by "CZK 28800."
19. In Paragraph 15 (1) (f), "36 000 CZK" is replaced by "42 000 CZK."
20. In Paragraph 15 (1) (g), "CZK 6000" is replaced by "CZK 9600."
21. In Paragraph 15 (2), the amount "26 400 CZK" is replaced by "28 800 CZK."
22. In Paragraph 15 (8), the following sentence is added at the end: "As a gift for medical purposes, the value of one blood collection of a non-contributory donor is valued at CZK 2000."
23.
Tax rate
The tax on the tax base reduced by the non-taxable part of the tax base (§ 15) and the deductible items from the tax base (§ 34), rounded down to 100 CZK, amounts to
| Ze základu daně | Daň | Ze základu přesahujícího | ||
|---|---|---|---|---|
| od Kč | do Kč | |||
| 0 | 84 000 | 15 % | ||
| 84 000 | 168 000 | 12 600 Kč + 20 % | - " - | 84 000 Kč |
| 168 000 | 252 000 | 29 400 Kč + 25 % | - " - | 168 000 Kč |
| 252 000 | 756 000 | 50 400 Kč + 32 % | - " - | 252 000 Kč |
| 756 000 | a více | 211 680 Kč + 40 % | - " - | 756 000 Kč.“. |
24. in Paragraph 19 (1) (i), the words "interest income on government bonds 4d) and" are deleted.
25. The following Paragraph 20a is inserted after Paragraph 20, including footnote 19d:
The share company, which is only part of the tax period by the investment fund pursuant to the special regulation, 16) shall distribute the tax base (Paragraph 20 (1)) with precision to the days, and to the part
(a) which shall be valid until the date preceding the date on which the withdrawal of the authorisation for the activity of the investment fund or from the effectiveness of the authorisation issued for the creation of the investment fund took effect. If the withdrawal of an authorisation in an investment fund's activities is not granted within a period after the closure of the investment fund's activities, 19d) the date applicable to the distribution of the tax base shall be the day preceding the date of termination of the investment fund's activities, 19d)
(b) attributable to the remainder of the tax period.
19d) § 35i of Act No. 248 / 1992 Coll., as amended by Act No. 151 / 1996 Coll. '
Article 26 (21) shall be added to paragraph 3:
"(3) For an investment fund which has ceased to operate in the course of the tax period 19d), the tax rate referred to in paragraph 2 shall be applied only to the part of the tax base established under Paragraph 20a. Similarly, the public limited company from which the investment fund was created during the tax period shall be treated. '
27. the last sentence of Paragraph 22 (2) shall be deleted.
28. In the first sentence of Article 23 (3), the following is inserted after the words "from the tax base under": "Article 24 (2) (za) a."
29. Paragraph 23 (4) (e) reads as follows:
"(e) amounts cleared into income (income) if:
1. are related to the destruction of provisions and adjustments, the formation of which was not, for tax purposes, expenditure (cost) to achieve, secure and maintain income;
2. in the case of taxpayers charging in the double-accounting system, expenditure (costs) not recognised in previous tax periods as expenditure (costs) to achieve, secure and maintain income, up to a maximum of these unrecognised expenditure (costs) in previous tax periods, '.
30. In Paragraph 23, the following text is added at the end of paragraph 6:
(a) in the tax period in which the lease was terminated, where the non-monetary performance is the expenditure (costs) referred to in Article 24 (2) (zb) and the expenditure for the completed technical evaluation (§ 33), provided that the value of the technical assessment did not increase the entry price by the owner (lessor) nor was it written off by the lessee during the lease. This non-monetary performance shall be valued at the amortised cost of the assets on a uniform basis (Section 31) or by an expert opinion,
(b) in the tax period during which the lease was terminated, where the non-cash performance is expenditure on the completed technical evaluation (§ 33), which was written off by the lessee with the consent of the owner (lessor). This non-monetary performance shall be valued at the amortised cost of the assets on a uniform basis (Section 31) or by an expert opinion,
(c) in the tax period in which the expenditure (costs) referred to in § 24 (2) (zb) has been incurred and the technical evaluation (§ 33) put into use if the value of the technical assessment by the owner (lessor) increases the input (balance) price. This non-monetary performance shall be valued at the amount of expenditure (costs) incurred by the lessee. ';
31. In Paragraph 23 (7), the following sentence is inserted after the first sentence, including footnote 20d: "For a price that would be negotiated between independent persons in normal business relations when determining interest rates for loans, 20d), for the purposes of this provision, interest of 140% of the discount interest rate of the Czech National Bank applicable at the time of conclusion of the contract.
20d) § 657 et seq. of the Civil Code. '.
32. in Article 23 (8) (b), the following sentences are added after points 1 to 3:
"In the same way, the taxpayers referred to in Article 2 shall proceed if, during the tax period, they interrupt the business or other self-employed activity (§ 7) or the lease (§ 9), and the business or other self-employed activity (§ 7) or lease (§ 9) do not commence until the date for filing the tax return for the relevant tax period in which the business or other self-employed activity (§ 7) or lease (§ 9) have been suspended. In the same way, the taxpayers referred to in Paragraph 2 shall also proceed to change the way in which expenditure is used in accordance with Paragraph 24 to the manner in which it is provided for in paragraphs 7 (9) or 9 (4) or when accounting begins if they were not an entity. 20) The tax base (sub-base) shall be adjusted for the tax period preceding the tax period in which the method of application of the expenditure was changed. ';
33. The first sentence of Paragraph 23 (9) reads: "In the tax period in which the financial lease contract is cancelled, followed by the purchase of tangible movable property and the subject of the lease was amortised in accordance with Paragraph 30 (4), the lessor or his transferor [§ 30 (12) (g)] shall adjust the taxable amount for the difference between the depreciation applied and the depreciation calculated in accordance with § 31 or 32."
34. in Article 24 (2) (b), the following sentences are added after points 1 to 3:
"In the case of partial sale or disposal of tangible property and intangible property, expenditure (cost) shall be the proportion of the remaining price. The residual price or part thereof may not be applied where the tangible property or part thereof is disposed of in connection with the acquisition of new tangible property. ';
35. Paragraph 24 (2) (h) (1) reads as follows:
"1. rent, with the exception of rent for financial leasing, followed by the purchase of the hired item and the rent referred to in Article 25 (1) (za), pursuant to a special provision, 20) '.
36. in Article 24 (2) (i), the following shall be inserted after the words "Article 24 (2) (a)": "and paragraphs 8 and 9 for cases where the claim has been acquired by the contribution of a member or member of the cooperative."
37. in Paragraph 24 (2) (y), point 3, including footnote 26j, is deleted;
Points 4 and 5 shall become points 3 and 4.
38. in the last sentence of Article 24 (2) (y), the words "where its depreciation is fully covered" shall be replaced by "or part thereof, up to the above covered."
39.
"(za) a refund for the release of an apartment (severance grant) granted by the owner of the apartment on condition that the vacancy begins to be used by the owner for a business or other self-employed activity or lease no more than two years after the release and will be used in this way for at least another two years. If the conditions are infringed, the taxpayer shall be obliged to increase the economic result or the difference between the revenue and expenditure of the refund applied (severance grant) in the tax period in which the conditions for its application have been infringed. The sale of such an apartment shall not be regarded as a breach of the conditions, '.
40. In Paragraph 24 (2), the dot is replaced by a comma at the end of the point (zb) and the following point (zc) is added:
"(zc) in the case of duplicates, expenditure (costs) which is not expenditure (costs) to achieve, secure and maintain income, only up to the amount of income related to them, provided that they are part of costs and revenues in the same tax period,";
41. in Article 24 (2), the following point (zd) is added:
"(zd) expenditure (costs) on the acquisition of cards the ownership of which is entitled to discounts on the prices of goods and services related to the subject of the activities of the payer, possibly linked to advertising of his activity, for natural persons with income pursuant to § 7 and for taxpayers referred to in § 17. Where such cards are also applicable to the personal use of the payer or other persons or to the provision of discounts on expenditure (costs) referred to in § 25, expenditure (costs) on the acquisition of the card may be used only half the amount. '
(42) In Article 24 (4) (b), the words "Article 31" shall be inserted after the words "Article 24 (4) (b)" and the following sentence shall be added:
"If, on the date of purchase, the contract was already written off at the rate of 100% of the entry price, only the condition referred to in point (a) shall apply. '
43. In Article 24 (5), the following shall be inserted after the words "in the case of an even depreciation under ':" Article 31'.
44. in Article 24, paragraphs 8 and 9 are inserted after paragraph 7, including Notes 22b and 22c:
"(8) The carrying amount of the claim for the purposes of this Act shall be the nominal value or the price of the acquisition of the claim, reduced by write-down 22b) or the corrected item created. 22a)
(9) In the case of a claim acquired by a deposit in connection with the disappearance of a trading company or cooperative without liquidation22c), the trading company or cooperative shall continue to write-off the claim 22b) or in the formation of an adjustment item, 22a) as if there had been no change in the creditor's person, up to the amount of the valuation of the claim for the deposit, but not more than the book value of the claim recorded in the balance sheet of the depositor. In the subsequent deposit of an asset acquired by a deposit, a trading company or cooperative may apply depreciation 22b) or reparation 22a) only up to the carrying amount of the claim recorded with the first depositor.
22b) Article in Act No. 149 / 1995 Coll., as amended by Act No. 248 / 1995 Coll.
22c) § 69 of the Commercial Code. '
Paragraph 8 shall become paragraph 10.
45. in Article 25 (1) (c), the following shall be inserted after the words "security": "except for options 20a)."
46. in Paragraph 25 (1), at the end of point (z), the dot is replaced by a comma and the following points (after), (zb) and (zc) are added:
"(za) rent for works of art 30) and expenses (costs) for the restoration of works of art, 30) which are not part of the buildings and buildings, for taxpayers who are not engaged in exhibition, museum and gallery activities,
zb) in the case of taxpayers who do not charge in the system of double accounting expenditure on the acquisition of works of art, 30) which are not part of the buildings and buildings and in each case do not exceed CZK 20,000,
(zc) write-off of the claim 22b) or the creation of a remedy 22a) in respect of a claim acquired by a commercial company or cooperative on the basis of a deposit 22d) implemented since 1 July 1996, with the exception of receivables acquired by a deposit in connection with the disappearance of a company or cooperative without liquidation. 22c)
22d) § 59 of the Commercial Code. '
47. In the first sentence of Paragraph 26 (2), the following words shall be inserted after the words "except for cores": "and fencing not to be used to ensure forest production and hunting."
48. in Paragraph 27 (g), the following shall be inserted after the words "mineral deposits": "registered in the property of the taxpayer before 1 January 1997."
49. in Article 28 (3), "Article 31 or Article 32" shall be replaced by "this Act."
50. Paragraph 28 (4) is deleted.
Paragraphs 5 to 8 shall be renumbered paragraphs 4 to 7.
51. In Paragraph 29 (1), the following sentences are added at the end: "The entry price of tangible assets and intangible assets for which the acquisition or technical evaluation of which has been granted to taxpayers who have not been charged in the double-accounting system by the State budget, the budgets of cities, municipalities, higher territorial units, state funds and grants by grant allocation shall be reduced by the subsidy received after 1 January 1997. Similarly, physical and intangible assets created by their own activities shall be treated as such. ';
52. Paragraph 29 shall be added in paragraph 5:
"(5) The entry price of tangible assets and intangible assets co-owned shall be the entry price of the co-owner referred to in paragraph 1 at the value of his co-ownership interest. ';
53. In Paragraph 34 (3) (d), the following shall be inserted after the words "the amounts laid down in points (a) to (c)": "from the entry price recorded in the owner's property,"
54. In Paragraph 35 (3), the words "dividends' are replaced by the words" dividend income on shares and units'.
55. In Paragraph 35 (3), the following sentence is added at the end: "An investment company making mutual funds may deduct from the tax half of the tax deducted by individual mutual funds on the dividend income of mutual certificates on condition that the amount of the deduction attributable to the individual mutual fund is taken into account for that fund. '
56. in Paragraph 36 (1) (a) (1), "point 1, 2, 4" is replaced by "point 1 to 4";
57. in Paragraph 36 (2) (a), at the end of point 8, the dot is replaced by a comma and the following point 9 is added:
'9. of the share attributable to the share sheet on the cancellation of the holding fund, 34c) reduced by the acquisition price 20).
34c) § 35d of Act No. 248 / 1992 Coll., as amended by Act No. 151 / 1996 Coll. '
58. In the first sentence of Paragraph 36 (4), the words "the proportion of interest income on sovereign debt 'are replaced by" the proportion of interest income on mortgage certificates 4d)'.
59. In Paragraph 36 (6), the following sentence is added at the end: "In the case of interest income on bonds 20a), the credit may only be used as part of a tax advance on the condition that no change occurred in the person of the holder of the bond."
60. In § 38g (1), the amount "6000 CZK" is replaced by "10,000 CZK."
61. In § 38g (2) the amount "2000 CZK" is replaced by "4000 CZK."
62. Paragraph 38h (2) reads as follows:
"(2) The advance on the taxable salary charged or paid for the calendar month shall be:
| Zdanitelná mzda | Záloha | Ze zdanitelné mzdy přesahující | ||
|---|---|---|---|---|
| od Kč | do Kč | |||
| 0 | 7 000 | 15 % | ||
| 7 000 | 14 000 | 1 050 Kč + 20 % | - " - | 7 000 Kč |
| 14 000 | 21 000 | 2 450 Kč + 25 % | - " - | 14 000 Kč |
| 21 000 | 63 000 | 4 200 Kč + 32 % | - " - | 21 000 Kč |
| 63 000 | a více | 17 640 Kč + 40 % | - " - | 63 000 Kč.“. |
63. In § 38k (5) (c) and (d), the amount "26 400 CZK" is replaced by "28 800 CZK."
64. in the Annex to the Act in the depreciation group 2 items (2- 23) and (3- 31) read:
| „(2-23) | 29.24.1 | Jen: výrobní a provozní filtrační zařízení a zařízení pro úpravu vod o kapacitě do 2000 ekvivalentních obyvatel |
| (3-31) | 29.24.1 | Plynové generátory, destilační, filtrační nebo rektifikační zařízení |
| kromě: výrobních a provozních filtračních zařízení a zařízení pro úpravu vod o kapacitě do 2000 ekvivalentních obyvatel“. |
65. In the Annex to the Act, depreciation group 2, the following entries (2- 76), (2- 77) and (2- 78) are added:
| „(2-76) | 29.12.31 | Jen: laboratorní zařízení pro vývin vakua (mechanické, difuzní, ultravakuové, soupravy laboratorní vakuové čerpací) |
| (2-77) | 29.21.1 | Jen: laboratorní pece a pícky, autoklávy a fermentory laboratorní |
| (2-78) | 29.23.11 | Jen: laboratorní přístroje pro destilaci, odpařování a zkapalňování plynů, sušičky a termostaty laboratorní“. |
66. In the Annex to the Act in group 3, headings (3- 17), (3- 18) and (3- 27) are added as follows:
In the entry (3-17) the title is added as follows:
| „kromě: | laboratorních zařízení pro vývin vakua (mechanické, difuzní, ultravakuové, soupravy laboratorní vakuové čerpací) v SKP 29.12.31“. |
in the entry (3- 18) the title is added as follows:
| „kromě: | laboratorních pecí a pícek, autokláv a fermentorů laboratorních v SKP 29.21.12 a 29.21.13“. |
in the entry (3-27) the title is added as follows:
| „kromě: | laboratorních přístrojů pro destilaci, odpařování a zkapalňování sušiček a termostatů laboratorních v SKP 29.23.11“. |
Transitional provisions
1. The tax obligations for the years 1993 to 1996 are governed by the current rules and the provisions of this Law apply for the first time for the 1997 tax period.
2. The provisions of Act No. 586 / 1992 Coll., as amended until 31 December 1996, shall apply to the proceeds from the sale of securities acquired before 1 January 1997.
3. A payer accounting in the double accounting system may, starting from the 1995 tax year, apply a maximum of 10% of the outstanding part of the value of the claim or the purchase price of the debt acquired by the transfer, with the exception of the claims referred to in Article 24 (2) (y) (1) and (2), as an expense (s) to achieve, secure and maintain revenue per year, for a claim acquired by the transfer, for which the maturity date was up to the end of 1994. Overall, it may be used as an expense (cost) of the maximum outstanding part of the value of the claim or the acquisition price of the debt acquired by the transfer. Similarly, the whole set of these claims can be followed. This provision cannot be applied to claims arising from:
(a) as shareholders, shareholders, members of the subscribed equity cooperatives;
(b) between economically linked legal persons where the average of the shares in the capital of the other person or the average of the voting rights shares for the tax period (or part of the tax period) is more than 25%; the average of the shares shall be determined as a proportion of the sum of the stocks on the last day of each month and the number of months in the tax year or part thereof;
(c) between close persons, 20c)
(d) on loans, loans and advances; or
(e) under a special law. 15b)
In the tax period in which it accounts in the double-accounting system, the payer may use as an expense (expense) to achieve, secure and maintain revenue under this provision a multiple of 10% of the outstanding amount of the debt or the acquisition price of the debt acquired by the transfer and the number of years that have elapsed since 1995 until the end of the year preceding the transition to accounting in the double-accounting system. Similarly, the taxpayer proceeds at the end of the business and other self-employed activity and at the end of the lease.
4. Paragraph 24 (2) (y) (3) and (4) shall apply only to claims with a term of maturity starting on 1 January 1995 and to claims or parts thereof, up to the amount covered by the use of the bank reserve or adjustment under § 5 of the Czech National Council Act No. 593 / 1992 Coll., as amended.
5. If the tax entity finds that the amount of income tax is to be lower or the tax loss higher than its last known tax liability 39a) the relevant tax period or that it has incurred a tax loss, it may submit an additional tax return (tax bill). The tax body may proceed in the same way if it does not incur tax on its known tax obligations 39a) the relevant tax period or if no tax is incurred and finds a tax loss. The additional tax return does not include the higher amounts of deductible items under § 34 and those reducing the tax base under § 15 (8) and § 20 (7) and (8) than those applied in the tax return submitted by the tax entity at the statutory date, with the exception of the amounts of deductible items relating to the increased tax base subsequently determined by the tax entity.
6. In the case of property registered in the property of the taxpayer until 31 December 1995, for the inclusion in the tangible property of which an entry price of more than 10 000 CZK has been determined and for the inclusion in the intangible property of which an entry price of more than 20 000 CZK has been determined, the depreciation price shall be determined in accordance with the Act of the Czech National Council No. 586 / 1992 Coll., as amended until the end of 1995.
7. Paragraph 36 (6), second sentence, shall not apply where the change in the person holding the bond took place until 31 December 1996.
8. The Czech National Council Act No. 586 / 1992 Coll., as amended until the end of 1996, applies to interest income on government bonds issued until 31 December 1996.
9. In Article I, points 42, 46 [relating only to Paragraph 25 (1) (zc)], 47, 64 to 66 shall apply for the first time for the 1996 tax period.
This Act shall take effect on 1 January 1997.
Zeman v. r.
Havel v. r.
Klaus v. r.
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Regulation Information
| Citation | Act No. 316 / 1996 Coll., amending and supplementing the Act of the Czech National Council No. 586 / 1992 Coll., on Income Tax, as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 31.12.1996 |
|---|---|
| Effective from | 01.01.1997 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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