What is Legislative measure of the Senate No 340 / 2013 Coll.?

Senate Legislative measure No 340 / 2013 Coll., on Real Estate Acquisition Tax — Senate legal measure on real estate acquisition tax.

Is Legislative measure of the Senate No 340 / 2013 Coll. still valid?

Yes, Legislative measure of the Senate No 340 / 2013 Coll. is still valid and effective.

How many times was it Legislative measure of the Senate No 340 / 2013 Coll. amended?

Legislative measure of the Senate No 340 / 2013 Coll. has 5 time versions of the text.

Legislative measure of the Senate No 340 / 2013 Coll. - Senate legal measure on real estate acqu...

Q: When it became Legislative measure of the Senate No 340 / 2013 Coll. effectiveness?

Legislative measure of the Senate No 340 / 2013 Coll. became effective 01.01.2014.

340

LEGAL MEASURES OF SENATE

of 9 October 2013

on the acquisition tax on immovable property

The Senate has decided on the following legal measure of the Senate:

ČÁST PRVNÍ

TAX

HLAVA I

TAX SUBJECT

§ 1

Tax payer

(1) The tax on the acquisition of real estate is charged by the acquirer of the property right.

(2) If the acquisition of property rights in a holding fund, fund managed by a pension company or trust fund is taken into account, such funds shall be regarded as the sole acquirer of the property right.

HLAVA II

SUBJECT MATTER OF TAX

§ 2

Definition of the subject matter

(1) The subject of real estate acquisition tax is the acquisition of property rights in the real estate which is:

(a) land, construction or unit situated in the Czech Republic;

(b) the right of construction by which the encumbered land is situated in the territory of the Czech Republic; or

(c) a joint ownership interest in immovable property referred to in (a) or (b).

(2) If the acquisition of ownership of or co-ownership of an engineering network is subject to tax on the acquisition of immovable property, only the acquisition of ownership of a building under the cadastral law, which is part of that network and which is located in the territory of the Czech Republic, or a co-ownership of such a building is subject to tax; that building or co-ownership interest in it shall be treated as a immovable property for the purposes of the real estate acquisition tax.

(3) The tax on the acquisition of immovable property shall also apply to the acquisition of the property property right referred to in paragraph 1 or 2 on the basis of:

(a) the hedging transfer of the right;

(b) the transfer of the claim secured by the security transfer of the right to pay.

(4) In the event of the cancellation and settlement of co-ownership of several immovable property referred to in paragraph 1 or 2 whose joint owners are identical, the tax on the acquisition of immovable property shall be the subject of only the acquisition of ownership rights in respect of those immovable property to the extent that its value corresponds to a positive difference between the sum of the values of all the shares of the co-owner in such immovable property after settlement and before settlement; the remuneration is not the share of such immovable property to which the joint owner ceases to have ownership over the settlement.

§ 3

Acquisition of title

(1) For the purposes of real estate acquisition tax, the acquisition of title shall also be regarded as:

(a) the disposal or acquisition of immovable property into a trust fund; and

(b) the acquisition of a building which becomes part of the plot and which was:

1. separate immovable property,

2. part of the right of construction; or

3. Illegally established on this land.

(2) An extension of the period for which the right of construction is established shall also be regarded as acquisition of the property right for the purposes of the real estate acquisition tax.

§ 4

Payment

(1) Repayment means the amount in cash or the value of non-monetary benefits to be or to be provided for the performance received.

(2) The value of non-cash performance is determined in accordance with the law governing the valuation of assets.

(3) If, on the date of acquisition of the property right, it is not possible to determine the value of the non-cash performance under the law governing the valuation of assets, the value of the acquired property less the remuneration which can be determined.

§ 5

Exclusion from the subject matter

Real estate acquisition tax is not subject to acquisition of property rights

(a) the implementation of land-use arrangements;

(b) the conversion of legal persons, with the exception of the transfer of assets to a shareholder; or

(c) granted as replacement for expropriation.

HLAVA III

EXEMPTION FROM TAX

§ 6

Exemptions in public law

(1) Real estate acquisition tax shall be exempt from the acquisition of property rights

(a) a Member State of the European Union;

(b) by another State where reciprocity is guaranteed,

(c) by the local authorities, in whole or in a voluntary association of municipalities.

(2) The tax on the acquisition of real estate is exempt provided that it is not a public aid incompatible with the internal market under the directly applicable European Union law.

(a) a legal person who acquires ownership of a immovable property from the property of a Member State of the European Union or from the property of another State where reciprocity is maintained with that other State and a Member State of the European Union or another State is:

1. the founder of that legal person; or

2. the sole member of that legal person,

(b) a legal person who acquires ownership of a immovable property of a local authority and a local authority is:

1. the founder of that legal person; or

2. the sole member of that legal person.

(3) The condition of a single member in the case of a territorial unit is fulfilled even if the members of a legal entity are only territorial units.

§ 7

Substantial exemptions for new buildings

(1) Tax on the acquisition of immovable property shall be exempt from the first redemption of the right to property

(a) land or the right of construction involving the completed or used construction of a family house;

(b) completed or used construction of a family house;

(c) a completed or used unit in an apartment house or family house which:

1. does not include a non-residential space other than a garage, cellar or chamber used together with an apartment resulting from the construction, superstructure, extension or construction of the building, not only from the division or combination of existing units,

2. based on the construction of the non-residential space, the non-residential space other than the garage, cellar or chamber used together with the apartment is newly not included.

(2) The acquisition of the property right referred to in paragraph 1 shall be exempt only if, within a period of 5 years from the date of completion or commencement of the use of the family house, the unit in the housing house or the family house or the unit in the house or family house, as amended by the construction work, from the earlier date.

§ 8

Exemptions in kind for units

(1) The acquisition tax on immovable property shall be exempt from the acquisition of ownership of a unit which includes a cooperative apartment or cooperative non-residential space which is a garage, cellar or chamber and does not include any other non-residential space where the acquirer is a natural person who is the tenant of that cooperative apartment or cooperative non-residential space.

(2) Real estate acquisition tax shall be exempt from the acquisition of property rights to an entity which does not include a non-residential space other than a garage, cellar or chamber and which is owned by a legal person established in order to become the owner of a house with units and a natural person acquiring the ownership of the unit,

(a) is the lessee of that unit;

(b) is a member of that legal person; and

(c) has participated or its legal predecessor has participated in its monetary or non-monetary performance in the acquisition of a house with units.

(3) If the unit becomes part of the common estate of spouses, the right to exemption shall be established even if at least one of the spouses fulfils the conditions laid down in paragraphs 1 or 2.

§ 9

Other material exemptions

(1) Tax on the acquisition of immovable property shall be exempt from the acquisition of property rights in respect of:

(a) the implementation of a reorganisation under insolvency proceedings, where part of the debtor's assets are issued to creditors or the transfer of the debtor's assets to the newly established legal person in which the creditors have a holding;

(b) the transfer of immovable property to a social cooperative or European social entrepreneurship fund.

(2) The acquisition tax on immovable property shall be exempt from the acquisition by its user of the right to property which is subject to financial leasing under the Income Tax Act under the Income Tax Act.

HLAVA IV

TAXATION BASIS

§ 10

Determination of the tax base

The tax on the acquisition of immovable property is based on the acquisition of value less eligible expenditure.

§ 11

Acquisition value

(1) The acquisition value is:

(a) the agreed price,

(b) comparative tax value,

(c) the price determined; or

(d) the specific price.

(2) The acquisition value shall be determined on the date on which the property acquisition tax occurred.

§ 12

Procedure for determining the acquisition value

(1) The acquisition value is the agreed price,

(a) is greater than or equal to the comparative tax value; or

(b) where this statutory measure provides for the Senate to have the acquisition value exclusively at the agreed price.

(2) The acquisition value is the comparative tax value if it is higher than the agreed price.

(3) The acquisition value is the determined price,

(a) where the acquisition value is not the agreed price or the comparative tax value; or

(b) where this statutory measure provides for the Senate to have the acquisition value exclusively at the price determined.

(4) Where a specific price is determined, the acquisition value is exclusively that price.

§ 13

The agreed price

(1) For the purposes of real estate acquisition tax, the agreed price is the remuneration for the acquisition of property rights.

(2) For the purposes of determining the agreed price, in the case of acquisition of the property right by the exchange of immovable property, the value of the immovable property retained shall not be taken into account on the condition that the acquisition of the property right in respect of such immovable property is subject to real estate acquisition tax and the acquisition value is not exclusively the agreed price.

§ 14

Correlation Tax Value

(1) The comparative tax value is an amount equivalent to 75%

(a) indicative values; or

(b) the prices recorded.

(2) In the case of the acquisition of property rights by the exchange of immovable property on condition that the acquisition of property rights in such immovable property is subject to real estate acquisition tax, the comparative tax value shall be 100%

(a) indicative values; or

(b) the prices recorded.

(3) The taxpayer may choose whether to use the guide value or the determined price to determine the comparative tax value.

(4) For the determination of the comparative tax value, the price determined shall always be used,

(a) if the taxpayer does not provide the real estate data necessary to determine the indicative value; or

(b) if the guide value cannot be determined.

(5) In order to determine the comparative tax value in the event of the cancellation and settlement of co-ownership of multiple immovable property whose co-owners are identical, the sum of the values of all the shares of the co-owner in real estate after settlement and before settlement shall be determined either by using the determined price or by using the indicative value.

§ 15

Indicative value

(1) The indicative value is based on the prices of the immovable property at the place where the immovable property is situated during a comparable period, taking into account the type, location, purpose, state, age, equipment and construction of the technical parameters of the immovable property.

(2) The indicative value for agricultural land is based exclusively on the price determined according to the soil units and, for forest land, on the basic price determined according to sets of forest types, provided that such land:

(a) are not built;

(b) does not constitute a functional unit with a construction or unit;

(c) the territorial plan or the regulatory plan is not foreseen for any other use; and

(d) are not intended to be built on the basis of a decision or consent given under the building law.

(3) The indicative value is determined for:

(a) the land comprising the construction of a family house, the construction for family recreation or the construction of a garage, and the construction of a functional whole with such buildings;

(b) construction of a family house, construction for family recreation or construction of a garage, if these are not part of the property or the right of the building, and in the case of the land forming a functional whole with these buildings;

(c) units which do not include a non-residential space other than a garage, a cellar or a chamber, and in the case of a plot forming a functional unit with that unit;

(d) immovable property constituting accessories to immovable property referred to in points (a) to (c);

(e) land,

1. on which there is no permanent grassland except for flint wood or hedges;

2. on which a construction is not set up, except for fencing or a reinforced area of up to 25 m2; and

3. to which the right of construction is not established.

(4) If it is a immovable property referred to in paragraph 3, the guide value shall not be determined for:

(a) forest land with forest cover;

(b) land which is a water area;

(c) the construction of a public garage and, in the case of land, the construction of a public garage;

(d) unfinished buildings or units and in the case of land involving unfinished construction.

(5) The actual situation is decisive for determining the indicative value of the land in the event of a discrepancy between the type of land listed in the property register and the actual situation.

(6) By decree, the Ministry of Finance sets out the procedure for determining the indicative value.

§ 16

Price found

The price found is the price determined under the law governing the valuation of assets.

§ 17

Special price for auctioning and overheads

The specific price is the price obtained by auctioning or overheads at:

(a) the enforcement of the decision by the sale of the immovable property under the Civil Code;

(b) execution by the sale of the immovable property under the execution rules;

(c) tax execution by the sale of immovable property under the tax rules; or

(d) the sale of real estate at public auction under the Act governing public auctions.

§ 18

Special price for commercial corporations

(1) The specific price shall be:

(a) the transfer of real estate to a personal company the price of real estate referred to in the company's social contract;

(b) the real estate contribution to the cooperative is the price of the real estate item determined by the expert at the valuation of the non-cash contribution;

(c) real estate contribution to a capital company

1. an expert in the valuation of the non-cash contribution;

2. for the purpose of raising the capital of a capital company under the Commercial Corporation Act;

(d) a bonus paid by a shareholder for the creation of the equity of a company by non-cash transactions in the form of real estate over its contribution, the price of that real estate determined under the Commercial Corporation Act;

(e) the transfer of capital to the shareholder, the price of the immovable property determined by the expert for the purpose of demonstrating the adequacy of the amount of settlement to the other members.

(2) Where debts taken over by a commercial corporation have been included in the sale of the real estate in the price of the real estate, the special price referred to in paragraph 1 shall be the price of the real estate without offsetting such debts.

§ 19

Special price in connection with insolvency

The special price is the price

(a) achieved by the sale of immovable property outside the auction in insolvency proceedings;

(b) real estate items identified by an expert opinion drawn up by the expert for the purposes of the valuation of assets and approved meetings of creditors in carrying out the reorganisation in the context of insolvency proceedings, if it is the issue of part of the debtor's assets to creditors or the transfer of the debtor's assets to the newly established legal person in which the creditors have a holding.

§ 20

Special price in respect of the survivor

The special price is the price achieved by the sale of the real estate

(a) in the context of the ordered liquidation of the estate; or

(b) of the estate by the person managing the estate.

§ 21

Special price in other cases

The special price shall be:

(a) the price achieved by the sale of immovable property from the property of a Member State of the European Union or another State;

(b) on the cancellation and settlement of the joint ownership by the court of compensation, the difference in money or the remuneration provided for the sale of the real estate at auction;

(c) the amount corresponding to the part of the cash valuation of the immovable property attributable to the joint ownership of the shareholder in the pool of assets to the company;

(d) compensation

1. the expropriation provided for by a final decision in the expropriation proceedings or before a court,

2. acquired land built in conversion,

3. construction, if this compensation is granted by the owner of the land to the builder at the end of the construction right; or

4. the establishment of a building right as determined in a decision of a public authority;

(e) compensation granted in connection with the unauthorised establishment of a building on a foreign land;

(f) the price determined on taking over the land needed for the necessary journey.

§ 22

Exclusion of agreed price

(1) The agreed price is exclusively the acquisition value of ownership of the property or property of the local authority, the voluntary association of municipalities or the Regional Council of the Cohesion Region.

(2) The negotiated price is exclusively an acquisition value where the acquisition of property rights in a real estate case is agreed in a construction contract which is acquired for the purpose of creating a new unit or changing the existing unit by means of a superstructure, extension or construction of the house.

Citation	Senate Legislative measure No 340 / 2013 Coll., on Real Estate Acquisition Tax
Regulation Type	Legislative measure of the Senate
Author	-
Collection	Code of Laws

Date of Promulgation	30.10.2013
Effective from	01.01.2014
Effective until	-
Status	Valid

Legislative measure of the Senate No 340 / 2013 Coll.

Senate legal measure on real estate acquisition tax

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