Act No. 36 / 1965 Coll.
Law on Income Tax on Literary and Artistic Activities
Valid
Effective from 01.07.1965
36
THE LAW
of 25 March 1965
on income tax on literary and artistic activities
The National Assembly of the Czechoslovak Socialist Republic decided on this law:
Tax obligation
(1) Tax on income from literary and artistic activities (hereinafter referred to as "tax") is subject to citizens who have income from their creative activities of literary or artistic or artistic activities as performers (hereinafter referred to as "taxpayer"), provided that such income is not subject to payroll tax.
(2) The income from the inherited copyright shall be subject to this tax only to the surviving spouse during the widower's and to the deceased's children during their minors. *)
(3) As with the surviving spouse, the income from the inherited copyright is taxed on the spouse if she lived with the deceased at least a year before his death in the common household.
(1) Creative literary and artistic activities are activities which result in a work enjoying copyright.
(2) The activity of performers is understood as an artistic activity in the field of dramatic, musically dramatic, musical, pantomime, stage dance and artistic.
(3) In the cases at issue, it decides whether an activity can be considered to be subject to this Act, the Ministry of Finance in cooperation with the Ministry of Education and Culture, which will seek the opinion of the relevant artistic association.
Revenue from the creative activity of literary or artistic or executive artists (hereinafter referred to as "remuneration ') shall mean all the authors' fees or whatever they call the fees for the transfer of copyright or permission to use the work, for the theft and rental of the work, for the fees for lectures and artistic performances, as well as advances on such fees.
Exemption
(1) Exemptions shall be granted on the basis of the prices and rewards of competitions, fees awarded for outstanding works of art or performances and aid paid by cultural funds.
(2) Where the price or remuneration paid in a contest includes a remuneration for work or artistic exercise, that part of the price or remuneration shall not be exempt.
Taxation of remuneration
(1) Any organisation which pays remuneration for work or artistic exercise or, where appropriate, for their use (hereinafter "the payer")
(a) deducts tax on fees for literary contributions to periodical press, radio and television, on fees for lectures and on fees for educational concerts, including introductory words, if the remuneration in these cases does not exceed 1000 Kcs; the fees exceeding that amount and the other fees shall be deducted only if the taxpayer submits a confirmation to the clearing centre that the tax is to be deducted directly on payment of the remuneration;
(b) in other cases, the clearing centre shall indicate an advance payment of 10% of each remuneration, unless the clearing centre provides for a higher advance.
(2) The fee received from citizens shall be payable to the clearing centre.
(3) The accounting centre shall be the organisations designated by the Ministry of Finance in agreement with the Ministry of Culture and Information.
Tax base
The basis on which the tax is levied is the difference between the income generated in the calendar year and the deductible items.
Deductible items
(1) From income subject to tax shall be deducted:
(a) as compensation for the costs associated with the acquisition of the work, if the taxpayer does not show the costs actually incurred, the following amounts:
1.60% of the remuneration for works in the field of sculpture;
2. 30% to 50% for works from other fields of art and architecture. The amount of the deductible item for each work is determined by the bodies of the Confederation of Czech and Slovak Artists and the Association of Architects of the CSSR; If those authorities do not determine the amount of the deductible item, an amount of 30% shall be deducted as compensation;
3.20% of other remunerations subject to tax;
(b) grants to cultural funds.
(2) In addition, the fees payable to taxpayers shall be deducted from the income of the tax referred to in the previous paragraph from the amount of 6000 CZK for each dependent person for whom they have not received a discount on the payroll tax.
(3) The deductible items referred to in the preceding paragraphs cannot be deducted from the income generated by the tax on inherited copyright and the remuneration paid to foreign exchange foreigners.
Tax rate
(1) The tax rate is:
| při základu daně | ||
|---|---|---|
| přes Kčs | do Kčs | |
| 3 000 | 3 % | |
| 3 000 | 6 000 | 90 Kčs a 5 % ze základu přesahujícího 3 000 Kčs |
| 6 000 | 10 000 | 240 Kčs a 8 % ze základu přesahujícího 6 000 Kčs |
| 10 000 | 25 000 | 560 Kčs a 14 % ze základu přesahujícího 10 000 Kčs |
| 25 000 | 50 000 | 2 660 Kčs a 20 % ze základu přesahujícího 25 000 Kčs |
| 50 000 | 7 660 Kčs a 33 % ze základu přesahujícího 50 000 Kčs | |
(2) If the total annual income of the taxpayer subject to that tax does not exceed the amount of CZK 25 000 after deduction of the items referred to in Paragraph 7 (1), the tax shall be 3% and the tax shall be offset by the deduction.
(3) The Ministry of Finance will adjust the tax rate if the basis is exceeded by 25 000 CZK to avoid hardships.
Method of collection of tax
(1) The tax is levied on the payer or the clearing centre. The tax deducted shall be paid by the payer or the clearing centre to the district national committee in whose territory it has its registered office.
(2) The payer withdraws the tax [Paragraph 5 (1) (a)] or the tax advance [Paragraph 5 (1) (b)] from each payment or, after the payment of the fee to the payer, to the satisfaction of the taxpayer.
(3) If, in the current year, the income of the taxpayer from all taxpayers subject to this tax after deduction of the items referred to in Paragraph 7 (1) exceeds 25 000 Kčs, the taxpayer shall notify the clearing centre of the total amount of income achieved in the previous year by 15 January next year at the latest.
(4) After the end of the year, the settlement centre shall calculate the tax on the sum of all the remuneration achieved in the year applicable to taxation and shall settle it on the advances sent to the payer.
The settlement centre and the payers shall, for the purposes of this tax and of the district national committee, keep records and statements established by the Ministry of Finance and, at the request of the payers, provide confirmation of the amount of remuneration paid and tax withheld.
(1) If the withholding has not been carried out or if it has not been properly carried out, the district national committee shall prescribe to the clearing centre or, where appropriate, the payer the amount to be paid directly.
(2) The settlement centre or the payer collects a tax that has not been struck by the payer at the latest by the end of the next calendar year when clearing further advances by the payer, paying additional fees or crediting them to good or, where applicable, inviting the payer within the limitation period (§ 14) to pay the tax in the current calendar year.
(3) The payer shall immediately notify the clearing centre that he is an old-age pensioner.
(1) The tax payable by the payer in the calendar quarter [Paragraph 5 (1) (a)] shall be levied on the competent national committee no later than the end of the month following the end of the quarter. The tax advances which the payer is obliged to withhold and refer to the clearing centre [Paragraph 5 (1) (b)] shall be paid by the 10th day of the month following the payment of the remuneration at the latest.
(2) The settlement centre shall be obliged to withdraw 60% from the advance payments by the 15th day of the following month at the latest to the relevant district national committee. The tax calculated by the settlement centre after the end of the year shall be paid up to the amount of the advance paid, after deduction of the amounts already paid in accordance with the preceding sentence and after settlement of the overpayments, by 15 March at the latest of the year in which the tax was calculated.
(3) If the tax deducted has not been paid, it shall be recovered at the clearing centre or at the payer as their debt.
(4) If the tax deducted has not been paid on time, a penalty of 0,05% of the amount due shall be paid for each day of delay.
Complaints arising from disputes arising between the clearing centre and, where appropriate, the fee payer and the taxpayers on the implementation of the withholding tax shall be decided by the district national committee in whose area the cash office of the clearing centre and, where appropriate, the payer of the remuneration is located.
Limitation
(1) The tax cannot be collected and enforced after three years from the end of the calendar year in which the remuneration was paid or credited to the taxpayer.
(2) Where a collection or recovery operation is carried out, the limitation period shall run again from the end of the calendar year in which the settlement centre or payer has been informed of that operation.
In the case of proceedings relating to this tax, the Decree No 16 / 1962 Coll., on proceedings concerning taxes and charges, shall apply, save as otherwise provided in this law.
Final provisions
(1) The provisions implementing this Act shall be issued by the Ministry of Finance.
(2) The Ministry of Finance may:
(a) to take measures to prevent double taxation or, where appropriate, to maintain the same procedure with abroad or to implement measures necessary to take account of the procedure of foreign authorities;
(b) provide that a certain part of the remuneration is paid through the clearing centre and that during the year the tax is levied by advance payment;
(c) define the range of persons who can be recognised as dependants (Section 7 (2));
(d) to take measures to prevent irregularities which may arise in the course of the collection of the tax or, where justified, to authorise relief or exemption.
(1) Act No. 59 / 1950 Coll., on the Tax on Literary and Artistic Activities, and the provisions issued for its implementation, are hereby repealed:
(a) Decree No. 340 / 1950 Ú. l. I, which is authorised for the income from the artistic activity of art relief from the provisions of Sections 5 and 11 of Act No. 59 / 1950 Coll., on the Tax on Literary and Artistic Activities, as amended by Decree No. 28 / 1956 Ú. l.
(b) Decree No 341 / 1950 of the Ú. l. I setting out the details of the obligation for payers to keep records of the fees paid and the tax deducted and paid and of the obligation to issue confirmation to beneficiaries;
(c) Decree No 342 / 1950 of Ú. l. I, which lays down further provisions on the late payment of the tax on literary and artistic activities and on the tax on independent activities,
(d) Decree No 343 / 1950 of Ú. l. I issuing guidelines for the implementation of the Law on the Tax on Literary and Artistic Activities;
(e) Decree No 229 / 1955 of the Ú. l., exempting travel expenses from the basis of tax on literary and artistic activities,
(f) the yield published in the figure of 59 of the 1953 Official Journal, on the ratio of the payroll tax to the tax on literary and artistic activities, to the public income tax and to the agricultural tax,
(g) a directive published in the Official Journal of the European Union, No 5, 1958, on taxation of income from the activity in the field of used art;
(h) guidelines published in the amount of 50 of the 1959 Official Gazette on taxation of income from the activity of photography and industrial (American) retouche.
(2) A tax under this Act shall be levied for the first time on fees paid or credited to a taxpayer after 1 July 1965.
This Act shall take effect on 1 July 1965.
Novotný v. r.
Laštovka v. r.
Lenárt v. r.
*) The income of other heirs is subject to the income tax of the population pursuant to Act No. 145 / 1961 Coll.
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Regulation Information
| Citation | Act No. 36 / 1965 Coll., on Income Tax of Literary and Artistic Activities |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 08.04.1965 |
|---|---|
| Effective from | 01.07.1965 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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