Act of the Czech National Council No. 586 / 1992 Coll.

Act of the Czech National Council on Income Tax

Valid Effective from 01.01.1993
Contents
§ 1 ČÁST PRVNÍ § 2 § 2a § 3 § 4 § 4a § 4b § 5 § 6 § 6a § 7 § 7a § 7b § 8 § 9 § 10 § 12 § 13 § 15 § 15a § 15b § 15c § 16 § 16a § 16ab § 16b ČÁST DRUHÁ § 17 § 17a § 17b § 17c § 18 § 18a § 18b § 19 § 19b § 20 § 20a § 20b § 20ba § 20bb § 20bc § 20bd § 20be § 20c § 21 § 21a ČÁST TŘETÍ § 21b § 21c § 21d § 21e § 21f § 21g § 21h § 21i § 22 § 23 § 23a § 23b § 23c § 23d § 23e § 23f § 23g § 23h § 23i § 23j § 24 § 24a § 24b § 25 § 26 § 27 § 28 § 29 § 30 § 30a § 30c § 30d § 30e § 30f § 30g § 31 § 32 § 32b § 32c § 32d § 33 § 33a § 34 § 34a § 34aa § 34b § 34ba § 34c § 34d § 34e § 34f § 34g § 34h § 35 § 35a § 35b § 35ba § 35bb § 35c § 35d § 36 § 37 § 37a § 37b § 37c § 37d § 37e § 38 § 38a § 38aa § 38ab § 38b § 38ba § 38bb § 38bc § 38c § 38d § 38da § 38e § 38f § 38fa ČÁST ČTVRTÁ HLAVA I § 38g § 38ga § 38gb HLAVA II § 38h § 38ch § 38i § 38j § 38k § 38l HLAVA III § 38la § 38lc § 38ld § 38lda § 38ldb § 38le § 38lf § 38lg § 38lga § 38lh § 38li § 38lj § 38lk § 38ll § 38lm § 38ln § 38lo § 38lp § 38lq HLAVA IV § 38m § 38ma § 38mb § 38mc HLAVA V Díl 1 § 38n § 38na Díl 2 § 38nb Díl 3 § 38nc § 38nd Díl 4 § 38o § 38p Díl 5 § 38r § 38s § 38t § 38u Díl 6 § 38v § 38w § 38x § 38y § 38z § 38za § 38zb § 38zc § 38zd § 38ze Díl 7 § 38zf § 38zg § 38zh ČÁST PÁTÁ § 39 § 39a ČÁST ŠESTÁ § 39p § 39q ČÁST SEDMÁ § 40 § 41 § 42
586
THE LAW
Czech National Council
of 20 November 1992
on income taxes
The Czech National Council decided on this law:
§ 1
This law implements the relevant provisions of the European Union137) and provides for
(a) income tax on natural persons;
(b) corporation tax.

ČÁST PRVNÍ

TAX FROM THE REVENUE OF PHYSICAL PERSONS
§ 2
Taxes on personal income tax
(1) The taxable persons are natural persons. The taxpayers are tax residents of the Czech Republic or tax non-residents.
(2) The taxpayers are tax residents of the Czech Republic if they are resident or usually resident in the Czech Republic. Tax residents of the Czech Republic have a tax obligation which applies to both income generated from resources in the Czech Republic and income generated from resources abroad.
(3) The taxpayers shall be tax non-residents, unless they are referred to in paragraph 2 or provided for in international agreements. Tax non-residents have a tax liability which applies only to income generated from resources in the Czech Republic (§ 22). Taxpayers who only reside in the Czech Republic for the purposes of study or treatment are tax non-residents and have a tax obligation that applies only to income generated from resources in the Czech Republic, even if they usually reside in 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; up to 183 days shall be counted each starting day of stay. 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.
§ 2a
Flat-rate fee
(1) From the first day of the applicable tax period, a flat-rate tax payer is a taxable person who:
(a) on the first day of the applicable tax period,
1. is a self-employed person under the law governing pension insurance covered by the legislation governing pension insurance;
2. is a self-employed person under a law governing public health insurance which is subject to legislation governing public health insurance and which is not exempt from the obligation to pay public health insurance premiums on account of long-term residence abroad;
3. is not a payer of value added tax and does not have a value added tax registration obligation, except in the case of an identified person,
4. is not a public company partner or an associate of a limited company; and
5. Is not a debtor against whom insolvency proceedings have been initiated,
(b) during the tax period immediately preceding the applicable tax period, the revenue in question did not exceed the revenue for the selected flat-rate scheme;
(c) on the first day of the relevant tax period, it shall not carry out the activity on which the income from the dependent activity derives, with the exception of the income from which the tax is levied by means of a deduction at a specific tax rate; and
(d) notify the tax authorities of the entry into the flat-rate scheme in which they choose the flat-rate scheme zone and, at the latest on the last day of the deadline for the submission of the notification of entry into the flat-rate scheme, make a notification of the commencement of self-employment under the law governing the organisation and conduct of social security and the notification of the commencement of self-employment under the law governing public health insurance; that period shall be maintained if, at the latest on the last day of that period, a submission is made containing the information required in the relevant notification to the tax authority together with the notification of entry into the flat-rate scheme or the trade office together with the declaration of trade or licence application.
(2) The tax payer on the income of natural persons who starts the activity on which the income from a separate activity arises shall be a taxpayer in a flat-rate scheme from the first day of the calendar month in which he commences such activity, provided that:
(a) meets the conditions laid down in paragraph 1, the conditions referred to in paragraph 1 (a) and (c) must be fulfilled instead of the first day of the relevant tax period at the date of commencement of the activity;
(b) in part of the relevant tax period prior to the date on which the activity began, he was not a payer of value added tax, a shareholder of a public company or an associate of a limited partnership company and did not carry out the activity from which the revenue derived from the activity is derived;
(c) in the part of the relevant tax period before the date on which the activity began, it only had:
1. exempt income,
2. non-taxable income,
3. the revenue on which the tax is levied by deduction at a specific tax rate;
4. income from capital assets, income from renting and other income, in so far as the income referred to in points 1 to 3 is not concerned and the total amount of such income does not exceed CZK 50 000.
(3) The taxable person who has ceased to be a taxpayer in the flat-rate scheme on the grounds that he has interrupted the activity from which the revenue from the separate activity is derived and restarts that activity in the same tax period shall be the taxpayer in the same zone of the flat-rate scheme as before the interruption of that activity from the first day of the calendar month in which he restarts that activity.
(4) The selected zone of the flat-rate scheme shall be changed from the first day of the tax period to:
(a) the newly selected zone of the flat-rate scheme where the taxpayer in the flat-rate scheme:
1. in the tax period immediately preceding that tax period, the relevant revenue for the newly selected flat-rate scheme band did not exceed; and
2. notify the tax administrator of the change to the selected flat-rate scheme; or
(b) the flat-rate scheme zone determining the amount of the flat-rate tax for the tax period immediately preceding that tax period where the taxpayer in the flat-rate scheme:
1. in the tax period immediately preceding that tax period, the income in question did not exceed that of the zone;
2. notify the tax administrator of a different amount of the flat-rate tax for a higher amount on the ground that it exceeded the applicable revenue for the selected band in the tax period immediately preceding that tax period; and
3. the flat-rate zone has not changed in accordance with point (a).
(5) Appropriate revenue for
(a) the first band of the flat-rate scheme is revenue from a separate activity up to the amount of:
1. 1 000 000 000 CZK, regardless of the individual activity,
2. 1 500 000 CZK, if at least 75% of the income from the individual activity of the taxpayer consists of revenue for which 80% of the income or 60% of the income can be used; and
3. CZK 2 000 000, if at least 75% of the income from the individual activities of the taxpayer consists of revenue for which 80% of the income may be used,
(b) the second band of the flat-rate scheme is revenue from a separate activity up to the amount of:
1. 1 500 000 CZK, regardless of the individual activity, and
2. CZK 2 000 000 000 if at least 75% of the income from the individual activity of the taxpayer consists of revenue for which 80% of the income or 60% of the income can be used; and
(c) the third band of the flat-rate scheme is income from a separate activity of up to CZK 2 000 000, regardless of the individual activity.
(6) For the purposes of paragraph 5, revenue from a separate activity shall not be considered to be:
(a) exempt income;
(b) non-taxable income; and
(c) the revenue on which the tax is levied by deduction at a specific tax rate.
(7) For the purposes of the flat-rate scheme:
(a) income means income under this law that a taxpayer would have had if he were not an entity;
(b) interest on deposits in an account which, according to the terms of the account-holder, is intended for the business of the taxpayer shall also be treated as income from a separate activity and shall not be treated as income from the share of a public company shareholder and an associate of a limited partnership.
(8) The taxpayer ceases to be a taxpayer in a flat-rate regime by default
(a) the tax period in which:
1. exceed the applicable revenue for the selected flat-rate scheme, unless its tax is equal to the flat-rate tax;
2. Become a payer of value added tax or become a value added tax registration obligation, with the exception of an identified person's registration obligation;
3. Become a member of a public company or an associate of a limited company; or
4. The decision on the bankruptcy of the taxpayer has taken effect and the insolvency proceedings have not been completed,
(b) the tax period indicated by the taxpayer in the notice of voluntary withdrawal from the flat-rate scheme;
(c) the calendar month in which it ceases to be
1. a self-employed person under the pension insurance law covered by the pension insurance legislation; or
2. a self-employed person under a law governing public health insurance covered by public health insurance legislation;
(d) the calendar month immediately preceding the calendar month from which the taxpayer is not obliged to pay the public health insurance premiums on account of a long stay abroad; or
(e) the calendar month in which the taxpayer becomes a tax nonresident and ceases to operate in the territory of the Czech Republic on the basis of income from a separate activity.
§ 3
Subject matter of natural person income tax
(1) The subject of the income tax on natural persons is:
(a) income from dependent activities (Section 6);
(b) revenue from a separate activity (Section 7);
(c) income from capital assets (Section 8),
(d) rental income (§ 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 is valued for the purposes of income tax on natural persons
(a) pursuant to the law governing the valuation of assets;
(b) as five times the value of the annual performance where the income consists of other asset benefits, the content of which is repeated or continued for a period of
1. indefinite,
2. human life; or
3. longer than 5 years.
(4) The tax is not applicable
(a) revenue received
1. the acquisition of shares or units in accordance with the Act governing the conditions for the transfer of State assets to other persons;
2. Issue under the legislation governing the restitution of property,
(b) loans or loans, except:
1. the income received by the creditor from the repayment of the loan or loan by the transfer of a debt arising from that loan or loan, at an amount equal to the difference between the income arising from the repayment of the loan or loan and the price at which the claim was transferred,
2. the income of the tax payer who keeps the tax register from an even-term loan from a note to which the claim is payable,
(c) income from the extension or settlement of the joint venture of spouses;
(d) income resulting from a fair settlement granted by the European Court of Human Rights of an amount which the Czech Republic is obliged to pay or from the settlement of a matter before the European Court of Human Rights on the basis of an amicable or unilateral declaration by the Government of an amount which the Czech Republic has undertaken to pay, 1c)
(e) the income generated by the taxpayer referred to in § 2 (2), who assists with domestic work abroad, or by the taxpayer referred to in § 2 (3), who assists with domestic work in the Czech Republic for food and accommodation, if it is income to meet basic social, cultural or educational needs (aupair),
(f) income generated by the transfer of assets between persons close to them in connection with the cessation of the agricultural activity of an agricultural entrepreneur, if the person close to him in the business of an agricultural entrepreneur continues at least until the end of the third tax period following the cessation of the farming activity of the agricultural operator transferring that property, except for the non-continuation of the activity on the basis of death; in the event of a breach of this condition, such revenue shall be subject to tax during the tax period in which the transfer of the property took place and it shall be deemed not to be late if it submits a tax return or an additional tax return and pays the tax no later than the date on which it is required to submit a tax return for the tax period in which it did not fulfil this condition,
(g) income from:
1. settlement of joint ownership by division of the case according to the size of the joint ownership shares;
2. land exchanges in land-based treatment under the Land-based Act, with the exception of the part of the land which is a construction;
(h) the amount paid by the health insurance undertaking by which the limit of the regulatory fees and drug or food supplements has been exceeded under specific legislation governing the limits of regulatory fees and drug or food supplements;
(i) income arising from compensation granted by an international criminal court, an international criminal tribunal or, where appropriate, a similar international judicial authority which fulfils at least one of the conditions set out in Section 145 (1) of the Act on International Judicial Cooperation in Criminal Matters.
§ 4
Exemption
(1) Exemptions shall be granted:
(a) income from the sale of a family house and associated land, or a unit which does not include a non-residential area other than a garage, cellar or chamber, and the associated land, provided that the seller has been resident there for at least 2 years immediately prior to the sale; income from the sale of a family house, a unit which does not include a non-residential space other than a garage, cellar or chamber, and the associated land, provided that the seller has been resident there immediately prior to the sale for less than 2 years and uses the means obtained to procure his own housing; in order to exempt spouses from their joint assets, it is sufficient that only one of the spouses fulfils the conditions for their exemption, provided that the property to which the exemption relates is not or is not included in the commercial property of one of the spouses; the exemption does not apply to income from:
1. the sale of such immovable property where they are or have been included in the commercial property within 2 years of their removal from the property;
2. the future sale of such immovable property carried out within 2 years of the acquisition of ownership of such immovable property;
3. the future sale of such real estate carried out within 2 years of its disposal, even if the purchase contract is not concluded until 2 years after such acquisition or 2 years after such disposal;
(b) income from the sale of immovable property or from the settlement of joint ownership of immovable property not exempt under (a), where the period between the acquisition of ownership of such immovable property and the sale or settlement of such ownership exceeds 10 years; income from the sale of immovable property or from the settlement of joint ownership of immovable property not exempt under point (a), provided that the period between the acquisition of ownership of such immovable property and the sale or settlement of such property does not exceed a period of 10 years and that the taxpayer uses the funds obtained to procure his own housing needs; the period of 10 years shall be shortened by the period for which such immovable property was evidently owned by the deceased in the case of the sale of immovable property acquired by inheritance from the deceased who was a relative in a series of direct or spouse, or by the settlement of ownership of immovable property acquired by inheritance from such a deceased, or by the period during which the seller or co-owner owned the land that was exchanged in the context of land-use arrangements, in the case of the sale or settlement of ownership of land acquired by exchange from the Land Office, that period shall be counted against the period running from the disposal of the swap of the commercial property; the exemption does not apply to income from:
1. the sale of such immovable property which is or has been included in commercial property or the settlement of ownership of such immovable property in the 10 years preceding the sale;
2. the future sale of such immovable property within 10 years of the acquisition of ownership of such immovable property, even if the purchase contract is not concluded until 10 years after the acquisition;
3. future sales of such real estate held within 10 years of their decommissioning, even if the purchase contract is not concluded until 10 years after such disposal;
4. the sale of the right of construction or the settlement of the joint ownership to the right of construction, unless a building complying with the right of construction is established,
(c) income from the sale of a tangible movable item, excluding income from the sale
1. Securities,
2. motor vehicles, aircraft or ships, provided that the period between their acquisition and sale does not exceed 1 year,
3. movable goods which are or have been included in commercial property in the five years preceding the sale,
(d) the compensation received for property or non-property damage, the performance of property insurance, the performance of liability insurance, the performance of travel insurance; the exemption does not apply to:
1. compensation for loss of income;
2. compensation for damage caused by property which was included in the commercial property for the pursuit of an activity which results from income from a separate activity at the time of the occurrence of the damage;
3. compensation for damage caused to property used at the time the damage occurred to the lease,
4. the performance of the liability insurance in connection with the activity resulting from the income from the separate activity of the taxpayer;
5. compensation for damage caused by the taxpayer in connection with the lease,
6. a one-off compensation on termination of employment granted to the staff member as a result of the termination of employment due to the long-term loss of capacity to carry out the previous work for an accident at work, occupational disease or for the risk of such illness;
(e) income from reserves deposited in a special account in a bank under the law governing the income tax base, if the income of the special account is the income of the special account;
(f) reception in form
1. compensation received in connection with the correction of certain property injustices;
2. Repayments for the sale of a case in connection with the correction of certain property injustices under the law on the restitution of property; the exemption shall also apply where, between the acquisition and sale of the real estate, a settlement has taken place between the co-owners by division according to the size of their shares or where the real estate involves units; the exemption does not apply to a case which is or was included in the commercial property in the five years preceding the sale,
3. a supplement or a pension allowance under other legislation;
4. Interest on the government bond issued in connection with the rehabilitation proceedings for redress;
5. lump sums paid by the State to a person sterilised in violation of the law;
6. one-off compensation paid by the State to the person in connection with an emergency at the Vlashovice-Vrbětice munitions warehouse,
7. one-off compensation paid by the State under the Act governing the one-off compensation of persons forced by State security to evict the Czechoslovak Socialist Republic,
8. One-off compensation paid by the State under the Law governing compensation for protective supervision for political reasons,
(g) income obtained in the form of benefits or services from sickness insurance, pension insurance under the law governing pension insurance, monetary assistance to victims of crime under the law governing the provision of monetary assistance to victims of crime, social security, performance from the application of the instruments of state employment policy and public health insurance, performance from the insurance contract on pension insurance under the law governing pension savings and performance from foreign compulsory insurance of the same type; However, if the income is in the form of a regularly paid pension or a pension, a maximum amount of 36 times the minimum wage applicable on 1 January of the calendar year for a tax period which does not include the amount of the supplement or pension allowance under other legislation shall be exempt from tax,
(h) a benefit for a disabled person, a benefit for assistance in material distress, social service, a benefit for State social assistance, a benefit for state social assistance, a benefit for foster care, a replacement maintenance allowance for an uninsured child under the Law on Reinsurance, a public budget allowance and a public benefit or a contribution under other legislation, other than State aid under the Act governing construction savings or similar transactions provided from abroad, income arising from the care of a loved one or another who is entitled to a care allowance under the Law governing social services, up to the amount of the contribution provided, is carried out by a natural person for whom no registration under the Law governing social services is required; However, where the care of a person other than a close person is concerned, a maximum amount of up to the amount of the allowance for a person with an IV degree of dependency under the Social Services Act shall be granted on a monthly basis,
(i) income in the form of a refund effectively, economically and demonstrably incurred expenditure relating to the donation and collection of blood and its components, tissues, cells or organs, provided that such compensation is granted under other legislation;
(j) income in the form of:
1. grants from the state budget, from the municipal budget, from the county budget, from the funds of a university, a public research institution or a legal entity which carries on the activities of a secondary school or a higher vocational school;
2. the aid or contribution from the funds of the fund or association, with the exception of family funding, unless it is a taxpayer who is a member or employee of such legal persons, or a person close to the taxpayer and if it is a taxpayer who is a member or employee of such legal persons, or a person close to that person, income in the form of support or contribution provided solely to compensate for disability or social exclusion;
3. aid or contribution from the resources of the trade union;
(k) reception in form
1. survivor's pension for which the period of collection is defined for at least 10 years or which is paid for life or other pension as benefits from supplementary pension insurance with a State contribution under the Act governing supplementary pension insurance with a State contribution;
2. an old-age pension for which a minimum period of 10 years is defined or which is paid for life, invalidity pension or one-off pension insurance as benefits from supplementary pension savings under the Act governing supplementary pension savings,
3. pension benefits, except for one-off benefits, benefits, repayments or pensions for which a period of less than 10 years is defined and is not an invalidity pension;
4. benefits from insurance of persons, except for one-off benefits and pensions, for which a period of less than 10 years is defined, paid from life insurance, life insurance, life insurance with a specified age or previous death or pension insurance,
(l) services provided by the armed forces to students of schools who are not soldiers in active services3), to soldiers in reserve called for the exercise of military active duty, except for the service and special allowance provided for in special legislation3a),
(m) disciplinary fees granted to members of the armed forces and security corps under special legislation3);
(n) service formalities and service allowances for residence for professional soldiers and service entitlements for members of the Security Corps under special legislation3),
(o) performance provided in connection with the performance of a voluntary service under the Law governing the voluntary service;
(p) performance of maintenance obligations,
(q) income from the transfer of a share in a commercial corporation, with the exception of income from the transfer of a security, if the period between its acquisition and the transfer exceeds 5 years; the period of 5 years between the acquisition and the transfer of the share is reduced by the period during which the taxpayer was a member of that corporation before the transformation of the commercial corporation, or by the period during which that share was evidently owned by the deceased, in the case of a transfer of the share acquired by the inheritance by the deceased from the deceased who was a direct or a spouse to the relatives; if the conditions set out in § 23b or 23c are met, the period of 5 years between the acquisition and the transfer of the share shall not be interrupted in the exchange of shares or the conversion of a commercial corporation; in the case of the distribution of a share in connection with its transfer, the period of 5 years between the acquisition and the transfer of a share in a commercial corporation of the same taxpayer shall not be interrupted if the distribution maintains the total amount of the share; the exemption does not apply to:
1. income from the transfer of a share in a commercial corporation, if it has been acquired from the commercial property of the taxpayer, within 5 years of the end of his activity resulting in income from a separate activity;
2. the income generated by the taxpayer from the future transfer of a stake in a commercial corporation within 5 years of its acquisition, even if the transfer contract is not concluded until 5 years after its acquisition;
3. income from the future transfer of a stake in a commercial corporation acquired from the taxpayer's assets, if the income from that transfer is generated within 5 years of the termination of the activity of the taxpayer resulting from the income from a separate activity, even if the transfer contract will not be concluded until 5 years after the acquisition of that share or the closure of that activity;
4. income from the transfer of a share in a commercial corporation which corresponds to an increase in the acquisition price of a member's share by non-cash transactions in favour of the equity of a commercial corporation or by the acquisition of a share by another member, provided that the transfer took place within 5 years of the execution or acquisition of the share;
5. income from the transfer of a stake in a commercial corporation acquired by the exercise of a qualified employee option under § 6a;
(r) grants from the State budget, from the budget of the municipality, the county, the State Fund, the National Fund, the Regional Council of the Cohesion Region, the support from the Wine Fund, the awarded grant or the contribution from the State budget, which is the expenditure of the State budget under the law governing budgetary rules or grants, grants and contributions from the European Union, the acquisition of tangible property, its technical evaluation or the abolition of the consequences of the natural disaster, with the exception of the grant and contribution charged to revenue or revenue under the accounting law;
(s) income generated by the acquisition of ownership of a unit which does not include a non-residential space other than a garage, a cellar or a chamber, as compensation for the release of an apartment or a unit which does not include a non-residential space other than a garage, a cellar or a chamber, paid to the user of that unit or an apartment, provided that the fee payer applies to the provision of his own housing needs, and income from the transfer of rights and obligations relating to membership in the cooperative, provided that the lease contract for the apartment is cancelled in connection with that transfer, if the payer uses the means obtained for the provision of his own housing;
(t) income from the transfer of securities in the form of consideration, provided that their total in the case of the taxpayer does not exceed CZK 100,000 in the tax period, and income from shares in the shares on the cancellation of the mutual fund, if the amount of such income does not exceed CZK 100,000; the exemption does not apply to income from capital goods and income from the transfer of securities or from shares in units on the cancellation of a holding fund which is or has been included in the commercial property within 3 years of the end of the activity resulting from income from a separate activity; in the case of a tribal leaf, the period shall be 5 years,
(u) income from the transfer of a security in the form of consideration, if the period between the acquisition and the transfer of that security in the course of its transfer exceeds 3 years, and the income from the share of the share on the cancellation of the holding fund exceeds 3 years; the period of 3 years shall be shortened by the period during which the security or share held by the deceased was held at the time of the cancellation of the mutual fund, in the case of the transfer of the security or share held by the mutual fund on the date of cancellation of the mutual fund acquired by the inheritance from the deceased who was related in a direct or spouse series; the period of 3 years between the acquisition and the transfer of the security by the same taxpayer shall not be interrupted when the mutual funds are merged or merged or when the closed mutual fund is converted into an open mutual fund; the exemption does not apply to income from the transfer of a security which is or has been included in a commercial asset within 3 years of the end of the activity resulting from the income from a separate activity and to income from capital goods; the exemption does not apply to the income from the share of the holding sheet on the cancellation of the holding fund which was or is included in the commercial property within 3 years of the end of the activity resulting from the income from the separate activity; where the share is exchanged by the issuer for another share of the same total nominal value, the period of 3 years between the acquisition and the transfer of the security by the same payer; Similarly, exchanges of shares, mergers or divisions of companies shall be carried out where the conditions set out in Article 23b or Article 23c are met; the exemption does not apply to the income generated by the taxpayer by the future transfer of the security in the period up to 3 years after the acquisition and the future transfer of the security which is or has been included in the business assets, within 3 years of the termination of the activity resulting from the income from the separate activity, even if the purchase contract will not be concluded until 3 years after the acquisition or 3 years after the closure of the activity resulting from the income from the separate activity; a similar approach shall be applied to income accruing as consideration to a minority shareholder as a result of the forced transfer of participating securities; in the case of a tribal leaf, the period shall be 5 years instead of 3 years; the exemption does not apply to securities acquired by the application of a qualified employee option under § 6a;
(v) income from the acquisition of a property right to a unit which does not include a non-residential space other than a garage, cellar or chamber, if it is owned by a legal person established in order to be the owner of a house with units, and a natural person acquiring the ownership right to the unit;
1. is the tenant of this unit,
2. is a member of that legal person; and
3. has participated or its legal predecessor has participated in its monetary or non-monetary performance in the acquisition of a house with units,
(w) income from interest on overpayments due by the tax administrator, the social security body and income from the periodic penalty payments of premiums recovered by the relevant health insurance undertaking after the expiry of the period laid down for the decision on the overpayment of premiums;
(x) the yield of the bond under the law governing bonds and income resulting from the right to repayment of the bond issued by a Member State of the European Union or by a State forming the European Economic Area;
(y) income received by the acquirer of the unit in connection with the mutual settlement of rental funds intended to finance the repair and maintenance of the apartment, house and unit under the law governing the transfer of units of certain housing cooperatives;
(z) revenue generated in the form of a compulsory copy on the basis of specific legislation and in the form of a copy of the original, in the normal number, received in connection with the use of the subject of copyright or copyright law,
(za) income accruing as compensation for the service provided by law or by a decision of a public authority under other legislation and income generated as compensation for expropriation under other legislation;
(zb) income from the acquisition of property rights on the basis of its transfer or transfer under the law governing transfers of ownership rights to the units of certain housing cooperatives, where the acquirer is a legitimate member of the cooperative,
(zc) income from the acquisition of property rights to a family home or 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, if the acquirer is a natural person who is a member of a housing cooperative which is the tenant of that family house or cooperative-owned unit and who, himself or his legal predecessor, has participated in its acquisition by a member contribution;
(zd) income arising from the supplement to the remuneration for the transformation of a trading company or the exchange of shares of a trading company to which the shareholder has been entitled in accordance with the law governing the conversion of trading companies and cooperatives, relating to:
1. a share where the period between the acquisition and the operative date of the transformation of a trading company or the exchange of shares of a trading company exceeds 3 years; the exemption does not apply to a share which is or has been included in a commercial asset for a period of 3 years from the end of the activity resulting from income from a separate activity;
2. a holding in a trading company for which the period between the acquisition and the operative date of the transformation of a trading company or the exchange of shares in a trading company has exceeded 5 years; the exemption does not apply to a holding which is or has been included in a commercial asset for a period of 5 years from the end of the activity resulting from income from a separate activity;
(z) reimbursement of expenses incurred by staff members or national experts seconded to the institution of the European Union,
(zf) income in the form of a tax bonus;
(zg) remuneration, severance pension, old-age pension, pension, allowance, kind of performance and reimbursement of expenses paid from the budget of the European Union to a Member or former Member of the European Parliament elected in the territory of the Czech Republic, provision and reimbursement of expenses provided from the budget of the European Union to a surviving spouse and dependent children in the event of the death of a Member of the European Parliament elected in the territory of the Czech Republic,
(zh) the yield of a bond under the law governing bonds and the income arising from the right to repayment of a bond issued abroad by a taxpayer established in the Czech Republic, provided that they derive from, or establish a legal relationship with, a tax resident who is not a capital-related person with the issuer of a bond in order to reduce the tax base or increase the tax loss;
(zi) revenue pursuant to § 4a;
(zj) income from the transfer of a kryptoasset, except for electronic money tokens, if their total for the taxpayer does not exceed CZK 100 000 in the tax period; the exemption does not apply to income from capital assets and income from the transfer of a kryptoasset which is or has been included in the assets within 3 years of the end of the activity resulting from the income from the separate activity;
(zk) income from the transfer of a kryptoasset on a fee or contract basis, if the period between the acquisition and the transfer of that kryptoasset on the transfer exceeds 3 years; the period of 3 years shall be shortened by the period during which that cryptoasset was owned by the deceased, in the case of a transfer of the cryptoasset acquired by inheritance by the deceased who was related in a direct or spouse series; the period of 3 years between the acquisition and the transfer of the cryptoasset by the same taxpayer is not interrupted when the cryptoasset is merged or merged; the exemption does not apply to income from the transfer of a kryptoasset which is or has been included in a commercial asset within 3 years of the end of the activity resulting from income from a separate activity; in the exchange of a cryptoasset by its issuer for another cryptoasset, the period of 3 years between the acquisition and the transfer of the cryptoasset by the same taxpayer is not interrupted; the exemption does not apply to income generated by the taxpayer on the future transfer of the cryptoasset in the period up to 3 years after the acquisition and on the future transfer of the cryptoasset which is or has been included in the commercial property within 3 years of the termination of the activity resulting from the income from the separate activity, even if the purchase contract is concluded only 3 years after the acquisition or 3 years after the closure of the activity resulting from the income from the separate activity.
(2) The period between acquisition and sale referred to in paragraph 1 (a) or (b) shall not be interrupted if the period between acquisition and sale took place:
(a) settlement between the joint owners of the immovable property by division according to the size of their shares;
(b) that there were units in the house,
(c) settlement of the joint ventures of spouses; or
(d) the distribution of the land.
(3) Where the total of all income from the transfer of the kryptoasset that is exempt under paragraph 1 (a) (ii), (iii), (iv), (iv), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v), (v) and (v) zk) exceeds 40 000 000 CZK in the tax period, income from the payment of the transfer of the cryptoasset exempt under paragraph 1 (zk) is not exempted in proportion to the proportion of the sum of such income exceeding 40 000 000 CZK and the sum of such income.
(4) For the purposes of income taxes, the commercial property of a natural person's tax payer shall be that part of the property of the taxpayer that was or is charged or is or has been entered in the tax register. The date on which a particular component of the property is removed from the property of the payer shall be the date on which the taxpayer last charged or entered it in tax records.
§ 4a
Exemption of free income
The income tax on natural persons shall be exempt from free income.
Zobrazit všechna ustanovení (3181)
Contents
§ 1 ČÁST PRVNÍ § 2 § 2a § 3 § 4 § 4a § 4b § 5 § 6 § 6a § 7 § 7a § 7b § 8 § 9 § 10 § 12 § 13 § 15 § 15a § 15b § 15c § 16 § 16a § 16ab § 16b ČÁST DRUHÁ § 17 § 17a § 17b § 17c § 18 § 18a § 18b § 19 § 19b § 20 § 20a § 20b § 20ba § 20bb § 20bc § 20bd § 20be § 20c § 21 § 21a ČÁST TŘETÍ § 21b § 21c § 21d § 21e § 21f § 21g § 21h § 21i § 22 § 23 § 23a § 23b § 23c § 23d § 23e § 23f § 23g § 23h § 23i § 23j § 24 § 24a § 24b § 25 § 26 § 27 § 28 § 29 § 30 § 30a § 30c § 30d § 30e § 30f § 30g § 31 § 32 § 32b § 32c § 32d § 33 § 33a § 34 § 34a § 34aa § 34b § 34ba § 34c § 34d § 34e § 34f § 34g § 34h § 35 § 35a § 35b § 35ba § 35bb § 35c § 35d § 36 § 37 § 37a § 37b § 37c § 37d § 37e § 38 § 38a § 38aa § 38ab § 38b § 38ba § 38bb § 38bc § 38c § 38d § 38da § 38e § 38f § 38fa ČÁST ČTVRTÁ HLAVA I § 38g § 38ga § 38gb HLAVA II § 38h § 38ch § 38i § 38j § 38k § 38l HLAVA III § 38la § 38lc § 38ld § 38lda § 38ldb § 38le § 38lf § 38lg § 38lga § 38lh § 38li § 38lj § 38lk § 38ll § 38lm § 38ln § 38lo § 38lp § 38lq HLAVA IV § 38m § 38ma § 38mb § 38mc HLAVA V Díl 1 § 38n § 38na Díl 2 § 38nb Díl 3 § 38nc § 38nd Díl 4 § 38o § 38p Díl 5 § 38r § 38s § 38t § 38u Díl 6 § 38v § 38w § 38x § 38y § 38z § 38za § 38zb § 38zc § 38zd § 38ze Díl 7 § 38zf § 38zg § 38zh ČÁST PÁTÁ § 39 § 39a ČÁST ŠESTÁ § 39p § 39q ČÁST SEDMÁ § 40 § 41 § 42

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Regulation Information

CitationAct of the Czech National Council No. 586 / 1992 Coll., on Income Taxes
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation18.12.1992
Effective from01.01.1993
Effective until-
Status Valid
The regulation text is for informational purposes only.

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