Act of the Czech National Council No. 593 / 1992 Coll.
Act of the Czech National Council on Reserves for the Determination of the Income Tax Base
Valid
Effective from 01.01.1993
Zobrazeno prvních 200 z celkem 252 ustanovení tohoto předpisu.
Zobrazit celý předpis →
Pro stažení celého znění použijte tlačítko Stáhnout výše.
593
THE LAW
Czech National Council
of 20 November 1992
on provisions for determining the income tax base
The Czech National Council decided on this law:
For the purposes of determining the income tax base, this law regulates the way in which provisions are created and the amount of provisions and adjustments which are expenditure (costs) incurred in attaining, securing and maintaining income (1), or an item reducing the income tax base of income taxpayers.
(1) The provisions referred to in Article 1 are the provisions of the Bank, the provisions in the insurance sector, the provision for the repair of tangible assets, the provision for cultivation, the provision for the management of electrical waste from solar panels and the other provisions to the extent laid down by this Law.
(2) The weightings referred to in Article 1 shall be those set out in this Act which are created at the balance sheet value of the outstanding claims payable after 31 December 1994 and entered in the accounts under the special legislative provision (1a) or those held in a demonstrable register pursuant to Article 3 (3). For the purposes of this Act, the balance sheet value of the claim shall be the nominal value or cost of the claim entered in the payer's balance sheet accounts without the effect of a change in the fair value (valuation difference) 1a) or held in a demonstrable account in accordance with § 3 (3). Unless expressly provided otherwise by this law, the adjustments may be made only in respect of claims which, at the time of their establishment, were recognised in income and thus income generated was not income exempt from income tax or not included in the income tax base or included in a separate income tax base or the tax base for a specific tax rate. Unless expressly provided otherwise by this law, the adjustments shall not be made to claims arising from securities and other investment instruments, 1b) loans, loans, guarantees, advances, claims for equity, payment of the loss of the corporation, contractual fines and interest on late payments, late payments, periodic penalty payments and other penalties on obligations, claims acquired free of charge and on the set of claims.
(3) In the case of the acquisition of a claim by the transfer, the transferee may make up the adjustments to the balance sheet value of the claim if he has paid his purchase price.
(4) If the creditor does not comply with the provisions of Sections 5 and 8, he may not form an adjustment to the claims if the debtor is in debt and does not make a reciprocal credit of the claims.
(5) In the event of a claim being called into question by the debtor, the provisions of paragraph 4 shall not apply to the creditor in respect of that part of the value of the claims exceeding the value of the debts of the debtor in so far as the creditor complies with § 8a and the credit is made on the date of the final termination of the proceedings.
(6) Corrections may also be made to corporate tax payers for claims on which:
(a) when they are incurred, they have been accounted for in accordance with the accounting legislation by reducing the costs entered into and the income thus generated has not been income exempt from income tax or not included in the income tax base or included in a separate income tax base or tax base for a specific tax rate; or
(b) as a result of corrections to previous periods in accordance with the accounting legislation, the balance sheet was accounted for and, for the purposes of determining the taxable amount, the full value of the financial result had to be increased.
(7) According to paragraph 6, taxpayers shall also tax on natural persons's income on claims entered in their accounts under the accounting legislation.
(1) Reserves and adjustments are made up in the manner and for the purposes laid down by this Act and are applied for a tax period, unless otherwise provided in other provisions. The tax period for the purposes of this Act shall be understood as the corporate tax period, if it lasts for at least 12 calendar months or if it is less than 12 months but begins with the relevant date of the merger or transfer of assets to a shareholder or the division of a commercial corporation. The tax period for the purposes of this Act shall mean a calendar year for natural persons.
(2) The taxpayer is obliged, in connection with the filing of the tax return, to examine the justification for the creation of provisions and adjustments and to compare their actual situation with the amount which the taxpayer may apply under this law in the income tax base established under the special legislation 1d).
(3) The formation of adjustment appropriations and provisions used as expenditure (cost) for attaining, securing and maintaining income (1d) must always be accounted for in accordance with the special legislation1a) or entered in the tax register. The creation of weightings may also be used as a cost (cost) for attaining, securing and maintaining 1d's income by a taxpayer to whom a special legislature is provided) for the accounting and compilation of the accounts of the International Accounting Standards governed by European Community law, provided that at the same time it keeps a demonstrable record of claims at the maximum amount set by this demonstrable record, only in relation to claims with which the related income has not been explicitly provided for under the Special Legislative Decree (1d) by income tax exempt income income or not included in the income tax base or included in a separate income tax base or tax base for a specific tax rate, unless otherwise expressly provided by this law. In this case, a demonstrable record of claims shall be understood as an inventory of individual claims and adjustments made to these individual claims under this law, drawn up in a manner and to the extent specified for the creation of weightings by special legislation1a) without the influence of the International Accounting Standards governed by European Community law. Similarly, this is the case in the case of conversion under special legislation (1e). The creation of reserves may be used as an expense to achieve, secure and maintain income (1d) subject to compliance with the conditions of this Act by a taxpayer to whom a separate legislature is provided) to apply the International Accounting Standards as amended by European Community law for the accounting and compilation of accounts, provided that at the same time it keeps a demonstrable record of such reserves up to a maximum of the amount set by this demonstrable record; Similarly, this applies to the creation of provisions for the repair of tangible assets pursuant to Paragraph 7 for a taxpayer who deducts such property by means of a component depreciation method under the accounting legislation. In this case, a demonstrable record of the reserves shall be understood as an inventory of the individual provisions according to the purpose for which they are constituted under this Act, drawn up to the extent and in a manner specified for the creation of the reserves by special legislation1a) without the influence of International Accounting Standards. Similarly, this is the case in the case of conversion under special legislation (1e).
(4) The creation of reserves may also be used as an expense (cost) to achieve, secure and maintain revenue by a taxpayer who keeps simple accounts, provided that he also keeps a demonstrable record of such reserves, up to a maximum of the amount set by that demonstrable record.
(1) The expenditure (costs) for which reserves have been set up must, as a priority, be paid from those reserves and weightings. the reserves shall be cancelled during the same period where the reasons for which they were created have ceased to exist. Reserves and adjustments shall be cancelled on the date on which the business or other self-employed activity or the ownership of the business establishment is completed, on the date of the interruption of the business or other self-employed activity or of the work of the business establishment, provided that the activity or work of the business establishment is not commenced by the date on which the tax return is submitted for the relevant tax period in which the interruption occurred. Reserves and adjustments shall also be cancelled on the date of application of the pacht contract in the case of the pacht of the commercial plant, on the date preceding the date of cancellation of the permanent establishment in the Czech Republic, 22) on the date preceding the date of entry into liquidation or on the date preceding the date of application of the decision on the declaration of bankruptcy. The provisions shall not be abolished where the funds in the amount of the reserves constituted pursuant to Sections 9 and 10 are deposited in a special bank account in accordance with Section 10a and in the case of the transformation of a commercial corporation. 1e) Corrective items shall not be deleted for claims acquired in the conversion of a commercial corporation. In the conversion of a commercial corporation (1e), the successor trading corporation may continue to create reserves and adjustments initiated by the acquired or distributed trading corporation, under conditions which would apply to the acquired or distributed trading corporation under this Act, provided that the transformation is not carried out and only to the extent that it relates to a part of the commercial property that is transferred to that successor trading corporation, but not more than the amount set out in this Act. Reserves and waivers may not be created during the liquidation or during insolvency proceedings during the period of the effects of the bankruptcy declaration, except for the provisions referred to in Section 10 (2), whose funds will be deposited in a special bank account in accordance with Section 10a.
(2) Reserves may not be created for expenditure (costs) on the acquisition of tangible and intangible property.
(3) The adjustment items shall be used to cover losses arising from the write-off of the claims for which they are created or to cover the difference between the nominal value of the claim and the purchase price agreed upon at the disposal of the transferee. Adjustments shall be cancelled during the same period when the reasons for which they were created have ceased to exist.
(4) The balance of provisions and adjustments established at the end of the reporting period shall be transferred to the following period.
(5) The total amount of the adjustment appropriations for banks, including bank reserves, must not exceed the total amount of claims to which it is generated.
Bank reserves and adjustments
(1) As expenses (costs) for attaining, securing and maintaining income (1), banks (4) may create in the tax period
(a) weightings to outstanding credit claims;
(b) provisions for bank guarantees granted for loans granted by banks.
(2) Total amount of production for the tax period
(a) the adjustment appropriations referred to in paragraph 1 (a) may not exceed 2% of the basis, which is the average balance sheet value of the outstanding loan claims arising from the principal and interest in the valuation not reduced by the adjustments and provisions already created and reduced by that part of the average balance sheet value of the outstanding loan claims secured by accepted bank guarantees or insured;
(b) the provisions referred to in paragraph 1 (b) shall not exceed 2% of the average value of the bank guarantees granted for loans granted by banks.
Corrective items must always be assigned to individual claims, reserves to individual guarantees. Average stocks shall be calculated on the monthly balances on the last day of the month and the balance on 1 January of the relevant tax year.
(3) A credit claim shall, for the purpose of making adjustments, mean a claim in the form of principal and interest, if it arose from a loan granted to a bank4) to a non-bank entity or arising from the performance of a bank guarantee, for an entity domiciled or resident in the territory of a Member State of the European Union or in the territory of another State bound against the Czech Republic by an international agreement ensuring the exchange of information, and the contract has been negotiated as a credit agreement or a bank guarantee under the provisions of the Civil Code, or under a comparable law of a Member State or another State bound against the Czech Republic by an international agreement ensuring the exchange of information, even if the application of that law allows the provision of credit or of another Member State which is bound by an international agreement to be binding against the Czech Republic by an international agreement for the exchange of information.
(4) A bank guarantee shall be a bank guarantee for the purposes of the provision of reserves, which has been granted for debts of an entity having its registered office or resident in the territory of a Member State of the European Union, where it is used for the negotiation and provision of the law of a Member State which is a member of the European Union, except where the law of a State which is not a member of the European Union is used in connection with a bank guarantee, even if the application of that right allows the law of the Member State of the European Union concerned.
(5) Where a loan or a bank guarantee is agreed or granted through a third party having its registered office outside the territory of a Member State of the European Union or in a contractual relationship with that person, the right of a State which is not a member of the European Union shall be exercised, even if the application of that right allows the law of the Member State of the European Union concerned, it shall not be a credit claim or a bank guarantee within the meaning of the provisions of paragraphs 1 and 2.
(6) If the bank (4) has never constituted an adjustment under paragraph 2 (a) to the credit claim as defined in paragraph 3, it may create an adjustment item up to 100% of the outstanding balance sheet value of the claim without accessories, subject to the following conditions:
(a) the balance sheet value of the claim without accessories at the time of its formation does not exceed CZK 50 000;
(b) at least 12 months have elapsed since the end of the agreed maturity of the claim; and
(c) on the date on which the adjustment is made (4), the total value of the claims, excluding the facilities arising from loans to the same borrower, does not exceed CZK 50 000.
A claim for which an adjustment under this provision has been established shall be required to keep separate records.
(7) The corrective item referred to in paragraph 1 (a) shall be cancelled if the reasons for its existence have ceased to exist or if the claim for which it was established has been barred. The adjustment item shall be used by the bank to cover losses arising from the write-off or transfer of the debt. The provision referred to in paragraph 1 (b) shall serve to cover losses related to the implementation of the bank loan guarantees provided.
(1) As expenses (costs) for attaining, securing and maintaining income (1), savings and credit cooperatives (6a) and other financial institutions may, during the tax period, create weightings for the outstanding claims arising from loans, including related accessories, granted by these entities to natural persons resident in the territory of a Member State of the European Union. For the purposes of this provision, credit shall mean credit under the Act governing savings and credit cooperatives with savings and credit cooperatives and consumer credit under the Act governing consumer credit with other financial institutions. Corrections cannot be created for:
(a) claims arising between connected persons as defined in the Income Tax Act;
(b) claims acquired by disposal;
(c) claims arising from novation or settlement.
Adjustments may not be made in the tax period in which the liquidation or bankruptcy takes place and in the course of the liquidation and during the insolvency proceedings during the period of effect of the bankruptcy declaration.
(2) For the purposes of this Act, other financial institutions shall mean legal persons who fulfil all of the following conditions:
(a) are persons entitled to provide consumer credit under the law governing consumer credit; and
(b) the proceeds, including interest on late payments, of the loans granted pursuant to paragraph 1 shall be at least one half of the total revenue in the relevant tax year.
The income referred to in point (b) shall mean income recognised in accordance with a specific legislation. (1a) Other financial institutions for the purposes of this provision are not banks. (4)
(3) Adjustments are made to the basis, which is the average balance sheet value of outstanding credit claims without valuation accessories not reduced by the adjustments already generated. The following amounts shall not be included in this base:
(a) claims in excess of CZK 1,500 000 for a single loan;
(b) claims arising between connected persons as defined in the Income Tax Act;
(c) claims acquired by the transfer;
(d) claims arising from novation or settlement;
(e) claims for which, during the tax period, the weightings referred to in paragraph 5 have been established.
The average situation shall be calculated on the monthly balances on the last day of the month and the balance on the first day of the relevant tax year.
(4) The total amount of the adjustment appropriations referred to in paragraph 3 for the tax period may not exceed:
(a) 1,5% of the base referred to in paragraph 3, for savings and credit cooperatives, and for those other financial institutions whose capital is at least CZK 20 000 000 on the last date of the tax period,
(b) 0,6% of the base referred to in paragraph 3 for other financial institutions whose capital is at least CZK 10 000 000 on the last day of the tax period,
(c) 0,2% of the base referred to in paragraph 3 for the remaining other financial institutions.
(5) Adjustments shall also be made to outstanding claims arising from loans up to 100% of the outstanding balance sheet value of the claim without accessories, subject to all of the following conditions:
(a) the balance sheet value of the claim without accessories does not exceed CZK 50 000 at the time of its formation,
(b) more than 12 months have elapsed since the agreed maturity of the claim.
The entities shall be required to keep separate accounts of claims for which the weightings referred to in this paragraph have been established. The adjustment appropriations may be used as expenditure (cost) for attaining, securing and maintaining income 1d) for the tax period in which they were created, provided that the claim for which they were created is entered in the taxpayer's accounts at the end of the tax period under the special legislature1a) and on the last day of the relevant tax period, the total value of the claims without the accessories entered in the taxpayer's accounts under the special legislature1a) arising from loans to the same borrower does not exceed CZK 50 000.
(6) The adjustment appropriations shall also be made to the outstanding claims of the accessory up to 100% of the outstanding balance sheet value of the claim, subject to the following conditions:
(a) the accessories are linked to a claim to which adjustments may be made under this provision;
(b) the amount of the accessories has been entered in revenue during the relevant tax period or in previous tax periods and the income generated has not been recognised in accordance with special legislation 1d) income exempt from income tax or not included in the income tax base; and
(c) the total value of the claims due in respect of accessories meeting the two conditions referred to in (a) and (b), which relate to the claims of the taxpayer arising from loans to the same borrower, shall not exceed CZK 50 000.
The entities shall be required to keep separate accounts of claims for which the weightings referred to in this paragraph have been established.
(7) The adjustments created shall be used to cover losses arising from write-offs or transfers of claims referred to in paragraph 1, with the exception of those referred to in paragraph 1 (a) to (c). The loss of write-off or transfer of claims up to the amount covered by the use of the adjustment appropriations established under this provision shall be the expenditure (cost) incurred to achieve, secure and maintain revenue. 1d)
(8) The adjustment appropriations referred to in paragraph 4 shall be authorised for the relevant tax period by the other financial institutions, provided that, in the following two tax periods, they do not reduce the share capital to an amount corresponding to the lower formation of the adjustment items or which does not allow the formation of adjustments. The reduction in capital for the purposes of this provision shall be assessed on the last day of the relevant tax period. For the tax period in which the capital is reduced, the taxable amount shall be increased or the tax loss shall be reduced or the tax liability shall be adjusted by the difference between the amount of the weightings created and the amount of the capital corresponding to the reduction.
Insurance provisions
(1) Insurance reserves are, for the purposes of income tax, technical provisions established under the law governing insurance.
(2) In the case of a taxpayer established in the territory of a Member State of the European Union or of a State forming a European Economic Area other than the Czech Republic, engaged in an insurance or reinsurance activity in the territory of the Czech Republic, insurance reserves for income tax purposes are technical provisions to settle liabilities arising from such activity established in accordance with the laws of the State of its registered office, governing access to, and pursuit of, insurance and reinsurance activities in accordance with European Union27).
(3) In the case of a taxpayer established in the territory of a State which is neither a Member State of the European Union nor a State forming the European Economic Area and with which the Czech Republic has concluded an international agreement governing the creation and amount of technical provisions in the insurance and reinsurance business which is carried out, carrying out an insurance or reinsurance activity in the territory of the Czech Republic with provisions in the insurance sector for the purposes of income taxes, the technical provisions to settle the obligations arising from that activity established in accordance with this international agreement.
(4) Adjusted insurance reserves for income tax purposes means insurance reserves
(a) less amounts recoverable from reinsurance contracts under the directly applicable European Union Regulation (28); and
(b) plus the balance of deferred acquisition costs of insurance contracts under the accounting legislation.
(5) The addition of reserves in insurance means the positive difference between the amount of adjusted reserves in insurance at the end of the tax period and the amount of adjusted reserves in insurance at the beginning of the tax period.
(6) The loss of reserves in insurance means the negative difference between the amount of adjusted reserves in insurance at the end of the tax period and the amount of adjusted reserves in insurance at the beginning of the tax period.
(7) For the purposes of determining the increase in insurance reserves and the loss of insurance reserves, the tax period shall also be considered as the period for which the return is to be made.
(8) Insurance provisions for the purposes of income tax are not technical provisions to settle insurance or reinsurance obligations in a State with which the Czech Republic has concluded an international agreement to prevent double taxation of all types of income carried out and under which double taxation of income is excluded by the exemption method.
Provisions for the repair of tangible assets
(1) Provisions for the repair of tangible property, (12) which is expenditure (cost) to achieve, secure and maintain income, (1) whose depreciation period laid down by the Income Tax Act is five years or more may be made by taxpayers of income taxes who:
(a) they have a right of ownership to tangible property; they are the organisational body of the State responsible for the management of State property; they are the public organisation responsible for the management of the property of the State; they are a contributory organisation of the local authority or a voluntary association of municipalities for the tangible property transferred to the establishment for the management; they are a voluntary association of municipalities for the tangible property transferred by the Member State; they are a holding fund of which the tangible property is part; or they are a trust fund of which the tangible property is part, unless the provision is made by the smuggler referred to in point (b);
(b) are smugglers of material assets under a contract for the payment of a commercial plant and are contractually obliged to repair such assets in writing;
(c) they undergo reorganisation or derecognition under special legislation 12b) and the right of ownership of the tangible assets to which the reserve was constituted was not affected by the course of insolvency proceedings or the final termination of insolvency proceedings.
(2) A technical evaluation under a special law shall not be regarded as corrections under this Act. 13)
(3) The provision referred to in paragraph 1 shall not be created in cases of tangible property,
(a) which is intended for disposal,
(b) in respect of damages or other unforeseen or accidental events;
(c) repairs which are regularly repeated each year;
(d) the right of ownership of the taxpayer whose assets are subject to bankruptcy under special legislation 12b).
(4) In the tax period, the creation of a reserve shall be an expense (cost) to achieve, secure and maintain income, provided that the funds in full amount of the reserve referred to in paragraphs 5 and 7 are transferred to a separate account in a bank located in the territory of a Member State of the European Union which is kept in Czech crowns or in euro and is intended solely for the deposit of reserves made up under this provision (hereinafter referred to as "the separate account '), at the latest by the date for filing the tax return. If the funds in full amount of the reserve referred to in paragraphs 5 and 7 are not transferred to a separate account for one tax period at the latest by the date for filing the tax return, the reserve shall be cancelled in the tax period for which the return is filed. The funds of the separate account may be used only for the purposes for which the reserve was created.
(5) The amount of the provision for the repair of tangible assets is determined on the basis of the individual tangible assets intended for the repair and the nature of the correction. The amount of the reserve in the tax period is equal to the share of the budget of the correction costs and the number of tax periods that will elapse from the beginning of the reserve creation until the estimated start of the correction. The number of tax periods applicable for the purposes of calculating the amount of the reserve shall include the tax period when the reserve is started. This number of tax periods does not include the expected tax period when the correction is initiated. In the case of movable goods, the provision for the correction of individual tangible assets may consist in relation to the volume of its performance in technical units; in that case, the amount of the reserve in the tax period shall be equal to the product of the budget share of the correction costs per unit of expected volume of output and the sum of the volumes of actual output for the tax period and for the preceding period, unless it was the tax period.
(6) If the correction is not initiated at the latest during the tax period following the tax period in which the amount of the reserve was expected to start the correction, the reserve shall be cancelled in the following tax period. The provision or balance thereof shall be cancelled even if it has not been exhausted in the tax period following the tax period in which the correction was initiated at the latest. For the purposes of this Act, the date on which work directly on the subject of the correction is to be physically carried out shall be considered as the start of the correction; where a repair is carried out outside the premises of the payer by another person, the start of the repair shall be the taking over by that person. This provision shall not apply to taxpayers who prove that the time limits have been exceeded by interference by a public authority or self-government authorities.
(7) If an income tax payer finds a fact justifying a change in the amount of the reserve, it must make an adjustment to its amount from the tax period in which it becomes aware.
(8) The provision for corrections to individual tangible assets must not consist of only one tax period.
(9) The maximum period for the creation of a reserve under the preceding paragraphs shall be:
(a) in the second depreciation group 3, the tax period
(b) in the third depreciation group 6 tax periods
(c) in the 4th depreciation group 8 tax periods
(d) in the 5 and 6 depreciation groups 10 tax periods
as defined in the Income Tax Act and consecutive in each depreciation group, the period for which the tax return was filed but the tax period was not taken into account.
(10) In the beginning of the provision, the income tax payer may continue to create the provision for the repair of the hired tangible assets referred to in paragraph 1 (b) and, in the course of the creation of the reserve, became the owner of that property if the justification and purpose of the original object of the creation are respected.
(11) The payer who pays value added tax shall base the reserve on the budget of the cost of the valuation correction without value added tax.
(12) In the case of conversion (1e), the tax period for the purposes of establishing the reserve referred to in paragraph 1 shall also be considered as the period for which the return is to be made.
Adjustments to claims on debtors in insolvency proceedings
(1) Corrections to claims on debtors in insolvency proceedings, which are expenditure (cost) to achieve, secure and maintain income (1), may be made by tax payers who keep accounts up to the amount of the balance sheet value of outstanding claims registered in court since the opening of insolvency proceedings until the end of the period laid down in the court's decision on insolvency, or until the end of the period under insolvency law 12c), linked to the decision on insolvency, during the period for which the tax declaration is filed and in which they were registered. If reorganisation has been allowed, instead of applying for a claim, it is sufficient that the debtor correctly entered the creditor's claim in the list of debts under the special legislature12b). Claims excluded under Paragraph 2 (2) or claims arising between connected persons as defined in the Income Tax Act may not be subject to adjustments which are expenditure (cost) on attaining, securing and maintaining income (1) under this provision.
(2) The adjustment appropriations shall be cancelled following the results of the insolvency proceedings or, where the claim has been effectively denied by the insolvency administrator, the creditor or the debtor and special legislature12b, the right to deny those persons the claim.
(3) If the reasons for the existence of an allowance established pursuant to this provision or on the basis of the decision of the taxpayer are waived, the amount of the allowance may be reduced to a level which could be created under the provisions of Section 8a. The taxpayer then continues to create an adjustment item according to § 8a.
Adjustments to outstanding claims due after 31 December 1994
(1) Recoveries on outstanding claims, the production of which is expenditure (cost) on attaining, securing and maintaining income (1) and on which no adjustments are made pursuant to paragraphs 5 and 5a, may, in the period for which the tax return is made, be made by the tax payers who keep the accounts, provided that more than
(a) 18 months, up to 50% of the outstanding balance sheet value of the debt;
(b) 30 months, up to 100% of the outstanding balance sheet value of the debt.
(2) In the case of a debt acquired by a transfer whose balance sheet value without accessories at the time of its creation was greater than CZK 200,000, the adjustments referred to in paragraph 1 may be made only if a procedure has been initiated in respect of such claims, the tax payer of which is duly involved and which is:
(a) arbitration;
(b) legal proceedings; or
(c) administrative procedures.
(3) The adjustment provisions referred to in paragraph 1 may not be applied to claims already written off on the result of the management and to claims arising from:
(a) for members of the commercial corporation for the subscribed capital;
(b) between connected persons as defined in the Income Tax Act.
(4) The adjustment appropriations established pursuant to paragraph 1 shall be cancelled where the reasons for their existence have been waived or where the claim for which the adjustment item was established has been barred or where the reasons for which the write-off of the claim is considered to be a cost of attaining, securing and maintaining income have occurred in accordance with the provisions of the Income Tax Act.
Adjustments to claims under guarantee of duty
(1) The adjustments provided for in paragraphs 8 and 8a of this Act may be made by taxpayers of income taxes who keep accounts and who are liable for customs duties under the Customs Act to claims arising from the liability for customs duties (i.e. security of customs duties) under the Customs Act.
(2) The weightings referred to in paragraph 1 may be established only up to the value of the claim corresponding to the payment of the duty.
(3) The guarantor may not make the adjustment items on account of a guarantee claim that has been met if the debtor's debt has not been met at the due date determined by the customs authorities.
If the taxpayer does not comply with Article 5, 5a, 6, 8, 8a and 8b for an outstanding claim, he may, in the period for which the tax return is filed, make up to 100% of its outstanding balance sheet value without accessories only if:
(a) it is not a claim as defined in Paragraph 8a (3);
(b) the balance sheet value of the claim without accessories at the time of its formation shall not exceed CZK 50 000,
(c) at least 12 months have elapsed since the agreed maturity of the claim, and
(d) the total value of the claims without any accessories arising from the same debtor for whom he applies the procedure under this provision shall not exceed CZK 50 000 for the period for which the tax return is filed.
A claim for which a correction has been made under this provision shall be the subject of a separate register.
Provision for cultivation activities
(1) Cultivation activities for the purposes of this Act are the restoration of the forest and all educational activities carried out in crops up to 40 years of age, the protection of the forest and measures to restore the crops with an inappropriate or replacement woodland composition. The reserve may only be drawn and drawn on the performances listed in the Annex to this Act.
(2) The provision for growing activity, which is the cost of achieving, securing and maintaining income, (1) may, in the period for which the tax return is made, be constituted by taxpayers who are obliged to tax income under the Special Act (14), carry out the renewal, protection and education of forest crops.
(3) The reserve for growing activity is created according to the volume of timber harvested in m3. The amount of this reserve shall be determined by the taxpayer himself in the budget of the costs of growing. The reserve shall be drawn up in the course of the work of the growing activity and, if the work is not carried out in a budgeted volume, the reserve shall be cancelled.
Other provisions
(1) For the purpose of determining the income tax base, a reserve for de-mudding of the pond is recognised, which means removing the deposits from the bottom of the pond caused by erosion of the surrounding land. A reserve for de-mudding of the pond may be made up to a maximum of 10 consecutive tax periods; in so doing, the arrangements for its creation, determination of the amount and application shall apply mutatis mutandis to the provision for the provision for corrections under this Law.
(2) For the purposes of determining the income tax base, a provision for the remediation and reclamation of land affected by mining or mining damage, consisting of a law governing the protection and exploitation of mineral assets, a reserve for the provision of reclamation and subsequent treatment of landfill under the Waste and Reserve Act, for which the Special Act states that it is expenditure (cargo) to achieve, secure and maintain income. 1)
(1) Money in the amount of the reserves referred to in Articles 9 and 10 (1), or provisions defined in Article 10 (2), shall be deposited in a separate account held in the Czech Republic with a bank or branch of a foreign bank established in another Member State of the European Union which is intended exclusively for the deposit of reserve assets consisting in accordance with Articles 9 and 10 (1), or reserves as defined in Article 10 (2), income from the sale of government bonds acquired from the funds of that account and, where applicable, proceeds from the funds of those reserves (hereinafter referred to as a special account). For the purposes of this provision, income from funds linked to a special deposit account and interest income on government bonds purchased from special deposit funds shall be taken as income from the special guarantee account. The funds of a special linked account may be used only for the purposes for which the reserves have been created, with the exception referred to in paragraph 4. The taxpayer will always set up only one special account for each purpose of creating the reserve, which is held in Czech crowns or in euro.
(2) In the tax period or in the period for which the return is made, the recognised creation of reserves as defined in paragraph 1 shall be the expenditure (cost) to achieve, secure and maintain revenue, provided that:
(a) cash equivalent to the amount of the recognised reserve formation shall be transferred to a special account bound by the deadline for filing the tax return at the latest; if they are not transferred in full, the expenditure (costs) to achieve, secure and maintain income shall only become that part of the recognised reserve formation that has been transferred to the special tied account at the latest by the tax return date; and
(b) the funds deposited in a special account shall not be used to cover expenditure related to the purposes for which the reserves referred to in Articles 9 and 10 (1) or the reserves defined in Article 10 (2) have been created, up to the amount of the reserves created before 31 December 2003 or until the end of the period for which the return is made and which began in 2003, unless those reserves have subsequently been completely cancelled or exhausted; if those reserves have subsequently been cancelled or drawn only partially, that condition shall apply only to the uncancelled part of the said reserves. This condition shall not apply where a special law expressly provides for an obligation to transfer funds to a special tied account equal to the provisions previously created or to their specific legislation of the defined part which have been used as expenditure (cost) to achieve, secure and maintain revenue by 31 December 2003.
(3) Where a payer uses funds deposited in a special account in contravention of the condition set out in paragraph 2 (b), he shall be entitled to apply the recognised creation of provisions as defined in paragraph 1 as an expense to achieve, secure and maintain the income referred to in paragraph 2 at the earliest in the tax period or in the period for which the tax return is made, in which the sum of the funds deposited in the special account referred to in paragraph 1 and the value of the government bonds held in a separate account with the Czech National Bank, the Securities Centre or the Central Depository, to which the Czech Republic, acting through the Ministry of Finance, shall transfer the Central Bank's records (hereinafter referred to as "the Central Depository ') 1b), shall achieve at least the amount of the reserves referred to in § 9 and § 10 (1) or the provisions defined in § 10 (2).
(4) The funds of the reserves referred to in paragraph 1 which are deposited in a special binding account may also be used for the acquisition of government bonds denominated exclusively in the Czech koruna, namely:
(a) reserves constituted under the law governing the protection and use of mineral resources for the remediation and reclamation of the land affected by mining or the settlement of mining damage only on the basis of the consent of the competent district mining authority;
(b) provisions to ensure the recovery and follow-up of landfill under the Waste Management Act only on the basis of the consent of the competent regional authority;
(c) provisions to ensure the decommissioning of a nuclear installation or a Category III or Category IV site (26) only subject to the consent of the Radioactive Waste Storage Administration.
(5) The government bonds referred to in paragraph 4 shall be held in a separate account with the Czech National Bank, the Securities Centre or the CSD and the taxpayer shall keep separate records of them. The proceeds from the sale of such bonds must always be transferred without delay to the special tied account from which they were acquired.
(6) The funds deposited in a special binding account and sovereign debt held in a separate account referred to in paragraph 5 shall not be the subject of collateral, shall not be included in the property of the payer in insolvency proceedings (12b), shall not be subject to enforcement or execution.
(1) The balances of provisions having the character of reserves under this Act as established on 31 December 1992 shall be treated as reserves under this Act and shall be transferred until 1993.
(2) Provisions established in accordance with the applicable accounting rules before 1 January 1993 and transferred to 1993, as well as the years following 1993, shall be used to cover the expenditure (s) for which they were created. If the reasons for which they were created are omitted, these reserves shall be abolished in the relevant tax year.
General provisions on the provision for the management of electrical waste from solar panels placed on the market until 1 January 2013
(1) The provision for the management of electrical waste from solar panels may be made by the solar power plant operator, which is required under the Waste Management Act to ensure the financing of the treatment, recovery and disposal of electrical waste from solar panels.
(2) The provision for the management of electrical waste from solar panels is made up independently of an earmarked equivalent reserve created under accounting legislation and its creation is not conditional on its accounting. The payer shall keep a record of the reserve created at least to the extent specified for the creation of reserves in the accounting rules.
(3) The provision for the management of solar panels electrical waste has been made since the first month of the tax period in which the solar power plant operator was obliged to pay the first payment of the contribution to ensure the financing of the treatment, recovery and disposal of electricity from solar panels carried out by the collective system operator until the depreciation of the tangible assets of which the solar panel is part would be terminated if it were written off by its first owner under Section 30b of the Income Tax Act. In the technical assessment of the tangible assets in question, the period of creation of the reserve shall not be extended.
(4) Pacht, liquidation and insolvency proceedings do not impose an obligation to abolish the already created provision for the management of solar panels' electrical waste and may also be constituted during the liquidation and during the insolvency proceedings during the duration of the effects of the bankruptcy declaration.
(5) For the purpose of the provision for the management of electrical waste, the tax period shall also be the period for which the return is to be made.
Amount of the provision for the management of electrical waste from solar panels placed on the market until 1 January 2013
(1) The total amount of the provision for the management of electrical waste from solar panels is the cumulative amount of funding which, under the waste legislation, the solar power plant operator is obliged to provide for the treatment, recovery and disposal of electricity from solar panels by the collective system operator.
(2) The total amount of the reserve shall not include amounts by which the income tax base has been reduced.
(3) The monthly reserve shall be equal to the proportion of the total amount of the reserve and the number of months elapsed from the first day of the tax period in which the obligation to pay the first payment of the contribution arose until the end of the depreciation period of the tangible assets of which the solar panel is part.
(4) The creation of a reserve for the tax period is the sum of the monthly reserve and the number of months in that tax period in which the conditions for the creation of the reserve are met.
Specific provisions on the provision for the management of electrical waste from solar panels placed on the market until 1 January 2013
(1) If the taxpayer finds a fact justifying a change in the amount of the reserve, he must make an adjustment to its amount from the tax period in which he finds it.
(2) If the solar panel is wound up, the part of the provision relating to the liquidated panel in the tax period when the collective system operator submits financial settlement to the operator of the solar power plant in which it takes this disposal into account shall be deleted.
This Law shall take effect on 1 January 1993.
Uhde v. r.
Klaus v. r.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Act of the Czech National Council No. 593 / 1992 Coll., on reserves for determining the income tax base |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 21.12.1992 |
|---|---|
| Effective from | 01.01.1993 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0