Decree of the Ministry of Finance of the Czech Socialist Republic No. 6 / 1970 Coll.
Decree of the Ministry of Finance of the Czech Socialist Republic implementing the Act on corporate taxes and social security contributions
Valid
Effective from 18.02.1970
6
DECLARATION
Ministry of Finance of the Czech Socialist Republic
of 3 February 1970
implementing the Act on corporate taxes and social security contributions
The Ministry of Finance of the Czech Socialist Republic provides, pursuant to Article 35 of Act No. 173 / 1969 Coll., on Corporate Taxes and Social Security Contributions (hereinafter referred to as "the Act"):
Taxpayers
(k § 2 of the Act)
(1) An industrial activity within the meaning of the Act is also considered to be an activity of geological exploration organisations; However, the activities of enterprises subject to the Water and Water Management Directorate managed by national committees, as well as those of the Film Industry, Film Laboratories, the Centre of Artistic Crafts, the Centre of People's Art Production and the Theatre Service shall not be regarded as an industrial activity.
(2) In order to assess whether the volume of industrial or construction activities and, where appropriate, the sum of such activities exceeds half of the total output, the relevant ratio of industrial and construction revenues to total revenues from production activities * is reached in the previous calendar year; for organisations whose tax liability has been incurred during the tax period, the relevant proportion of these sales is in the organisation's plan.
(3) The Directorate-General (Directorate-General), which is liable to tax on profits and capital taxes, pays profit tax and capital tax only in respect of profit from their own activities and their equity. In order to assess whether the Act is subject to a branch (Directorate-General), the number of subordinate organisations subject to these taxes on the first date of the tax period is relevant.
(4) Foreign trade organisations shall mean:
(a) organisations (enterprises) established under the rules on the State organisation of foreign trade; *)
(b) other organisations (undertakings) engaged in foreign trade as a principal activity.
Subordinated liabilities
(k § 4 of the Act)
(1) The contributions under Paragraph 4 (a) (1) of the Act, for which the taxpayer is not required under the legislation, are, for example, contributions to voluntary insurance of workers with a State Insurance Company, contributions to voluntary interest or special purpose associations, but not, for example, contributions to the Directorate-General for Trade to cover the costs of their activities.
(2) The creation or increase of reserves is an allowance where it is charged against the costs of a taxpayer in breach of law; all reserves under the Single Accounting Schedule Directives in the national economy shall be considered as reserves which the legislation allows to form.
(3) The reallocation of funds * *) is made from profits after tax. The amounts received from the reallocation of funds shall not be taxed on the beneficiaries. Only the amounts received [Paragraph 4 (c) of the Act] or provided [Paragraph 5 (2) (e) of the Act] are exempted from the reallocation of funds in the coal industry.
Deductible items
(k § 5 of the Act)
(1) In the case of commercial residential construction carried out in a supplier's way, the taxpayer may deduct 50% of the amounts paid by the supplier as repayments (including repayments of settled advances) or as an invoice supplement in the case of corporate housing construction in each year for the duration of the construction. * * *) In the case of corporate housing construction carried out under its own control, it can deduct 50% of the actual cost of corporate housing construction in each year over the construction period. In both cases, the total amount deducted may not exceed 50% of the budget price. In the case of corporate housing construction started before 1 January 1970, no account shall be taken of the costs incurred until then.
(2) Where commercial premises, offices, premises, etc., are also built in the framework of corporate housing, the costs of acquiring such premises shall be excluded from the budget price.
(3) The amounts paid for corporate housing may be deducted from own resources (including the instalments of the company housing loan drawn up until 31.12.1969) and from the loan drawn up after 1 January 1970, but not the amounts of the subsidies granted to the company housing taxpayer. Repayments of a loan for corporate housing, drawn after 1 January 1970, are not deductible.
(4) If several enterprises are combined to carry out joint housing construction in such a way that one of them is an investor, the contribution to the company's housing construction may be deducted by individual participants under the above-mentioned conditions, in proportion to the amount of participation.
Tax rate
(k § 6 of the Act)
(1) The reduced rate of profit tax provided for in § 6 (a) to (c) of the Act also applies to the branch (general) directorates, where that rate applies to at least half of the subordinate organisations.
(2) The tax rate provided for in Article 6 (a) of the Act for organisations principally engaged in the production of structures or parts applies to the national enterprises of the construction works of Uhraneves, Kovona Karviná and the Construction Prefabrication plant Boletry.
Charger's name
(k § 9 of the Act)
(1) Advances and repayments made by investors to suppliers †) do not reduce the capital tax base.
(2) Only paid-up equity capital shall be regarded as equity capital for domestic equity companies which is part of the taxpayer's assets under Paragraph 9 (1) of the Act.
(3) The remaining price of the basic funds deducted from the taxpayer's assets can only be deducted at the amount covered by the basic funds and investments, not by loans or other sources.
(4) The residual price of built-in buildings which serve solely for civil defence purposes and specific tasks shall be deducted from the taxpayer's assets in accordance with paragraph 3.
Average assets
(to Article 11 of the Act)
The average value of the taxpayer's assets shall be calculated from the value of the assets at 1 January and 31 December of the tax period.
Tax rate
(k § 10 of the Act)
The reduced rate of capital tax provided for in Section 10 of the Act also applies to the branch (General) Directorate-General, where that rate applies to at least half of the subordinate organisations.
Tax base
(k § 13 of the Act)
The tax on the volume of wages is based on the volume of all paid wages in the current year, including other personal expenses and paid shares in profit and loss, which, within the meaning of Section 3 of the Decree of the Ministry of Labour and Social Affairs of the Czechoslovak Socialist Republic No. 174 / 1969 Coll., on the regulation of wage developments and on the principles of remuneration of labour, are included in the wage resources.
Tax rate
(to Section 14 of the Act)
The volume of wage resources and the average number of staff of the previous year shall be determined for the purposes of methodological comparability in accordance with the accounting and statistical rules applicable for the current year.
Social security contribution
(to Article 15 of the Act)
The basis of the social security contribution is the same as that of the payroll tax (Section 13 of the Act).
Tax return
(to Article 18 of the Act)
(1) For important reasons, the deadline for the submission of corporate tax returns may be extended by the national committee accordingly. The extension of this deadline also results in an extension of the deadline for the payment of the difference between the advances paid and the amount of tax calculated in the return (Section 22 (4) of the Act).
(2) The taxpayer is obliged to submit a corporate tax return for the year in which he declared his loss.
Payment of taxes
(k § 22 of the Act)
(1) The organisation's financial plan is the basis for calculating the monthly advances on profit tax and wage tax.
(2) If there are changes to the financial plan during the year affecting the amount of the advances calculated, the taxpayer shall submit a new calculation of the advances to the national committee within 8 days and pay monthly advances according to the new calculation. The amount of monthly advances due shall not change.
(3) In calculating the profit tax after the end of the quarter, account shall be taken of the deductible and deductible items under Sections 4 and 5 of the Act.
(4) In the case of taxpayers, seasonal production shall be determined by the National Committee, at the request of the taxpayer, by a monthly tax advance of one third of the quarterly duty resulting from the allocation of the year-round tax liability per quarter on the basis of seasonal fluctuations in profit-making for the previous year. Monthly advances may also be determined on the basis of a breakdown made by the organisation in the framework of its quarterly obligation for each month.
(5) Each tax shall be paid on a special account of the National Committee with the Czechoslovak State Bank and shall be charged on a separate account with the National Committee.
Penalties
(to Article 23 of the Law)
(1) A tax or advance paid on time shall also be deemed to be less than that paid by the taxpayer.
(2) The periodic penalty payments shall be calculated by the national committee after each quarter and shall be subject to an assessment.
Tax control
(to Section 25 of the Act)
Organisations which are formed after 1 January 1970 or for which, after that date, a fact establishing a tax obligation shall be required to notify the national committee accordingly.
Social security contribution
(to Article 27 of the Act)
The contribution shall be made to a special account of the National Committee with the Czechoslovak State Bank.
Efficacy
This decree shall take effect on the day of its publication.
Minister of Finance:
Lér, CSc., v. r.
*) Account 400 - Sales from production activities.
*) Act No. 119 / 1948 Coll., on state organization of foreign trade and international shipping.
* *) § 39 and § 71 of Decree No. 100 / 1966 Coll., on the Planning Management of the National Economy, as amended by Decree No. 83 / 1967 Coll., No. 16 / 1968 Coll., No. 148 / 1968 Coll. and No. 169 / 1969 Coll.
* * *) Decree No. 22 / 1967 Coll., on invoicing and payment of supplies for investment construction and supply of geological works
†) § 9 and 10 of Decree No. 22 / 1967 Coll., on invoicing and payment of supplies for investment construction and supply of geological works
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Regulation Information
| Citation | Decree of the Ministry of Finance of the Czech Socialist Republic No. 6 / 1970 Coll., implementing the Act on corporate taxes and social security contributions |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 18.02.1970 |
|---|---|
| Effective from | 18.02.1970 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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