Decree of the Ministry of Finance No. 88 / 1962 Coll.
Decree of the Ministry of Finance on the taxation of premiums and rewards
Valid
Effective from 01.01.1963
88
DECLARATION
Ministry of Finance
of 22 August 1962
on the taxation of premiums and remuneration
The premiums and remuneration provided in connection with the employment relationship are an important component of wages and an effective instrument in the exercise of workers' material interests. In view of their different character, only bonuses and rewards that are of particular importance from a social point of view can be exempt from payroll tax. The Ministry of Finance therefore provides, pursuant to § 22 (3) No 2, 3 and 10 of Act No. 76 / 1952 Coll., on the payroll tax ("the Act '):
(1) Rewards for inventions and improvements are exempt from payroll tax up to 20 000 for each invention or improvement.
(2) Rewards for discoveries for which a diploma has been issued, as well as fees for proposals for new methods of treating diseases and disease protection, for new varieties of seeds and plants and for new breeds of animals for which a certificate of origin has been issued, shall be exempt, in accordance with Article 22 (3) of the Act, up to an amount of CZK 20,000 from the salary tax for each discovery or proposal.
(3) The remuneration referred to in paragraphs 1 and 2 paid to persons not having an employment relationship with the payer shall be declared revenue arising from employment in a proportion similar to that of employment and exempt from payroll tax to the extent set out in the preceding paragraphs.
The exemption from payroll tax is further limited to:
1. according to § 4 (a) of the Act up to the total amount of Kčs 2000 per year
(a) the remuneration awarded in the evaluation of all forms of competition organised under the resolutions of the Government and the Central Council of Trade Unions of 11 December 1958 on the development of socialist competition in the new organisation of the national economy, and the directives of the Central Council of Trade Unions for the organisation of socialist competition;
(b) remuneration for the direct rescue of assets held in socialist property,
(c) life-saving rewards;
(d) rewards for averting immediate danger which could cause material damage or endanger human health or life;
2. pursuant to § 22 (3) of the Act up to a total amount of CZK 20,000
(a) the premiums and rewards for each task solved, awarded in accordance with the principles of the State Labour Commission on the granting of premiums and remuneration for the performance of technical development tasks to those workers who themselves directly deal with technical development tasks; the exemption does not, however, apply to premiums and rewards granted to managers in industrial enterprises and organisations, construction organisations, transport and communications organisations, agricultural and local economic organisations, which are awarded for the quarterly and year-round comprehensive economic results of the enterprise and for the year-round fulfilment of the technical development plan,
(b) the remuneration for each solved thematic task declared by the national or sectoral thematic tasks plan and the thematic task included in the annual business plans of the thematic tasks.
(1) The tax on the part of the remuneration referred to in Article 1 and Article 2 (2) shall be taxed as a year-round income, separately from the other salary of the recipient of the remuneration and taking into account the provisions on the tax-free minimum laid down in Article 11 (1) of the Act and the reduction and increase of the tax provided for in Article 7 to 9 of the Act, as if the taxpayer had not received another wage.
(2) Rewards for participation in the elaboration, testing, introduction or extension of inventions and improvements, remuneration for the cooperation of the applicant who is not in employment and fees for experts of the members of the Panel of Experts (Sections 37, 39, 40 (3) and 44 of Act No. 34 / 1957 Coll., on inventions, discoveries and improvements) are subject to pay tax in full. The provisions of the preceding paragraph shall not apply to them.
(1) The Decree takes effect on 1 January 1963 and applies to the taxation of all premiums and fees paid after 31 December 1962, irrespective of the period for which they are paid.
(2) 1 January 1963 is hereby repealed.
Decree No 169 / 1957 of the Ministry of Finance of the Ú. l., on taxing fees for inventions, discoveries and improvements,
Paragraph 29 (1) of Decree No. 196 / 1959 of the President of the State Planning Commission and Minister of Finance of the Czech Republic, on the increase of material interest in the development and implementation of new technology,
and all proceeds issued by the Ministry of Finance *) governing the taxation of premiums and remuneration by way of derogation from this decree.
First Deputy Minister:
Dvořák v. r.
*) Revenue from the Ministry of Finance of 13 January 1954 No 152 / 4 668 / 54, published in 7 of 1954 Ú. l., of 28 January 1957 No 153 / 5 584 / 57, published in the Ministry of Finance Bulletin No 2 of 1957, of 24 February 1959 No 153 / 7 577 / 59, published in the Ministry of Finance Bulletin No 3 of 1959.
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Regulation Information
| Citation | Decree of the Ministry of Finance No. 88 / 1962 Coll., on taxing premiums and rewards |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 05.09.1962 |
|---|---|
| Effective from | 01.01.1963 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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