Decree No. 97 / 1945 Coll.
Decret of the President of the Republic amending and supplementing the provisions on special income tax
Valid
Effective from 01.01.1943
97.
Decret of the President of the Republic
of 13 October 1945
amending and supplementing the provisions on the special tax on earnings.
On the proposal of the Government,
The provisions of Title III of the Law of 15 June 1927, No 76 Coll., on direct taxes, as amended, are amended and supplemented as follows:
(1) Paragraph 72 (1) (c) reads as follows:
"the electricity undertakings in which the State is involved, together with the self-governing bundles, declared to be all-useful or to be converted in accordance with the Act of 22 July 1919, No 438 Coll., on State aid for the initiation of continuous electrification and of the Law of 1 July 1921, No 258 Coll., as amended by the Law of 1 July 1932, No 114 Coll., if the dividend (profit participation) was not paid in the relevant year; '
(2) Paragraph 73 (2) reads as follows:
"Newly created domestic enterprises, leading a proper business book, which will introduce unrepresented or only underrepresented production in the Czech Republic and which is recommended from national economic considerations, may, at the request decided by the Ministry of Finance with the Ministry of Industry and other participating ministries, be granted tax advantages to the extent that the undertakings concerned may be exempt from the special tax on earnings with all the increases, starting in the financial year closest to the business period in which the dividend (profit participation) was not paid in the individual business period. '
Article 78 (c) reads as follows:
"to interest capital in the enterprise deposited (in shares, priority shares, competitive deposits, social interests, Comanditists' contributions, etc.) ';
Article 78 (e) reads as follows:
"to contributions, gifts and other free dedication. In addition, contributions to sickness, accident, old-age, invalidity, widow's, orphan's and pension funds or similar institutions, provided that the undertaking has paid them above the statutory rate required for its employees, as well as taxes and benefits paid for them, even if such an obligation has been contracted, except that they are employees with gross service benefits (Paragraph 29) not exceeding 60,000 K per year for an individual employee. However, the deductors are remunerations paid to employees of the company for the work carried out, subject to points (i) and (j).
Gifts to improve the old-age, disabled, widower, orphan and pension benefits of employees and members of their families, as well as the aid granted to them by them, shall be deductible if the gifts and aid are either paid directly to employees and members of their families, or are deposited in separate, to the extent set up, from the assets of the company separated by pension or support funds; ';
Article 78 (f) reads as follows:
"to cover the special tax on earnings with increases; '
Paragraph 79 (1) (b) is deleted.
Paragraph 79 (1) (f) reads as follows:
"depreciation which is proportional to the wear or deterioration of the inventory or of the operator material, as well as to the loss on substance, on course or other losses in the operation of the transactions incurred, and to the part of the proceeds which, for the same reason, are stored in special reserves (depreciation, amortisation and below), but in this case only if these reserves have been dedicated to the payment of losses of a certain type and losses of that type have either already occurred or are expected to result in commercial circumstances.
If the Office doubts the adequacy of depreciation or of the remuneration, it shall identify it by interviewing experts.
Separate parts of the inventory and of the operator material which were acquired or produced in the 1943 (1942 / 1943) or others at a price not exceeding 2.000 K individually may be written off at the same time or gradually in three business periods, starting with the business period in which they were acquired or produced.
If the amounts written off for the exchange of inventory or operator material are used, this does not include a capital increase in the company deposited [§ 78 (a)].
Insurance institutions, as well as undertakings referred to in Paragraph 83 (5), which allocate book-keeping but unrealised exchange-rate gains to special reserves for exchange-rate losses shall not be excluded from the tax base.
The losses incurred and the losses to which the non-taxed special reserves have been set up must be paid in particular from that reserve; If they exceed it, they may shorten the tax base only if the reserve is not sufficient to cover it; ';
Paragraph 79 (1) (h) is deleted.
Paragraph 79 (2) reads as follows:
"Where expenditure is applied simultaneously to undertakings or to parts of the special tax revenue paid or not, only those parts of that expenditure attributable to undertakings or to the proceeds of the tax paid shall be deducted. If these parts cannot be precisely identified, they are assumed to be allocated to enterprises or income on a gross basis. '
Paragraph 80 (3) reads as follows:
"Taxation of reserves, marked in § 79, point (f) - in the case of non-taxable reserves, intended to cover losses and losses on buildings, machinery, equipment and on substance, or special reserves for exchange rate losses referred to in § 79, point (f), paragraph 5 - shall take place for the financial year following the business period in which it became apparent that the losses and losses for which the subscriptions have been established cannot be incurred at all or in full by the tax losses carried out. Special reserves for exchange-rate losses under Section 79 (f) (5) shall be taxed for the financial year following the business period in which the book-keeping gains allocated to those reserves have been realised. '
Article 83 is amended as follows:
1. paragraphs 1 to 8 shall read as follows:
"(1) The special income tax, unless otherwise provided for, shall be 60% of the net income tax.
(2) For the profitable and economic communities referred to in Paragraph 75 (1), (1), (1), excluding the credit communities, the profit tax is 7% of the share capital (paragraph 10) according to the situation at the end of the business period for the tax applicable. For the construction associations referred to in § 75 (1), (4), the profit tax is 4% of the share capital according to the situation at the end of the business period for taxation. However, in the case of the taxation of liquidation surpluses (Section 80), the 40% tax on those undertakings shall be charged on the profits of the surplus of the liquidation tax subject.
(3) For credit unions, as well as advances and funds referred to in § 75 (1), (1), (1) to (3), if they do not exceed the total of the deposit capital (paragraph 10) and the funds entrusted to them (i.e. deposits on books or certificates and treasury bills) according to the situation at the beginning of the business period for taxation of the applicable capital (paragraph 76), the profit tax shall be 7% of the capital (paragraph 10) according to the situation at the end of the business period for taxation applicable. If this sum exceeds 15,000.000 K but does not exceed 30,000.000 K, the profit tax shall be 10% of the share capital according to the situation at the end of the business period for taxation applicable. If this sum exceeds 30,000.000 K, the tax shall be charged in accordance with paragraph 5. The last sentence of the preceding paragraph shall also apply here.
(4) In the case of savings banks, if they do not exceed the total of the deposit capital (paragraph 10) and the funds entrusted to them (i.e. deposits on books or certificates and treasury bills) according to the situation at the beginning of the applicable business period (Paragraph 76), the profit tax is 2% of the capital at the end of the applicable business period. If this sum exceeds 15,000,000 K but does not amount to more than 30,000,000 K, the profit tax shall be 2,5% of the capital of the deposit, according to the situation at the end of the business period for taxation applicable. If this sum exceeds 30,000.000 K, the tax shall be charged in accordance with paragraph 5. The last sentence of the second paragraph also applies here.
(5) For the credit unions, as well as advances and funds referred to in § 75 (1), (1), (3), (3), (3), (3), (3), (4), (4), (5), (8), (8), (8), (8), (8), (8), (8), (8), (8), (8), (8), (8), (8), (8), (9), (9), (9), (9), (10), (10), and (10).
| při dani podrobeném ryzím výtěžku do 20.000 K | 15%, |
| při dani podrobeném ryzím výtěžku nad 20.000 K až do 50.000 K | 25%, |
| při dani podrobeném ryzím výtěžku nad 50.000 K až do 100.000 K | 40% |
| a při dani podrobeném ryzím výtěžku nad 100.000 K | 50% |
the total tax on pure income. However, the tax shall be determined in such a way that there shall be no less of the net proceeds subject to the higher percentage of the tax after deduction of the tax than of the highest net revenue subject to the lowest percentage after deduction of the tax corresponding to it.
(6) For other gainful and economic communities, where their trade is within the legal and statutory limits, the tax is:
| při dani podrobeném ryzím výtěžku do 20.000 K | 30%, |
| při dani podrobeném ryzím výtěžku nad 20.000 K až do 50.000 K | 40%, |
| při dani podrobeném ryzím výtěžku nad 50.000 K až do 100.000 K | 50% |
| a při dani podrobeném ryzím výtěžku nad 100.000 K | 55% |
the total tax on pure income. The provisions of the last sentence of paragraph 5 shall also apply here.
(7) For mutual insurance companies, the tax is:
(a) 4,5% of the sum of the annual premiums (after the deduction of the premiums - bonus) from the life insurance sector;
(b) 3,5% of the sum of the annual premiums (after the deduction of the premiums - bonus) from other insurance sectors.
(8) Where, for undertakings taxed under paragraphs 2, 3, 4 and 7, the benefits of employment exceed the benefits of employees (Paragraph 11), including the gifts or salaries of social and administrative authorities (Paragraph 78 (i)), for an individual of 250.000 K per year, those undertakings shall, in addition to the tax referred to in the preceding paragraphs, be taxed on two thirds of the amounts exceeding that limit at the rate referred to in paragraph 1. '
2. paragraphs 9, 10, 11, 12, 13, 14 and 15 shall be deleted;
3. Paragraph 16 shall become paragraph 9 and read:
"(9) In the case of undertakings charging a tax pursuant to paragraph 1, 5 or 6, the tax may not be less than 1% of the imposition capital of the taxpayer (paragraph 10) imposed on the undertaking subject to the tax, according to the state at the end of the business period for the taxation of the applicable tax. In the case of insurance companies for shares (excluding reinsurance companies exclusively), the tax may not be less than 2% of the total annual premium premium (after the deduction of the premium - bonus). '
4. Paragraph 17 shall become paragraph 10. In its third sentence, the words "paragraph 16 'shall be replaced by" paragraph 9'.
5. Paragraph 18 shall become paragraph 11. In its last sentence, the words "paragraph 17 'shall be replaced by" paragraph 10'.
6. Paragraph 19 shall become paragraph 12 and read:
"(12) For the calculation of the tax, the tax base shall be rounded to 100 K down. '
7. paragraphs 20 and 21 are deleted and the following provision is inserted as paragraph 13:
"(13) The rates of the special income tax referred to in the preceding paragraphs shall not constitute the basis for the assessment and collection of the land, district and municipal allowances. ';
Section 84 reads:
"Special income tax shall be prescribed in the tax community of the taxpayer's registered office, as specified in the statutes (social contract and etc.). '
Paragraph 85 to 89 is deleted.
Transitional provisions.
(1) For the earnings and economic communities referred to in Article 75 (1), (1), (1), (1), (1), (2), (2), (3), (3) and (4), (3), (3) and (4), (3), (3), (3) and (4), (3), (4), (3), (3) and (4), (3), (3), (3), (3), (3), (4), (4), (4), (4), (4), (4), (4), (5), (5), (5), (5), (5), (5), (5), (5), (5), (5), (5), (5), (5) In the first subparagraph (5), (5), (5), (5), (5), (5), (5), (5), (5), (5), (5), (5), (1)
(2) The special levy on income for the financial years 1943, 1944 and 1945 for the undertakings of the State and the volumes of the local authorities also amounts to 150% of the total special tax provision for the financial year 1942.
(3) The exemption from the special levy on earnings, granted in accordance with the provisions of Paragraph 73 (1) for the financial year 1942, also applies to the financial years 1943, 1944 and 1945.
(4) The exemption from the special levy on earnings granted under Paragraph 73 (2) applies to the period for which it was initially granted.
(5) Paragraph 80 (3) does not apply to non-taxed special reserves set up under Paragraph 79 (1) (f) before the 1930 (1930 / 1931) marketing period. If the taxpayer does not prove that these non-taxed special reserves still constitute valuation items, one half of them shall be included in the tax on pure proceeds for the financial years 1943, 1944 and 1945, either at the choice of the taxpayer at the same time for one of those financial years or every third. In the reserve fund state and their division into taxed, untaxed and mixed reserves, these reserves will be recognised as fully taxed.
(6) The reduction of ordinary depreciation pursuant to § 22 (6), (7) and (10) of the Act of 15 June 1927, No 78 Coll., on stabilization balances, as amended by the Act of 12 February 1936, No 34 Coll., is not carried out in the early 1943.
(7) The measurement of the special income tax on the financial years 1943, 1944 and 1945 shall be carried out, with the exception of the taxpayers referred to in paragraph 8 of this Section, by means of a notification of the tax base and tax liability, following a single payment order. The detailed assessment bases shall be notified to the taxpayer only if they deviate from his confession and if the taxpayer has not been informed otherwise. The state of reserve funds and their division into taxed, untaxed and mixed funds shall be notified - as regards the financial years 1943, 1944 and 1945 - to the taxpayer only the last position on the balance sheet date 1944 (1943 / 1944).
(8) The taxpayers referred to in paragraphs 1 and 2 of this Section will not be issued payment orders for a special tax on the earnings for the financial years 1943, 1944 and 1945. Reserves and funds are not registered until 1946. Reserves and funds other than pension funds for the trading period 1942 (1941 / 1942) to 1944 (1943 / 1944) are considered to be taxed for these taxpayers.
(9) The tax on capital gains pursuant to the Decree of 16 September 1943, No. 259 Coll., and of 28 December 1943, No. 7 Coll. of 1944, brought down by special income tax to taxpayers in the years 1943, 1944 and 1945, will be charged for the payment of the special income tax, which will be charged for the following year. This shall also apply to the taxpayers referred to in paragraphs 1 and 2 of this Section.
(10) Provisional payments, made pursuant to Sections 34 and 35 of Decree-Law No 4 / 1944 Coll., and advance payments for corporation tax and earnings tax by corporations pursuant to § 5 of the First Order of the Minister of Finance of 30 September 1944, No. 236 Coll., on simplification in the field of taxes and charges, are to be taken into account for the special tax on income in the financial years 1943, 1944 and 1945.
(11) Article VI (1) of Decree-Law of 3 March 1945, No 22 Coll., on the temporary arrangements for the income of territorial authorities and of certain other persons under public law on the place of the current tax increases, reads as follows:
"(1) The premium of the Chamber of Commerce and Trade on the special tax on earnings, levied on the basis of the provisions of Section 21, paragraph 3 of the Law of 29 June 1868, rak. z. z. no. 85, on the organisation of chambers of commerce and trade, will be prescribed and levied from 1 January 1943 on fees payable by the payers at a uniform rate for all chambers of commerce and trade. This premium is fixed at the tax years 1943, 1944 and 1945 at a rate of 2% of the special income tax. '
(12) In Articles VII and VIII (1) of Decree-Law No 22 / 1945 Coll., the words "for corporation income tax" are replaced by the words "for special income tax."
(13) Paragraph 2 of Implementing Regulation No 15 / 1937 Coll. on Paragraph 78 (e) of the Direct Taxation Act is hereby repealed. Allocation to non-autonomous pension funds, made in the trading years 1942 (1941 / 1942) to 1944 (1943 / 1944), will however be recognised when measuring the special tax on income in the financial years 1943, 1944 and 1945 under the current conditions on deductible terms, provided that these non-separate pension funds are converted into separate, separate pension or support funds within the time limit set by the Minister of Finance.
(14) The measurement of the special tax on earnings, carried out or corrected in accordance with the provisions of Sections 32, 2 and 3 of Government Decree No. 4 / 1944 Coll., remains valid. This provision may be used for cases not yet discussed.
(15) If, in the trade periods 1942 (1941 / 1942) to 1944 (1943 / 1944), the Minister of Finance has reached a merger of several undertakings referred to in paragraph 1 of this Section or a division thereof, the Minister of Finance is empowered to adjust the taxation of such undertakings.
(16) The Minister for Finance is hereby authorised to remove the hardness that would arise when measuring the tax referred to in paragraphs 1 and 2 of this Section.
Border territory.
(1) In the territories of the country of Czech and Moravian-Silesian, which was occupied by foreign power in 1938, a special tax on income in the financial years 1943, 1944 and 1945 is not measured. The corporate tax and business tax provisions for the calendar year 1943 apply here without measurement and without the issue of a payment order as an authentic regulation for the calendar years 1944 and 1945, which cannot be contradicted.
(2) The provisions of the Direct Taxation Act apply to taxpayers in these territories, starting in 1946.
(3) Persons and special-purpose assets subject to corporation tax pursuant to paragraph 1 for the calendar years 1944 and 1945 shall not be measured for those years as a general income tax, even if the conditions of the Direct Taxation Act are otherwise met.
(4) The Minister for Finance is hereby authorised to remove the hardness that would arise in implementing the provisions of paragraph 1.
The inapplicability of certain regulations from the period of infreedom.
Subject to the provisions of Section II, paragraph 15, the applicability of the following governmental regulations shall be deleted:
1. of 29 December 1943, No. 4 Coll. of 1944, on corporation tax and on corporation income tax;
2. of 29 December 1943, No 5 of 1944 Coll. on the starting balance sheet;
3. of 2 January 1945, No 1 Coll., on the profit contribution for the calendar year 1943 (Decree on profit contribution 1943);
4. of 11 April 1945, No. 47 Coll. (Implementing Regulation on corporation tax - p. d. k.), supplementing and implementing the Government Decree of 29 December 1943, No. 4 Coll. of 1944, corporate tax and corporate income tax (Corporate Tax Regulation - n.d. k.).
Efficiency.
This decree takes effect - unless otherwise specified - in the early 1943 and applies only in the Czech and Moravian-Silesian countries; to be carried out by the Minister for Finance.
Dr Beneš v. r.
Fierlinger v. r.
Dr. Šrobár v. r.
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Regulation Information
| Citation | Decree No. 97 / 1945 Coll., amending and supplementing the provisions on special income tax |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 26.10.1945 |
|---|---|
| Effective from | 01.01.1943 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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