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Income Tax Act | Act No. 586/1992 Coll.
586/1992 Coll. Act of the Czech National Council on Income Taxes
586
LAW
Czech National Council
dated November 20, 1992
on income taxes
The Czech National Council resolved on this law:
§ 1
This Act incorporates the relevant regulations of the European Union 137 ) and regulates
a) personal income tax,
b) corporate income tax.
PART ONE
PERSONAL INCOME TAX
§ 2
Personal income tax payers
(1) Payers of personal income tax are natural persons. Taxpayers are tax residents of the Czech Republic or tax non-residents.
(2) Taxpayers are tax residents of the Czech Republic if they reside in the territory of the Czech Republic or usually stay there. Tax residents of the Czech Republic have a tax obligation that applies both to income from sources within the territory of the Czech Republic and to income from sources abroad.
(3) Taxpayers are tax non-residents, unless they are mentioned in paragraph 2 or this is stipulated in international treaties. Tax non-residents have a tax obligation that applies only to income arising from sources in the territory of the Czech Republic ( § 22 ). Taxpayers who stay in the territory of the Czech Republic only for the purpose of study or treatment are tax non-residents and have a tax obligation that applies only to income arising from sources in the territory of the Czech Republic, even if they usually stay in the territory of the Czech Republic .
(4) Taxpayers usually staying in 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; every started day of stay is included in the period of 183 days. Residence in the territory of the Czech Republic for the purposes of this Act means the place where the taxpayer has a permanent apartment under circumstances from which it can be inferred that he intends to stay permanently in this apartment.
§ 2a
Taxpayer in flat-rate mode
(1) From the first day of the applicable tax period, a taxpayer in the flat-rate regime is a taxpayer from the income of natural persons who
a) as of the first day of the applicable tax period
1. is a self-employed person according to the act regulating pension insurance, to whom the legal regulations regulating pension insurance apply,
2. is a self-employed person according to the law governing public health insurance , to whom the legal regulations governing public health insurance apply and who is not exempted from the obligation to pay premiums for public health insurance due to a long-term stay abroad,
3. is not a value added tax payer and does not have a value added tax registration obligation, with the exception of the registration obligation of an identified person,
4. is not a partner of a public company or a general partner of a limited partnership a
5. is not a debtor against whom insolvency proceedings have been initiated,
b) in the tax period immediately preceding the relevant tax period, it did not exceed the relevant income for the selected band of the flat-rate regime,
c) as of the first day of the applicable taxation period, he does not carry out an activity that generates income from a dependent activity, with the exception of income from which tax is collected by withholding according to a special tax rate, and
d) submits to the tax administrator a notice of entry into the flat-rate regime, in which he chooses a band of the flat-rate regime, and no later than on the last day of the deadline for submitting a notice of entry into the flat-rate regime, he has made a notification of starting a self-employed activity in accordance with the law governing the organization and implementation of social security and notification of starting self-employment according to the law governing public health insurance ; this period is preserved if, on the last day of this period at the latest, a submission is made containing the data required in the relevant notification to the tax administrator together with the notification of entry into the flat-rate regime or to the trade office together with the announcement of the trade or the application for a concession.
(2) An individual income tax payer who starts an activity from which self-employment income flows is a taxpayer in the flat-rate regime from the first day of the calendar month in which he starts this activity, if
a) meets the conditions according to paragraph 1, while the conditions according to paragraph 1 letter a) and c) must be fulfilled instead of on the first day of the applicable tax period on the day of commencement of this activity,
b) in the part of the applicable taxation period before the date of commencement of this activity, he was not a value added tax payer, a partner of a public company or a general partner of a limited partnership and did not perform an activity from which income from self-employment derives,
c) in the part of the applicable taxation period before the day of commencement of this activity, he had only
1. tax-exempt income,
2. income that is not subject to tax,
3. income from which tax is collected by deduction according to a special tax rate,
4. income from capital assets, income from rent and other income, if it is not income according to points 1 to 3 and if the total amount of this income does not exceed CZK 50,000.
(3) A taxpayer from the income of natural persons who ceased to be a taxpayer in the flat-rate regime due to the fact that he interrupted the activity from which income from self-employment flows, and in the same tax period restarts this activity, is a taxpayer in the same zone of the flat-rate regime as before interrupting this activity from the first day of the calendar month in which it resumes this activity.
(4) The chosen band of the flat-rate regime will change from the first day of the tax period to
a) the newly selected band of the flat-rate regime, if the taxpayer is in the flat-rate regime
1. in the tax period immediately preceding this tax period, did not exceed the qualifying income for the newly selected flat-rate regime band and
2. submits a notification to the tax administrator about a change in the selected band of the flat-rate regime, or
b) band of the flat-rate regime determining the amount of the flat-rate tax for the tax period immediately preceding this tax period, if the taxpayer in the flat-rate regime
1. did not exceed the qualifying income for this band in the tax period immediately preceding this tax period,
2. submits a notice to the tax administrator of a different amount of the flat-rate tax to a higher amount due to the fact that he exceeded the qualifying income for the selected band in the tax period immediately preceding this tax period, and
3. the band of the flat-rate regime has not changed according to letter a).
(5) Determined income for
a) the first band of the flat-rate regime is income from self-employment up to
1. CZK 1,000,000, regardless of what independent activity they result from,
2. CZK 1,500,000, if at least 75% of the taxpayer's self-employment income is income to which expenses of 80% of income or 60% of income can be applied, and
3. CZK 2,000,000, if at least 75% of the income from self-employment of the taxpayer is income to which expenses in the amount of 80% of the income can be applied,
b) the second band of the flat-rate regime is income from self-employment up to
1. CZK 1,500,000, regardless of the independent activity they derive from, and
2. CZK 2,000,000, if at least 75% of the taxpayer's self-employment income is income to which expenses of 80% of income or 60% of income can be applied, and
c) the third band of the flat-rate regime is income from self-employment up to CZK 2,000,000, regardless of the type of self-employment they derive from.
(6) For the purposes of paragraph 5, income from self-employment is not considered
a) tax-exempt income,
b) income that is not subject to tax, a
c) income from which tax is collected by deduction according to a special tax rate.
(7) For the purposes of the flat-rate scheme,
a) income means income according to this Act, which the taxpayer would have if he were not an accounting entity,
b) income from self-employment also includes interest from deposits in an account which, according to the conditions of the person who maintains the account, is intended for the taxpayer's business, and income from the share of a partner in a public trading company and a general partner in a limited partnership in the profit is not considered as income.
(8) The taxpayer ceases to be a taxpayer in the flat-rate regime upon expiry
a) the tax period in which
1. has exceeded the qualifying income for the selected band of the flat-rate regime, unless his tax is equal to the flat-rate tax,
2. becomes a value added tax payer or is subject to a value added tax registration obligation, with the exception of the registration obligation of an identified person,
3. becomes a partner of a public company or a general partner of a limited partnership, or
4. the decision on the bankruptcy of the taxpayer has taken effect and the insolvency proceedings have not been completed,
b) the taxation period that the taxpayer states in the notification of voluntary withdrawal from the flat-rate regime,
c) the calendar month in which it ceases to be
1. a self-employed person according to the act regulating pension insurance, to whom the legal regulations regulating pension insurance apply, or
2. a self-employed person according to the law governing public health insurance , to whom the legal regulations governing public health insurance apply ,
d) the calendar month immediately preceding the calendar month from which the taxpayer is not obliged to pay premiums for public health insurance due to a long-term stay abroad, or
e) the calendar month in which the taxpayer becomes a tax non-resident and ceases to carry out activities on the territory of the Czech Republic that derive income from self-employment.
§ 3
Subject of personal income tax
(1) The subject of personal income tax are:
a) income from dependent activity ( § 6 ),
b) income from self-employment ( § 7 ),
c) income from capital assets ( § 8 ),
d) rental income ( § 9 ),
e) other income ( § 10 ).
(2) Income in the sense of paragraph 1 means monetary and non-monetary income obtained also through exchange.
(3) Non-monetary income is valued for personal income tax purposes
a) according to the legal regulation governing property valuation,
b) as five times the value of the annual performance, if the income consists of another property benefit, the content of which is recurring or lasting performance for a period
1. indefinite,
2. of a person's life or
3. longer than 5 years.
(4) They are not subject to taxes
a) income received
1. by acquiring shares or share certificates in accordance with the law regulating the conditions for the transfer of state property to other persons,
2. issuing in accordance with legal regulations governing the restitution of property,
b) credits or loans with exception
1. the income that the creditor acquired from the returned loan or credit by assigning against payment the claim arising on the basis of this loan or credit, in an amount equal to the difference between the income resulting from the return of the loan or credit and the price for which the claim was assigned,
2. income accruing to the taxpayer, who keeps tax records, from a discount loan from a promissory note that is used to pay the claim,
c) income from the extension of the scope or settlement of the common property of the spouses,
d) income arising from the title of just satisfaction awarded by the European Court of Human Rights in the amount that the Czech Republic is obliged to pay, or from the title of settling a matter before the European Court of Human Rights on the basis of reconciliation or a unilateral declaration by the government in the amount that the Czech Republic has committed to pay, 1c )
e) income accruing to a taxpayer referred to in § 2, paragraph 2 , who helps with household chores abroad, or to a taxpayer referred to in § 2, paragraph 3 , who helps with domestic chores in the Czech Republic, for food and accommodation, if o income to meet basic social, cultural or educational needs (au-pair),
f) income obtained by the transfer of property between related persons in connection with the termination of the agricultural activity of the agricultural entrepreneur, if the related person continues the activity of the agricultural entrepreneur at least until the end of the third tax period following the termination of the agricultural activity of the agricultural entrepreneur transferring this property, with the exception of non-continuation of the activity from cause of death; in case of violation of this condition, these incomes are subject to tax in the tax period when the transfer of this property took place and it is considered that the taxpayer is not in arrears if he submits a tax return or an additional tax return and pays the tax no later than the date on which he is obliged to file tax return for the tax period in which he did not meet this condition,
g) income from
1. settlement of co-ownership by dividing the matter according to the size of the co-ownership shares,
2. exchanges of land during land development according to the law regulating land development, with the exception of the part of the land that is a building,
h) the amount paid by the health insurance company by which the limit of regulatory fees and supplements for medicines or food was exceeded according to special legal regulations governing the limits of regulatory fees and supplements for medicines or food,
i) income arising from the title of compensation awarded by an international criminal court, an international criminal tribunal, or a similar international judicial body, which meet at least one of the conditions specified in § 145, paragraph 1 of the Act on International Judicial Cooperation in Criminal Matters.
Section 4
Tax exemption
(1) It is exempt from tax
a) income from the sale of a single-family house and related land, or a unit that does not include non-residential space other than a garage, cellar or storage room, and related land, if the seller has resided there for at least 2 years immediately before the sale; income from the sale of a single-family house, a unit that does not include a non-residential space other than a garage, cellar or storage room, and related land, if the seller has lived there for a period of less than 2 years immediately before the sale and if he uses the funds obtained to purchase his own housing needs; for the exemption of income flowing to the spouses from their joint property, it is sufficient that only one of the spouses meets the conditions for its exemption, if the property to which the exemption relates is not or has not been included in the business property of one of the spouses; the exemption does not apply to income from
1. the sale of these immovables, if they are or were included in the business property, within 2 years of their removal from the business property,
2. the future sale of these immovables carried out within 2 years from the acquisition of the ownership right to these immovables,
3. the future sale of these immovables carried out within 2 years of their removal from business property, even if the purchase contract will be concluded only after 2 years from this acquisition or after 2 years from this removal from business property,
b) income from the sale of immovable property or from the settlement of co-ownership of immovable property not exempted under letter a) if the period between the acquisition of the ownership right to these immovable property and their sale or settlement of co-ownership of them exceeds a period of 10 years; income from the sale of immovable property or from the settlement of co-ownership of immovable property not exempted under letter a), if the period between the acquisition of the ownership right to these immovable property and their sale or settlement of co-ownership of them does not exceed 10 years and if the taxpayer uses the funds obtained for procurement own housing needs; the period of 10 years is reduced by the time during which these immovables were demonstrably owned by the testator in the case of the sale of immovables acquired by inheritance from the testator who was a direct relative or spouse, or the settlement of co-ownership of immovables acquired by inheritance from such a testator, or for the time during which the seller or co-owner owned the land that was the subject of exchange as part of land improvements, in the case of sale or settlement of co-ownership of land acquired by exchange from the land office, this time is also included in the time that runs from the disposal of exchanged land from business property; the exemption does not apply to income from
1. sales of these immovables, which are or were included in business assets in the period of 10 years before the sale, or settlement of co-ownership of such immovables,
2. the future sale of these immovables carried out within 10 years from the acquisition of the ownership right to these immovables, even if the purchase contract will be concluded only after 10 years from this acquisition,
3. the future sale of these immovables carried out within 10 years of their removal from business property, even if the purchase contract will be concluded only after 10 years of such removal,
4. sale of the right of construction or settlement of co-ownership of the right of construction, if a building complying with the right of construction is not established,
c) income from the sale of tangible movable property, with the exception of income from the sale
1. security,
2. motor vehicle, aircraft or ship, if the time between their acquisition and sale does not exceed 1 year,
3. movable property that is or was included in the business property in the period of 5 years before the sale,
d) received compensation for property or non-property damage, payment from property insurance, payment from liability insurance, payment from travel insurance; exemption does not apply to
1. compensation for loss of income,
2. compensation for damage caused to property that was included in the business property for the performance of activities that generate income from self-employment, at the time the damage occurred,
3. compensation for damage caused to property used for rent at the time the damage occurred,
4. payment from liability insurance for damage caused in connection with the activity from which income from self-employment of the taxpayer flows,
5. compensation for damage caused by the taxpayer in connection with the lease,
e) income from reserves deposited in a special escrow account in a bank in accordance with the law regulating reserves for determining the income tax base, if it becomes income of a special escrow account,
f) income in the form of
1. prizes from a public competition and similar prizes from abroad, if the full amount is donated by the recipient for the purposes specified in § 15 paragraph 1 ,
2. awards in the field of culture according to other legal regulations,
3. prizes from a public competition, from an advertising competition or from an advertising raffle, prizes from a sports competition, with the exception of a prize from a sports competition for taxpayers whose sports activity is a business, with a value not exceeding CZK 10,000,
g) income in the form of
1. compensation received in connection with the rectification of certain property wrongs,
2. payments for the sale of items issued in connection with the redress of certain property wrongs according to legal regulations on property restitution; this exemption also applies if, in the period between the acquisition and sale of the immovable object, a settlement has taken place between the co-owners by dividing the object according to the size of their shares, or if units have been created in the immovable object; the exemption does not apply to an item that is or was included in business property in the period of 5 years before the sale,
3. additional payment or pension contribution according to other legal regulations,
4. interest from a state bond issued in connection with rehabilitation proceedings on the redress of grievances,
5. lump sums paid by the state to a person sterilized in violation of the law,
6. one-time compensation paid by the state to a person in connection with an extraordinary event in the Vlachovice-Vrbìtice ammunition storage area,
h) income obtained in the form of a benefit or service from sickness insurance, pension insurance according to the law regulating pension insurance, financial assistance to victims of crime according to the law regulating the provision of financial assistance to victims of crime, social security, benefits from the application of state employment policy instruments and public health insurance , payment from an insurance contract for pension insurance according to the act regulating pension savings and payment from foreign compulsory insurance of the same type; however, if it is income in the form of a regularly paid pension or pension, the total of such income is exempt from tax at most an amount equal to 36 times the minimum wage, which is valid on January 1 of the calendar year, for the tax period, which, however, does not include the above supplement or pension contribution according to other legal regulations,
i) benefit for a person with a disability, benefit in material need, social service, state social support benefit, foster care benefit with the exception of the foster parent's remuneration, substitute maintenance for a dependent child under the Act on Substitute Maintenance, contribution from the public budget and state benefit or allowance according to other legal regulations or similar performance provided from abroad, income arising from the care of a relative or other person who is entitled to a care allowance according to the Act regulating social services, up to the amount of the provided allowance, if this care is performed physically a person who is not required to be registered under the Act Governing Social Services; however, if it concerns the care of a person other than a close person, a maximum amount up to the amount of the allowance for a person with IV. the degree of dependency according to the law regulating social services,
j) income in the form of compensation for purposefully, economically and demonstrably spent expenses connected with the donation and collection of blood and its components, tissues, cells or organs, if this compensation is provided according to other legal regulations,
k) income in the form of
1. scholarships from the state budget, from the municipal budget, from the regional budget, from the funds of a university, a public research institution or a legal entity that carries out the activities of a secondary school or higher vocational school,
2. support or contribution from the funds of a foundation or association, with the exception of a family foundation, if it is not a taxpayer who is a member or employee of these legal entities, or a person close to this taxpayer and if it is a taxpayer who is a member or employee of these of legal entities, or for a person close to this taxpayer, income in the form of support or contribution provided exclusively to compensate for disability or social exclusion,
3. support or contribution from the funds of a trade union organization,
4. non-monetary benefits or social assistance provided by the employer from the cultural and social needs fund to the next of kin, or social assistance to the next of kin under similar conditions at an employer where this fund is not established,
l) income from
1. pension paid from supplementary pension insurance with state contribution, pension from supplementary pension savings, pension from pension insurance and pension from life insurance with pension payment, namely from life insurance, death or life insurance and pension insurance, whose collection period is not defined or is at least 10 years,
2. disability pension from supplementary pension insurance with state contribution for a fixed period, disability pension for a specified period and one-off insurance premium for a pension according to the law regulating supplementary pension savings,
3. payment of funds of a pension savings participant upon termination of pension savings pursuant to the Act on Termination of Pension Savings,
4. other payments from personal insurance, with the exception of one-off payments, redemption or surrender premiums and pensions from pension insurance and life insurance, namely life insurance, death or life insurance, pension insurance and supplementary pension savings, for which the period of their receipt is defined, and with the exception of other income from personal insurance, which is not an insurance payment and does not cause the termination of the insurance contract,
m) services provided by the armed forces to school pupils who are not soldiers on active duty 3 ) , to soldiers in reserve called to perform active military service, with the exception of service and special allowance according to special legal regulations 3a ) ,
n) disciplinary rewards provided to members of the armed forces and security forces according to special legal regulations 3 ) ,
o) long-service requirements and service allowance for housing for professional soldiers and long-service entitlements for members of the security forces according to special legal regulations 3 ) ,
p) payment in kind provided to the President of the Republic in accordance with other legal regulations and to the former President of the Republic in accordance with the law governing the security of the President of the Republic after the end of his term of office,
q) performance provided in connection with the performance of volunteer service according to the Act governing volunteer service,
r) performance from maintenance obligations,
s) income from the paid transfer of a share in a business corporation, with the exception of income from the paid transfer of a security, if the period between its acquisition and the paid transfer exceeds 5 years; the period of 5 years between the acquisition and the paid transfer of the share is shortened by the time during which the taxpayer was a member of this business corporation before the transformation of the business corporation, or by the time during which this share was demonstrably owned by the testator, in the case of a paid transfer of the share acquired by inheritance from the testator who was a direct relative or spouse; if the conditions specified in § 23b or 23c are met , the period of 5 years between the acquisition and the paid transfer of the share is not interrupted when shares are exchanged or the business corporation is converted; in the case of the division of a share in connection with its transfer for a fee, the period of 5 years between the acquisition and the transfer of a share in a business corporation for the same taxpayer is not interrupted, if the total amount of the share is preserved by the division; exemption does not apply to
1. income from the paid transfer of a share in a business corporation, if it was acquired from the taxpayer's business property, within 5 years after the termination of his activity, from which income from independent activity flows,
2. income that accrues to the taxpayer from the future paid transfer of a share in a business corporation within 5 years from its acquisition, even if the contract for paid transfer will be concluded only after 5 years from its acquisition,
3. income from the future paid transfer of a share in a business corporation acquired from the taxpayer's business property, if the income from this paid transfer flows within 5 years from the end of the taxpayer's activity, from which he derives income from self-employment, even if the contract on the paid transfer will be concluded only after 5 years from the acquisition of this share or from the termination of this activity,
4. income from the paid transfer of a share in a business corporation corresponding to an increase in the acquisition price of a member's share by non-monetary performance in favor of the equity capital of the business corporation or the acquisition of a share from another member, if the paid transfer took place within 5 years of the performance or acquisition of the share,
t) contribution to a natural person provided in accordance with the law governing building savings and state support for building savings,
u) subsidy from the state budget, from the budget of a municipality, region, state fund, National Fund, regional council of the cohesion region, support from the Wine Fund, from an allocated grant or a contribution from the state budget, which is an expenditure of the state budget according to the law governing budget rules, or a subsidy , a grant and a contribution from the funds of the European Union, for the acquisition of tangible property, for its technical evaluation or for the removal of the consequences of a natural disaster, with the exception of subsidies and contributions that are charged to income or revenue according to the law governing accounting,
v) income received in the form of acquiring ownership of a unit that does not include non-residential space other than a garage, cellar or storage room, as compensation for vacating an apartment or a unit that does not include non-residential space other than a garage, basement or storage room, compensation (severance pay) for vacating an apartment or a unit that does not include a non-residential space other than a garage, cellar or storage room, paid by the user of this unit or apartment on the condition that the taxpayer uses the compensation (severance pay) to procure his own housing needs, and income from the paid transfer of rights and obligations associated with membership in the cooperative, if, in connection with this transfer, the lease agreement for the apartment will be canceled if the taxpayer uses the funds obtained to procure his own housing needs,
w) income from the paid transfer of securities and income from shares attributable to unit certificates upon cancellation of a mutual fund, if their total for the taxpayer does not exceed the amount of CZK 100,000 in the tax period; the exemption does not apply to income from capital assets and to income from the paid transfer of securities or from shares attributable to unit certificates upon liquidation of a mutual fund, which are or have been included in business property, within 3 years of the termination of the activity from which the income derives from self-employment; if it is a birth certificate, the period is 5 years,
x) income from the paid transfer of a security, if the time between the acquisition and the paid transfer of this security exceeds a period of 3 years during its paid transfer, and further income from the share accruing to the share certificate upon cancellation of the mutual fund, if the time between the acquisition of the share exceeds letter and the date of payment of the share for a period of 3 years; the period of 3 years is shortened by the time during which this security or the share belonging to the unit certificate was in the possession of the testator at the time of cancellation of the mutual fund, in the event that it is a paid transfer of the security or share belonging to the unit certificate upon cancellation of the mutual fund acquired by inheritance from the testator who was a direct relative or spouse; the period of 3 years between the acquisition and paid transfer of a security with the same taxpayer is not interrupted in the event of a merger or merger of mutual funds or when a closed mutual fund is converted into an open mutual fund; the exemption does not apply to income from the paid transfer of a security that is or has been included in business assets within 3 years of the end of the activity from which income from self-employment flows, and to income from capital assets; the exemption does not apply to income from the share accruing to a share certificate upon liquidation of a mutual fund that was or is included in business assets, within 3 years of the termination of the activity from which income from self-employment flows; when a share is exchanged by the issuer for another share of the same total nominal value, the period of 3 years between the acquisition and paid transfer of the security for the same taxpayer is not interrupted; a similar procedure is followed in case of exchange of shares, merger of companies or division of the company, if the conditions specified in § 23b or § 23c are met ; the exemption does not apply to the income that flows to the taxpayer from the future paid transfer of a security, carried out within 3 years from the acquisition, and from the future paid transfer of a security that is or was included in the business property, within 3 years from the end of the activity, from which income from independent activity flows, even if the purchase contract will be concluded only after 3 years from the acquisition or after 3 years from the end of the activity from which income from independent activity flows; the same applies to income arising as consideration to a minority shareholder as a result of the forced transfer of participating securities; if it is a birth certificate, the period is 5 years instead of 3 years,
y) income from the acquisition of the ownership right to a unit that does not include non-residential space other than a garage, cellar or storage room, if it is owned by a legal entity formed for the purpose of becoming the owner of a house with units, and a natural person who owns the ownership right to the unit acquires
1. is the tenant of this unit,
2. is a member of this legal entity and
3. she participated or her legal predecessor participated with monetary or non-monetary performance in the acquisition of a house with units,
z) income from interest from overpayments caused by the tax administrator, the social security authority and income from penalties from overpayments of insurance premiums, which the relevant health insurance company returned after the deadline set for the decision on overpayment of insurance premiums,
za) bond yield according to the law governing bonds and income arising from the right to redeem bonds issued by a member state of the European Union or a state forming the European Economic Area,
zb) income of the buyer of the unit received in connection with the mutual settlement of funds from the rent intended for the financing of repairs and maintenance of the apartment, house and unit according to the law governing the transfer of units of certain housing cooperatives,
zc) income arising in the form of a compulsory copy on the basis of a special legal regulation and in the form of copyright reproduction, in the usual number, received in connection with the use of the subject matter of copyright or rights related to copyright,
zd) income arising as compensation for servitude arising by law or by decision of a state authority pursuant to other legal regulations and income arising as compensation for expropriation on the basis of other legal regulations,
ze) exchange rate gain when exchanging money from an account maintained in a foreign currency, if it is not an account included in business assets, with the exception of exchange rate gain when exchanging money from an account maintained in a foreign currency on a European regulated market or on a similar foreign regulated market, on in which transactions with these currencies are carried out,
zf) income from the acquisition of the ownership right to the thing on the basis of its transfer or transfer in accordance with the law governing the transfer of ownership rights to units of certain housing cooperatives, if the acquirer is an authorized member of the cooperative,
zg) income from the acquisition of the ownership right to a family house or a unit that includes a cooperative apartment or a cooperative non-residential space that is a garage, cellar or storage room, and does not include other non-residential space, if the acquirer is a natural person who is a member of a housing cooperative that is a tenant of this family house or unit owned by the cooperative and who himself or his legal predecessor participated in its acquisition with a membership deposit,
zh) income deriving from the additional payment for settlement during the conversion of a business company or the exchange of shares in a business company, to which the partner has become entitled in accordance with the law governing the conversion of business companies and cooperatives, if it relates to
1. a share for which the period between the acquisition and the decisive day of the transformation of the business company or the exchange of shares in the business company exceeded a period of 3 years; the exemption does not apply to a share that is or has been included in business assets for a period of 3 years from the end of the activity from which income from self-employment flows,
2. a share in a trading company, for which the period between the acquisition and the decisive date of the conversion of the trading company or the exchange of shares of the trading company exceeded a period of 5 years; the exemption does not apply to a share that is or has been included in business property for a period of 5 years from the end of the activity from which income from self-employment flows,
zi) reimbursement of living expenses or allowance for living expenses provided by the authorities of the European Union to an employee or a national expert sent to work in an institution of the European Union,
zj) income in the form of a tax bonus,
zk) remuneration, severance pay, old-age pension, pension, contribution, in-kind payment and reimbursement of expenses provided from the budget of the European Union to a member or former member of the European Parliament elected on the territory of the Czech Republic, as well as provision and reimbursement of expenses provided from the budget of the European Union to the surviving spouse and dependent children in the event of the death of a member of the European Parliament elected on the territory of the Czech Republic,
zl) bond yield according to the law regulating bonds and income arising from the right to redeem a bond issued abroad by a taxpayer with a registered office in the Czech Republic, if they flow to a tax non-resident who is not a person capitally connected with the issuer of the bond, nor has he created a legal relationship with him mainly for the purpose of reducing tax base or tax loss increase,
zm) income according to § 4a .
(2) The period between acquisition and sale according to paragraph 1 letter a) or b) is not interrupted if, in the period between acquisition and sale,
a) settlement between co-owners of immovable property by dividing them according to the size of their shares,
b) the fact that units were created in the house,
c) settlement of joint property of spouses or
d) division of land.
(4) For the purposes of income tax, the business property of a taxpayer of personal income tax means the part of the taxpayer's property that has been or is accounted for or is or has been entered in the tax records. The date of removal of a certain asset component from the taxpayer's business assets is the day when the taxpayer last accounted for this asset component or last listed it in the tax records.
Section 4a
Exemption of gratuitous income
Free income is exempt from personal income tax
a) from the acquisition of an inheritance or bequest,
b) contemplated from property which
1. was allocated to the trust fund by acquisition in the event of death or
2. increased the assets of the trust fund by acquisition in case of death,
c) from the acquisition of ownership rights to movable property, if reciprocity is guaranteed and the person from whom the property is acquired is
1. a representative of a foreign state authorized in the Czech Republic,
2. a member of his family living with him in a joint household,
3. another person who was entitled to diplomatic privileges and immunities and who was not a citizen of the Czech Republic,
d) from the acquisition of the ownership right to the land or from the establishment of an easement, if these incomes occurred on the basis of a decision of the land office on land improvements,
e) from the acquisition of the ownership right to land or a share in land according to the law regulating the property of the Czech Republic and its performance in legal relations, if the organizational component of the state is obliged to transfer it free of charge to a natural person,
f) from the creation of servitude of an apartment according to the law governing transfers of ownership rights to units of certain housing cooperatives,
g) arising in the form of a gift received in connection with an activity from which income from an independent activity flows, as an advertising item bearing the name or trademark of the provider of this gift, the price of which does not exceed the amount of CZK 500,
h) income arising from the write-off of debt during reorganization or debt relief carried out in accordance with the law governing the resolution of bankruptcy,
i) a taxpayer residing in a member state of the European Union or a state forming the European Economic Area operating a facility for the care of stray or abandoned animals or for the care of individuals of endangered animal species, if the gratuitous income is used to operate this facility,
j) a taxpayer who, no later than the end of the calendar year following the year of its adoption, will demonstrably use it for education, if this income is not income from a dependent activity, or for treatment, payment of social services or the purchase of an aid for the disabled, as well as the direct provision of such aids; if the conditions for exemption of income are not met, this income is income according to § 10 in the last tax period in which the conditions for exemption could be met,
k) for a humanitarian or charitable purpose or from a public collection,
l) from the acquisition of property demonstrably used to finance the election campaign of a candidate for the position of President of the Republic according to the law regulating the election of the President of the Republic, who will participate in the first round of the election,
m) in the form of property benefit of the lender in the case of an interest-free loan, the borrower in the case of a loan or the beggar in the case of begging, if these incomes are not income from a dependent activity, and if
1. it is income from a relative in the direct line, the secondary line, in the case of siblings, uncles, aunts, nephews or nieces, spouses, spouses of children, children of spouses, parents of spouses or spouses of parents,
2. it is income from a person with whom the taxpayer lived for at least one year immediately before receiving the free income in a jointly managed household and for this reason took care of the household or was dependent on this person for maintenance,
3. it is the income of the beneficiary from his assets, which he allocated to the trust fund or with which he increased the assets of this fund, or from assets that were allocated to the trust fund or which increased the assets of this fund by the person mentioned in point 1 or 2 , or
4. the total income from these property benefits from the same taxpayer will not exceed the amount of CZK 100,000 in the tax period,
n) in the form of performance provided for the operation of a zoo, the operator of which is the holder of a valid license according to the law governing zoos,
o) in the form of performance provided to natural persons for the provision of public cultural services,
p) the owner of the unit in the form of reimbursement of costs for the management of the house and land
1. by the owner of another unit in the same building, or
2. a person who becomes the owner of the emerging unit in the same building,
q) from the acquisition of a co-ownership share in immovable property from a municipality or from a taxpayer of which the municipality is a member or founder, if
1. in the period from 1995 to 2007, a subsidy was obtained from the state budget for the construction of this immovable property through a program supporting the construction of rental apartments and technical infrastructure or from the State Housing Development Fund in accordance with Government Regulation No. 481/2000 Coll., on the use of funds The State Housing Development Fund in the form of a subsidy to cover part of the costs associated with the construction of apartments, as amended, and
2. the transfer of this immovable property to another person was prohibited for a specified period of time by the conditions of provision of the subsidy according to point 1, and this is the first transfer after the expiration of this period, with the fact that this transfer serves to ensure that this immovable property is owned by a natural person.
§ 4b
Housing needs
(1) Housing needs for income tax purposes is understood
a) construction of an apartment building, family house, unit that does not include non-residential space other than a garage, cellar or storage room, and alteration of the building,
b) acquisition of land for bribery
1. provided that the construction of housing needs will be started on the land according to letter a) within 4 years from the moment of acquisition of the land, or
2. in connection with the acquisition of housing needs referred to in letter c) ,
c) bribery acquisition
1. apartment building,
2. family house,
3. construction of an apartment building or a family house under construction,
4. units that do not include non-residential space other than a garage, cellar or storage room,
d) repayment of a deposit to a legal entity by its member for the purpose of obtaining the right to lease or otherwise use an apartment or a family home,
e) maintenance and alteration of the construction of an apartment building, a family house, an apartment rented or in use or a unit that does not include a non-residential space other than a garage, cellar or storage room,
f) settlement of joint assets of spouses or settlement of co-heirs in the event that the subject of the settlement is the payment of a share associated with the acquisition of a unit that does not include non-residential space other than a garage, cellar or storage room, family house or apartment building,
g) payment for the transfer of a share in a business corporation made by its member in connection with the transfer of the right to lease or other use of an apartment,
h) repayment of the loan or loan used by the taxpayer to finance housing needs listed in letters a) to g) , if the conditions for these housing needs are met.
(2) The exemption of income, which is conditional on the expenditure of the funds obtained from this income for the provision of own housing needs, is applied if the taxpayer notifies the tax administrator of the acquisition of these funds by the end of the deadline for submitting the tax return for the tax period in which they were acquired .
(3) If the taxpayer makes a notification to the tax administrator in accordance with paragraph 2 , the condition for exempting the income consisting in the use of the obtained funds for the provision of own housing needs is fulfilled, if the taxpayer of income tax of natural persons
a) uses these funds to procure own housing needs until the end of the tax period immediately following the tax period in which the taxpayer obtained these funds, or
b) used the amount corresponding to the obtained funds to procure their own housing needs before obtaining them, but first in the tax period immediately preceding the tax period in which the taxpayer obtained these funds.
(4) If the condition for the exemption of income consisting in the use of the obtained funds to procure own housing needs is not fulfilled, this income is income according to § 10 in the tax period immediately following the tax period in which the taxpayer obtained the funds.
(5) If, in the case of the housing need referred to in paragraph 1 letter b) point 1 to start construction, this income is income according to § 10 in the tax period in which the deadline for starting construction has passed in vain; if the taxpayer disposes of the land before the expiry of the period for starting construction, this income is income according to § 10 in the tax period in which the taxpayer disposes of the land.
Section 5
Tax basis and tax loss
(1) The basis of the tax is the amount by which the income flowing to the taxpayer in the tax period exceeds the expenses demonstrably spent on achieving, securing and maintaining them, unless otherwise specified for individual incomes according to Sections 6 to 10 .
(2) For a taxpayer who simultaneously receives two or more types of income specified in Sections 6 to 10 during the tax period , the tax basis is the sum of the partial tax bases determined according to the individual types of income using the provisions of paragraph 1.
(3) If, according to accounting, tax records or records of income and expenses, the expenses exceed the income specified in Sections 7 and 9 , the difference is a loss. The total of the partial tax bases determined according to the individual types of income listed in Sections 7 to 10 shall be reduced by the loss adjusted pursuant to § 23 (hereinafter referred to as "tax loss") using the provisions of paragraph 1.
(4) Income from dependent activity paid to the taxpayer or received by the taxpayer no later than 31 days after the end of the tax period in which they were earned are considered to be income paid or received in this tax period. Incomes paid or received after the 31st day after the end of the tax period are income of the tax period in which they were paid or received and advances deducted from these incomes by the taxpayer are counted against the taxpayer's tax liability only in the tax period in which they are paid or received . The procedure is similar when determining the tax base and when recording income from dependent activity.
(5) The tax base does not include tax-exempt income and income for which it is further stipulated that tax is collected from them at a special tax rate according to § 36 from a separate tax base, unless § 36 paragraph 6 or 7 provides otherwise. Income included in a separate tax base taxed at the tax rate according to § 16a is not included in the tax base .
(6) Income included in the tax base (partial tax base) in previous tax periods that was returned will reduce income (revenues) or increase expenses (costs) in the tax period in which it was returned, provided , that there is a legal reason for its return and the return of income is not recorded in the accounting or tax records of the taxpayer when determining the tax base (partial tax base) according to Sections 7 and 9 . A similar procedure is followed in the case of expenses (costs) applied as expenses (costs) for achieving, securing and maintaining income, in case of non-compliance with the established conditions for their application as expenses (costs) for achieving, securing and maintaining income. If these are amounts applied as expenses (expenses) in previous tax periods, for which there is a legal reason for their return by the recipient, income (income) is increased by these amounts or expenses (expenses) are reduced or the basis for calculating the advance on income from dependent activity or functional benefits in the tax period when the legal reason for their application has ceased to exist, provided that the refund was not recorded in the taxpayer's accounting or tax records when determining the tax base (partial tax base) according to Sections 7 and 9 . Income from a dependent activity included in previous tax periods in the partial tax base (the basis for calculating the tax advance), for which there is a legal reason to return, can be reduced for the taxpayer's income from a dependent activity in a calendar month, or in the following calendar months in the tax period in which it was returned. However, income for a given calendar month can only be reduced to the amount in which it was billed to the taxpayer.
(7) In the case of a taxpayer with income according to Sections 7 and 9 , inventory acquired in the calendar year preceding the year in which he started his activity is also taken into account. The same applies similarly to other necessary expenses associated with the start of the activity.
(8) In the transition from accounting to tax records, the procedure is in accordance with Annex No. 2 to this Act. When switching from tax records to accounting, the procedure is in accordance with Annex No. 3 to this Act.
(9) For taxpayers listed in property valuation 1a ) . For taxpayers who are value added tax payers or were so at the time the claim arose, the nominal value of the claim is reduced by the amount of value added tax, if the own tax obligation at the output has been fulfilled.
(10) The difference between income and expenditure increases by
a) the amount of the debt, except for forgiven tax, fee or other similar monetary payment, debt from a contractual penalty, interest on late payment and other similar sanctions, which has expired otherwise than
1. by fulfilling
2. offsetting,
3. merging the right with the obligation of one person,
4. straightening,
5. an agreement whereby the existing debt is replaced by a new debt of the same value,
b) the value of advances, which are expenses for achieving, securing and maintaining income, paid by a taxpayer with income according to § 7 , who does not keep accounts and applies the expenses according to § 24 , to a taxpayer who is a connected person ( § 23 ), who keeps accounts, with with the exception of advances as payment for financial leasing, if the total debt was not accounted for in the tax period in which the advances were paid,
c) income accruing to the taxpayer, who keeps tax records, from the promissory note used to pay the claim, if it is income that is subject to tax according to § 3 ,
d) an amount in the amount of the difference between the existing debt and the new debt of a lower value arising on the basis of an agreement whereby the existing debt is replaced by a new debt.
(11) The difference between income and expenses is reduced by the value of advances paid by a taxpayer with income according to § 7 who does not keep accounts and applies expenses according to § 24 to a taxpayer who is a connected person ( § 23 ) who keeps accounts, with the exception of advances from title of payment for financial leasing, by which the tax base was increased according to paragraph 10 , in the tax period in which the total debt was accounted for.
§ 6
Income from dependent activity
(1) Income from dependent activity is
a) performance in the form of
1. income from a current or former employment, service or membership relationship and a similar relationship, in which the taxpayer, while performing work for the income payer, is obliged to follow the payer's orders,
2. functional enjoyment,
b) income for work
1. member of the team,
2. a partner of a limited liability company,
3. limited partners of a limited partnership,
c) rewards
1. member of the body of the legal entity,
2. the liquidator,
d) income arising in connection with the current, future or former performance of an activity from which income is derived according to letters a) to c) , regardless of whether it comes from a payer with whom the taxpayer performs an activity from which income from a dependent activity derives , or from a payer with whom the payer does not perform this activity.
(2) The taxpayer with income from dependent activity is further designated as "employee", the payer of income as "employer". The employer is also the taxpayer listed in § 2, paragraph 2 or § 17, paragraph 3 , for whom the employees perform work according to his orders, even if the income for this work is paid on the basis of a contractual relationship through a person with headquarters or residence abroad. From the point of view of other provisions of the law, the income paid in this way is considered to be income paid by the taxpayer referred to in § 2, paragraph 2 or in § 17, paragraph 3. In the event that in the employer's payments to a person with a seat or residence abroad, with the exception of a person with a seat or residence in another member state of the European Union or a state forming the European Economic Area, which has an organizational component on the territory of the Czech Republic, the subject of which is the mediation of employment on the basis of a permit according to the law governing employment, the amount for mediation is also included, it is considered as the employee's income at least 60 % of the total payment.
(3) Income according to paragraph 1 is understood as regular or one-off income, regardless of whether there is a legal right to it or not, whether it is received from the employer by an employee or another person and whether it is paid or credited to the good or consists of another form of performance carried out by the employer on behalf of the employee or for his benefit. The employee's income also includes performance according to paragraph 9 letter d) and e) provided by the employer for the employee's family member. Income also means the amount for which the employee is reimbursed by the employer for the performance provided, except for a unit that does not include non-residential premises other than a garage, cellar or storage room, an apartment or a family house in which the employee resided for a period of 2 years immediately before its purchase, lower than the price
a) determined according to the law governing property valuation or the price charged to other persons,
b) determined according to paragraph 6 in the case of providing a motor vehicle for use for business and private purposes.
(4) Income accounted for or paid by the taxpayer is a separate basis of tax for the taxation of taxes collected by withholding according to the special tax rate, if the employee has not made a tax declaration for this taxpayer according to § 38k paragraph 4 , 5 or 7 or if he does not use the procedure according to § 36 paragraph 6 or 7 and if it is income according to paragraph 1
a) arising on the basis of an agreement on the execution of work, the total amount of which for the same taxpayer does not exceed the amount of CZK 10,000 per calendar month, or
b) in an aggregate amount not exceeding for the same tax payer per calendar month the amount determined for the participation of employees in health insurance.
(5) If the income referred to in paragraph 4 flows from sources abroad, it is the basis of tax (partial basis of tax) according to Section 5, paragraph 2.
(6) If the employer provides the employee with a motor vehicle free of charge for use for both business and private purposes, the employee's income is considered to be an amount equal to 1% of the entry price of the vehicle or 0.5% of the entry price if it is a low-emission motor vehicle according to the law governing the support of low-emission vehicles through the awarding of public contracts and public services in the transport of passengers, for each and every calendar month of vehicle provision. If it is a vehicle hired or purchased on a financial lease, it is based on the entry price of the vehicle with the original owner, even if the vehicle is subsequently purchased. If value added tax is not included in the entry price, it shall be increased for the purposes of this provision. If the amount that is considered as the employee's income for each and every calendar month of providing the vehicle is lower than CZK 1,000, the amount of CZK 1,000 is considered as the employee's income. If the employer provides the employee with several motor vehicles for use for business and private purposes free of charge during the calendar month, an amount equal to 1% of the highest entry price of the motor vehicle is considered to be the employee's income; if the motor vehicle with the highest entry price is a low-emission motor vehicle, an amount equal to 0.5% of the entry price of this motor vehicle is considered the employee's income. If the employer provides the employee with several motor vehicles at the same time free of charge during the calendar month, the employee's income is considered to be 1% of the total entry price of all motor vehicles, with the exception of low-emission vehicles provided for business and private purposes, and 0.5% of the total entry prices of all low-emission motor vehicles provided for business and private purposes. For the purposes of this provision, the entry price of a vehicle means the entry price specified in § 29 paragraphs 1 to 9.
(7) They are not considered to be income from a dependent activity and are not subject to tax, except for income that is not subject to tax according to § 3 paragraph 4 , and are not further
a) reimbursement of travel expenses provided in connection with the performance of an activity from which income from a dependent activity flows, up to the amount established or permitted by a special legal regulation 5 ) for an employee remunerated with a salary, as well as the value of free meals provided by the employer on business trips; other and higher compensations than those stipulated by this special legal regulation are taxable income according to paragraph 1,
b) the value of personal protective work equipment, work clothes and footwear, washing, cleaning and disinfecting agents and protective drinks provided to the extent determined by a special regulation, including the costs of maintaining personal protective and work equipment, work clothes and footwear, as well as the value of uniforms provided, including allowances for their maintenance, as well as the value of work clothes, designated by the employer for the performance of the job, including allowances for its maintenance,
c) sums received by the employee in advance from the employer to be issued on his behalf or sums with which the employer reimburses the expenses proved by the employee, which he spent from his own account on behalf of the employer as if they were spent directly by the employer,
d) compensation for the wear and tear of own tools, equipment and objects required for the performance of work provided to employees in accordance with the Labor Code ,
e) mandatory obligations of the employer to create and comply with working conditions for the performance of work established by law.
(8) If the employer reimburses the employee for expenses (reimbursements) according to paragraph 7 letter b) to d) a flat-rate amount, these expenses are considered to be proven up to the amount of the flat-rate amount determined by special regulations or the flat-rate amount specified in the collective agreement, in the internal regulations of the employer, in an employment or other contract, provided that the amount of the flat-rate amount was demonstrably determined by the employer on the basis of calculation actual expenses. The employer proceeds in the same way when determining the flat rate in cases where there is a change in the conditions under which the flat rate was determined. If it is a lump sum for the use of the employee's own tools, equipment and objects needed for the performance of the employee's work, which would otherwise be depreciated, it is recognized only up to the amount in which the employer would apply depreciation of comparable tangible assets with equal depreciation in subsequent years of depreciation.
(9) Apart from the income mentioned in § 4 , they are also exempt from tax
a) non-monetary benefits spent by the employer on the professional development of employees related to the employer's business or non-monetary benefits spent by the employer on retraining employees according to another legal regulation governing employment 133 ) ; this exemption does not apply to income flowing to employees in this context as a wage, salary, remuneration or as compensation for lost income, as well as to other monetary benefits provided to employees in this context,
b) the value of meals provided as a non-monetary payment by the employer to employees for consumption at the workplace or as part of meals provided through other entities, or a monetary contribution provided by the employer to employees for meals for one shift according to the Labor Code up to 70% of the upper limit of the meal allowance that can be provided to employees with a salary during a business trip lasting 5 to 12 hours,
c) the value of non-alcoholic beverages provided as a non-monetary payment from the social fund, from profit (income) after its taxation or against expenses (costs) that are not expenses (costs) for achieving, securing and maintaining income by the employer to employees for consumption at the workplace,
d) non-monetary benefits provided by the employer to the employee or his family member from the fund of cultural and social needs, from the social fund, from profit (income) after taxation or against expenses (costs) that are not expenses (costs) for achieving, ensuring and maintaining of income, in the form of
1. procurement of goods or services of a medical, therapeutic, hygienic and similar nature from medical facilities, procurement of medical devices on medical prescription and use of educational or recreational facilities; when providing recreation and a trip, the employee is exempt from tax from the value of the non-monetary gratuity up to a total of CZK 20,000 per tax period,
2. use of childcare facilities for pre-school children, including a kindergarten in accordance with the Education Act, the employer's library, physical education and sports facilities,
3. contribution to cultural or sports events,
4. allowance for printed books, including picture books for children, except for books in which advertising exceeds 50% of the surface,
e) benefits provided by an employer operating public transport to its employees and their family members in the form of free or discounted tickets,
f) income from a dependent activity carried out in the territory of the Czech Republic, flowing to taxpayers from the income of natural persons who are tax non-residents, from employers with headquarters or residence abroad, if the time period related to the performance of this activity does not exceed 183 days in any period of 12 months consecutive, with the exception of income from
1. personally and publicly performed activities of artists, athletes, artists or co-performers a
2. activities carried out in a permanent establishment,
g) the value of non-monetary gratuitous services provided from the cultural and social needs fund according to the relevant regulation, 6a ) for employers not covered by this regulation, the value of non-monetary gratuitous services provided under similar conditions from social funds or from profit (income) after taxation, or to debit expenses (costs) that are not expenses (costs) for achieving, securing and maintaining income, up to a total amount of CZK 2,000 per year for each employee,
h) monetary payment for equipment and supplies provided to members of the armed forces and in-kind items provided to members of the security forces according to special legal regulations, 3 ) special benefits provided to members of the security forces according to special legal regulation 6b ) and compensation for property damage according to special legal regulation, 6c )
ch) compensation for loss of official income (salary) provided to members of the armed forces and security forces according to special legal regulations, 3 )
i) the value of temporary accommodation, if it is not accommodation during a business trip, provided as a non-monetary payment by the employer to employees in connection with the performance of work, if the municipality of temporary accommodation is not the same as the municipality where the employee resides, up to a maximum of CZK 3,500 per month ,
j) wage compensation paid in accordance with special regulations 6d ) in the amount of the difference between sickness insurance benefits,
k) compensation for loss of pension awarded under the Labor Code for the period before January 1, 1989 and paid after December 31, 1992,
l) income for the work of pupils and students from practical teaching and practical training,
m) special supplement or supplement for service abroad provided in accordance with special legal regulations to soldiers and members of the security forces 6e ) sent as part of a unit of multinational forces or international security forces outside the territory of the Czech Republic for the period of service abroad,
n) severance pay pursuant to Decree No. 19/1991 Coll., on the employment and material security of workers in mining who are long-term unfit for their current work, paid to workers reassigned or released for health reasons due to occupational risk, occupational disease, occupational accident or disease arising or deteriorating due to the influence of the work environment,
o) income up to CZK 500,000 provided by the employer as social assistance to the employee in direct connection with bridging his extremely difficult circumstances as a result of a natural disaster, ecological or industrial accident in territories where a state of emergency has been declared, does not apply to the cultural and social needs fund or from the profit (income) after its taxation or to the debit of expenses (costs) that are not expenses (costs) for achieving, securing and maintaining income,
p) payment by the employer in the total amount of no more than 50,000 CZK per year as
1. contribution to supplementary pension insurance with state contribution transferred to the employee's account at the pension company, employer's contribution to supplementary pension savings transferred to the employee's account at the pension company,
2. pension insurance contribution remitted in favor of his employee to pension insurance at a pension insurance institution, on the basis of a contract concluded between the employee and the pension insurance institution, or on the basis of otherwise agreed participation of the employee in pension insurance, on the condition that the payment of performance from pension insurance up to 60 calendar months and at the same time no earlier than in the year of reaching the age of 60, and further on the condition that the employee has the right to benefit from the pension insurance, and in the event of the employee's death another person, except the employer who paid the pension insurance contribution, or
3. contribution to the insurance premium paid by the employer to the insurance company for the employee for his life insurance or for death or life insurance, or for pension insurance, including when arranging earlier payment in the event of entitlement to a retirement pension or disability pension due to disability of the third degree, or in the event that the insured becomes disabled in the third degree according to the Act on Pension Insurance , or in the event of death (hereinafter referred to as "private life insurance"), on the condition that the payment of the insurance benefits is agreed in the insurance contract only after 60 calendar months from the conclusion of the contract and at the earliest in the calendar year during which the insured person reaches the age of 60, that according to the terms of the insurance contract, payment of other income that is not an insurance benefit and does not constitute the termination of the insurance contract is not permitted, and that the insurance contract is concluded between by an employee as a policyholder and an insurance company that is authorized to carry out insurance activities in the territory of the Czech Republic according to the law governing the insurance industry, or another insurance company established in the territory of a member state of the European Union or a state forming the European Economic Area, and further on the condition that the right to performance from insurance contracts private life insurance is held by the insured employee and, if the insured event is the death of the insured, by a person designated according to the law governing the insurance contract, except for the employer who paid the contribution to the insurance premium; if, before the end of the period of 60 calendar months from the conclusion of the contract or before the year in which the insured person reaches 60 years of age, there is a payment of an insurance benefit from a private life insurance, other income that is not an insurance benefit and does not cause the termination of the insurance contract, or if the insurance premium is terminated prematurely of the contract, the exemption ceases and the income according to § 6 in the tax period in which this fact occurred are the amounts of contributions to insurance premiums that were exempted from self-employment tax for the insured in the year of payment or early termination of the contract and in the past 10 years ; this does not apply in the case of performance when the right to an old-age pension or disability pension for third-degree disability has arisen, or if the insured person becomes disabled in the third degree according to the Act on Pension Insurance or in the event of death and with the exception of insurance contracts , in for which no insurance benefit or redemption will be paid and at the same time the reserve, capital value or redemption will be directly transferred to another private life insurance contract meeting the conditions for tax exemption of employer contributions; this income is not income paid by the payer of income tax from dependent activity; the employee is obliged to notify his employer no later than the last day of the calendar month in which the change occurred, that the right to tax exemption for contributions paid by the employer for his private life insurance has ceased,
r) payment in kind provided according to special legal regulations 6g ) to representatives of state power and certain state bodies and judges,
s) reimbursement of proven expenses provided in accordance with special legal regulations 6g ) to representatives of state power and certain state bodies and judges, if
1. expenses for air transport for domestic travel connected with the performance of the function (hereinafter referred to as "domestic travel"),
2. transport expenses for foreign trips connected with the performance of the function (hereinafter referred to as "foreign trip"),
3. expenses for meals during domestic trips,
4. expenses for meals and some other expenses during foreign trips,
5. accommodation expenses during domestic trips,
6. accommodation expenses during foreign trips,
7. expenses for temporary accommodation at the seat of the authority in which he performs his duties,
8. expenses for professional and administrative work,
9. expenses for the activity of a guide or personal assistant,
10. expenses for transport by public mass transport for judges during domestic trips,
t) income received in the form of compensation for wages, salary or remuneration or reduced salary or reduced remuneration for the period of temporary incapacity for work or quarantine in accordance with special legal regulations 47a ) , up to the minimum entitlement determined by a special legal regulation governing labor legal relations 47b ) ,
u) sums spent by the employer for the payment of expenses associated with the payment of wages and with deductions from wages to employees, with the payment of contributions to insurance premiums (additional insurance) for the benefit of the employee, as well as sums spent by the employer for the payment of expenses associated with the provision of non-monetary benefits to employees,
v) income from the same employer accruing to the employee in the form of property benefit in the case of an interest-free loan up to the aggregate principal amount of CZK 300,000 from these loans; capital gains from interest-free loans exceeding the principal amount of CZK 300,000 calculated for individual calendar months are valued in accordance with paragraph 3 and included in the tax base at least once per tax period, at the latest during the payroll for the month of December,
w) special remuneration for performing the function of a member of the district election commission and a member of the special district election commission.
(10) Functional pleasures are
a) functional salaries and benefits provided in connection with the current or previous performance of the function, the amount of which is determined in accordance with the law regulating salaries and other requirements connected with the performance of the functions of representatives of state power, certain state bodies and judges 138 ), with the exception of the salary belonging to the President of the Republic and compensation associated with the performance of his function,
b) remuneration for the performance of the function and performance provided in connection with the current or previous performance of the function v
1. municipal authorities and other territorial self-government authorities,
2. state authorities,
3. associations and interest associations,
4. trade unions,
5. chambers,
6. other authorities and institutions.
(11) The income of experts and interpreters, mediators of collective disputes and arbitrators for activities carried out in accordance with special regulations are not considered functional benefits.
(12) The tax base (partial tax base) is income from dependent activity.
(13) In the case of income derived from sources abroad, the basis of tax for a taxpayer of income tax of natural persons who is a tax resident of the Czech Republic is income from a dependent activity performed in a state with which the Czech Republic has not concluded an international agreement regulating the avoidance double taxation of all types of income that is carried out, reduced by the tax paid on this income abroad. If the activity from which the income from a dependent activity flows is carried out in a state with which the Czech Republic has concluded an international agreement governing the avoidance of double taxation of all types of income, which is carried out, is the basis of the tax of a taxpayer from the income of natural persons who is a tax resident of the Czech Republic, is income from a dependent activity carried out in this state; this income can be reduced by the tax paid on this income in the state with which the Czech Republic has concluded an international agreement governing the avoidance of double taxation of all types of income that is carried out, only to the extent that it could not be counted against the tax liability in the country according to Section 38f in the immediately preceding tax period. In this case, it must be an unaccounted income tax that is included in the tax base. Income from a dependent activity arising from sources abroad cannot be reduced by tax paid abroad to the extent that it exceeds the amount specified in an international treaty or in the legal regulation of another state.
(14) For the purposes of this Act, a pension insurance institution means a provider of financial services authorized to operate a pension insurance regardless of its legal form, which is
a) operated on the principle of fund management,
b) established for the purpose of providing pension benefits outside the mandatory pension system 136 ) on the basis of a contract or on the basis of otherwise agreed participation in pension insurance and carries out activities resulting therefrom and
c) is authorized and operates pension insurance in a member state of the European Union or a state forming the European Economic Area and is subject to the supervision of the competent authorities in this state.
Section 7
Income from self-employment
(1) Income from self-employment, if it does not belong to the income mentioned in § 6 , is
a) income from agricultural production, forestry and water management,
b) income from trade,
c) income from another business not mentioned in letters a) and b) , for which a business license is needed,
d) the share of the partner of the public company and the general partner of the limited partnership in the profit.
(2) Income from self-employment, if it does not belong to the income mentioned in § 6 , is the following
a) income from the use or provision of rights from industrial property, copyright including rights related to copyright, including income from publishing, reproduction and distribution of literary and other works at own expense,
b) income from the rental of property included in business property,
c) income from self-employment.
(3) The tax base (partial tax base) is the income specified in paragraphs 1 and 2 , with the exception specified in paragraph 6. These revenues are reduced by the expenses incurred to achieve, secure and maintain them, with the exception of the income specified in paragraph 1 letter d) . The provisions of Sections 23 to 33 shall be used to determine the tax base (partial tax base) .
(4) For a taxpayer who is a partner of a public trading company, the tax base (partial tax base) includes a proportional part of the tax base or tax loss of the public trading company. This ratio corresponds to the ratio by which the shareholder participates in the profit of the public trading company.
(5) For a taxpayer who is a general partner of a limited partnership, part of the tax base (partial tax base) is a proportional part of the tax base or tax loss of the limited partnership. This ratio corresponds to the ratio by which the general partner participates in the profit of the limited partnership.
(6) The income of the author for a contribution to a newspaper, magazine, radio or television arising from sources in the territory of the Czech Republic is a separate tax basis for tax collected by withholding according to a special tax rate, provided that the total of these incomes from the same taxpayer does not exceed 10,000 in a calendar month CZK and it is the income referred to in paragraph 2 letter a) .
(7) If the taxpayer does not claim expenses demonstrably spent on achieving, securing and maintaining income, he may claim expenses, with the exception specified in § 12 , in the amount
a) 80% of income from agricultural production, forestry and water management and income from trade and craft business; however, expenses up to the amount of CZK 1,600,000 can be applied at most,
b) 60% of income from trade business; however, expenses up to the amount of CZK 1,200,000 can be applied at the most,
c) 30% of income from the rental of property included in business property; however, expenses up to the amount of CZK 600,000 can be applied at the most,
d) 40% from other income from self-employment, with the exception of income according to paragraph 1 letter d) and paragraph 6 ; however, a maximum of CZK 800,000 can be claimed.
The method of application of expenses according to this paragraph cannot be changed retroactively.
(8) If the taxpayer applies the expenses according to paragraph 7 , it is considered that the amount of the expenses includes all expenses incurred by the taxpayer in connection with obtaining income from self-employment. For the purposes of paragraph 7, income means income under this Act that the taxpayer would have if it were not an accounting entity. A taxpayer who applies expenses in accordance with paragraph 7 is obliged to always keep records of income according to paragraph 7 and records of receivables arising in connection with the activity from which income from self-employment flows.
(9) If it is an item in the joint property of the spouses that is used for an activity from which income from self-employment flows, by one of the spouses or both spouses, one of the spouses invests this item in the business property. In the event that one of the spouses owns this item in the business property, but it is also used by the other spouse for activities from which income from self-employment flows, the expenses (costs) related to this item, which fall on the part of the item used for activity from which income from self-employment flows, by both spouses, to be divided between both spouses in the proportion in which they use it in their activities according to paragraphs 1 and 2. Income from the sale of property in the joint property of the spouses is taxed for the spouse who had such thing included in the business property. After the termination of the activity from which income from self-employment flows, the procedure is carried out according to § 10, paragraph 5 of the Act.
(10) For income according to § 7 paragraph 1 letter d) reimbursements of travel expenses provided to members of public companies and general partners of limited partnerships up to the amount specified by a special regulation are not considered and are not subject to tax. 5 )
(11) If there is a termination (interruption) of the activity from which income from self-employment flows, and the taxpayer pays the amounts of the insurance premium according to § 23 paragraph 3 letter a) point 5 and § 24 paragraph 2 letter f) after the set deadline, and will pay the debts listed in § 23 paragraph 3 letter a) point 11 can file an additional tax return for a lower tax liability. The taxpayer's legal successor with income according to § 7 proceeds in a similar manner in the event of the taxpayer's death.
(12) If a taxpayer with income according to § 7 paragraph 1 letter a) or b) shall apply the financial year as the accounting period, 20 ) the partial tax base or tax loss is the difference between income and expenses for the completed financial year. When accounting in a calendar year is changed to accounting in a financial year, the partial tax base or tax loss according to § 7 is the difference between income and expenses up to the last day of the month in which the taxpayer ended accounting in the calendar year. When accounting in the financial year is changed to accounting in the calendar year, the partial tax base or tax loss according to § 7 paragraph 1 letter a) or b) the sum of the difference between income and expenses in the financial year and the difference between income and expenses from the time of the end of accounting in the financial year until the end of the calendar year. The partial tax base is included in the tax return for the calendar year in which the financial year ends or accounting for the transition from the calendar year to the financial year and vice versa. The taxpayer proceeds in a similar way with income according to § 7 paragraph 1 letter d) if the public company or limited partnership applies the financial year as the accounting period.
(13) Taxpayers with income according to paragraphs 1 and 2 , who do not keep accounts, do not apply expenses according to paragraph 7 and whose tax for the given tax period is not equal to the flat tax, proceed according to § 7b . If each of the partners of the company ( § 12 ) keeps tax records, they can also keep tax records in which they record joint income and joint expenses for achieving, securing and maintaining income; at the same time, at the end of the tax period or upon termination of activity during the tax period, they shall enter in their tax records the share of joint income and the share of joint expenses for achieving, securing and maintaining income.
(14) In the case of a taxpayer who is a partner of a public company or a general partner of a limited partnership, the income according to § 20b paragraph 1 arising from these companies is not part of the tax base (partial tax base) according to paragraph 4 or 5 and is included in a separate tax base. The provisions of § 20b, paragraph 2 apply similarly.
Section 7a
Flat rate tax
(1) The tax of a taxpayer who is a taxpayer in the flat-rate regime at the end of the tax period is equal to the flat-rate tax, if this taxpayer in this tax period
a) qualifying income for the selected band of the flat-rate regime
1. did not exceed, or
2. exceeded, but did not exceed, the relevant income for a higher band of the flat-rate regime and submits a notice to the tax administrator of a different amount of flat-rate tax to the amount corresponding to this band of the flat-rate regime,
b) in addition to eligible income, he only has
1. tax-exempt income,
2. income that is not subject to tax,
3. income from which tax is collected by deduction according to a special tax rate, a
4. income from capital assets, income from rent and other income, if it is not income according to points 1 to 3 and if the total amount of this income does not exceed CZK 50,000,
c) is not a value added tax payer and does not have a value added tax registration obligation, with the exception of the registration obligation of an identified person, and
d) is not a partner of a public company or a general partner of a limited partnership.
(2) If the taxpayer ceased to be a taxpayer in the flat-rate regime before the end of the tax period due to the fact that he terminated or interrupted the activity from which income from self-employment derives, his tax for this tax period is equal to the flat-rate tax, if the taxpayer
a) meets the conditions according to paragraph 1,
b) in the part of this taxation period after the day on which he ceased to be a taxpayer in the flat-rate regime, he did not perform an activity from which income from self-employment derives, and
c) by the end of the deadline for submitting the tax return for this tax period
1. starts an activity that generates income from self-employment, or
2. does not start an activity from which income from self-employment flows, does not keep accounts and the total of items by which he would increase the difference between income and expenses if he kept tax records in this tax period, and income from self-employment did not exceed the qualifying income for the selected band of flat rate regime or for a higher band of the flat-rate regime, if he submits a notification to the tax administrator about a different amount of flat-rate tax to its amount corresponding to this band of the flat-rate regime.
(3) For the purposes of paragraphs 1 and 2 , a taxpayer who died in the last calendar month of the tax period or terminated or interrupted the activity from which income from self-employment derives is regarded as a taxpayer who ceased to be a taxpayer in the flat-rate regime before the end of this tax period.
(4) For the purposes of paragraphs 1 and 2 , income from a paid transfer or lease of property that was in the last previous tax period, for which the taxpayer's tax was not equal to the flat tax and for which the taxpayer did not apply expenses as a percentage of income, is also considered to be income from self-employment , included in business assets.
(5) The tax is not equal to a flat-rate tax, if the taxpayer pursuant to paragraph 1 or 2 , who is a tax resident of the Czech Republic, excludes double taxation of income from sources abroad in the tax return.
(6) Flat-rate tax is the product of the number of calendar months of the tax period in which the taxpayer was in the flat-rate regime and the tax advance for
a) selected flat-rate regime band, or
b) the band of the flat-rate regime determining the amount of flat-rate tax in the event that the taxpayer submits a notice of a different amount of flat-rate tax to the tax administrator and his income in this tax period did not exceed the qualifying income for this band of the flat-rate regime.
(7) For the purposes of income taxes, a taxpayer in the lump-sum regime is regarded as a taxpayer with income from self-employment that is subject to tax, even if he does not receive this income in the relevant period.
(8) A taxpayer in the flat-rate regime, who has income from self-employment, to which expenses can be applied as a percentage of income in different amounts, keeps records of income from self-employment for the purpose of proving the amount of qualifying income for the selected band of the flat-rate regime.
§ 7b
Tax records
(1) Tax records for income tax purposes means records for the purposes of determining the tax base and income tax. This record contains data on
a) income and expenses, in the breakdown necessary to determine the tax base,
b) assets and debts.
(2) Special legal regulations on accounting shall be used for the content definition of the property components in the tax records , unless otherwise specified.
(3) For the valuation of property and debts in the tax records, tangible property is valued according to property valuation 1a ) on the date of acquisition for property acquired free of charge. Debts are valued at nominal value when incurred, and at purchase price when assumed. Cash and valuables are valued at their nominal values. The purchase price of the land is the price including the vegetation, if it is not a growing unit of permanent vegetation ( § 26 ), without a building erected on it. The acquisition price of the asset acquired through financial leasing includes expenses related to its acquisition, paid by the user. In the case of the acquisition of assets and debts for a fee, for one acquisition price, the price of the individual components of the asset is determined in proportion to the price of the individual components of the asset valued according to a special legal regulation, 1a) with the exception of money, valuables , receivables and debts. If, in the case of the acquisition of property and debts for consideration, the difference between the acquisition price and the valuation of this property according to a special legal regulation, 1a ) increased by the value of money, valuables, receivables including value added tax, and reduced by the value of debts, is negative, the procedure is similar as in the case of a negative valuation difference when buying a business plant ( § 23 ).
(4) The taxpayer shall determine the actual state of stocks, tangible assets, receivables and debts as of the last day of the tax period. He shall make a record of this finding. Any differences will adjust the tax base according to Sections 24 and 25 .
(5) The taxpayer is obliged to keep tax records for all tax periods for which the deadline for determining the tax has not expired.
Section 8
Income from capital assets
(1) Income from capital property, if it is not income according to § 6 paragraph 1 or § 7 paragraph 1 letter d) , are
a) shares in the profit of a business corporation or a mutual fund, if the share in it is represented by a security, interest from the holding of securities and bond yields according to the law regulating bonds, with the exception of the yield determined by the difference between the nominal value of the bond and its issue price,
b) shares in the silent partner's profit from participation in the business,
c) interest, winnings and other income from deposits in passbooks, interest from funds in an account that is not, according to the conditions of the person keeping the account, intended for business,
d) income from a one-time deposit and from a deposit equal to it,
e) benefits of supplementary pension insurance with state contribution 9a ) , benefits of supplementary pension savings and pension insurance after reduction according to paragraph 6 ,
f) payment from private life insurance or other income from personal insurance, which is not insurance payment and does not constitute the termination of the insurance contract, after reduction according to paragraph 7 ,
g) interest and other income from loans or borrowings, interest on arrears, late fee, interest on the right to call, interest on deposits on accounts not mentioned in letter c) with the exception of the income of the taxpayer whose tax is equal to the flat tax, and interest from the value of the paid deposit in the agreed amount of members of business corporations,
h) interest and other income from holding promissory notes (e.g. discount on the amount of the promissory note, interest on the promissory note amount),
i) performance from the profit of a trust fund or family foundation.
(2) Income arising from the right to repayment is also considered to be income from capital assets
a) a bond, which for the purposes of personal income tax means the positive difference between the nominal value of the bond paid upon its repayment or the amount paid upon its early repayment and the price for which the taxpayer purchased the bond, or the price determined in accordance with the law regulating property valuation as of of its gratuitous acquisition, and
b) a deposit slip issued as a security or a security equivalent to a deposit slip, which, for the purposes of personal income tax, means the positive difference between the nominal value of a deposit slip issued as a security or a security equivalent to it paid out when they are redeemed, or the amount paid upon their early repayment and the price for which the taxpayer acquired the security, or the price determined according to the law governing the valuation of property on the day of its free acquisition.
(3) Income referred to in paragraph 1 letter a) to f) ai) and interest income and other income from holding a bill of exchange issued by a bank to secure a claim arising from a creditor's deposit [ paragraph 1 letter h) ], arising from sources in the territory of the Czech Republic, are a separate tax base for taxation at a special tax rate ( § 36 ).
(4) If the income referred to in paragraph 1 letter a) to d) and a) from sources abroad, are not reduced by expenses in the tax base (partial tax base). If the income referred to in paragraph 1 letter e) and f) from sources abroad, are the tax base (partial tax base).
(5) Income referred to in paragraph 1 letter g) and h) and in paragraph 2 not reduced by expenses are the tax base (partial tax base), with the exception of interest and other income from a promissory note issued by a bank to secure a claim arising from a creditor's deposit, which are a separate tax base for taxation at a special tax rate ( § 36 ). In the case of income from interest from a loan or credit, the expense is the interest paid on the amounts used to provide the loan or credit, up to the amount of income.
(6) The benefit of supplementary pension insurance with a state contribution is considered the tax base after reduction by contributions paid and state contributions to supplementary pension insurance. The pension insurance benefit is considered the tax base after reduction by the contributions paid. The benefit from supplementary pension savings is considered to be the tax base after reduction by paid contributions and state contributions to supplementary pension savings. In the case of a pension, contributions to supplementary pension insurance, state contributions to supplementary pension insurance, contributions to pension insurance, contributions to supplementary pension savings and state contributions to supplementary pension savings are spread over a defined period of pension receipt. A one-off settlement or withdrawal from a supplementary pension insurance with a state contribution is not reduced by the contributions paid to the pension company by the employer for the employee after January 1, 2000, for the purpose of determining the tax base. contributions paid to the pension insurance institution by the employer for the benefit of the employee. A one-off settlement or withdrawal from supplementary pension savings is not reduced for the purpose of determining the tax base by contributions paid to the pension company by the employer for the employee, with the exception of contributions to supplementary pension insurance with a state contribution paid to the pension fund by the employer for the employee before January 1, 2000 in the event that there was a transfer of the participant's funds from the supplementary pension insurance with a state contribution to the participant's supplementary pension savings, from which the one-time settlement or withdrawal is paid.
(7) Payment from private life insurance is considered the tax base after reduction by the premium paid. Other income from personal insurance, which is not an insurance payment and does not constitute the termination of the insurance contract, is considered the tax base after reduction by the paid insurance premium on the date of payment, up to the amount of this income. If there is other income from personal insurance that is not an insurance payment and does not cause the termination of the insurance contract repeatedly during the duration of the insurance contract, this income cannot be reduced by previously applied and paid insurance premiums. In the case of payment in the form of an agreed pension (pension), the tax base is considered to be the payment from insurance reduced by the paid insurance premium, equally divided over the period of receiving the pension. Payment from private life insurance is not reduced for determining the tax base by paid premiums that were previously applied in connection with other income from personal insurance, which is not insurance payment and does not constitute the termination of the insurance contract. In order to determine the tax base, the surrender charge is reduced by the premium paid, with the exception of the premium that was previously claimed in connection with other income from personal insurance, which is not an insurance payment and does not constitute the termination of the insurance contract, and with the exception of premium contributions for the employee's private life insurance, which were paid by the employer for an employee for his private insurance after January 1, 2001 and which were not taxed due to the payment of an insurance benefit from a private life insurance, other income that is not an insurance benefit and does not constitute the termination of the insurance contract, or early termination of the insurance contract before the end of the period of 60 calendar months from conclusion of the contract or before the year in which the insured reaches 60 years of age.
(8) If it is income according to paragraph 1 or paragraph 2 flowing into the joint property of the spouses from a source that is invested in the business property of one of the spouses, it is taxed only for this spouse. If it is income according to paragraph 1 or 2 flowing into the joint property of the spouses from a source that is not included in the business property of either spouse, it is taxed only for one of them.
(9) Income according to paragraph 4 or interest or other income from a bill of exchange issued by a bank to secure a claim arising from a creditor's deposit arising from sources abroad can be included in a separate tax base taxed at the tax rate according to § 16a. If such income is included in this tax base, all income according to the first sentence will be included in this tax base. These revenues are not reduced by expenses, with the exception of the revenues specified in paragraph 1 letter e) and f), which are processed similarly according to paragraphs 6 and 7.
Section 9
Rental income
(1) Income from rent, if it is not the income mentioned in Sections 6 to 8 , is
a) income from renting real estate or apartments,
b) income from the lease of movable property, except for occasional leases pursuant to § 10 paragraph 1 letter a) .
(2) Income according to paragraph 1 , accruing to the spouses from the joint property of the spouses, is taxed only for one of them.
(3) The tax base (partial tax base) is the income specified in paragraph 1 reduced by the expenses spent on achieving, securing and maintaining them ( § 5 para. 2 ). The provisions of Sections 23 to 33 shall be used to determine the tax base (partial tax base) . Income from rent accruing to the taxpayers listed in § 2, paragraph 3 is, with the exception of income from the lease of immovable property or apartments, a separate tax base for taxation at a special tax rate ( § 36 ).
(4) If the taxpayer does not claim expenses demonstrably spent on achieving, securing and maintaining income, he can claim them in the amount of 30% of the income according to paragraph 1 , but not more than the amount of CZK 600,000. The method of application of expenses according to this paragraph cannot be changed retroactively.
(5) If the taxpayer applies the expenses according to paragraph 4 , all expenses incurred by the taxpayer in connection with obtaining income from rent according to § 9 are included in the amount of expenses . The taxpayer, who claims expenses according to paragraph 4 , is obliged to always keep records of income and records of receivables arising in connection with the rent.
(6) Taxpayers having income from rent and applying for this income the actual expenses spent on obtaining, securing and maintaining it shall keep records of income and expenses spent on obtaining, securing and maintaining income in chronological order, records of tangible assets that can be depreciated, records on the creation and use of a reserve for repairs of tangible property, if they create it, records of receivables and debts in the tax period in which the lease is terminated, and payslips, if they pay wages. However, if taxpayers decide to keep accounts, even though they are not obliged to do so according to the accounting regulations 20 ), then they proceed in accordance with these regulations, if they proceed in this way for the entire tax period, while the movable and immovable property that is accounted for is not considered business property in terms of personal income tax.
(7) When leasing a commercial plant, the income of the lessee who does not keep accounts is also
a) the value of receivables and debts, with the exception of debts, the payment of which would be an expense reducing the tax base, which are transferred to the tenant, if their payment is not agreed. If a partial payment of receivables and debts is agreed, with the exception of debts whose payment would be an expense reducing the tax base, the income is their value. If the payment of claims and debts is agreed, with the exception of debts whose payment would be an expense reducing the tax base, higher than their value, this higher price is income,
b) the unreimbursed difference between the value of the items in the commercial plant at the beginning of the lease and their higher value at the end of the lease determined in accordance with special legal regulation 1a ) or according to the data listed in the lessee's accounting, kept according to special legal regulations. 20 )
The tax base will not be increased according to this provision in cases where, due to the operations described in this provision, it will be increased on the basis of other provisions of this law. For the purposes of this provision, the provisions of Section 23, paragraph 13, shall not apply .
Section 10
Other income
(1) Other incomes that increase assets, if they are not incomes according to Sections 6 to 9 , are in particular
a) income from occasional activities or from the occasional rental of movable property, including income from agricultural production and forestry and water management, which are not operated by the entrepreneur, and income from the operation of electricity production plants, for which a license granted by the Energy Regulatory Office is not required,
b) income from paid transfer
1. immovable things,
2. security a
3. other things,
c) income from the transfer of a participation in a limited liability company, a limited partner in a limited partnership or from the transfer of a cooperative share,
d) income from inherited rights from industrial and other intellectual property, including copyright and rights related to copyright,
e) received alimony, pensions and similar recurring benefits,
f) share
1. of a member of a business corporation, with the exception of a partner of a public company and a general partner of a limited partnership on the liquidation balance, or
2. of the owner of the share certificate from the share attributable to the share certificate in the event of cancellation of the mutual fund, with the exception of the merger or merger of the mutual fund,
g) settlement share in the event of the termination of a member's participation in a business corporation, with the exception of a partner of a public company and a general partner of a limited partnership, a share in the property of a transformed cooperative, the return of share premium, an additional payment outside the share capital or similar payments,
h) winnings from games of chance; in the case of winnings from gambling games, the individual type of income is winnings from
1. lotteries and raffles,
2. odds bets and totalizator games,
3. technical games,
4. live games with the exception of a live game tournament,
5. live game tournaments and small scale tournaments a
6. gambling games other than gambling games according to points 1 to 5 ,
ch) winnings from advertising competitions and advertising raffles, prizes from public competitions, from sports competitions and prizes from competitions in which the range of competitors is limited by the conditions of the competition, or they are competitors selected by the competition organizer,
i) income that a partner of a public trading company or a general partner of a limited partnership receives in connection with the termination of participation in a public trading company or limited partnership from a person other than the public trading company or limited partnership in which he terminated participation,
j) income from the transfer of property to a partner and income from settlement according to special legal regulation 131 ) ,
k) income from one-time compensation of rights with the nature of repeated performance based on an agreement between the injured party and the insurer,
l) income from exchange,
m) income from the trust fund,
n) gratuitous income,
o) income from the dissolution of a reserve fund created from profit or from the dissolution of a similar fund.
(2) Income according to paragraph 1 , flowing to the spouses from the spouses' joint property, is taxed by one of them; the same applies to income flowing into the joint property of the spouses. Income accruing to the spouses from the sale or transfer of property or rights in the common property of the spouses, which were included in the business property, is taxed for the spouse who had such property or right included in the business property. In the case of income arising from the sale or transfer of property or a right in the common property of the spouses, which was included in the business property of the deceased husband (wife), which accrues to the surviving husband (wife), at the time specified in § 4 relating to the property or right included in business property, does not consider.
(3) Apart from the income mentioned in § 4 , they are exempt from tax
a) income according to paragraph 1 letter a) if their total for the taxpayer does not exceed CZK 30,000 in the tax period; at the same time, the income of a taxpayer who derives income from beekeeping and whose number of beehives does not exceed 60 in the tax period is the amount of CZK 500 per beehive,
b) winnings from
1. lotteries and raffles, if the prize amount does not exceed CZK 1,000,000,
2. gambling games, which are an individual type of income according to paragraph 1 letter h) points 2 to 6 , if the difference between the total of winnings falling under that type of income and the total of gambling deposits within that type of income for the tax period does not exceed CZK 1,000,000,
c) gratuitous income
1. from a relative in the direct line and in the secondary line, as far as siblings, uncles, aunts, nephews or nieces, spouses, spouses of children, children of spouses, parents of spouses or spouses of parents are concerned,
2. from a person with whom the taxpayer lived for at least one year immediately before receiving the free income in a joint household and for this reason took care of the household or was dependent on this person for maintenance,
3. contemplated from his assets, which he allocated to the trust fund or with which he increased the assets of this fund, or from assets that were allocated to the trust fund or which increased the assets of this fund by the person mentioned in point 1 or 2 ,
4. of the taxpayer from his assets that he invested in the family foundation, or from assets that were invested in the family foundation by the person mentioned in point 1 or 2 ,
5. acquired occasionally, if their total from the same taxpayer in the tax period does not exceed the amount of CZK 15,000.
(4) The tax base (partial tax base) is the income reduced by the expenses demonstrably spent to achieve it. If the expenses associated with the individual type of income mentioned in paragraph 1 are higher than the income, the difference is not taken into account. If income flows according to paragraph 1 letter h) point 1 and letter ch) from sources abroad, the tax base (partial tax base) is income not reduced by expenses. In the case of income from agricultural production, forestry and water management, expenses can be claimed according to § 7 paragraph 7 letter a) . A taxpayer who claims expenses according to § 7 paragraph 7 letter a) , is obliged to always keep records of income. Income arising from installments based on a concluded purchase contract or from an advance based on a concluded contract on the future sale of immovable property shall be included in the partial tax base for the tax period in which they were obtained. If income flows according to paragraph 1 letter k) , are a separate tax base for taxation at a special tax rate ( § 36 ).
(5) For income according to paragraph 1 letter b) the expenditure is the price for which the taxpayer verifiably acquired the thing, and if it is a thing acquired free of charge, the price determined in accordance with the special legal regulation on property valuation § 33a of the Act on the adjustment of ownership relations to land and other agricultural property, may be applied in this tax period up to the amount of this income. If the income also flows in other tax periods, the procedure is similar, up to the total amount that can be applied according to this provision. For income according to paragraph 1 letter b) is an expense returned advance, even if it is returned in another tax period. In the case of income resulting from the revocation of a gift, the expense is the payment for the evaluation of the gift. For income according to paragraph 1 letter h) of points 2 to 6, only the gambling deposit is an expense.
(6) For income according to paragraph 1 letter c) , f) and g) the purchase price of the share is considered an expense. Expenditure is not a share in the property of a cooperative transferred as part of the transformation of cooperatives according to a special regulation 13 ) with the exception of a share or part of it that is compensation according to special regulations 2 ) and with the exception of another share in the property of a cooperative 13 ) if it is issued in kind or non-monetary fulfillment. When an investment fund is converted into an open mutual fund, when a closed mutual fund is converted into an open mutual fund, when the manager of a mutual fund is changed, when mutual funds are merged and merged and when an investment fund is merged, merged and divided, the purchase price of a share or unit certificate in the same the taxpayer is considered to be the purchase price of the share in the original investment fund. In the case of income from the transfer of property to a partner, the purchase price of the share or the purchase price of securities, assumed debts that were subsequently paid, and paid settlements are considered expenses, even if the payment occurs in a different tax period than the one in which the income from transfer of assets to a partner. In the case of settlement income, the purchase price of the share or the purchase price of the securities is considered an expense.
(7) According to the Civil Code, a pension is considered the tax base (partial tax base) after reduction by the amount of the purchase price evenly distributed over the period of receiving the pension. This period is determined as the average life expectancy of the participant according to the mortality tables of the Czech Statistical Office at the time when the pension begins to be received for the first time.
(8) Income according to paragraph 1 letter f) and g) is also a positive difference between the valuation of the property according to special legal regulation 1a ) and the amount of its value recorded in the business corporation's accounting upon the termination of membership in the business corporation, if the share in the liquidation balance or the settlement share is settled in non-monetary form. If a member of a business corporation, upon the termination of his participation in it, simultaneously incurs a debt to the business corporation in addition to the right to a settlement share in non-monetary form, this positive difference will be reduced by the amount of the debt. Income according to paragraph 1 letter f), g) , h) point 1 , ch) and o) with the exception of income from the share in the liquidation balance and the settlement share of partners of a public company and general partners of a limited partnership arising from sources in the territory of the Czech Republic are a separate tax base for special taxation tax rate ( § 36 ). If these revenues flow from sources abroad, they are the basis of the tax (partial basis of the tax) according to § 5, paragraph 2. If the price from the public tender includes remuneration for the use of the work or performance, the basis is reduced by the amount attributable to this remuneration taxed at a special tax rate and this amount will be included in the income specified in § 7 . In the case of taxpayers listed in § 2, paragraph 2 , for whom sports activity is an activity from which income from self-employment flows, received prizes from sports competitions are considered income according to § 7 .
(9) Other incomes that increase assets are always
a) salary of the President of the Republic and multi-purpose flat-rate reimbursement of expenses associated with the performance of his function according to special legal regulation 6g ) ,
b) annuity and multi-purpose flat-rate compensation provided to the former President of the Republic pursuant to the Act on the Security of the President of the Republic after termination of office.
(10) If the income according to paragraph 8 flows from sources abroad, this income can be included in a separate tax base taxed at the tax rate according to § 16a. If such income is included in that tax base, any income under paragraph 8 arising from sources abroad shall be included in that tax base. These incomes are not reduced by expenses with an exception
a) the income referred to in paragraph 1 letter f) and g), which can be reduced by the purchase price of the share, a
b) prices from a public competition, which will be reduced by the remuneration for the use of the work or performance included in this price; this reward is self-employment income.
Section 12
Joint income and expenditure
(1) If joint expenses related to joint income from the company or joint property are not distributed among the taxpayers in the same way as joint income, the taxpayers may claim expenses only in the proven amount.
(2) If the income and expenses are not distributed among the co-owners according to the co-ownership shares, the co-owners may claim expenses only in the proven amount.
(3) Incomes and expenses accruing to the taxpayer from the community of property, with the exception of the community of property of heirs during its duration, are included in the taxation period in which the community of property ceased.
§ 13
Income and expenses of cooperating persons
(1) Income and expenses for their achievement, provision and maintenance during independent activity, with the exception of the share of a partner of a public company and a general partner of a limited partnership, may be divided between the taxpayer and the persons cooperating with him, which are understood
a) cooperating spouse,
b) a cooperating person living with the taxpayer in a joint household,
c) a family member involved in the operation of the family plant.
(2) For collaborating persons, the share of income and expenses must be the same. Income and expenses are distributed so that
a) the share of income and expenses attributable to cooperating persons did not total more than 30% and
b) the amount by which income exceeds expenditure amounted to
1. no more than CZK 180,000 per tax period a
2. a maximum of CZK 15,000 for each started calendar month of cooperation.
(3) In the event that the cooperating person is only the spouse, income and expenses are divided in such a way that
a) the share of income and expenses attributable to the spouse did not amount to more than 50% a
b) the amount by which income exceeds expenditure amounted to
1. no more than CZK 540,000 per tax period a
2. a maximum of CZK 45,000 for each started calendar month of cooperation.
(4) Income and expenses cannot be divided
a) for a child who has not completed compulsory schooling,
b) for the child in the calendar months in which the dependent child tax benefit is applied to him,
c) for the spouse, if the spouse discount is applied to him,
d) to and from the taxpayer who died, and
e) to and from a taxpayer whose tax is equal to the flat tax.
Section 15
The non-taxable part of the tax base
(1) The value of gratuitous services provided to municipalities, regions, state organizational units, legal entities with their headquarters in the territory of the Czech Republic, as well as legal entities that are organizers of public collections pursuant to a special law, 14e) can be deducted from the tax base, namely for science and education, research and development purposes, culture, education, for the police, for fire protection, for the support and protection of youth, for the protection of animals and their health, for social, health and environmental purposes, humanitarian, charitable, religious for registered churches and religious societies , physical education and sports, and to political parties, political movements, European political parties or European political foundations for their activities, as well as natural persons residing in the territory of the Czech Republic who are providers of health services or operate schools and school facilities and facilities for the care of strays or abandoned animals or for the care of individuals of endangered animal species, for the financing of these facilities, as well as to natural persons residing in the territory of the Czech Republic who are recipients of a disability pension or were recipients of a disability pension on the date of granting the old-age pension or are minor children dependent on the care of another persons according to special legal regulation 4j) , for medical devices 114) up to the amount not covered by health insurance companies or for special aids according to the law governing the provision of benefits to persons with disabilities up to the amount not covered by a contribution from the state budget and for property facilitating the education and inclusion of these persons in employment if the total value of gratuitous services in the tax period exceeds 2% of the tax base or amounts to at least CZK 1,000. The procedure is similar for gratuitous payments to finance the elimination of the consequences of a natural disaster that occurred on the territory of a member state of the European Union or a state forming the European Economic Area. In total, no more than 15% of the tax base can be deducted; this does not apply to the tax periods of the calendar years 2020 and 2021, for which no more than 30% of the tax base can be deducted in total. As a gratuitous performance for medical purposes, the value of one collection of blood or its components by a donor who has not been provided with financial reimbursement of the expenses associated with the collection of blood or its components in accordance with the law regulating specific health services, with the exception of the payment of proven travel costs associated with the collection, is valued at the amount of CZK 3,000 , the value of organ collection from a living donor is valued at CZK 20,000, and the value of one collection of hematopoietic cells, with the exception of reimbursement of proven travel costs associated with the collection, is valued at CZK 20,000. The provisions of this paragraph shall also apply to gratuitous services provided to legal or natural persons with headquarters or residence in the territory of another member state of the European Union or a state forming the European Economic Area other than the Czech Republic, if the recipient of the gratuitous service and the purpose of the gratuitous service meet the conditions established by this law. If the spouses provide gratuitous performance from the spouses' joint property, one of them or both of them can claim the deduction in proportion.
(2) Gratuitous performance provided by a public trading company or a limited partnership is assessed as a gratuitous performance provided by individual partners of a public trading company or general partners of a limited partnership and is divided in the same way as the tax base according to § 7 paragraph 4 or 5 .
(3) An amount is deducted from the tax base that is equal to the interest paid in the tax period from the building savings loan, 4a ) the interest from the mortgage loan provided by the bank, reduced by the state contribution provided in accordance with special legal regulations, as well as the loan provided by the building society, 56 ) by a bank in connection with a building savings loan or a mortgage loan, and used to finance housing needs, if it is not housing construction, maintenance or a change in the construction of an apartment building or a unit that does not include non-residential space other than a garage, cellar or storage room , carried out as part of an activity that generates income from self-employment, or for rental purposes. If the home appliance or part of it is used or is used for an activity from which income from self-employment flows, or for rent, the deduction of interest for the period of use of the home appliance for the stated purposes can only be applied in a proportional amount.
(4) In the event that the parties to the loan agreement for housing needs are more than one adult, either one of them, or each of them, applies the deduction in equal shares. If it is an object of housing needs listed in § 4b paragraph 1 letter a) to c) and e) , the tax base can be reduced only in the tax period, during which the taxpayer has the housing item listed in § 4b paragraph 1 letter a) to c) owned and the object of household goods listed in § 4b paragraph 1 letter a) , c) and e) used for his own permanent residence or the permanent residence of the other of the spouses, descendants, parents or grandparents of both spouses and, in the case of construction, alteration of a building or purchase of a building under construction, used the object of housing for his own permanent residence or for permanent residence of the other of the spouses, descendants, parents or grandparents of both spouses after fulfilling the obligations established by a special legal regulation for the use of buildings. 63 ) If it is an object of housing needs listed in § 4b paragraph 1 letter b) , in which the condition of starting the construction of housing needs will not be met within 4 years from the moment of acquisition of the land, the right to apply the deduction of the non-taxable part of the tax base ceases and the income according to § 10 in the tax period in which this fact occurred are the amounts for which the tax base was reduced in the relevant years due to interest paid on loans. However, in the year of acquisition of ownership, it is sufficient if the taxpayer owned the housing item at the end of the tax period. If it is an object of housing needs listed in § 4b paragraph 1 letter d) , f) , g) , the tax base can be reduced only in the tax period when the taxpayer rents or uses an apartment, a unit that does not include a non-residential space other than a garage, cellar or storage room, a family house or an apartment building acquired pursuant to § 4b paragraph 1 letter d) , f) , g) used for own permanent residence or for permanent residence of the other spouse, offspring, parents or grandparents of both spouses. The total amount of interest by which the tax base is reduced according to paragraph 3 from all loans of taxpayers in the same joint household may not exceed CZK 150,000. When paying interest for only part of the year, the amount applied may not exceed one twelfth of this maximum amount for each month of interest payment.
(5) A contribution totaling no more than CZK 24,000 paid by the taxpayer to his
a) supplementary pension insurance with state contribution according to the contract on supplementary pension insurance with state contribution concluded between the taxpayer and the pension company; the amount that can be deducted in this way is equal to the sum of the parts of the monthly contributions that in the individual calendar months of the tax period exceeded the amount from which the maximum state contribution is due,
b) pension insurance according to the pension insurance contract concluded between the taxpayer and the pension insurance institution or on the basis of otherwise agreed participation of the taxpayer in pension insurance with the pension insurance institution, on the condition that payment of benefits from the pension insurance was agreed only after 60 calendar months and at the same time at the earliest in the year of reaching the age of 60; the amount that can be deducted in this way is equal to the total contributions paid by the taxpayer to his pension insurance for the tax period, or
c) supplementary pension savings according to the contract on supplementary pension savings concluded between the taxpayer and the pension company; the amount that can be deducted in this way is equal to the sum of the parts of the monthly contributions that in the individual calendar months of the tax period exceeded the amount from which the maximum state contribution is due; in the event of the transfer of the participant's funds from the transformed fund to the participant funds, an amount equal to the sum of the parts of the monthly contributions paid by the taxpayer for his supplementary pension insurance with the state contribution for part of the tax period and the part of the monthly contributions paid by the taxpayer for his supplementary pension savings for the subsequent part of the tax period can be deducted periods that in the individual calendar months of the tax period exceeded the amount from which the maximum state contribution is due.
If the taxpayer's supplementary pension insurance with state contribution, pension insurance or supplementary pension savings has expired without the right to a pension, one-time settlement or one-time payment from the pension insurance and at the same time the taxpayer has been paid a redemption or other payment related to the termination of the pension insurance, the right to apply the deduction of the non-taxable part the tax base ceases and the income according to § 10 in the tax period in which this termination occurred are the amounts for which the taxpayer was subject to tax in the past ten years due to paid contributions to his supplementary pension insurance with state contribution or pension insurance or supplementary pension savings reduced.
(6) From the tax base for the tax period, the premiums paid by the taxpayer in the tax period for his private life insurance can be deducted according to the insurance contract concluded between the taxpayer as the policy holder and the insured in one person and an insurance company that is authorized to operate insurance activities in the territory of the Czech Republic according to of a special legal regulation, or another insurance company established in the territory of a member state of the European Union or a state forming the European Economic Area, provided that the payment of the insurance benefit (annuity or one-off benefit) is agreed in the insurance contract only after 60 calendar months from the conclusion of the contract and at the same time at the earliest in the calendar year during which the taxpayer reaches the age of 60 and that, according to the terms of the insurance contract, payment of other income that is not an insurance benefit and does not constitute the termination of the insurance contract is not permitted, and in an insurance contract with a fixed sum insured in case of survival, provided that an insurance contract with a fixed sum insured in case of survival with an insurance period of 5 to 15 years inclusive has a sum insured of at least CZK 40,000 and an insurance contract with a fixed sum insured in case of survival with an insurance term of over 15 years has a sum insured of at least to 70,000 CZK. In the case of pension insurance, the agreed sum insured is considered to be the corresponding one-time payment during lifetime. In the case of a one-off insurance premium, the paid insurance premium is proportionally calculated for the tax period according to the duration of the insurance to the nearest day. The maximum amount that can be deducted per tax period is a total of CZK 24,000, even if the taxpayer has concluded several contracts with several insurance companies. If, before the end of the period of 60 calendar months from the conclusion of the contract or before the year in which the insured person reaches 60 years of age, the payment of insurance benefits from private life insurance, other income that is not insurance benefits and does not constitute the termination of the insurance contract, or the premature termination of the insurance contract , the right to a non-taxable part of the tax base ceases and the income according to § 10 in the tax period in which this fact occurred are the amounts by which the taxpayer's tax base was reduced in the past 10 years due to the paid insurance premium; this does not apply in the case of performance when the right to an old-age pension or disability pension for third-degree disability has arisen, or if the insured person becomes disabled in the third degree according to the Act on Pension Insurance or in the event of death and with the exception of insurance contracts , in for which no insurance benefit or redemption will be paid and at the same time the reserve, capital value or redemption will be directly transferred to another private life insurance contract meeting the conditions for applying the non-taxable part of the tax base.
(7) Paid membership fees paid in the tax period by a member of a trade union to a trade union that, according to its statutes, defends the economic and social interests of employees to the extent defined by a special legal regulation can be deducted from the tax base. 82 ) In this way, an amount up to 1.5% of taxable income according to § 6 can be deducted , with the exception of income according to § 6 taxed with deduction according to a special tax rate, but up to a maximum of CZK 3,000 per tax period.
(8) Payments for examinations verifying the results of further education according to the Act on Verification and Recognition of Further Education Results 82a ) can be deducted from the tax base in the tax period , if they were not paid by the employer or claimed as an expense according to § 24 by the taxpayer with income according to § 7 , at most however, CZK 10,000. For a taxpayer who is a person with a disability, up to CZK 13,000 can be deducted for the tax period, and for a taxpayer who is a person with a severe disability, up to CZK 15,000.
(9) For the taxpayer referred to in § 2 paragraph 3 , the tax base according to paragraphs 1 to 8 is reduced for the tax period only if the taxpayer is a tax resident of a member state of the European Union or a state forming the European Economic Area and if the total of his of income from sources in the territory of the Czech Republic according to § 22 amounts to at least 90% of all his income, with the exception of income that is not subject to tax according to § 3 or 6 , or is exempt from tax according to § 4 , 6 or 10 , or income from which tax collected by deduction according to the special tax rate. The amount of income from sources abroad is proved by the taxpayer with the confirmation of the foreign tax administrator.
Section 16
Tax rate and calculation for the tax base
(1) The tax rate is
a) 15% for the part of the tax base up to 48 times the average salary a
b) 23% for the part of the tax base exceeding 48 times the average salary.
(2) The tax is calculated from the tax base reduced by the non-taxable part of the tax base and the deductible items from the tax base and rounded down to whole hundred CZK, as the sum of the products of the relevant part of such tax base and the rate for this part of the tax base.
Section 16a
Tax rate and calculation for a separate tax base
(1) The tax rate for the separate tax base is 15%.
(2) The tax is calculated as the product of a separate tax base rounded to the nearest whole hundred CZK and the tax rate for this tax base.
§ 16ab
Tax calculation
(1) The taxpayer's tax is calculated as the sum of the tax according to § 16 reduced by tax discounts and taxes according to § 16a.
(2) If the tax bonus according to § 35c, paragraph 3 is higher than or equal to the tax according to § 16a, the tax bonus is reduced by this tax and the taxpayer's tax is equal to zero.
(3) If the tax bonus according to § 35c, paragraph 3 is lower than the tax according to § 16a, the tax bonus is equal to zero and the taxpayer's tax is equal to the tax according to § 16a reduced by the tax bonus according to § 35c, paragraph 3.
Section 16b
Tax period
The tax period for personal income tax is the calendar year.