Amendment To The Act On Income Tax

Original Language Title: změna zákona o daních z příjmů

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669/2004 Coll.


LAW
Dated 9 December 2004

Amending Act no. 586/1992 Coll., On income taxes, as amended
amended, and certain other laws

Change: 545/2005 Coll.

Change: 112/2006 Coll.

Change: 17/2012 Coll.

Change: 340/2013 Coll. , 344/2013 Sb.

Parliament has passed this Act of the Czech Republic:
PART ONE


Amendment to the Income Tax
Article I


Act no. 586/1992 Coll., On income taxes, as amended by Law no. 35/1993
Coll., Act no. 96/1993 Coll., Act no. 157/1993 Coll., Act no. 196/1993
Coll., Act no. 323/1993 Coll., Act no. 42/1994 Coll., Act no. 85/1994
Coll., Act no. 114/1994 Coll. Act no. 259/1994 Coll., Act no. 32/1995
Coll., Act no. 87/1995 Coll., Act no. 118/1995 Coll., Act no. 149/1995 Coll
. Act no. 248/1995 Coll., Act no. 316/1996 Coll., Act no. 18/1997
Coll., Act no. 151/1997 Coll., Act no. 209/1997 Coll., Act no. 210/1997
Coll., Act no. 227/1997 Coll., Act no. 111/1998 Coll., Act no. 149/1998
Coll., Act no. 168/1998 Coll. Act no. 333/1998 Coll., Act no. 63/1999
Coll., Act no. 129/1999 Coll., Act no. 144/1999 Coll., Act no. 170/1999 Coll
. Act no. 225/1999 Coll., the Constitutional court ruling promulgated under no.
3/2000 Coll., Act no. 17/2000 Coll., Act no. 27/2000 Coll., Act.
72/2000 Coll., Act no. 100/2000 Coll., Act no. 103/2000 Coll., Act no.
121/2000 Coll., Act no. 132/2000 Coll., Law no. 241 / 2000 Sb., Act no. 340/2000 Coll
., Act no. 492/2000 Coll., Act no. 117/2001 Coll., Act no.
120/2001 Coll., Act no. 239 / 2001 Coll., Act no. 453/2001 Coll., Act no. 483/2001 Coll
., Act no. 50/2002 Coll., Act no. 128/2002 Coll., Act.
198/2002 Coll., Act no. 210/2002 Coll., Act no. 260/2002 Coll., Act no. 308/2002 Coll
., Act no. 575/2002 Coll., Law no. 162 / 2003 Coll., Act no. 362/2003 Coll
., Act no. 438/2003 Coll., Act no. 19/2004 Coll., Act no.
47/2004 Coll., Act no. 49 / 2004 Coll., Act no. 257/2004 Coll., Act no. 280/2004 Coll
., Act no. 359/2004 Coll., Act no. 360/2004 Coll., Act.
436/2004 Coll. and Act no. 562/2004 Coll., is amended as follows:

First In § 3, at the end of paragraph 4 is replaced by a comma and a letter
e), added:

"E) income generated by the taxpayer referred to in § 2 para. 2, which
helps out with household chores abroad or taxpayer
referred to in § 2 para. 3, which helps out with household chores in the Czech Republic and
for food and accommodation, in the case of income to meet basic
social, cultural or educational needs (au pair). ".

Second In § 4 para. 1 point. a) the following sentence added after the first sentence "Similarly
progressing well with revenues from the sale of a house, an apartment, including
share the common areas of the house or ownership interest, including
related land if it was selling
residence immediately prior to the sale for less than two years, and when used
obtained funds to satisfy housing needs. ".

Third In § 4 para. 1 point. f) the last sentence and paragraph in § 38p. 2, the number "8"
replaced by "5".

Fourth In § 4 para. 1 point. h) the number "144000" is replaced by "162
000".

Fifth In § 4 para. 1 point. t), the words "National Fund" the words
"support from the Wine Fund".

6th In § 4 para. 1 point. u) at the end of the text, the comma is replaced by a semicolon
and the words "The approach is similar to income from the sale
a house, an apartment, including a share in the common areas of the house or
ownership share, including related land, if it
seller was resident immediately before the sale for less than two years and
applies if the funds obtained to satisfy the housing needs
".

7th In § 4 para. 1 for letters) to Zn), including footnotes Nos. 60)
64a), 4c), 4h) 4i) and 70a) added:

"For) the revenue generated in the form of a gift received in connection with business
or other self-employment as a promotional item
bearing the trade name or trademark provider of
gift whose value does not exceed CZK 500 | ||
Staples) income acquirer apartment, garage and studio, or
ownership interest in commercial premises, taken in connection with the mutual settlement
funds according to § 24 para. 7 and 8 of the Act on ownership of flats
, ^ 60)

ZC) the revenue generated in the form of legal deposit
under a special legal regulation 64a) and in the form of author's copies, the number of

Usual, taken in connection with the use of the subject of copyright or
rights related to copyright

W) revenue arising as a substitute for the easement arising by law or
decision of a state body under a special legal
regulation ^ 4c)

Of) currency gains in exchange of money from an account in foreign currency
unless the account is included in business assets, excluding exchange rate
profits in exchange of money from an account in foreign currency exchange,

FH) services provided in connection with the performance of volunteer service
under a special legal regulation, 4h)

Zg) the revenue generated in the form of gifts provided for the operation of zoological gardens
whose operator holds a valid license, ^ 4i)

Zh) advertising revenue made possible through the operation of zoological gardens
whose operator holds a valid license, ^ 4i)

Zi) income of the owner of the apartment or commercial space

First arising as a result of the reimbursement of expenses (costs) for the repair, maintenance and technical evaluation
common parts of a building with apartments and commercial premises
owned under a special law on the ownership of flats
^ 60) in kind, if so results from a contract on the construction
another apartment or commercial space or their parts for
provided that the owners of apartments and commercial spaces in the house writing
agree on reimbursement of those costs and expenses other than the above-|| | co-ownership shares in the common areas of the house, or so down
special legislation ^ 60)

Second arising as a result of the reimbursement of expenses (costs) for the repair, maintenance and technical evaluation
common parts of a building with apartments and commercial premises
owned under a special law on ownership
^ 60 bytes), another owner of the apartment or commercial space
in the house in material performance, and represents the difference in excess
obligation of the owner of the apartment or commercial space in the house to pay these costs and expenses
according to the size of the ownership share in the common areas of the house, behind
provided that the owners of apartments and commercial spaces in the house writing
agree on reimbursement of those costs and expenses other than the above-
co-ownership shares in the common areas of the house, or so down
special legislation ^ 60)

ZJ) income on cash payment-70a) in the conversion, exchange
shares, the merger between or division of a company which was created
shareholder is entitled, in accordance with special legislation 70a ^) is || | acquitted, if it relates to

First Shares for which the period between the acquisition and the record date of conversion, exchange
shares, company mergers or divisions exceeded
period of 6 months. The exemption does not apply to shares that are or have been
included in business assets, for a period of 6 months after
business or other gainful activity (§ 7)

Second interest in a company for which the period between the acquisition and
decisive day of conversion, exchange of shares, merger or division of companies
company exceeded 5 years. The exemption does not apply to the shares,
which are or have been included in business assets, for a period of 5 years from the completion
business or other gainful activity (§
7)

Exp) compensation (benefits) subsistence expenses provided by the institutions of the European Union
staff (national experts) seconded to institutions to act
EU

Zl) rent, compensation and benefits in kind provided to former President
Republic under a special legal regulation

Change) income derived in the form of a tax bonus (§ 35c)

Zn) contributions, MEPs elected
to the Czech Republic from the EU budget.

60) Act no. 72/1994 Coll., Regulating some
co-ownership relationships to buildings and some ownership of flats and non-residential premises
and supplementing certain acts (ownership) in | || amended.

64a) Act no. 37/1995 Coll., On non-periodical publications as amended
Act no. 320/2002 Coll.

Act no. 257/2001 Coll., On libraries and conditions of operation of public
Library and Information Services (Library Act).

Act no. 121/2000 Coll., On Copyright and Related Rights
copyright and amending some laws (Copyright Act).


4c) For example, Act no. 13/1997 Coll., On roads, as amended
.

4h) Act no. 198/2002 Coll., On Volunteer Service and the amendment of certain laws
(Volunteer Service Act), as amended by Act No. 436/2004 Coll.

4i) Act no. 162/2003 Coll., On conditions for the operation of zoos
and amending some laws (Act on Zoological Gardens).

70a) For example, § 220a paragraph. 5 and § 220k paragraph. 1 of the Commercial Code, as amended
.. "

Eighth in § 4 para. 1 point from) deleted.

ninth in § 5 para. 3 sentence last semicolon number "7" is replaced
number "5".

10th in § 5 para. 9 second sentence after the word "is" the word "nominal".

11th in § 5 para. 10 point.), the words "and further commitments, payment
would be an expense, reducing the tax base or increasing tax loss, "
deleted.

12th in § 5 para. 10 point. b) the words" the value of backups "the words
" That the expenditure for generating, securing and maintaining income. "

13th in § 5 para. 10 point. B) and § 5 para. 11, 'the person
economically or personally or otherwise linked "is replaced
" related party ".

14th § 6 para. 6 of the first sentence the words" (§ 29) "are deleted.

15th in § 6 at the end of paragraph 6 the sentence "input price of the vehicle
for the purposes of this provision means the entry price referred to in § 29 para.
1 to 9".

16th paragraph in § 7a. 2 second sentence after the word "amount" the words
"before applying the tax advantage provided for in § 35c."

17th paragraph in § 7a. 2 fourth sentence after the word "application", the word " and "
deleted and the words" § 15 "the words" or tax benefits
mentioned in § 35c. "

18th in § 7b at the end of paragraph 3 the sentence" It if in case
venal acquisition of immovable and movable assets, property rights,
assets and liabilities, or parts of the assets and liabilities, the difference between the purchase price and
valuation of these assets under a special legal regulation
, ^ 1) increased by the value of money, valuables, receivables including tax
added value, less the value of liabilities, negative, proceed
as in the case of a negative valuation difference when buying a business
(§ 23) . '.

19th In § 7c paragraph. 1, first sentence, the words "
business or other independent gainful activity" is replaced by "under § 7
paragraph. 1 point. A), b) or c)."

20th In § 7c paragraph. 3, in the introductory sentence after the word "taxpayer" the words "
cooperating husband (wife) or other cooperating
person (§ 13)."

21st In § 7c paragraph. 4 letter d) reads:

"D) that the old-age pension, full disability
retirement or partial disability pension, even after
part of the taxable period".

22nd In § 7c at the end of paragraph 4 is replaced by a comma and
letters h) and i) are added:

"H), which filed the tax year qualify for tax exemption
under § 4 para. 1 point. E) if they have no other income referred to in § 7

i) who does not income under § 7 para. 1 point. a), b) or c) in
tax period greater than 15 000 CZK. ".

23rd In § 8. 3-5 and 8, the number "3" is replaced by "2".

24th In § 10 paragraph. 1 at the end of letter j) is replaced by a comma and
subparagraph k), which including footnote no. 73) reads:

"K) income from lump-sum compensation of future claims for compensation for loss of income
based on a written agreement on the full and final settlement
between a creditor and insurer ^ 73) Except as provided in § 4.

73) § 449a of the civil Code. § 34 para. 1 and § 44 para. 4 of the Act no.
37/2004 Coll., on insurance policies and amending related laws (the insurance contract
). ".

25th In § 10 paragraph. 3 letter b) reads:

"B) winnings from lotteries, betting and similar games operated on the basis
permit issued under special regulations ^ 12) or on the basis
similar regulations issued in the Member States of the European Union or other countries
which form the European economic area. ".

26th In § 10 paragraph 4 at the end of the sentence "if it follows
income under paragraph 1 point. K), a separate tax base for taxation
special tax rate (§ 36).".

27th Under § 13 the following § 13a, including the heading and footnotes
fn. 108) reads:

"§ 13a


Tax calculation of joint taxation of spouses

(1) The couple, who are taxpayers under § 2 and nourish
least one child living with them at home, ^ 108) may apply the tax calculation of
common tax base (hereinafter the "joint taxation") if these conditions are met
later than the last day of the taxable period for which
apply common taxation. Joint taxation of spouses may apply in the case
that one of them had incomes that are subject to tax under this Act
.

(2) The common tax base for purposes of this Act, a sum
partial tax bases pursuant to § 6-10 governed by § 5 and 23 for both spouses
, net of tax allowances under § 15 for
both spouses. Tax allowance under § 15 may apply and the
spouse who had no taxable income if it otherwise meets
conditions laid down for their application. Alternatively, a married couple or one of them
in the tax year in which they exercised joint assessment by
income pursuant to § 7 or § 9 of the tax loss can be deducted from the tax base
according to § 34 of the spouse that he showed in the following
tax periods when these tax periods apply
joint taxation. Similarly, the taxpayer shall proceed in the case of deduction under paragraph 34 §
.
Third
(3) If at least one of the spouses taxpayer referred to in § 2 para. 3,
spouses joint taxation apply if the total of all income
both spouses from sources in the Czech Republic (§ 22)
at least 90% of their income, except for income not subject to tax
income pursuant to § § 3 or 6 or are exempt from tax under § 4, or 6
§ 10, or income, which is subject to withholding tax
special tax rate.

(4) The tax period does not apply common taxation
if at least one spouse for the taxable period

A) has a fixed tax lump sum pursuant to § 7a

B) has an obligation to establish a minimum tax base under § 7c

C) applies the method of tax calculation in accordance with § 13 and 14

D) applies a tax credit under § § 35a or 35b, or

E) has the obligation to apply the procedure referred to in § 38 gigabytes

(5) Advance tax personal income tax paid by each spouse

A) income from employment and functional benefits under § 38h,

B) pursuant to § 38a, with the last known tax liability when
joint taxation of spouses means the tax attributable to each of the spouses
.

(6) Joint taxation applies each spouse in his tax returns
which serves both spouses at the same time. ^ 41d) For
filing tax returns in the application of joint taxation, the provisions of §
38 grams, unless otherwise stated. In an annex to the tax return each spouse shall
data needed to calculate a common tax base pursuant to paragraph 2
for both spouses and each of them brought to his tax returns
half of a common tax base from which tax is calculated.

(7) After the deadline for filing tax returns is not the way
determining the tax base and tax form joint taxation raised in
tax return change.

108) § 115 of the Civil Code. ".

28th in § 15 para. 1, letter b) shall be deleted.

Existing letters c) to g) are marked as letters b ) to f).

29th in § 15 para. 1 point. b) the word "ZTP / P" is replaced
"extraordinary benefits III. degree (particularly heavy involvement with the need
Guide) - ZTP / P (hereinafter "ZTP / P"). "

30th in § 15 paragraph 3 reads:

"(3) for taxpayers defined in § 2 para. 2, which derives income
included in a separate tax base (§ 8 para. 4 and § 10 par. 8), the
the tax base deduction of the amount referred at § 15. for taxpayers
referred to in § 2 para. 3 reduces the tax base for the tax period of
amount referred to in paragraph 1. b) to e) if the total of his income from
sources in the Czech Republic (§ 22) is at least 90% of its
income excluding income not subject to tax under § 3 and § 6
or are exempt from tax under § 4, § 6 or 10, or income from
which the tax is withheld at a special tax rate. ".

31st In § 15 paragraph 4-6 deleted.

Former paragraphs 7 to 15 are renumbered 4 to 12


32nd In § 15 para. 4 the word "g)" is replaced by "f)" and the second sentence is deleted
.

33rd In § 15 para. 5 first sentence, the words "these devices" are inserted
words ", in addition to natural persons residing in the territory of the Czech Republic
which are eligible for partial or full disability pension to rehabilitation and
prosthetic device, not covered by health insurance, and property
facilitate these persons education and inclusion in
job. "

34th In § 15 para. 7 of the introductory part of the first sentence the words "
bank or branch of a foreign bank" is replaced by "Bank ^ 109) or branch of a foreign bank
^ 109) or a foreign bank."

Footnote. 109) reads:

'109) The Act no. 21/1992 Coll., On Banks, as amended.
Act no. 6/1993 Coll., On the Czech National Bank, as amended
regulations. ".

35th In § 15 paragraph 10 reads:

"(10) The tax base for the tax period can be deducted by the taxpayer
premiums paid in the tax year on his private life
insurance under the insurance contract concluded between the taxpayer as
policyholder and insured in one person and the insurance company that is
authorized to carry on insurance business in the Czech Republic
under a special legal regulation, 89), provided that payment of the indemnity
(pension or a lump-sum) is a contract agreed to
after 60 months from the contract and simultaneously
earliest in the calendar year in which the taxpayer reaches the age of 60, and
insurance policies with fixed sum insured in case of maturity
in addition, assuming that the insurance contract with
firmly agreed insurance amount for survival with the insurance period of 5 to 15 years, including a
agreed sum of at least 40 000 CZK and the insurance contract with
fixed sum insured for survival with the insurance period || | over 15 years, has agreed sum of at least 70 000 CZK. For
pension insurance for the agreed sum
considers appropriate lump sum benefit upon maturity. In the case of single premium
the premium paid pro rata in relation to the tax period
depending on the duration of insurance with an accuracy of days. The maximum amount
be deducted for tax periods amounts to a total of CZK 12 000, even
if the taxpayer has several contracts with multiple insurers. When
failure to comply with these conditions due to termination of insurance or additional changes
duration of insurance is entitled to claim deduction
non-taxable portion of the tax base expires and income in accordance with § 10 of the tax year in which
this event has occurred , the amount by which the taxpayer
out over the years due to the paid premium tax base
reduced, with the exception of insurance contracts where the premium will be paid
benefits or severance pay as well as reserve or capital value insurance || | will be transferred to the new private life insurance contract
fulfilling the conditions for the application of a tax allowance. ".

36th In § 15 paragraph 12 is deleted.

37th in § 16 Sec. 2, first sentence, number "5" is replaced by "4".

38th in § 18 par. 4, letter b) including footnote no. 17b) states:

" b) grants, contributions and other operating subsidies from the state budget,
regional budget and the municipal budget provided under special legal
regulations ^ 17b) of the funds provided from the budget of the European Union or
public budgets of foreign countries and revenue from the region and support
Wine Fund and municipalities arising from tax revenue or share them
fee revenue and cash contributions, which are under special laws
income regions and municipalities

17b) Act no. 218/2000 Coll., On budgetary rules and amending
some related laws (budget rules), as amended
. Act no. 250/2000 Coll., On budgetary rules
territorial budgets, as amended. ".

39th in § 18, the following paragraph 15 of which, including footnotes. || | 17p) reads:

"(15) taxpayers referred to in paragraph 3 who operate medical equipment
under a special legal regulation, 17p) are subject to tax
all income except income || |
A) of investment transfers and subsidies for the acquisition and technical appreciation
property

B) interest on current account deposits.


17p) Act no. 20/1966 Coll., On Public Health Care, as amended
regulations. ".

40th in § 19 para. 1 point. P) for the word "proceeds from" the words
"of funds from the escrow account" and the word "by" the words "§
18 paragraph. 1 point. h) and. "

41st in § 19 para. 1 point. y) and § 24 par. 2 point. cr), the words"
§ 15 paragraph. 8 "is replaced by" § 15 para. 5 ".

42nd in § 19 para. 1 point. Zi), the first sentence reads:" Income from dividends and other
profit shares arising from subsidiaries a society that is
tax resident in another Member State of the European Union,
parent company, which is the taxpayer referred to in § 17 para. 3, and
permanent establishment of a parent company that is the taxpayer referred to in § 17 || | paragraph. 4 and is located on the territory of the Czech Republic. ".

43rd In § 19 at the end of paragraph 1 is replaced by a comma and a letter
changes), which including footnote no. 112) reads :

"changes), revenues of the State Institute for Drug control and the Institute for State control of veterinary Biologicals
and drugs arising from acts
performed under a special law. ^ 112)

112) The Act no. 79/1997 Coll., On pharmaceuticals and amending and supplementing some
related laws, as amended. ".

44th Footnote no. 93) reads :

'93) Council Directive 90/435 / EEC of 23 July 1990 on the common system of taxation
parent companies and subsidiaries of different Member States
, as amended by Council Directive 2003/123 / EC Council Directive 90/434 / EEC
23 July 1990 on the common system of taxation applicable to mergers,
divisions, transfers of assets and exchanges of shares
and Council Directive 2003/49 / EC of 3rd June 2003 on the common system of taxation applicable to interest and royalties
between related parties. ".

45th in § 19 par. 3 point. b) and c) the number" 25 "is replaced by" 20 ".

46th in § 19 par. 3 point. b) and c) the number "20" is replaced by "15".

47th in § 19 par. 3 point. b) and c ), the number "15" is replaced by "10".

48th in § 19 para. 4, the number "25" is replaced by "20".

49th in § 19 para. 4, the number "20" is replaced by "15".

50th In § 19 para. 4, the number "15" is replaced by "10".

51st In § 20 par. 3, the word "seven" is replaced by "5".

52nd In § 20 par. 7, the words "administration building" the words "u
taxpayers engaged in medical equipment only apply if
thus acquired in a subsequent taxation period to cover
costs (expenses) associated with the provision of health care. "

53rd In § 20b at the end of paragraph 1 the sentence "A similar procedure is also
taxpayer referred to in § 17 para. 4, when income from dividends
profit sharing, settlement amounts, shares in liquidation or
it similar services from abroad is attributable to its permanent
establishment located in the Czech Republic. ".

54th In § 21 par. 3 of the first sentence, "15" is replaced by "5".

55th In § 23 par. 3 point. a) point 3, the words "the amount previously deducted from the tax base
according to § 34 par. 3" are deleted.

56th In § 23 par. 3 point. a) Section 6 reads:

'Sixth received payment of any penalties, default interest, fees from
arrears, penalties and other sanctions from contractual relationships with creditors
which keeps accounts if they were under subparagraph b) of paragraph 1 item || | declining profit in previous tax periods;
yet for when payment is regarded as netting receivables and
obligation under a special law. creditor who leads
accounts receivable and forward these contractual sanctions or | || claim that these sanctions will expire in any other way than by her
payment and the amount was under subparagraph b) of paragraph 1
items reducing profit in the previous tax periods, it is obliged
amount of the receivable to increase profit if it has been raised by
point 2. this also applies to the taxpayer's legal successor,
vanished without liquidation ".

57th In § 23 par. 3 point. b) paragraph 1 shall be replaced at the end of the dot and comma
following sentence "Do this difference can not include amounts receivable from
these sanctions that were lost during the last day or
tax period.".

'58. In § 23 para. 4 letter i) reads:

"I) a change in the valuation of a company or cooperative

Equivalencies (consideration), if it is recognized by a special legal regulation
20) as an expense or income.
Equity valuation (consideration) for the purposes of this Act for the award
fair value ^ 20). "

59th in § 23 at the end of paragraph 4 is replaced by a comma and | || letter l), which reads:

"l) the amount of income from sales of passenger car, with a cost
limited under this Act (§ 29 para. 10), up to the sum of his || | residual value (§ 29 par. 2) and the difference by which the purchase price
including technical appreciation exceeds the initial cost of the car.
When selling a car purchased immediately after the end
into finance leases where the rent paid
was greater than the limit specified in § 24 para. 4, the tax base does not include the amount of income
from the sale of the passenger car up
sum of its purchase price, including technical improvements or
net book value and the amount of rent paid over the limit (
§ 24 par. 4). ".

60 . In § 23 par. 7 point. b) at the end of point 2 replaces the comma and full stop
following sentence "for otherwise related persons are not persons
where one person is a member of the supervisory boards of both persons." at the end of paragraph 7
sentence "Participation in the control commission or similar authority control
and implementing controls for a fee is not considered participation in the
control.".

61st in § 23 paragraph. 14 first sentence, the word "five" is replaced by "9".

62nd in § 24 par. 2 point. h) 1, the word "enterprise, ^ 70)" are replaced
the words "enterprise or part of an undertaking constituting a separate organizational
folder under a special legal regulation, 70)".

63rd In § 24 par. 2 point. ch) second sentence after the word "is" the words
"the taxpayer referred to in § 2 para. 2 and § 17 para. 3".

64th In § 24 par. 2 point. j) Point 4, including footnote no. 110)
reads:

"4th operate its own dining facility, apart from the food or
meal allowances provided through other subjects and
provided up to 55% of the price of one meal per shift, ^ 110)
but to a maximum 70% of the per diems during business trips of 5-12
hours under a special law. ^ 23b)
allowance does not apply to catering for the employees who are entitled to per diems according
special regulation. ^ 23b) for meals in their own dining facilities
is regarded as ensured by the board in its own canteen
through other entities,

110) § 83 paragraph. 3 of the Labour Code. ".

65th In § 24 par. 2 point. r), the words "value of the securities'
words" plus expenses (costs) related to its shareholdings in subsidiaries
if the taxpayer proves that according to § 25 par. 1
point. Ac ) were recognized as expenses (costs) for achieving, securing and maintaining income
".

66th In § 24 par. 2 point. v) point 2, third sentence, the words "this
intangible assets being acquired by a company or cooperative
acquired for valuable consideration" is replaced by "it was possible to apply depreciation from this
intangible assets being acquired by a company or cooperative || | under this provision. "

67th In § 24 par. 2 point. y) the introductory part of the provision: "taxpayers who keep
accounts receivable nominal value or the purchase price
receivables acquired by assignment, deposit and the conversion
society ^ 70), and assuming a receivable at its inception
we were charged in yields and thus the resulting taxable income was exempt from tax
and it can be simultaneously apply to this claim adjustments
items referred to in subparagraph i) the debtor ".

68th In § 24 par. 2 point. zi), the words "loans and advances" are replaced
'borrowing and lending rates ".

69th In § 24 at the end of paragraph 2 is replaced by a comma and a letter
ZS), which reads:

"IB) costs of enforcement by special legislation 26k)
paid by the lender.".

70th In § 24 para. 4 of the last sentence of § 27 para. 2 and § 29 para. 10
word "900 000 CZK" is replaced by "1,500,000 CZK".

71st In § 24 par. 7 in the final part of the provision for third sentence the following sentence
"The acquisition price of shares in a company or cooperative can
increase of expenses (costs) directly related to the holding of shares in the business

Company or cooperative if the taxpayer proves that according to § 25 paragraph.
1 point. Ac) were recognized as expenses (costs) for achieving, securing and maintaining income
.. "

72nd in § 25 par. 1 point. i) the words" or to the income exempted by || | international treaties on avoidance of double taxation "is replaced by" au
taxpayers listed in § 2 para. 2 also expenditures (costs)
on income exempted under an international treaty on avoidance of double taxation
exceed such income " .

73rd in § 25 par. 1 point. y) after the words "rules-28b)"
words "except as provided in § 24".

74th in § 25 par. 1 at the end of point Ac) the following sentence is added:
"Any director (indirect) costs relating to its shareholdings in subsidiaries
for the purposes of this provision limiting the amount of 5%
income from dividends and other profit shares paid by a subsidiary company
if the taxpayer proves that the actual amount of these
overhead (indirect) costs are lower. ".

75th in § 29 at the end paragraph 3 of the sentence "the obligation to raise
input price and depreciated separately registered
technical evaluation of any further technical evaluation completed on the original
property does not apply to the technical assessment made at
immovable cultural monument, which depreciates according to § 30 paragraph. 8
always alone. ".

76th In § 29 para. 4, the words "or part thereof that is not excluded from
depreciation (§ 27 para. 2), or part thereof that is not excluded from
depreciation" is replaced by "or part thereof that is not
excluded from depreciation (§ 27 para. 2) ".

77th In § 30 paragraph 1 reads:

"(1) In the first year of depreciation of tangible assets classified into taxpayer
depreciation groups listed in Annex no. 1 hereto. If there
in the works to change the use of the capital and due to this change
changes the classification into the depreciation groups listed in Annex no. 1 to this
law, a taxpayer makes changing the classification of the assets in the tax
period or the period for which the tax return is filed, in which the || | change. Individually depreciated technical evaluation carried out on
tangible property excluded from depreciation depreciation is classified in the group to which it belongs
tangible assets, for which the technical evaluation
done. the amortization period is a minimum of: || | + --------------------- + ---------------------- +
| depreciation group | depreciation |
+ --------------------- + ----------------- ----- +
| 1 | 3 years |
+ --------------------- + --------- ------------- +
| 1 | 4 years |
+ --------------------- + - --------------------- +
| 2 | 5 years |
+ --------------- ------ + ---------------------- +
| 3 | 10 years |
+ --------------------- + ---------------------- + |
4 | 20 years |
+ --------------------- + ---------------------- + |
5 | 30 years |
+ --------------------- + ---------------------- + |
6 | 50 years. |
+ --------------------- + ---------------------- + | ||
The depreciation period does not apply to tangible assets for which
occurred during the depreciation to extend the depreciation period. Construction work
(house, building, construction) are classified into depreciation groups according to its main
use in accordance with special legislation. ^ 31a) In
use of the building for multiple purposes is included in depreciation groups | || decisive majority are taking on a total usable floor area of ​​
. ^ 99) Tangible assets not included in depreciation groups
according to Annex no. 1 to this Act, except as specified in paragraphs 6 to 8
, classed according to the classification of Constructions CZ-CC issued by the Czech statistical Office
^ 99) shall be included in depreciation group 5 and other tangible assets
classed by CPA with
assigned to the 2nd depreciation group. "| ||
78th in § 30. 12 at the end of subparagraph g) replaces the comma and full stop
following sentence "If the matter referred hired at a lower price than the entry price
registered by the assignor , depreciation can be applied up to a
above the price paid by the assignee ".

79th in § 31 paragraph 1 reads:

" (1) When straight-line depreciation of tangible assets are depreciation || | groups assigned to the following maximum annual depreciation rates:

A) Annual depreciation rate for tangible assets depreciated under b)
d)
+ --------- + -------------- - + ------------------ + --------------- +

| Depreciation | In the first year | in subsequent years | for increased |
| Group | depreciation | depreciation | Input price |
+ --------------- + --------- + ------------------ + - -------------- +
| 1 | 20 | 40 | 33.3 |
+ --------------- + --------- + ------------------ + - -------------- +
| 1a | 14.2 | 28.6 | 25 |
+ --------------- + --------- + ------------------ + - -------------- +
| 2 | 11 | 22.25 | 20 |
+ --------------- + --------- + ------------------ + - -------------- +
| 3 | 5,5 | 10.5 | 10 |
+ --------------- + --------- + ------------------ + - -------------- +
| 4 | 2.15 | 5.15 | 5,0 |
+ --------------- + --------- + ------------------ + - -------------- +
| 5 | 1,4 | 3,4 | 3,4 |
+ --------------- + --------- + ------------------ + - -------------- +
| 6 | 1.02 | 2.02 | 2 |
+ --------------- + --------- + ------------------ + - -------------- +

B) Annual depreciation rate increase in depreciation in the first year of depreciation by 20%

+ --------- + --------------- + ------------------ + --------------- +
| depreciation | In the first year | in subsequent years | for increased |
| Group | depreciation | depreciation | Input price |
+ --------------- + --------- + ------------------ + - -------------- +
| 1 | 40 | 30 | 33.3 |
+ --------------- + --------- + ------------------ + - -------------- +
| 2 | 31 | 17.25 | 20 |
+ --------------- + --------- + ------------------ + - -------------- +
| 3 | 24.4 | 8,4 | 10 |
+ --------------- + --------- + ------------------ + - -------------- +

C) Annual depreciation rate increase in depreciation in the first year of depreciation by 15%

+ --------- + --------------- + ------------------ + --------------- +
| depreciation | In the first year | in subsequent years | for increased |
| Group | depreciation | depreciation | Input price |
+ --------------- + --------- + ------------------ + ---- ----------- +
| 1 | 35 | 32.5 | 33.3 |
+ --------------- + --------- + ------------------ + - -------------- +
| 2 | 26 | 18.5 | 20 |
+ --------------- + --------- + ------------------ + - -------------- +
| 3 | 19 | 9 | 10 |
+ --------------- + --------- + ------------------ + - -------------- +

D) Annual depreciation rate increase in depreciation in the first year of depreciation by 10%

+ --------- + --------------- + ------------------ + --------------- +
| depreciation | In the first year | in subsequent years | for increased |
| Group | depreciation | depreciation | Input price |
+ --------------- + --------- + ------------------ + - -------------- +
| 1 | 30 | 35 | 33.3 |
+ --------------- + --------- + ------------------ + - -------------- +
| 1a | 24.1 | 25.3 | 25 |
+ --------------- + --------- + ------------------ + - -------------- +
| 2 | 21 | 19.75 | 20 |
+ --------------- + --------- + ------------------ + - -------------- +
| 3 | 15.4 | 9,4 | 10. ". |
+ --------- + + --------------- --------------- --- + --------------- +

80th in § 31 after paragraph 1 new paragraphs 2 to 6, which including footnotes
no. 7) added:

"(2) the annual depreciation rate specified in paragraph 1. b) may use
taxpayer with a predominantly agricultural and forest production, ^ 7), which is the first owner
machinery for agriculture and forestry, marked by the Standard Classification of Production
code 29.03 For a taxpayer with a predominantly agricultural and forestry production
For the purposes of this Act, the taxpayer, in which
revenues from this activity amounted to in the preceding tax year
more than 50% of total revenue; while the taxpayer to whom the excise duty
during the tax period is decisive ratio is actually
earned income.

(3) Annual depreciation rate specified in paragraph 1. c) may use
taxpayer who is the first owner of the equipment for water purification and treatment
marked by the Standard Classification of production code 29.24.1
utilized in buildings classified according to the Classification of Constructions CZ-CC issued by the Czech
statistical Office ^ 99) into subclasses 125,113 for sorting and
dressing equipment for evaluation of secondary raw materials involved in
section 29 classification of products by means of which they are processed
secondary raw materials in groups 37.10 and 37.20 classification || | production.

(4) Annual depreciation rate specified in paragraph 1. d) may be used
taxpayer who is the first owner of tangible assets classified
under this Act in depreciation groups 1-3, with the exception of substantive

Property referred to in paragraphs 2, 3 and 5.

(5) The annual rate of depreciation under subsection 1. b) to d)
can not be applied to aircraft, provided they are not used by operators
air transport and aerial work issued on the basis of concessions and operator
flight schools, in motorcycles and cars, if they are not used by the operator
motorized road transport operators and taxi
issued on the basis of concessions and operator driving or
if not the cars perform in a special vehicle
subgroups ambulances and funeral under a special legal regulation, 78)
tangible assets marked by the Standard classification of production code
29.7 (domestic appliances, nec) and 35.12 (
recreational and sporting boats).

(6), the first owner of tangible property for the purposes of this Act, a taxpayer
, who first bought a new
tangible movable property that has not been used for its intended purpose and the previous owner was
goods.

Paragraphs 2 to 4 shall be renumbered as paragraphs 7 to 9

7) § 2e Act no. 252/1997 Coll., On agriculture, as amended by Act no. 85/2004 Coll
.. "

81st in § 31 para. 7 No. "5" is replaced by "6".

82nd in § 31 para. 9, the words "2 and 3" is replaced by "7 and 8".

83rd in § 32 paragraph 1 reads:

"(1) When the accelerated depreciation of tangible assets are depreciation groups
assigned to these coefficients for accelerated depreciation:
+ --------------- ------------------------------------------------ + |
The coefficient for accelerated depreciation |
+ --------------- + --------- + ------------------ + - ----------------- +
| depreciation | In the first year | in subsequent years | for increased |
| Group | depreciation | depreciation | amortized cost |
+ --------------- + --------- + ------------------ + - ----------------- +
| 1 | 3 | 4 | 3 |
+ --------------- + --------- + ------------------ + - ----------------- +
| 1a | 4 | 5 | 4 |
+ --------------- + --------- + ------------------ + - ----------------- +
| 2 | 5 | 6 | 5 |
+ --------------- + --------- + ------------------ + - ----------------- +
| 3 | 10 | 11 | 10 |
+ --------------- + --------- + ------------------ + - ----------------- +
| 4 | 20 | 21 | 20 |
+ --------------- + --------- + ------------------ + - ----------------- +
| 5 | 30 | 31 | 30 |
+ --------------- + --------- + ------------------ + - ----------------- +
| 6 | 50 | 51 | 50. ". |
+ --------- + + --------------- --------------- --- + ------------------ +


84th in § 32 par. 2 point. a) at the end of the introductory part of
comma is replaced by a semicolon and the words "while taxpayer who is
first owner, this can increase depreciation by

First 20% of the acquisition price of machinery for agriculture and forestry, bearing in
Standard Classification of Production codes 29/03, and not just for taxpayer
largely agricultural and forest production, ^ 7)

Second 15% of the cost of equipment for water purification and treatment at designated
Standard Classification of Production code 29.24.1 utilized in construction
classified according to the Classification of Constructions CZ-CC issued by the Czech Statistical Office
^ 99) in subclass 125,113, for sorting and finishing
equipment for evaluation of secondary materials included in section 29
standard classification of products, which are processed using secondary raw materials
groups 37.10 and 37.20 Standard classification of production

Third 10% of the cost of tangible assets classified under this Act in
depreciation groups 1-3, with the exception of tangible assets referred to in
points 1 and 2 and § 31 para. 5 ".

85th In § 32, after paragraph 3 the following paragraph 4 is added:

"(4) When shortening depreciation periods according to § 30 paragraph. 1
u already depreciated fixed assets when the difference between the assigned coefficient for
accelerated depreciation and the number of years that had already been depreciated fixed assets is
less than 2, to determine the annual depreciation applies whenever the difference between
assigned coefficient for accelerated depreciation and the number of years that || | has already depreciated tangible assets, amounting to 2; while the number of years
include only the whole taxable period pursuant to § 17a. ".

Former paragraph 4 becomes paragraph 5.

86th in § 32 par. 5, the words "2 and 3" is replaced by "2-4".

87th in § 32a paragraph. 4 of the first sentence, the word "purchase" shall be deleted, in the second sentence
words "Unless the contract negotiated for a fixed term, amortized "

Replaced by "In other cases, the intangible assets are depreciated,"
word "48" is replaced by "and the intangible results of research and development
36" and the third sentence, the words "this intangible assets acquired | || depositor or dissolving a company or cooperative
against payment, gift or inheritance or created internally
for the purpose of trading him or to his repeated provision "shall be
words" depositor or dissolving a company or cooperative | || could be the depreciation of the intangible assets applied ".

88th In § 32b Sec. 1, after the word "company" the words "or part
company constituting a separate organizational unit," and the word "enterprise"
the words "or part of the business."

89th In § 34 at the end of paragraph 1 the sentence "For taxpayers defined in § 2
be deducted from the tax loss incurred in the previous
tax period or part thereof in accordance with § 5 and listed in the tax returns
, the longest 5 tax periods subsequent
immediately after the tax year in which the tax return stated. ".

90th In § 34 paragraph 3 reads:

"(3) The tax base can further deduct 30% of the expenses (costs) incurred
according to § 24 par. 2 point. J) point 3 on teaching pupils in
academic and vocational subjects of secondary vocational schools ^ 74)
apprenticeships and vocational schools, ^ 75), which are part of the educational system
^ 76), and these fields are listed in a special legal regulation
. ^ 77) If you can not deduct all or part of exercise year when
right to deduct arose because the taxpayer reported
tax loss or tax base reduced by the non-taxable amount under § 15 and
tax loss is less than the deduction, the deduction or the remaining portion exercise || | in the next taxation year in which the taxpayer reports the tax base reduced by tax
amount under § 15 and the tax loss. ".

91st In § 34 paragraph 4 and 5, including footnote no. 73a) added:

"(4) from the tax can deduct 100% of expenses (costs)
taxpayer incurred in the taxable period or the period for which the
tax return, the realization of research and development ^ 73a)
which take the form of experimental or theoretical work
design or design work, calculations, design technology, production of functional
sample or prototype product or part of a certification
results achieved through projects and research development.
If you incurred expenses (costs) related to the implementation of research and development-73a)
only partly be deducted from the tax base only this part.
expenditures (costs) that may be deducted from the tax base must be
expenses (costs) incurred to generate, assure and maintain taxable income
and must be recorded separately from other expenses (costs)
taxpayer. This deduction does not apply to services and intangible results | || research and development acquired from other persons with the exception of expenses (costs)
incurred for the purpose of certification of the results of research and development, and further
those expenditures (costs), which has been even partially supported || | from public sources.

(5) If you can not deduct under paragraph 4 to apply in the year when
entitled to deduct arose because the taxpayer reported a tax loss or
tax base (tax base reduced by the non-taxable amount under § 15 and
tax loss) is less than the deduction under paragraph 4, the deduction or
its remaining part applied in the next tax period in which
taxpayer reports the tax base (tax base reduced by tax amounts
according to § 15 and tax loss), but no more than three
tax periods immediately following the tax year in which
right to deduct arose.

73a) § 2 para. 1 of Act no. 130/2002 Coll., On support of research and development
public funds and amending certain related acts (
support for research and development). ". | ||
92nd in § 34, paragraphs 6-8 and 12 are deleted.

Former paragraphs 9-11 are renumbered as paragraphs 6 to 8

93rd after § 35b is The following new § 35c and 35d, which including footnotes
fn. 111) added:

"§ 35c

(1) The taxpayer referred to in § 2 are entitled to a tax credit for a dependent
child living with him at home, ^ 108) (hereinafter "tax benefits") in

Amount of CZK 6,000 per year if you apply a tax credit under § § 35a or 35b
. Tax benefits taxpayer may apply in the form of tax relief,
tax bonus or tax credits and tax bonus.

(2) The tax relief under paragraph 1, a taxpayer may exercise up to
tax liability computed under this Act for the tax
period.

(3) If a taxpayer is entitled to tax benefits pursuant to paragraph 1
higher than the tax liability calculated under this Act for the relevant tax period
is the difference tax bonus. A taxpayer may
tax bonus apply if the amount is at least CZK 100
up to the amount of CZK 30 000 per year.

(4) The tax bonus may apply taxpayer that the tax period
had income in accordance with § 6, 7, 8 or § 9 of at least six times the minimum wage
; ^ 111) for a taxpayer who has income only under § 9
expenses must exceed that income. These receipts are not included
income exempt, income from which tax is withheld
special tax rate or income on which the tax rate is applied
according to § 16 para. 2nd

(5) The taxpayer referred to in § 2 para. 3 of the tax benefits apply,
if the sum of all income from sources in the Czech Republic (§
22) is at least 90% of all income except for income not
subject to tax under § 3 and § 6, are exempt from tax under § 4, or 6
§ 10, or income from which tax is withheld at a special tax rate
.

(6) A dependent child of the taxpayer for the purposes of this Act
own child, adopted child, child care, which replaces the care of parents, child
second spouse and grandson (granddaughter) if his (her )
parents have income from which tax benefits could be claimed if the

A) minor child,

B) the adult child up to 26 years of age, if not in receipt of a full disability pension and


First systematically preparing for a future career;
preparation for a future profession is judged according to the law on state social support, ^ 14d)

Second can be systematically prepare for future careers or pursue
gainful activity due to illness or injury, or

Third because long-term adverse health condition is incapable
pursue gainful activity.

(7) The temporary stay of a child outside the home does not affect the application of the tax
advantage. If it is for a child who is a holder of ZTP / P
increases to the tax credit to double;
maximum tax bonus under paragraph 3 remains unchanged.

(8) Closes If a child referred to in paragraph 7 point. b) marriage and lives if
household with a husband (wife), may invoke the husband (wife)
enjoys tax relief under the conditions specified in § 15 para. 1
point. b). Unless the husband (wife) income from which would (could)
apply enjoys tax relief pursuant to § 15 para. 1 point. b)
tax benefit may exercise the child's parent or taxpayer, in which
goes in relation to the child about the care replacing parental care, if the child with him
lives in the home.

(9) If it nourishes the child in the same household more taxpayers, the tax advantage
apply in the tax period or in the same calendar month
tax year, only one of them. If one of the spouses
apply the tax credit in the tax period or in the same calendar month
tax period at your taxpayer can not use this advantage
proceeding under § 13a apply other spouse.

(10) taxpayers who nourishes a child just one calendar month or
several calendar months in a tax period, can provide a tax benefit of $
1/12 for each calendar month at the beginning of the
conditions for its implementation.
Tax benefit can be claimed already in the calendar month in which the child was born or
which starts with systematic preparation of the child for a future career or
in which the child is adopted or taken into foster care || | based on the decision of the competent authority.

(11) A taxpayer is required to file a tax return in accordance with § 38 grams, or who
chosen to do so, apply a tax bonus tax

Returns and asks the local tax on the payment. When
payment of the tax bonus tax administrator proceeds similarly to the refund of overpaid
under a special law on tax administration. ^ 35e)

§ 35d

(1) A taxpayer with income from employment and functional benefits (§ 6)
proves taxpayers receive a tax credit
manner prescribed by this Act (§ 38k and 38 liters).

(2) of taxpayers who have signed a declaration to the tax under § 38k paragraph. 4
provide the taxpayer a tax advantage equal to 1/12 of the annual amount
specified in § 35c (hereinafter "monthly tax benefits") the collision
tax advances (§ 38h par. 1) in the form of rebates on tax reserve (hereinafter
'monthly tax credit "), a monthly tax bonuses or monthly discounts
tax and monthly tax bonus.

(3) Monthly tax credit the taxpayer will provide the taxpayer
up to the amount of withheld tax advances calculated under this Act and the granting of discounts
reduced levy tax deposits for the relevant calendar month
.

(4) If the withholding tax deposits less than the monthly
tax relief, the taxpayer is obliged to pay a monthly tax payers
bonus in the amount determined by this Act upon payment of income from
and fringe benefits, if their total
paid or accounted for by taxpayer for the relevant calendar month (§ 38h par. 1)
reaches the taxpayer at least the minimum wage. ^ 111)
these revenues are not included in income exempt and income from which tax is withheld
special rate. Monthly tax
bonus can be paid only if the amount is at least 50 CZK, up to
amount of CZK 2,500 per month.

(5) for the payment of monthly tax bonus tax payer will reduce the drain on advances
tax for the relevant calendar month. If the taxpayer can not claim
satisfy the total volume of advances on tax, pay the tax payer
monthly tax bonus or part of the taxpayer's own financial resources and
ask the local tax on remittance
missing amount on the form issued by the Ministry of Finance. In the proceedings on this request
proceeds of the tax administration similarly to the overpayment
under a special regulation on administration of tax-35e) and the respective
amount remitted to the taxpayers within 15 days of receipt.

(6) The annual settlement of advances and tax benefits (§ 38ch)
provide the taxpayer the taxpayer a tax credit up to the amount of tax calculated
duties under this Act. If the tax is less than the total amount
tax benefit, the taxpayer is entitled to payment of a tax bonus
up to the amount specified in § 35c paragraph. 3, only if the sum of its
income from employment and functional benefits from all successive
tax payers in the previous tax year, of which the taxpayer had done
annual settlement of prepayments and tax relief (§ 38ch par. 4)
was at least six times the minimum wage. If the taxpayer
total income from employment and functional benefits in a tax period
reach at least six times the minimum wage, paid on a monthly
tax bonus for the calendar month in which the total of his income amounted to at least the minimum
wages, longer eligible lose.

(7) The annual settlement of advances and tax benefits the taxpayer at the earliest
taxpayer, the tax reduces the tax credit and thus
quantified tax after discount compared with the total advance tax after discount (§ 38h || | par. 3). Furthermore, the tax bonus compares with a total of monthly tax bonuses
. If the total sums paid monthly tax bonuses
higher than the tax bonus is reduced by the tax payer
amount overpaid tax bonus calculated on the amount of overpaid tax
after discount. If the total sums paid monthly tax bonuses
lower than the tax bonus will increase taxpayer
on the unpaid amount on tax bonus calculated the amount of overpaid tax
after discount or reduce the unpaid amount on tax bonus by || | calculated the amount of underpayment of tax after discount.

(8) Overpaid tax, surcharge on tax bonus or overpayment
tax and surcharge on tax bonus (hereinafter "supplement of settlement")

Who was making the annual settlement of prepayments and tax relief
taxpayer pays tax payer at the latest when clearing wage for
March, when the aggregate amount of charge is higher than 50 CZK. Any
arrears from the settlement of tax payer taxpayer shrink.

(9) The additional payment from the settlement paid in the form of a supplement to the tax bonus
reduce taxpayer closest outlet advances to the tax authorities. In the event that the claim can not be
taxpayer to satisfy the total volume of tax advances, a taxpayer pays
taxpayer surcharge on tax bonus or
part of their funding and asks the locally competent tax administrator
remit the missing amount on a form issued by the Ministry of Finance
. The management of this application proceeds of the tax administration similarly
when the overpayment under a special regulation on administration of taxes
^ 35e) and the amount remitted to the taxpayers within 15 days of receiving the request
. When redemption charge of clearing the returned
form of overpayment of tax payer proceeds according to § 38ch
paragraph. 4th

(10) for providing tax relief equivalent to the tax payer
similarly as for the repayment of overpaid tax or to reserve (§ 38i). If the payer
taxes to provide tax relief amounts higher than stipulated
will be on him to recover these amounts, similarly as it unpaid tax and
will also be obliged to pay the outstanding amount of a penalty in the amount in which
would be liable to pay the penalty of the amount due under a special tax
regulation on administration of taxes. ^ 28b) to control tax relief
the provisions of a special regulation on administration of taxes. ^ 28b)

111) § 111 of the Labor Code. ".

94th in § 36 par. 2 point. C), point 2, the number" 7 "is replaced by" 6 "and
" paragraph. 8 "is replaced by" paragraph. 7. "

95th in § 36 par. 2 point. C) at the end of paragraph 4 is replaced by a comma and
following point 5 is added:

" 5. income from lump-sum compensation of future claims for compensation for loss of income
according to § 10 paragraph. 1 point. k). ".

96th in § 36 par. 2 point. d) the words" 7 and 8 "is replaced by" 6 and 7 ".

97th in § 38 paragraph . 1, the second sentence is replaced by the phrase "If the taxpayer does not
accounting used except as provided in paragraph 2 single
course, if he fails to the exchange rates applied under special
legislation on accounting. ^ 20) . "

98th in § 38a paragraph. 1 last sentence, the words" 5, § 10 paragraph. 8 "are replaced
number" 4 ".

99th in § 38a paragraph . 6, after the words "or taxable period"
inserted the words "or shorter."

100th in § 38a paragraph 10 reads:

"(10) the taxable period pursuant to § 17a point. c) the day preceding the date of registration of the transformation
^ 70) in the commercial register, pay for the acquiring company or cooperative
advance companies or cooperatives that have
crease by decision of the competent authority or on their
transformation, ^ 70) in the amount and frequency determined by
preceding paragraphs, with the exception of the merger, which follows down payment
remains true successor company. From the date of registration of the merger ^ 70)
into the commercial register prepayments successor company or team
in the amount and frequency derived from the sum of the last known tax obligations
defunct companies or cooperatives, provided by
paragraph 1, third sentence with possible additional count
pursuant to paragraph 6, which is when you merge further increase of the last known tax obligation
acquiring companies or cooperatives. When the transfer of assets to
companion who is a legal entity, the amount and frequency of backups
paid in the tax year in accordance with § 17a point. c) does not change;
if the legal successor of the dissolved company natural person who provides backup
period from the date of registration of transfer of assets to a shareholder ^ 70) in the Commercial Register
until the end of the calendar year the tax administrator
decision by a special regulation , ^ 28b) taking into account the advances payable
from that date until the registration of transfer of assets to a partner in the Commercial register
. For conversion division provides business
successor companies or cooperatives advance on part of the tax period according to §
17a point. c) the date of registration of the transformation ^ 70) in the commercial register administrator
tax decision under a special legal regulation, 28b) that this

Decision also establishes the method for allocating advances paid
merging companies or cooperatives to credit the tax liability
successor companies or cooperatives. Advances paid during the tax year
under § 17a point. c) the merging and
recipient companies or cooperatives shall be credited to the total tax liability
successor companies or cooperatives. Similarly
proceed with transformations in which the decisive day of the conversion will be the first day
calendar year or fiscal year. ".

One hundred and first in § 38d paragraph. 1, second sentence, the words" credit and loans "
replace the words" loans and loans granted. "

102nd in § 38e paragraph. 1 point.) and paragraph. 2 point.), the words
" instruments ^ 71) " replaced by "tools
under a special legal rule governing capital market undertakings ^ 71)."

103rd in § 38f paragraph. 5 and 6, the word "loss" the words "under § 5"
and '(revenue), "and the words" subject to taxation
abroad in accordance with an international treaty "shall be deleted.

104th in § 38f paragraph. 6 last sentence the word "(income)" is replaced
"from abroad".

105th in § 38f paragraph. 7, the words "(revenue)" is replaced
"from sources" .

106th in § 38f paragraph. 8, the first sentence the words '(revenue), "and the words
' and related expenses (costs)" are deleted.

107th in § 38 g Sec. 2, the first sentence is replaced "tax return
is not obliged to submit a taxpayer who has income from employment and functional benefits
according to § 6 from only one or gradually from more payers
taxes and surcharges wages from those taxpayers (§ 38ch par. 4),
if interest deduction does not apply pursuant to § 15 para. 7 and 8
mortgage loan banks, or from another loan granted by the bank in connection with a mortgage loan
, and if you apply the tax calculation of the common tax base
spouse pursuant to § 13a. ".

108th In paragraph § 38 g. 2, the last sentence is replaced by the phrase "
tax return for the tax period shall be submitted by the taxpayer referred to in § 2 para. 3,
which claims the allowance according to § 15 para. 1 point. B) to e) and
tax benefits under § 35c. ".

109s. In § 38 g paragraph. 3, the following sentence added after the first sentence, "The tax return
taxpayer shall also indicate the amount of tax relief pursuant to § 35c and 35d.".

110th In § 38 gigabytes paragraph. 1, first sentence, the words "or tax credit (§ 35)"
replaced by the words "tax credit (§ 35, § 35a or 35b) or tax relief
(§ 35c)" .

111th In § 38 gigabytes paragraph. 2-4, para. 6 and 7, the words "a tax credit (§
35)" is replaced by "tax credit (§ 35, § 35a or 35b) or tax
benefits (§ 35c). "

112th In § 38h paragraph. 1 point. c) the words "point. a), b), d) to g) '
replaced by" point. a), c) to f). "

113th In § 38h paragraph. 1 point. d) § 38h paragraph. 9, § 38k paragraph. 4 point. g) and 38 l
§ paragraph. 1 point. h) points 1-5 with the number "10" is replaced by
"7".

114 respectively. In the 38h paragraph. 1 point. d) § 38k paragraph. 4 point. f) and § 38 liters paragraph. 1
point. h) Section 6, the number "11" is replaced by "8".

115th In § 38h paragraph. 3, the first sentence following the sentence "This deposit will be reduced
by an amount equal to one twelfth of tax relief pursuant to § 35d
up to the amount calculated in advance (hereinafter" advance after rebate "). ".

116th In § 38h paragraph 4 reads:

"(4) A proven nontaxable amounts of the tax base pursuant to § 15 paragraph
. 1 point. B) and according to § 15 para. 2, 5, 9 to 11 to take account of the payer
during the annual settlement of advances for the tax period. ".

117th In § 38h paragraph. 6 first sentence, the word "favorable" the words
"and did not apply if the taxpayer in a tax year by tax payer yet
monthly tax allowance under § 35d paragraph. 2".

118th In § 38h paragraph. 8, after the words "tax base" words "and
tax benefit".

119th In § 38h paragraph. 9 first sentence, the word "backup" the words "and
tax relief."

120th In § 38h paragraph. 9 the last sentence, the words "paragraph. 2"
words "and the amount of monthly tax advantage with the use of § 38i paragraph. 5".

121st In § 38h paragraph. 14, the word "f)" is replaced by "e)
and tax relief pursuant to § 35d."

122nd In the heading of § 38ch the word "allowances" the words "and tax
advantage."

123rd In § 38ch paragraph. 1, first sentence and second after the word "backup"
inserted the words "and tax relief."


124th In § 38ch paragraphs 2 and 3 added:

"(2) taxpayers who did not apply in the tax period
entitled to the allowance tax base and a monthly tax benefits u
any taxpayer performs annual settlement of prepayments and tax relief
at his request last taxpayer in the tax period in which
signed a declaration to the tax under § 38k paragraph. 4. If the extinction
taxpayer without a legal successor, the taxpayer may apply for annual
settlement of prepayments and tax relief locally
tax authority not later than 15 February following the end of the tax period.

(3) the taxpayer makes an annual settlement of prepayments and tax relief only
based on evidence from all previous tax payers on or cleared | || paid wages, precipitation or employee payment of premiums
non-taxable amounts of the tax base, withheld tax advances from
such income, the discount on advances and paid monthly bonuses
tax. the taxpayer is obliged those documents as
last tax year to submit tax payers by 15 February
following calendar year. Unless the taxpayer before 15 February
these documents, annual settlement of prepayments and tax relief taxpayer fails
.. "

125th paragraph in § 38ch. 4 first sentence, the word" backups "the words" and
tax advantage. "

126th paragraph in § 38ch. 4, a sentence added after the first sentence" for a taxpayer who
claiming tax relief, the taxpayer makes tax and
annual settlement of advances and tax relief under § 35d paragraph. 6 to 9. "

127th paragraph in § 38ch. 4 the last sentence, the words" regulation 40 ^) "are replaced by the words
" regulation on administration of tax-35e). "

128th in § 38i paragraph. 3, after the word" backup "the words" tax ".

129th in § 38i for paragraph 3 new paragraphs 4 to 6, which
added:

"(4) the taxpayer, who has been granted tax benefits lower than
provided in this Act, the taxpayer pays the difference on | || tax breaks if three years have elapsed since the end of the tax
period in which the tax relief granted improperly.
Taxpayer who is provided in monthly tax period
tax benefit lower than stipulated by this law shall pay the tax payer
the difference in tax relief in the following month,
no later than February 15 next calendar year. About
additional amount to be paid to the tax breaks will reduce taxpayer
closest outlet advances to the tax authorities or procedure shall be applied by
§ 35d paragraph. 5th

(5) If a taxpayer has provided the taxpayer tax benefits higher than
had under this Act, the amount due to the tax breaks
subsequently collide when 12 months elapsed since the tax advantage
improperly granted. If unauthorized
tax benefit was due to the taxpayer, may be the amount owed on the tax advantages
along with accessories taxpayer subsequently withheld in
within 3 years from the end of the tax year in which unauthorized tax
preference occurred. If the taxpayer in the tax period
provided by the taxpayer monthly tax benefits higher than had
according to this law, the amount due to additional tax breaks
shrink by 31 March of the following calendar year.
In addition, the amount deducted for tax breaks, about which were illegally chopped
tax or advance tax, tax payer to the tax levy
earliest possible date for the removal of tax advances if the additional amount collected on
tax breaks apply to the payment of a tax bonus
another taxpayer (§ 35d par. 5).

(6) If the taxpayer amount due to tax breaks
choose from a taxpayer on the ground that he has not be booked wages, or because the taxpayer can not be
accordance with generally binding regulations to carry out collision
and unauthorized tax advantage was the fault of the taxpayer chooses
differential tax administrator jurisdiction under the residence of the taxpayer.
Tax payer sends the records of the amount of tax arrears, if it exceeds the amount of CZK 100
, tax administrator for further proceedings within 30 days from the date on which
finds that the amount unlawfully granted the tax advantage can not

Withhold from the taxpayer's wages. The tax administration on the amount of tax arrears
notify the taxpayer's decision. The taxpayer is obliged amount due to
tax breaks, about which were illegally chopped tax or advance tax on
including accessories to pay the local tax
within 30 days of receipt of the decision. ".
| || Former paragraph 4, renumbered seventh

130th in § 38i paragraph. 7, after the word "advance" the words "including
outstanding amount of the tax benefit."
|| | 131st in § 38j paragraph. 2 at the end of subparagraph b) the words "au
taxpayer referred to in § 2 para. 3 date of birth, passport number or
another document proving his identity, state code, which is
resident and if it was given to him by the State, and tax identification number and birth
number. "

132nd in § 38j par. 2 letter d) reads:
|| | "d) name, surname and ID number of the person to whom the taxpayer applies
non-taxable portion of the tax base and the tax benefit and the amount
individual non-taxable amounts and tax benefits, stating
because of their recognition." | ||
133rd In § 38j paragraph. 2 at the end of paragraph e) is replaced by a comma and
following point 8 is added:

"The eighth monthly amount of the tax benefit, the monthly tax credits
monthly tax bonuses and advances the discounted price.".

134th In § 38j par. 2 letter f) reads:

"F) the sum of the data for the tax period referred to in e)
points 1 to 4, 7 and 8.".

135th In § 38j paragraph. 3 first sentence, the words "tax and advances" are replaced
'tax advances and to provide tax relief ".

136th In § 38j paragraph 4 reads:

"(4) The taxpayer or the taxpayer 's Treasury disclosed in the notes to the accounts
tax on income from employment and functional benefits podávanému
by special legislation 40a)

a) Number of employees on December 1 of the reporting tax period
place of work in the village mentioned in the labor contract

b) a summary containing aggregated data recorded on the payroll sheets
reporting tax period that are crucial for calculating | || taxable wages, taxes and reserves broken down by individual taxpayers
mentioned in § 2 para. 3. ".

137th In the heading of § 38k after the word "allowances" the words "and tax
advantage."

138th In § 38k paragraph. 1 first sentence, the word "backup" the words "and
fulfillment of the conditions for granting tax relief."

139th In § 38k paragraph. 1, second sentence, the word "tax" the words "or
a tax credit."

140th In § 38k paragraph. 3, after the words "tax base" the words "and
monthly tax advantage."

141st In § 38k paragraph. 4 of the introductory part of the word "tax"
words "and tax advantages."

142nd In § 38k paragraph. 4 point. b) the comma after the words 'taxpayer'
replaces the word "and" and the words "and that it is entitled to the allowance of the tax base
nor the basis for the calculation of withholding tax on the same persons for the same calendar
month in the tax year simultaneously apply different
taxpayer "shall be deleted.

143rd In § 38k at the end of paragraph 4 is replaced by a comma and
points h) and i) are added:

"H) what factors are given by him for the granting of tax relief
dependent child (§ 35c), or when and how they have changed and the case
about adult learners child that does not receive full disability pension

i) that at the same time for the same tax period, even for the same calendar month
tax period does not apply the tax credit for a dependent
child by another taxpayer and the tax benefit for the same maintained
child for the same tax period or for the same calendar month
tax period does not apply a different person. ".

144th In § 38k paragraph. 5, introductory part of the provision reads: "The taxpayer, in which the taxpayer
signed a declaration under paragraph 4, performs a calculation
tax annual settlement of prepayments and tax relief and also take account
to nontaxable amounts of tax base pursuant to § 15 para. 1 point. b) and
according to § 15 para. 2, 5, 9 to 11 for the immediately previous accounting period
signed by the taxpayer before 15 February for this period written | || declaration that ".

145th In § 38k at the end of paragraph 5 is replaced by a comma and the letters
e) to j) are added:


"E) in which the value of a donation (donations) according to § 15 para. 5

f) what amount paid in the tax year the interest on the loan granted
from savings or from another loan provided in connection with
loan from building savings according to § 15 para. 7 and 8

g) how much paid contributions to their pension schemes
according to § 15 paragraph. 9

h) what amount paid premiums for my private life insurance
according to § 15 para. 10,

i) what amount paid as a member of a trade union in the taxable period
membership contributions by § 15 para. 11

j) whether the tax period by monthly tax benefit
gradually in other payers. ".

146th In § 38k paragraph. 7 first sentence, the word "or" the words "on
tax benefits under § 35d or."

147th In § 38k paragraph. 7 last sentence, the words "tax base"
inserted the words "or for tax advantages" and "signs" shall
words "signed by the same time."

148th In § 38k paragraph. 8 first sentence, the words "a tax" the words
"or to change the conditions for the tax benefit."

149th In the heading of § 38 liters after the word "allowances" the words "and tax
advantage."

150th In § 38 liters paragraph. 1 introductory part of the words "tax base"
words "and tax benefits."

151st In § 38 liters paragraph. 1 point. a) the last sentence, the words "recognition
non-taxable amounts for child" is replaced by "tax benefits" and
word "allowance on the child" is replaced by "
tax advantage."

152nd In § 38 liters paragraph. 1 point. g) the number "8" is replaced by "5".

153 above. In § 38 liters paragraph. 1 point. j) the number "14" is replaced by "11".

154th § 38na reads:

"§ 38na

(1) assessment and unutilized tax losses can not be deducted from the tax base
under the conditions specified in § 34 para. 1, if there has been a taxpayer for substantial change in
the composition of persons directly involved in the capital or
control (hereinafter referred to as "substantial change"). Changes in the composition of people means
change of shareholders or a change in its shareholding or control
taxpayer. a substantial change always means a change in total
covers more than 25% of capital or voting rights or
which obtains shareholder influence.

(2) for joint stock company that has issued bearer shares, both in
period for which the tax loss was assessed, and the period for which the tax loss
be exercised or both of these periods, it is believed,
that there was a substantial change; if in the period for which the tax is to be applied
loss, created by the same actions, which in their line of business operated
taxpayer less than 80% of revenue
recognized in income under a special legal regulation 20)
compared to the period for which the tax loss. Extraordinary income ^ 20)
yet disregarded. This provision shall not apply if the taxpayer
demonstrates to the tax authorities that the tax period for which it is to be applied
tax loss, there is no change in the composition of shareholders or to change
its shareholding or control, which in total
affects more than 25% of capital or voting rights, or it will have a decisive influence
companion compared to the tax period for which they were
tax loss.

(3) Paragraph 1 shall not apply if the taxpayer for which a substantial change occurred
demonstrates to the tax authorities that at least 80% of revenue
recognized in income under a special legal regulation 20) in the period,
when there was a substantial change, and in subsequent periods, which should be applied
tax loss for the period before the substantial change was made
same activities as in the context of its business
ran the taxpayer the period for which the tax loss was assessed. The extraordinary income
^ 20), it is disregarded.

(4) is extinguished when the conversion of a company ^ 70) taxpayer, who has been charged
tax loss, which was in accordance with this Act
taken legal successor, the legal successor of the assumed tax
loss subtracted from the tax base up to the amount of the tax base,
attributable to activities performed by the same taxpayer who disappeared, and
in the period for which the tax loss was assessed.


(5) Trading company or cooperative that the conversion merger or division
merger does not expire, can subtract tax loss, which it
been charged before conversion, up to the amount of the tax base attributable to activities
which she carried out during the period for which the tax loss
.

(6) The transfer of the business or its separate parts can
tax loss or part of a tax loss, assessed the transferring company and assumed
under § 23a paragraph. 5 point. b) subtracted from the tax base receiving
company in each period up to the amount of the tax base
provided by beneficiary companies of the activities carried out through
divested business or its separate parts, which
has been transferred through the enterprise or its separate parts
exercised during the period for which the applicable tax loss.

(7) If a taxpayer has doubts whether the conditions
set out in paragraphs 1-3, can ask the tax administrator for a binding assessment
^ 39i) whether the tax losses generated prior to substantial
Changes can be deductable from the tax base after
substantial change. To assess the conditions set out in paragraphs 2 and 3
taxpayer is required along with the application to communicate to the tax

A) a summary of all income (revenue) per
activities carried out by the taxpayer, whose tax loss occurred, achieved
period for which the tax loss to be claimed as deductable
the tax base assessed,

B) a summary of all income (revenue) per
activities carried out by the taxpayer to a tax loss contends achieved
period for which the tax loss to be applied to an item
deductible from the tax base.

(8) Where an application data referred to in paragraph 7 point. a) and b) it is effectively
filed if the tax administration received no later than the end
month following the end of the period for which the tax loss
be claimed as deductible item from the tax base. Unless the administrator
tax binding ruling no later than the fifteenth day before the deadline for filing tax returns
, it is considered that assessed the possibility of applying
tax loss deductable from the tax base pursuant to the taxpayer
.

(9) The period of the preceding paragraphs shall mean the tax period and
period for which the tax return is filed. ".

155th Annex no. 1, item (1-28) to (1-30) are deleted.

156th Annex no. 1 for depreciation group 1
inserted depreciation group 1a, added:
"depreciation group
Item 1a +) SKP ++ ) name ++++)
(1a-1) 34.10.2 motor vehicles (excluding motorcycles)
(1a-2) 34.10.4 Only: road motor vehicles having
in the certificate registered category
N1 vehicles. "

157th Annex no. 1 item (2-56) and (2-64) added:
" (2-56) 34.10.3 Motor vehicles for the transport of ten or more people
(2-64) 35.30 Aircraft and spacecraft (balloons, airships, satellites
) except:
- Helicopters CPA 35.30.31 under (3-45)
airplanes and other aircraft CPA 35.30.34
in item (3-45) spacecraft (including satellites)
CPA 35.30.4 in the item (3-45). "

158th Annex no. 1 item (2-80) reads:
" (2-80) 2 Only: signaling and safety technical
installations for buildings classified in CZ-CC in section 2 ".

159th Annex no. 1 item (3-44) reads:
" (3-44) 230341 Only: Tower trays chemical companies except :
- Tanks with thermal facilities in the CPA 29.24.40
in item (2-28)
- Containers with a mechanical device in CPA 29.56
in item (2-40)
- Building the foundations of chemical technology
equipment classified in CZ-CC in section 2 ".

160th Annex no. 1 for entry (3-44) the following item (3-45), which reads
:
" (3-45) 35.30.3 Only - helicopters CPA 35.30.31
- Airplanes and other aircraft nec
an unladen weight of 15,000 kg of CPA 35.30.34
- Spacecraft (including satellites) in the CPA 35.30.4. "

161st Annex no. 1 titled" 6 depreciation groups "adds
Explanatory +++++++), which reads:

"+++++++) does not apply to buildings and structures made of wood and plastic materials listed in group 4.
depreciation."


162nd In Annex no. 1 depreciation group entry "(6-7)" is deleted.

Existing item (6-8) and (6-9) are referred to as item (6-7) and (6-8).

163rd In Annex No. 3 point 1 at the end of the text following sentences "
tax base will not increase the value of inventories produced internally by
taxpayers largely agricultural and forest production. For taxpayers with
largely agricultural and forest production is for the purposes of this Act be deemed
taxpayers whose income from this activity amounted
previous tax year, more than 50% of total revenue. ".
Article II

Transitional provisions


First For tax liability for the years 1993 to 2004 tax year
began in 2004, the existing legislation, unless
this Act. The provisions of Art. I, with the exception of paragraphs 46, 47, 49 and 50
apply for the first time for the taxable period starting in 2005.

Second A taxpayer referred to in § 2 of Act no. 586/1992 Coll., By the end of 2003
billed in simple accounting and since 2004 has led
accounting will proceed according to § 23 para. 14 of Law no. 586 / 1992 Sb.
amended by this Act.

Third canceled

Fourth canceled

Fifth canceled

6th Article I, para. 51 for the first time on the difference by which
expenses (costs) prepared in accordance with § 23 of Act no. 586/1992 Coll., As amended
effective on the effective date of this Act exceeds income adjusted §
23 of the Act no. 586/1992 Coll., as amended by this Act declared by
individual mutual fund in a taxable period started in
2005th

7th The provisions of § 25 par. 1 point. w) of the Act no. 586/1992 Coll., as amended
Act no. 438/2003 Coll. shall not apply to interest on loans and interest on loans
paid under contracts concluded before 1 January 2004.

8th For intangible assets acquired by contribution or transformation, ^ 70) who was
depositor or dissolving a commercial company or a cooperative
depreciated for accounting purposes only and these write-downs were possible to apply according to § 24 paragraph
. 2 point. v) of section 2 of the Act no. 586/1992 Coll., as amended by Act no. 492/2000 Coll
. and Act no. 438/2003 Coll., continues acquirer depreciation
started by the original owner.

9th To claim a deduction under § 34 par. 3 and following
Act no. 586/1992 Coll., As amended on 31 December 2004, which was
until the end of the tax period, which began in 2004,
extinction for this deduction, the provisions of § 23 para. 3
point. a) point 3 and § 34 par. 3-10 and 12 of the Act no. 586/1992 Coll., as amended
effective until 31 December 2004.

10th Article I, para. 155-162 also apply to tangible assets
registered taxpayer before the effective date of this Act.

11th Depreciation Group 6 set out in Annex no. 1 to the Act no. 586/1992 Coll.,
The Income Tax Act, as amended by Act no. 438/2003 Coll. and this Act shall not apply to
tangible assets recorded at the end taxpayer
taxable period beginning in 2003.

12th § 35 para. 1 point. c) and § 39 point. c) Act no. 586/1992
Coll., on income taxes, as amended by Act no. 438/2003 Coll. and Act no. 436/2004 Coll
. first apply for the tax period, which began in 2005.


13th Article I, para. 69, 73 and 154 can also be used for the tax
period starting in 2004.

14th Taxpayers who acted in accordance with point 32. Art.
II Transitional provisions of Act no. 438/2003 Coll., Amending Act no. 586/1992
Coll., On income taxes, as amended, and certain other
laws and in setting the tax base for the taxable period starting in 2003
exclude unrealized foreign exchange gains, the result is bound to increase
loss in the three taxable periods or periods for which it is served
tax return, immediately following period | || where the tax base was reduced by unrealized foreign exchange gains and
in the first period of at least one third, in the second period
least half of the amount remaining in the third period for the remaining amount. Tax
body-28b) to which the obligation to file a tax return when
declaring bankruptcy, merger, transfer of assets to a partner or division
company or cooperative, change of legal form limited
company to another company or a change of team
legal form of joint-stock companies or limited liability companies or

Cooperative into a public company or limited partnership
liquidation, dissolution without liquidation and individuals even when
termination or interruption of business or other self-employment or
rent increase in this tax
profit returns the remainder of the amount excluded under paragraph 32.
Art. II Transitional provisions of Act no. 438/2003 Coll., Amending
Act no. 586/1992 Coll., On income taxes, as amended,
and some other laws.

15th The taxpayer referred to in § 17 of Act no. 586/1992 Coll., As amended by Act no. 259/1994 Coll
. and Act no. 492/2000 Coll., which is founded in order
business and that of 31 December 2005 will be a charge of simple bookkeeping system
according to regulations valid until 31 December 2003 and since 2006
leading accounting, increase profit
the value of inventories and valuables, the value of prepayments except for advances
tangible and intangible assets, the value of receivables that were
when paying taxable income, and reducing the profit of
value of advances received, the value of liabilities, which if payment were
expenditure for achieving, securing and maintaining income recorded at 31 December 2005, and
it once for the tax year 2006 or gradually over | || more than 3 tax years. This taxpayer for the tax year 2005
considered for purposes of the Income Tax Act for the taxpayer
who does accounting.

16th The taxpayer referred to in § 17 of Act no. 586/1992 Coll., As amended by Act no. 259/1994 Coll
. and Act no. 492/2000 Coll., which is founded in order
business and that of 31 December 2006 will be a charge of simple bookkeeping system
according to regulations valid until 31 December 2003 and since 2007
leading accounting, increase profit
the value of inventories and valuables, the value of prepayments except for advances
tangible and intangible assets, the value of receivables that were
when paying taxable income, and reducing the profit of
value of advances received, the value of liabilities, which if payment were
expenditure for achieving, securing and maintaining income recorded at 31 December 2006, and
it once for the tax year 2007 or gradually over | || more than 3 tax years. This taxpayer for the tax year 2006
considered for purposes of the Income Tax Act for the taxpayer
who does accounting.

17th The provisions of Art. I of the Act, points 5 and 38 shall first apply for tax year 2004.


18th § 15 para. 5 of Act no. 586/1992 Coll., As amended by this Act
, is used for the first time for the tax period, which began in
2004.
Article III


Authorization to publication of the full text of the Act

Prime Minister is authorized to make in the Collection of Laws the full wording
Act no. 586/1992 Coll., On income taxes, as follows from the laws and
Constitutional Court judgment amending it.
PART TWO


Amendment to the Act on reserves for determining the income tax base
Article IV


Act no. 593/1992 Coll., On reserves for determining the income tax base,
amended by Act no. 157/1993 Coll., Act no. 323/1993 Coll., Act.
244/1994 Coll., Act no. 132/1995 Coll., Act no. 211/1997 Coll., Act no. 333/1998 Coll
., Act no. 363/1999 Coll., Law no. 492 / 2000 Sb., Act no.
126/2002 Coll., Act no. 260/2002 Coll., Act no. 176/2003 Coll. and Act No.
. 438/2003 Coll., Is amended as follows:

First In § 2, paragraph 2, including footnotes. 1a) and 1b) reads:

"(2) provisioned according to § 1 means the adjustments
defined in this Act, designed to balance the value of lapsed receivables
payable after December 31, 1994 and recognized under a special legal regulation
^ 1 ) or receivables denominated in demonstrable records under § 3
paragraph. 3. for the purposes of this Act, the carrying amount
means the nominal value or the purchase price receivable recognized on the balance sheet
taxpayer without the influence of changes in fair value || | (valuation difference) ^ 1) or kept in a demonstrable records under § 3
paragraph. 3. Unless this Act expressly provides otherwise, the correction
entries can be created only for loans, which were at their || | emergence charged in revenues and income was thus formed by

Special legislation 1d) income exempt from income tax or
nezahrnovaným to the income tax base or to nezahrnovaným
separate income tax base or tax base for special
tax rate. Unless this Act expressly provides otherwise, the correction
are not created for receivables from securities and other investment instruments
, ^ 1b), loans, guarantees, advances,
performance in favor of equity , loss settlement company,
of contractual fines and interest on late payments, late charges, penalties and other sanctions
of contractual obligations, receivables acquired without charge and
to file claims.

1a) Act no. 563/1991 Coll., On Accounting, as amended.

1b) Act no. 256/2004 Coll., On Capital Market. ".

The current footnote. 17) up to no. 19), including references to them are deleted
.

second footnote no. 1a), including references to her
is referred to as a footnote. 1c).

third in § 3, paragraph 3 reads:

"(3) Creation of provisions applied as expense (cost)
to achieve, assure and maintain income-1d) must always be accounted for by
special legislation 1a) or put in the tax records. ^ 20)
provisioning may as expense (cost) to achieve,
securing and maintaining income-1d) also apply taxpayer who is
special legislation 1a) provided for use
accounting and financial statements of the International accounting standards as adopted by the European Communities
if it also results in demonstrable record
debts, and only in relation to the debts with which the related income was
by special legislation, 1d)
income exempt from income tax or nezahrnovaným to the income tax base or
nezahrnovaným in a separate income tax base or tax base
special tax rate, unless expressly provided in this Act
otherwise. Demonstrable record claims in this case refers
list of individual claims and provisions formed for these
individual receivables under this Act, drawn up in a manner
extent provided for provisioning a special legal regulation
^ 1 ) without the influence of the International accounting standards adjusted
European Community law. The creation of reserves may as expense (cost)
to generate, assure and maintain income-1d) under the conditions of this Act also apply
taxpayer who is special legislation 1a)
determined to use for billing and preparation
accounts of the International accounting standards as adopted by the European Communities, as
currently leads demonstrable record of these reserves.
Proven reserves records in this case refers to a list of individual provisions
according to the purpose for which they are made under this Act, drawn up in
extent and in the manner provided for the creation of reserves special legal regulation
^ 1) without the impact of International accounting standards. ".

fourth in § 3 para. 2, after the words" as determined by a special legal regulation
"the following reference to the footnote. 1d).
|| | Footnote. 1d) as follows:

"1d) Act no. 586/1992 Coll., on income taxes, as amended
regulations.".

5 ., § 4, at the end of paragraph 1 is replaced by a comma and
words "and in the case of transformation of society. ^ 21) Adjustments are not canceled by
receivables acquired in the transformation of society. ^ 21)." || |
sixth § 5 reads:

"§ 5

Banking reserves and adjustments

(1) The expenses (costs) for achieving, securing and maintaining income ^ 1)
banks may ^ 4) to generate the taxable period:

A) provisions for outstanding debts on loans

B) provisions for bank guarantees for loans to banks.

(2) The total amount of formation for the taxable period:

A) provisions under paragraph 1. a) shall not exceed the 2
% of the base, which is the average level of balance value
lapsed receivables from loans without accessories awards
not reduced by adjustments and reserves already established and reduced by the portion of the average state || | balance sheet value of lapsed receivables from loans, which are secured
received bank guarantees

B) provisions under paragraph 1. b) must not exceed 2%

Average state bank guarantees for loans granted by banks
. Adjustments must always be assigned to individual
receivables, reserves for individual guarantees. Average number
are calculated from monthly balances on the last day of the month, and the balance on January 1
relevant tax period.

(3) receivables from loans for the purpose of provisioning means
claim in case the loan from the bank; 4)
non-bank entity or arose from the performance bank guarantee for entities registered or
domiciled in a Member State of the European Union and the treaty was negotiated as
credit agreement or contract of the bank guarantee by the provisions of the Commercial Code
^ 21) or by comparable legal
provision of a Member State of the European Union which is agreed
lending, except that it shall be for an agreement on
loan and grant it by the law of the state which is not a member of the European Union
, even though the law allows use of the law of the || | Member State of the European Union.

(4) Bank guarantee for the purpose of establishing reserves means the bank guarantee, which was granted
entity established or resident in the territory
EU member state in case, if used to its conclusion
and provision of state law, who is a member of the European Union, with
except when related to a bank guarantee used
law of a State which is not a member of the European Union, even though the use of this right
It allows the law of the Member State of the European Union.

(5) If it is agreed or provided credit or bank guarantee
through third parties located outside the territory of a Member State
European Union or in a contractual relationship with that person is employed
state law that is not member of the European Union, even though the use of this
law allows law of the Member State of the European Union,
not a receivable from credit or bank guarantee within the meaning
provisions of paragraphs 1 and 2

(6) The entities referred to in paragraph 1, the outstanding debts on loans
pursuant to paragraph 1. a) make adjustments up to 100% of the unpaid
balance sheet value of receivables without accessories, for
meet all the following conditions:

A) the balance sheet value of receivables without accessories at the time of its creation
exceed the amount of CZK 30 000,

B) since the end of the maturity date and the claim has been more than 12
months

C) the date of the formation of allowance does not exceed the total amount of receivables
(without accessories) incurred by the taxpayer to the same borrower on loans
amount of CZK 30 000.

O receivables for which provisions were created under this
provision bodies are obliged to keep separate records.

(7) If the Bank can prove on the basis of commercial documentation ^ 5) and accounting
^ 6) the justification for higher provisioning and reserves than
referred to in paragraph 2, the tax authority may, upon request, banks
creation of provisions recognized in this way the proven amount.
The decision on the application, the tax administrator under a special law. ^ 16)

(8) Provision under paragraph 1. a) will be canceled if no longer exist
reasons for its existence, or if the claim to which it was created,
was time-barred. Adjustments bank used to cover losses from depreciation
or subrogation. Reserve pursuant to paragraph 1. b)
used to cover losses associated with the implementation of bank guarantees for loans
.. "

seventh § 5a including footnote no. 6 g) reads:

" § 5a

(1) The expenses (costs) for achieving, securing and maintaining income ^ 1)
can credit unions-6a) and other financial institutions
create in the taxable period adjustments to not lapsed
claims arising from loans or loans (the "loans")
provided by these entities to individuals residing in the territory
Member State of the European Union under the credit agreement 6b) or
loan agreement. ^ 6g) Adjustments can not be created with:

A) claims arising between related parties as defined in the Act
Income Tax ^ 13g)

B) Ceded receivables,

C) claims arising under an agreement to replace the current
Liabilities new-6c) and settlement agreement. ^ 6d)


Adjustments can not be created in the tax period in which it occurs
into liquidation or declaration of bankruptcy, and during
liquidation and during the bankruptcy.

(2) other financial institutions for the purposes of this Act
mean legal entities which meet all the following conditions:

A) provide loans for their business-6e) on the basis of a trade authorization
^ 6f) for this activity,

B) income, including interest on late payment of loans granted under paragraph 1
they reach at least one half of the total income in the relevant tax period
,

C) their capital on the last day of the taxable period is
least 2 000 000 CZK.

Revenue under subparagraph b) means revenue recorded in accordance with
special legislation. ^ 1) other financial institutions for the purposes of this provision
There are no banks. ^ 4)

(3) Adjustments are made to the base, which is the average state
balance sheet value of lapsed receivables from credits without accessories
assessment not reduced by adjustments made. To this base
do not count amounts:

A) claims in excess of 1.5 million CZK in the individual loan

B) claims arising between related parties as defined in the Act
Income Tax ^ 13g)

C) Ceded receivables,

D) claims arising under an agreement to replace the current
Liabilities new-6c) and the settlement agreement, ^ 6d)

E) receivables which were in the taxable period provisioned
items under paragraph 5.

The average number is calculated from monthly balances on the last day of the month
and balance on the first day of the relevant tax period.

(4) The total amount of provisioning in accordance with paragraph 3 for the tax period shall not exceed
:

A) 1.5% of the basis referred to in paragraph 3, both in savings and credit cooperatives
, and those of other financial institutions where
amount of capital on the last day of the taxable period is at least 20 || | 000 000 CZK,

B) 0.6% of the basis referred to in paragraph 3, and for other financial institutions
, where the amount of capital on the last day
taxable period is at least 10 million CZK,

C) 0.2% of the basis referred to in paragraph 3, and for other financial institutions
, where the amount of capital on the last day
taxable period is at least 2 000 000 CZK.

(5) Adjustments are made also outstanding debts arising from loans
up to 100% of the unpaid balance sheet value of receivables without
accessories, for all the following conditions:

A) the balance sheet value of receivables without accessories at the time of its creation
exceed the amount of CZK 30 000,

B) since the end of the maturity date and the claim has been more than 12 months
.

O receivables for which provisions were created in accordance with this paragraph
, bodies are obliged to keep separate records. Provisions
items can be claimed as expenses (costs) for achieving, securing and maintaining income
^ 1d) for the taxable period in which they were created, when
claim to have been created at the end of the tax period
posted in the accounts of the taxpayer under a special legal regulation
^ 1) and the last day of the taxable period
does not exceed the total amount of receivables without accessories
recognized in the accounts of the taxpayer under a special legal regulation 1a) incurred
against the same borrower loan amount of CZK 30 000.

(6) Adjustments are to be used to cover losses from writing off or
assignment of claims referred to in paragraph 1, with the exception of receivables
pursuant to paragraph 1. a) to point. C). Losses from write-off of receivables or assignment
up indoor use provisions created by that provision
expenses (costs) incurred to generate,
securing and maintaining income. ^ 1d)

(7) Adjustments in the amount referred to in paragraph 4
other financial institutions for the tax period shall be entitled to establish the condition
the next two seasons will not reduce the taxable capital
to a level that matches lower provisioning or
that provisioning does not. Capital reduction

For the purposes of this provision must be judged
last day of the tax year. For the tax period, which will reduce
capital, increase the tax base or tax loss or reduced
tax liability in the amount of zero adjusted by the difference between the amount generated
provisioning and provisioning the appropriate amount | || capital after its reduction.

6g) § 657 and 658 of the Civil Code. ".

Eighth in § 7 para. 1, the word" six "is replaced by" five ".

Ninth in § 7 Sec. 8, after the word "income" the following reference to the footnote below
fn. 1c).

10th in § 8, paragraph 3 is deleted.

Former paragraph 4 becomes as paragraph 3.

11th in § 8a. 3, introductory part, the words "economic
result" is replaced by "profit."

12th in § 8a. 3 point.), the words' own capital subscribed "
replace the words" subscriptions. "

13th in § 8a. 3, at the end of subparagraph b) replaces the comma and full stop
letter c), including footnote no. 13a) is deleted.

14th in § 8b paragraph. 1, "charging double-entry bookkeeping
" are replaced by "who keep accounts and" . Article V





Transitional provisions first provisions of § 2 para. 2 of Act no. 593/1992 Coll., as amended, effective from the date of acquisition
the effectiveness of this Act shall also apply to claims arising
until 31 December 2004.

Second For the application of § 3 para. 3 of the Act no. 593/1992 Coll., As amended, effective
effective date of this Act, with the initial condition in
demonstrable records considered by

A) the balance sheet value of receivables receivables accounted for under special
legal regulation, 1a)

B) Provisions The balance of provisions created by Act no.
593/1992 Coll., As amended,
recognized under a special legal regulation, 1a)

C) provisions state reserves created under Act no. 593/1992 Coll., As amended
recognized under special legal
prescription-1a)
and on the last day of the accounting period, for which the taxpayer has compiled
accounts under a special legal regulation, 1a) and after the expiration


Being first special legislation 1a)
determined to use for accounting and preparing financial statements
International Accounting Standards as adopted by the European Communities.

Third § 4 para. 1 of Act no. 593/1992 Coll., As amended effective
effective date of this Act may be used for tax year
or the period for which the tax return is filed, begun in in
which entered the treaty of accession of the Czech Republic to the European Union
force.
PART THREE



Canceled Article VI



Canceled PART FOUR



Canceled ARTICLE VII



Canceled PART FIVE


Amendment to the Act on Property Tax
Article VIII


Act no. 338/1992 Coll., On Real Estate Tax, as amended by Act no. 315/1993 Coll
., Act no. 242/1994 Coll., Act no. 248/1995 Coll., Act no.
65/2000 Coll., Act no. 492/2000 Coll., Act no. 239/2001 Coll., Act no. 483/2001 Coll
., Act no. 576/2002 Coll. and Act no. 237/2004 Coll., is amended as follows
:

First In § 3, paragraph 2 reads:

"(2) The taxpayer of the land were leased land is tenant
case of land

a) registered in the real estate simplified manner, ^ 1) b

) managed by the Land Fund of the Czech Republic or
Administration of State material reserves, or

c) transferred to the National property Fund of the Czech Republic. ".

Second In § 13a paragraph 7, which reads:

"(7) If an application for transfer of ownership in the Land
estate, which was not before 31 January of the tax period
decision, the taxpayer is required to file a tax return no later than the end of the third
month following the month in which it was entered
rights in real estate. Tax returns filed for the taxpayer
tax year following the year in which they are incurred legal effects
deposit. ".
PART SIX



Canceled Article IX



Canceled PART SEVEN


Changing the law amending some laws in connection with the adoption
Act on Capital Market Act
Collective Investment and the Law on Bonds
ARTICLE X



In the thirteenth Art. XVI of the Act no. 257/2004 Coll., Amending certain
laws in connection with the adoption of the Law on Capital Market
Act on Collective Investment and the Law on Bonds, the point 1
deleted.
PART EIGHT


Change Act amending Act no. 87/1995 Coll., On Savings and Credit Cooperatives
and certain related measures and
supplementing Act no. 586/1992 Coll., On Income Taxes and the law on income income

Article XI


In the second part of Article. IV of the Act no. 280/2004 Coll., Amending Act no.
87/1995 Coll., On Credit Unions and some
related measures and supplementing Act no. 586/1992 Coll., on
income Tax Act, as amended, as amended
and Act no. 586/1992 Coll., on income taxes, as amended by later
regulations, point 2 is deleted.
PART NINE


Changing the Law on Value Added Tax
ARTICLE XII


Act no. 235/2004 Coll., On Value Added Tax, as follows:

First In § 5 the following paragraph 5 is added:

"(5) The public entity for the purposes of this Act shall also be
trade unions, churches and religious associations or religious
institutions which are church legal person in the exercise of activities
under its statutes, the statutes or basic document.

second in § 48 para. 1 the words "a house or flat" the words
"unfinished house and an apartment."

PART X || |
canceled



ARTICLE XIII abolished



PART ELEVEN Amendment to the Act on accounting

|| Article XIV |
Act no. 563/1991 Coll., on accounting, as amended by Act no. 117/1994 Coll.
Act no. 227/1997 Coll., Act no. 492/2000 Coll., Act No. . 353/2001 Coll.
and Act no. 437/2003 Coll., is amended as follows:

1. In § 1 par. 2 letter e) including footnote no. 1) reads:

"e) other natural persons who are entrepreneurs, if their turnover
according to the Law on value added tax, ^ 1), including
supplies exempt from the tax, which is not part of the turnover in
within their business operations exceeded the immediately preceding calendar year
amount of CZK 15 million, and from the first day of the calendar year.

1) § 6 para. 2 of Act no. 235/2004 Coll., On Value Added Tax. ".

2. Under § 38 the following § 38a is added:

"§ 38a

Civic associations, their organizational units ^ 8)
which have legal personality, churches and religious communities ^ 8a)
or religious institutions that are religious legal entity ^ 9) and hunting
communities ^ 10), which on 31 December 2004 has led accounting
single entry accounting system, they can keep accounts pursuant to the Act no.
563/1991 Coll., on accounting, as amended by Act no. 117/1994 Coll. Law no.
227/1997 Coll., Act no. 492/2000 Coll., Act no. 353/2001 Coll. and Act No.
. 437/2003 Coll., From 1 January 2007; by this time apply to them
provisions of the Act no. 563/1991 Coll., on accounting and its implementing
laws governing accounting in simple bookkeeping
amended effective 31 December 2003. ". ARTICLE XV





Transitional provisions 1. Individuals who until the effective date of this Act became
accounting unit according to § 1 para. 2 point. e) of the Act no. 563/1991 Coll.
on accounting, as amended by Act no. 492/2000 Coll., Act no. 353/2001 Coll., and
Act no. 437/2003 Coll. shall be considered as an entity until the day
force of this Act, unless stated otherwise. If the turnover
those entities under § 1 par. 2 point. e) of the Act no. 563/1991
Coll., on accounting, as amended, has exceeded 15 million CZK,
have an obligation to keep accounts from 1 January 2006, said individuals
whose turnover does not exceed 15 000 000 CZK are not considered accounting unit
and obligation to keep accounts they arise. the earlier formation
obligation to keep accounts shall be disregarded, except for the obligation
under § 1 par. 2 point. d), f) and h) of the Act no. 563/1991
Coll., as amended.

Second Individuals who until the effective date of this Act became
accounting unit according to § 1 par. 2 point. g) of the Act no. 563/1991 Coll.
on Accounting, as amended by Act no. 492/2000 Coll., Act no. 353/2001 Coll. and
Act no. 437/2003 Coll., since at least one of the members of the association without

Legal personality under special legislation became
accounting unit according to § 1 par. 2 point. e) of the Act no. 563/1991 Coll.
on Accounting, as amended by Act no. 492/2000 Coll., Act no. 353/2001 Coll.
Act no. 437/2003 Coll., the deem an entity until the day
force of this Act, unless stated otherwise. If the reason
the obligation to keep accounts that turnover
least one of the members of this association, which is an entity under § 1 par. 2
point. e) of the Act no. 563/1991 Coll., on Accounting, as amended by Act no. 492/2000 Coll
., Act no. 353/2001 Coll. and Act no. 437/2003 Coll., and the
turnover exceeded 15 million CZK, have given individuals the obligation to keep
accounts from 1 January 2006; If you do not exceed the said turnover of 15 million CZK,
mentioned individuals are not considered as an entity and obligation to keep accounting
they arise. The earlier the obligation to keep accounts
be disregarded, with the exception of the obligation under § 1
paragraph. 2 point. d), f) and h) of the Act no. 563/1991 Coll., as amended.

Third For purposes of determining the moment at which an individual becomes
entity under § 1 par. 2 point. e) of the Act no. 563/1991 Coll., as amended by this Act
, when determining the amount of turnover as amended by Act No.
. 588/1992 Coll., On Value Added Tax, as amended, effective on the date
taxable transaction or the date of the transaction.
PART TWELVE



EFFICIENCY ARTICLE XV


This Act comes into force on 1 January 2005, except for the provisions of Article
. I paragraphs 46 and 49, which come into effect on 1 January 2007, and points
47 and 50, which come into effect on 1 January 2009.


Zaorálek vr Klaus vr


Gross vr

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