244/1994 Coll.



LAW



of 8 March. December 1994,



amending and supplementing Act of the Czech National Council No. 593/1992 Coll., on the

the reserves for the findings of the corporate tax base, as amended

the laws of the



Parliament has passed the following Act of the United States:



Article. (I)



The Czech National Council Act No. 593/1992 Coll., on reserves for the detection

the base of the income tax, as amended by Act No 157/1993 Coll. and Act No.

323/1993 Coll., shall be amended and supplemented as follows:



1. In paragraph 2, the word "compensatory" replaced by the word "settlement".



2. in § 5 para. 2, after the words "tax office", the words "with the

the prior approval of the Ministry of finance ".



3. § 6 including notes no. 7) to 11):



"section 6



Insurance reserves



From the technical provisions in insurance in accordance with special regulations, ^ 7),

^ 8) with the exception of the provision for unearned premiums, ^ 9) for the purposes of

the findings of the corporate tax base recognises the creation of reserves, which are cost

(cargo) to achieve, ensuring and maintaining revenue and creation



and provisions for non-life insurance) ^ 10) at a level which shall not exceed 60

% of the written premiums non-life insurance,



(b)) of provisions for life insurance ^ 11) at a level which shall not exceed the amount of

liabilities calculated methods laid down in a special regulation ^ 8) and

resulting from life insurance due under the closed

insurance contracts.



7) Act of the Czech National Council No. 182/1991 Coll., on insurance, as amended by

Act No. 320/1993.



8) Ministry of finance Decree No. 53/1994 Coll., laying down the

the creation, use and method of locating resources of technical provisions

the insurance company.



9) section 2 of Decree No. 53/1994 Coll.



10) § 14 para. 1 (b). and) Law No. 187/1991 Coll., as amended by law

No. 320/1993.



11) § 14 para. 1 (b). (b)) of Act No. 185/1991 Coll., as amended by law

No. 320/1993 Coll. ".



4. In article 7 (2). 4 and 5 are added:



"(4) the provision for repairs of tangible assets is determined by the

individual tangible fixed assets intended for repair and the nature of this

fix. The amount of the reserve in a tax year is equal to the proportion of the budget

the cost of repair and the number of years that have passed since the start of the creation of the reserve

the anticipated start date of repair. For the sale of goods can be

provision for the repair of a single tangible assets made up of in relation to the

the volume of its performance in the technical units; in this case, the amount of the

reserve in a tax year is equal to the product of the proportion of the budget of the cost of

fix per unit volume performance prediction and the actual volume

performances for the tax period.



(5) if the taxpayer income tax giving change

the amount of the reserves, it must adjust its amount, starting with the tax

period in which this fact finds. ".



5. section 7, the following paragraph 6 is added:



"(6) reserve for repairs in a single tangible assets must not be

made up of only one tax period. ".



6. In the heading under the section 8 and section 8 (2). 1 the word "compensatory" is replaced by

the word "settlement". In § 8 para. 3, the word "compensatory" is replaced by

the word "composition".



7. § 9 para. 1 at the end of the words "permanent agricultural discharge

cultures and ameliorating interventions "and § 9 para. 2 is added:



"(2) a reserve for cultivation, the income tax, the taxpayer may form

According to the amount of harvested wood volume in m3. The amount of this reserve the

taxpayer establishes itself in the budget the costs of growing activity. ".



8. The existing text of § 11 shall become paragraph 1 and the following

paragraph 2, which reads as follows:



"(2) the Reserves created in accordance with applicable accounting regulations 1. January

1993 and carried over to the year 1993, and the years following the 1993

they draw their expenses (costs), for which they were created.

No longer exist if the reasons for which they were created, these provisions in the

the relevant tax year in favour of revenue. ".



Article II



(1) the provisions of this Act shall apply for the first time for the tax period

1995.



(2) the provisions of the insurance reserves according to § 6 of the law of the Czech

the National Council No. 593/1992 Coll., on reserves for the determination of the tax base of the

income, as amended by this Act, shall apply for the first time for the tax period

1994.



(3) the provision for repairs of tangible assets, whose production began before the 1.

in January 1995, with the method of making the reserve pursuant to § 7 para. 4 of the law of the Czech

the National Council No. 593/1992 Coll., on reserves for the determination of the tax base of the

income, as amended by this Act, apply only when creating the rest of the

This reserve after the effective date of this Act.



Article. (III)



This Act shall take effect on the date of publication.



Uhde in r.



Havel, v. r.



Klaus r.