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Act on Income Taxes

No. 586/1992 Sb.

(excerpts)

 

§ 18 The subject of the tax

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(3) In case of taxpayers who are not founded for the purpose of business, income from advertisement, from membership contributions and from lease except for the case referred to in paragraph 4 letter d) shall always be subject to the tax.

(4) In case of the taxpayers referred to in paragraph 3, the following kinds of income shall not be subject to the tax:

1. income from activities following from their mission provided that costs (expenses) spent according to this Act in connection with execution of these activities are higher; activities that are considered mission of these taxpayers are defined by special regulations, statutes, by-laws, establishment or foundation documents;
2. income from subsidies and other forms of state support and support given from municipal and regional budgets if this support is granted according to a special regulation;
3. income from interest from deposit on current account;
4. income from transfers and use of the state property between organizational components of the state and state organizations against a payment and income from lease or sale of the state property that is a revenue of the state budget according to a special legal regulation.

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(8) The taxpayers according to paragraph 3 shall be defined particularly as professional associations of legal entities if these associations themselves are legal entities and are not established for the purpose of gainful activity, civic associations including trade unions, political parties and political movements, registered churches and religious companies, foundations, endowment funds, generally benefiting companies, public universities, municipalities, organizational components of the state,higher territorial self-governing units,contributory organizations, state funds and entities defined so by a special act. Business companies and co-operatives shall not be considered these taxpayers even if they were not established for the purpose of business. Provisions of special legal regulations¹⁷ⁿ⁾ shall not be affected by this rule.

§ 19 Exemption from the tax

(1) The following kinds of income shall be exempted from the tax:

a) membership contributions according to the by-laws, statutes, establishing or founding documents received by professional associations of legal entities, professional chambers with voluntary membership, civic associations including trade unions, political parties and political movements;

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