Transformation of a Civil Association from the Accounting and Tax Point of View

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F17%3A43897037" target="_blank" >RIV/60076658:12510/17:43897037 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Transformation of a Civil Association from the Accounting and Tax Point of View

Original language description

Act No. 83/1990 Coll., on Associations of Citizens, which regulated the establishment and status of civil associations, was abolished with effect from 1 January 2014 and the legislation of the associations has been moved to the new Civil Code. The civil associations were automatically transformed by the Ministery of Interior of the Czech Republic into a new legal form of registered association. Consequently, the new Civil Code enables civil associations to be transformed into newly established legal forms, institutions or social cooperatives. The transformation of a civil association into the new legal form has brought a series of other changes in accoun-ting and tax areas. Act No. 563/1991 Coll., on Accountancy, allows both associations and institutions to keep accounts in a simplified manner which brings some advantages for an organisation; e.g. an organisation is not required to make provisions and adjustments, and reevaluate property at its fair value and may calculate its accounting in groups of accounts instead of particular accounts. Since these organisations are mostly financed from public resources the reporting and drawing of which requires precise bookkeeping, they usually undertake full accounting. Simplified bookkeeping would bring some administrative difficulties for the organisations. Taxation will also differ due to the choice of legal form. A registered association is taxed in accordance with Act No. 586/1992 Coll.,on Income Tax, as a publicly beneficial taxpayer with a narrow tax base, while an institution is a taxpayer with a broad tax base. The basic difference in taxation consists in the fact that a taxpayer with a broad tax base taxes all income except for investment subsidies while a taxpayer with a narrow tax base only taxes income from main activities which are profitable and income which is legally subject to taxation.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50205 - Accounting

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Proceedings of the 11th International Scientific Conference INPROFORUM 2017. Innovations, Enterprises, Regions and Management

ISBN

978-80-7394-667-8

ISSN

2336-6788

e-ISSN

2336-6788

Number of pages

5

Pages from-to

208-212

Publisher name

Jihočeská univerzita v Českých Budějovicích, Ekonomická fakulta

Place of publication

České Budějovice

Event location

České Budějovice

Event date

Nov 9, 2017

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

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