Course detail
Personal income tax
FP-UzfoPAcad. year: 2017/2018
During the course students are acquainted with the issues of personal income tax. Attention will be given to the basic principles of personal income tax, methods for establishing the tax base and tax liability of individuals. The students will also be acquainted with the non-taxable portions of the tax base, items deductible from the tax base and tax rebates for individuals. More detailed attention will be given to the taxation of individual sources of income, such as income from employment, non-salaried income, capital, rent and other income. Students will be introduced not only to standard cases of personal income tax but also with selected special cases such as income from securities, on closing down an individual’s business, the taxation of solar power plant operators, etc.
Language of instruction
Czech
Number of ECTS credits
6
Mode of study
Not applicable.
Guarantor
Department
Learning outcomes of the course unit
Knowledge: Students will know the individual types of taxable personable income, tax-free incomes and incomes that are not subject to tax as well as the principles of calculating tax liabilities, preparing tax returns, reports for health insurance companies and the social insurance administration.
Skills: Students will be able to identify individual types of taxable income, assign to them taxable expenses and choose criteria for calculating the optimum tax liabilities.
Abilities: Students can produce a tax return for personal income tax, i.e. define the optimum approach for calculating the tax liabilities.
Students learn the principles of personal income tax, which they will then be able to apply when resolving specific practical situations. Students will be able to determine the resulting personal tax liability (for tax residents of the Czech Republic), including various types of income and at the same time apply appropriate instruments for tax optimisation.
Skills: Students will be able to identify individual types of taxable income, assign to them taxable expenses and choose criteria for calculating the optimum tax liabilities.
Abilities: Students can produce a tax return for personal income tax, i.e. define the optimum approach for calculating the tax liabilities.
Students learn the principles of personal income tax, which they will then be able to apply when resolving specific practical situations. Students will be able to determine the resulting personal tax liability (for tax residents of the Czech Republic), including various types of income and at the same time apply appropriate instruments for tax optimisation.
Prerequisites
A knowledge of accountancy, the basics of business law and Act No. 455/1991 Coll., on Trade Licensing as later amended.
Co-requisites
Not applicable.
Planned learning activities and teaching methods
The course contains lectures that explain the basic principles, problems and methodology of the discipline, and seminars that promote a practical knowledge of the material presented in the lectures.
Assesment methods and criteria linked to learning outcomes
The course is completed with a credit and an exam.
To pass the credit it is necessary to meet the conditions as stated below:
- an active attendance at the seminars (the attendance at the seminars is compulsory; one absence is tolerated; the students are obliged to have relevant study materials at their disposal and work individually on the tasks submitted);
- to draw and within the set term commit a seminar assignment meeting the conditions as set in its specification published in the E-learning.
The exam consists of two parts:
a) a complex example for which also a tax return shall be filled in (max. 24 points);
b) a test with a choice of one correct answer from four possible options offered (max. 11 points; correct answer: + 1 point, not-answered/incorrect answer: 0 points).
The examination lasts 90 minutes. To pass the exam it is necessary to get at least 50 % of the overall points available in each part. In the event that the student fails only one part, it is always necessary to resit the entire exam, that is both its parts! The students are allowed to use act on income taxes (its non-commented wording) during the exam. The examination is graded according to the ECTS scale.
To pass the credit it is necessary to meet the conditions as stated below:
- an active attendance at the seminars (the attendance at the seminars is compulsory; one absence is tolerated; the students are obliged to have relevant study materials at their disposal and work individually on the tasks submitted);
- to draw and within the set term commit a seminar assignment meeting the conditions as set in its specification published in the E-learning.
The exam consists of two parts:
a) a complex example for which also a tax return shall be filled in (max. 24 points);
b) a test with a choice of one correct answer from four possible options offered (max. 11 points; correct answer: + 1 point, not-answered/incorrect answer: 0 points).
The examination lasts 90 minutes. To pass the exam it is necessary to get at least 50 % of the overall points available in each part. In the event that the student fails only one part, it is always necessary to resit the entire exam, that is both its parts! The students are allowed to use act on income taxes (its non-commented wording) during the exam. The examination is graded according to the ECTS scale.
Course curriculum
1. Introduction to the course and to income tax, the relevance of personal income tax for the public budget, structural elements of personal income tax (general)
2. Taxable entities (taxpayers), the subject of tax, tax exemption
3. Tax base, partial tax bases
4. Tax calculation algorithms, tax allowances, deductible items from the tax base
5. Tax relief, child tax benefit
6. Income from employment
7. Non-salaried income
8. Revenue from capital
9. Rental income and other income
10. Social and health insurance (introduction to issues, legislation, establishment and termination of insurance, duties of payers)
11. Social and health insurance of employees and the self-employed
12. Special situations and their taxation (termination of business of a private individual, transfer from tax records to accounting and vice versa)
13. Special situations and their taxation (taxation of solar power plant operators, taxation of securities)
2. Taxable entities (taxpayers), the subject of tax, tax exemption
3. Tax base, partial tax bases
4. Tax calculation algorithms, tax allowances, deductible items from the tax base
5. Tax relief, child tax benefit
6. Income from employment
7. Non-salaried income
8. Revenue from capital
9. Rental income and other income
10. Social and health insurance (introduction to issues, legislation, establishment and termination of insurance, duties of payers)
11. Social and health insurance of employees and the self-employed
12. Special situations and their taxation (termination of business of a private individual, transfer from tax records to accounting and vice versa)
13. Special situations and their taxation (taxation of solar power plant operators, taxation of securities)
Work placements
Not applicable.
Aims
The objective is to acquaint students with personal income tax so that they can apply the knowledge gained to specific cases in practice.
Specification of controlled education, way of implementation and compensation for absences
Attendance at the lectures is not compulsory.
Attendance at the seminars is compulsory; one absence is tolerated. In case of an excused absence at the seminars and acceptance of the excuse, the lecturer set a substitutional fulfilment (as a rule it involves a draft of a written assignment corresponding to the topic of the seminar in question).
Attendance at the seminars is compulsory; one absence is tolerated. In case of an excused absence at the seminars and acceptance of the excuse, the lecturer set a substitutional fulfilment (as a rule it involves a draft of a written assignment corresponding to the topic of the seminar in question).
Recommended optional programme components
Not applicable.
Prerequisites and corequisites
Not applicable.
Basic literature
Not applicable.
Recommended reading
Not applicable.
Classification of course in study plans
Type of course unit
Lecture
26 hod., optionally
Teacher / Lecturer
Syllabus
The basic topics covered in the lectures are as follows:
1. Introduction to the course and to income tax, the relevance of personal income tax for the public budget, structural elements of personal income tax (general)
2. Taxable entities (taxpayers), the subject of tax, tax exemption
3. Tax base, partial tax bases
4. Tax calculation algorithms, tax allowances, deductible items from the tax base
5. Tax relief, child tax benefit
6. Income from employment
7. Non-salaried income
8. Revenue from capital
9. Rental income and other income
10. Social and health insurance (introduction to issues, legislation, establishment and termination of insurance, duties of payers)
11. Social and health insurance of employees and the self-employed
12. Special situations and their taxation (termination of business of a private individual, transfer from tax records to accounting and vice versa)
13. Special situations and their taxation (taxation of solar power plant operators, taxation of securities)
1. Introduction to the course and to income tax, the relevance of personal income tax for the public budget, structural elements of personal income tax (general)
2. Taxable entities (taxpayers), the subject of tax, tax exemption
3. Tax base, partial tax bases
4. Tax calculation algorithms, tax allowances, deductible items from the tax base
5. Tax relief, child tax benefit
6. Income from employment
7. Non-salaried income
8. Revenue from capital
9. Rental income and other income
10. Social and health insurance (introduction to issues, legislation, establishment and termination of insurance, duties of payers)
11. Social and health insurance of employees and the self-employed
12. Special situations and their taxation (termination of business of a private individual, transfer from tax records to accounting and vice versa)
13. Special situations and their taxation (taxation of solar power plant operators, taxation of securities)
Exercise
26 hod., compulsory
Teacher / Lecturer
Syllabus
The seminars contain practice on the lectured topics and working on the assigned tasks.
1. Familiarisation with tax forms and requirements for the credit.
2. Practicing registration deadlines, completing registration forms (explanation in relation to the Single Registration Form), determining the time and requirement for the filing of tax returns, payment of tax, calculation of withholding tax and the deadline for its payment.
3. Practice on classification and determination – subject of taxation, tax exemption, establishing the tax base.
4. Applying non-taxable amounts, tax relief and tax benefits.
5. Income from employment – calculating tax advances, income taxed at a special tax rate, calculation of annual settlement.
6. Income from independent activities – calculation of partial tax base and tax liability, linkage to tax records.
7. Calculation of depreciation (uniform and accelerated depreciation), new assets, technical appreciation of assets.
8. Further practice in calculating the tax liability of taxpayers – more extensive examples (employment, self-employment, …) including completing reports for health insurance companies and the social insurance administration and the calculation of advances.
9. Practicing the calculation of the tax liabilities of taxpayers from cases where the taxpayer transfers from the application of actual expenditure to lump-sum expenses and vice versa.
10. Practice in setting the partial tax base for tax on income from capital, from rental income and from other sources of income. Solving complex examples to establish tax liabilities.
11. Practicing the calculation of the tax liabilities of taxpayers in cases where the taxpayer divides with a cooperating person, or there is income from a partnership or limited partnership.
12. Solving complex cases of the calculation of tax liabilities of a private individual including completing the tax return.
13. Solving complex cases of the calculation of tax liabilities of a private individual including completing the tax return.
1. Familiarisation with tax forms and requirements for the credit.
2. Practicing registration deadlines, completing registration forms (explanation in relation to the Single Registration Form), determining the time and requirement for the filing of tax returns, payment of tax, calculation of withholding tax and the deadline for its payment.
3. Practice on classification and determination – subject of taxation, tax exemption, establishing the tax base.
4. Applying non-taxable amounts, tax relief and tax benefits.
5. Income from employment – calculating tax advances, income taxed at a special tax rate, calculation of annual settlement.
6. Income from independent activities – calculation of partial tax base and tax liability, linkage to tax records.
7. Calculation of depreciation (uniform and accelerated depreciation), new assets, technical appreciation of assets.
8. Further practice in calculating the tax liability of taxpayers – more extensive examples (employment, self-employment, …) including completing reports for health insurance companies and the social insurance administration and the calculation of advances.
9. Practicing the calculation of the tax liabilities of taxpayers from cases where the taxpayer transfers from the application of actual expenditure to lump-sum expenses and vice versa.
10. Practice in setting the partial tax base for tax on income from capital, from rental income and from other sources of income. Solving complex examples to establish tax liabilities.
11. Practicing the calculation of the tax liabilities of taxpayers in cases where the taxpayer divides with a cooperating person, or there is income from a partnership or limited partnership.
12. Solving complex cases of the calculation of tax liabilities of a private individual including completing the tax return.
13. Solving complex cases of the calculation of tax liabilities of a private individual including completing the tax return.