When is the Zero tax on reinvested profits solution paid?

 

By the end of the third month of the tax year, the taxpayer is obliged to submit a declaration on the amount of income earned for the previous tax year. The return shall be submitted to the tax office on the official CIT-8E form by means of electronic communication in accordance with the provisions of the Tax Ordinance. However, the declaration is informative, as the payment of the tax was determined independently of the filing of the declaration.

The deadline for payment of the tax depends on the subject of the flat rate.

Flat rate on distributed profit income and income from profit allocated to losses must be paid by the 20th day of the 7th month of the tax year.

The flat rate on net profit income must be paid by the end of the 3rd month of the tax year following the last year of the flat rate taxation or by the 20th day of the 7th month of the tax year in which the net profit earned during the flat rate taxation period was distributed. This deadline depends either on the decision to pay the tax in full after giving up the flat rate or on the timing of the distribution (payment or other form of distribution) of this income.

If, before the due date for payment of the flat rate sum on net profit income, the taxpayer goes into liquidation or bankruptcy, is taken over by another entity or ceases to carry on its business for any other reason, or significantly reduces the scope of its business, the due date for payment of that flat rate sum shall be the day before the date on which one of those events occurs.

The act does not contain a definition of a “significant reduction in the scope of activities”. An example of such an event would be when a taxpayer ceases to carry out an actual business activity, but does not take legal action to put it into liquidation or bankruptcy.

A flat rate sum on income from undisclosed business operations must be paid by the end of the 3rd month of the tax year following the year in which the income or expenses should have been recorded.

Flat rate sums on income from inherent gains from non-business expenses must be paid by the 20th day of the month following the month in which the payment or expense was made or the service was provided.

Flat rate sums on income from changes in the value of assets must be paid by the 20th of the month following the month of acquisition, conversion or contribution in kind.