FILING REQUIREMENTS & PAYMENT OF TAXES

1 Tax Year

Corporate income tax is generally assessed on a calendar year basis. However, companies may adopt any 12-month fiscal period appropriate to their business, subject to the approval of the Ministry of Finance.

2 Corporate Income Tax

A corporate income tax return is due to be filed by the 25th day of the fourth month after the end of the accounting year (i.e., in case the calendar year is taken as an accounting year, the return is due by April 25 of the following year). The corporate income tax is payable by the end of the month in which tax return is due to be filed (i.e. by the end of April for companies using calendar year as fiscal year).

The balance sheet and income statement for the relevant period must also be filed together with the corporate income tax return.

3 Dividend Withholding Tax

The dividend withholding tax return is due to be filed by the 20th day of the month following the dividend distribution. The tax is payable on the 26th day of the following month.

4 VAT

The tax period for VAT purposes is one month. Taxpayers or the ones who are responsible for the payment of the value added tax under the reverse charge mechanism must file their tax returns with the local tax office by the 20th of the following month. The VAT is payable on the 26th day of the following month.

5 Advance Corporate Income Tax

An advance corporate income tax return must be filed by the 10th of the second month following the quarterly period and is payable on the 17th of the same term. The advance taxes paid during the year are offset against the ultimate corporate income tax liability of companies determined in the related year’s corporate income tax return.

6 Withholding Tax

A withholding tax return is due to be filed by the 20th day of the following month and the tax is payable on the 26th of the same term. Should the number of employees be less than 10, then the return can be filed quarterly by submitting a petition to the tax office to file quarterly tax returns.

7 Social Security Premium Notifications

Social security premium notifications are due to be filed by the end of the following month to the Social Security Institution. The premiums withheld from the salaries of the employees are also payable within the same period.