The DTC establishes as year-end one of the following: 31 December, 31 March, 30 June, or 30 September. Once the year-end is selected, any change should be authorised by the tax authorities.
The Corporate Annual Tax Return (Form IR-2) must be filed within 120 days after year-end. Tax authorities may allow extensions of up to 60 days, upon request.
Tax returns are based on self-assessment and must be filed on electronic forms supplied by the internal tax department.
Payment of tax
The balance of any tax due must be paid no later than the due date for filing the return. Corporations domiciled in the country and PEs of foreign enterprises shall be obligated to make advance payments on the 15th day of every month for tax related to the period in progress.
Tax audit process
The audit cycle is not established by law or practice. During the statute of limitations, tax authorities select the taxpayers subject to audit based on internal criterion.
Statute of limitations
The statute of limitations is three years, and five years if the entity has been notified of a tax audit, counting from the filing due date.
Topics of focus for tax authorities
Among the topics of focus for the tax authorities are: non-deductible expenses, withholdings, VAT, and proportionality of VAT credits.