The taxable period for which CIT is determined covers one calendar year.
Taxpayers are obligated to calculate and pay CIT on the basis of a CIT return, which must be submitted to the Public Revenue Office by the end of February of the following year or, if filed electronically, by 15 March of the following year.
Taxpayers who distribute profit arising from FY 2009 to FY 2013 are obligated to calculate and pay CIT on the basis of a tax return on profit distribution, which should be submitted to the tax authorities up to the date of profit distribution.
Taxpayers that have used the incentive for reinvested profit in previous years, should submit a specific tax return to the tax authorities and pay the due CIT within 30 days as of the date taxpayers no longer satisfied the conditions for using such incentive.
Taxpayers should submit specific tax return and pay the CIT due at the moment of transfer of revaluation reserves of tangible and intangible assets into accumulated profit. Only the transfer of revaluation reserves recognised prior to 2019 is taxable.
Small taxpayers who fall under the simplified tax regime are obligated to calculate and pay the tax due on the basis of a tax return on overall income, which should be submitted to the tax authorities by the end of February of the following year or, if filed electronically, by 15 March of the following year.
Payment of tax
Corporate taxpayers are obligated to pay monthly CIT advance payments during the year within 15 days of the end of each month.
Monthly CIT advance payments are calculated as one-twelfth of the CIT obligation for the previous calendar year, increased by the index of cumulative retail price growth as determined by the State Statistical Bureau.
The difference between the advance payments and the final CIT liability as determined in the CIT return should be paid within 30 days as of the deadline for submission of the CIT return. Daily penalty interest of 0.03% is due on late tax payments.
In case the sum of monthly advance payments exceeds the final tax liability in the CIT return, the taxpayer may request for a refund of overpaid tax. The tax should be refunded within 60 days as of the date of submitting the request via the CIT return. If the taxpayer does not ask for a tax refund, the overpaid amounts will be considered as advance payment for the following period.
Tax audit process
The tax audit may include one or more taxes, one or more fiscal periods, or only certain tax issues. The extent of the tax audit is determined solely by the tax authorities and is based on their estimation of risk in respect of the specific taxpayer. VAT audits are commonly conducted when VAT refund is requested by the taxpayer, and, in this case, the tax audit is usually limited in the area of VAT. The advance notice for tax audit for large taxpayers and concerns is four weeks, whereas the advance notice for all other taxpayers is two weeks. In cases where the tax authorities find that it would be an obstacle for the tax audit, an advanced notice will not be given to the taxpayer.
Statute of limitations
The statute of limitations is five years as of the end of the calendar year in which the tax event occurred. In case of tax evasion, the statute of limitations is ten years as of the end of the calendar year in which the tax event occurred.
Topics of focus for tax authorities
There are currently no topics of particular focus for the tax authorities.