Tip of the week: Payment of advances on income tax of legal person

You've probably heard of measures for entrepreneurs called Lex Korona. You may be interested in that in connection with these measures, the law has also been amended within the framework of which there is a change in the area of payment of income tax advances:

If the corporate income tax advances paid due from the beginning of 2020 to the deadline for filing the tax return are lower than they result from the calculation according to the 2019 income tax return, which states the tax for 2018, the taxpayer is not obliged to pay the difference arising on the advances paid from the beginning of the tax period until the end of the calendar month following the expiry of the time limit for filing the tax return, in the tax period for which the income tax advances are paid, which is:

(a) calendar year beginning 1 January 2020;

(b) tax period in which the tax period changed from a calendar year to a financial year and which begins after 1 January 2020;

(c) a marketing year for which the last day of the period for lodging an income tax return under a special regulation expires during the pandemic period, or a marketing year for which at least one month expires from 1 January 2020 to 31 December 2020.

It follows that taxpayers who lodged their tax return between 1 January 2020 and the end of the calendar month following the month in which the government declared the end of the pandemic may pay advances on income tax under the 2019 tax return.

If they are higher than the income tax advances calculated on the basis of the last known tax liability (e.g. for whether the advances will be paid according to the tax return for 2019 or 2018), taxpayers can decide 2018, depending on what is for the taxpayer preferred.

If the pandemic period ends in 2020, taxpayers will not have to pay the rest of these advances. In this situation, these advances will be settled only when the tax return for 2020 is filed In this situation, these advances will be settled only when the tax return for 2020 is filed.

The above information is current from 16.7.2020 and is of a general nature only. The information does not contain all the details and specific situations in which you might find yourself.
If you need advice on this issue, we will be happy to help you. Write to us at support.covid19@vgd.eu. You can find other useful articles and information on our website, Facebook and Linked-In.

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