Tax administration

Returns

  • Annual profit must be declared no later than 31 March of the year following the taxable year. The annual balance sheet and the annual profit and loss account of all entities with foreign participation, as well as certain resident entities, subject to certain criteria (number of employees, legal form, etc.), are to be certified by a chartered accountant and submitted to the Tax Office at the place of residence of the legal person, together with the tax return.

Payment of tax

  • The corporate tax pre-payments due by entities which ended the year with a taxable profit are payable monthly as follows:
  • for the first quarter of the year - on the basis of 1/12 of the declared taxable profit for year before the previous year, and
  • for the remaining nine months - on the basis of 1/12 of the declared taxable profit for the previous year
  • The above bases are adjusted by a coefficient published in the State Budget Act for the respective year. Entities ending the previous year at a loss and entities founded in present year will pay quarterly advance tax on their taxable profit for the respective quarter.
  • The monthly prepayments are to be effected latest on the 15th day of the current month. The term for the prepayments on quarterly basis is the 15th day of the month following the respective quarter. No prepayment is to be made for the last quarter of the year.
  • Overpaid annual tax is set off against the tax to be paid for the following period. The difference between the annual tax declared in the tax return and the prepayment of tax for the same year must be paid by the deadline for submitting the tax return, i.e. 31 March.

Withholding tax is payable as follows:

  • If the payer of the income is a tax liable person – by the latter by the end of the month following the month in which the payment of income became due or the resolution on distribution of dividends or liquidation quotas was made.
  • If the payer of the income is not a tax liable person - by the recipient of the income within 30 days as of receiving the income.
  • After payment of the withholding taxes the payer of the income should disclose this fact to the respective tax office, which shall then issue a certificate of tax compliance to the foreign person entitled to the income already taxed. This certificate is necessary for repatriation of the net income.