Current tax payments must be paid to the state budget by individual entrepreneurs and legal entities no later than 15 days after the end of the quarter. Municipally owned organizations and enterprises pay profit tax to the local budget. The amount of each payment is 1/4 of the tax calculated in the previous tax year. Special notaries must pay the tax calculated at the 10% rate determined by Article 101.4 of the Tax Code to the state budget no later than the 20th of the following month. (1)
The taxpayer can also determine the amount of current tax payments using this method:
(excluding costs this quarter of taxable income volume) x (excluding costs last year in his taxable income coefficient indicating the specific weight of the tax) (2)
The amount of current tax payments can be determined by the taxpayer using one of the two methods (1 and 2) above. He must inform the tax authority about it by April 15 every year. If the taxpayer chooses method 2 to determine the amount, within 15 days after the end of each quarter, he must submit a statement of the current amount of tax calculated on income or profit to the tax authority. If the certificate is not submitted, the tax authority applies the 1st method. The first method is applied if the taxpayer does not provide information about the method used to determine the amount of current tax payments. This method is not changed until the end of the tax year.
Current tax payments are related to the amount of tax collected from the taxpayer for the tax year.
Current tax payments on income tax of taxpayers with no prior activities or taxable profits
Current tax payments of legal entities that did not have activity or taxable profit in the previous tax year and are operating in the next tax year, natural persons operating without establishing a legal entity, and newly established and operating taxpayers are carried out in the following manner:
- Current tax payments for income or profit tax of taxpayers with no previous activity or taxable profit are cumulatively calculated quarterly during the calendar year. calculated according to the relevant tax rates.
- The amount of current tax payments should not be less than 75% of the amount of tax on income or profit.
- These taxpayers must make current tax payments within 15 days after the end of the quarter. They must submit a certificate to the tax authority regarding the amount of current tax calculated from the income or profit during the quarter.
- If the current tax payments are not paid within the specified period, the taxpayer is charged interest for each day of delay after the payment period.
- The interest determined by the Tax Code is applied to current tax payments for taxes not paid on time for a delayed period of not more than one year.
- Current tax payments are related to the amount of tax charged to the taxpayer from the profit for the tax year.
- In the case of simplified taxpayers who are income tax payers, the amount of current tax payments is determined in accordance with the Tax Code.
- Taxpayers provided references (Article 16.2 and 151.5.3 of the Tax Code), the amount of current tax payments is calculated on the basis of information in accordance with Article 67 of the Tax Code, and a notification is sent to the taxpayer.
After the end of the reporting year, current tax payments are recalculated. If the calculated current tax amount is greater than the reported tax amount, the already calculated current tax and interest amounts are reduced.
Current tax payments are calculated taking into account exemptions and benefits determined by the Tax Code.
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SEE ALSO: Public legal entity
