LEADING THE WAY
It's that time of the year when companies have to start preparing for their half-year tax filing. The procedure has always seemed quite simple and straightforward. However, now that the corporate income tax rate has changed from 23% to 20% this year, will your company still find filing as straightforward as it appears?
To understand the basics, it is necessary to consider Section 67 bis of the Revenue Code. It states that a company must file its half-year tax return (form PND 51) within two months from the end of the first six months of the accounting period. The company has to prepare an estimate of the net profit or loss arising from its business carried on during the full 12-month accounting period and the tax is computed and paid on one-half of the estimated taxable profit.
Another important concept related to the half-year tax filing is Section 67 ter of the Revenue Code, which outlines the related surcharges. It states that in a case where a company, without a reasonable excuse, failed to file a half-year return or filed a half-year return but the estimated net profit declared was lower than the net profit for the full accounting period by at least 25% of the latter, it must pay a surcharge of 20% of the tax underpaid.
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