Legal person 0 to 2 million

A legal person is a trade company that prefers to do business as a legal person and not as an individual natural person; drafts the Articles of Association as a legal person/individual or with other legal persons/individuals; and takes responsibilities regarding the liabilities arising during the conduction of the activity involving all business assets.

The legal person is registered as such at the National Business Centre.

If a legal person has an annual business turnover from 0 to 2 million ALL, he shall not be subject to VAT (unless he purchases import goods or services to sell them or exercises a profession that is subject to VAT despite the turnover) and to Income Tax, but he shall be obliged to declare and pay the health care and social security contributions; Income Tax from Employment and Withholding Tax (if he falls under such tax liability), as well as the obligation to declare the Simplified Profit Tax. The Simplified Income Tax for this category is 0%.

If you are registered or want to be registered as a legal person, with an annual business turnover between the range of 0 to 2 million ALL, please refer to the following brochure and video for more information on your tax rights and liabilities.