NGOs & Public Entities > Acting as NGO or Public Entity >
The nonprofit organization is required to register for income tax, if it carries out economic activity and generates taxable incomes under the provisions of the Law no.8438, dated 28.12.1998 “On Income Tax”.
THE POSSIBILITY TO DECLARE
A. In those cases where the taxpayer, which although can be established as an NGO or public agency / state enterprise, is obliged to submit the declaration of income tax, or in other cases even more specific when it is not exempt from the profit tax and the turnover, subject to tax is less than 8 million ALL per year, in those cases the taxpayer refers respectively to provisions that is made by the law no.9632, dated 30.10.2006, "On the local tax system", as amended.
B. The taxable profit for the taxable period is determined based on the balance sheet and its annexes, which must be drafted in accordance with the law "On accounting and financial statements".
C. The nonprofit organization prepares the annual declaration of taxable income in the form specified in the guidance of the Minister of Finance, and submits it to the tax authorities before March 31 of the following year, by submitting at the same time the balance sheet, along with the annexes thereof, as well as any other data.
What are the prepayment installments of income tax?
The calculation of the monthly down payment installments
A. In the case when the taxpayer initiates the activity in the coming year, the monthly down payment installments of profit tax are calculated based on the forecast statement for the amount of estimated tax on profits made by the taxpayer himself, divided by the number of months remaining until the end of the year, without taking into account the first month of registration. This calculation formula will also be used to determine the monthly down payment installments of profit tax for the first 3 months of the following year.
B. In the case when the taxpayer, at any time during the taxable period, attests, before the tax authorities that the profit tax for this taxable period will be, significantly, lower than the income tax in the previous period or the previous second period, then the tax authorities accept the reduction of down payment installments according to the rules established by the Guidance of the Minister of Finance.
C. If the tax organs estimate that the profit tax for the following tax period will exceed by more than 10 per cent the profit tax in the previous tax period, they can fix this by increasing the down payment installment, in accordance with the estimation of the profit tax made by them.