Tax aspect of liquidation of companies have their own specific characteristics in relation to the general corporate tax regime.
The most common tax questions which arise regarding the tax aspect of liquidation of companies are:
- assessment of tax on corporate profit of companies in liquidation and
- tax treatment of payments of the liquidation surplus.
Assessment of tax on profit of companies in liquidation
Generally according to the provisions of Article 34 of the Corporate Profit Tax Law, taxpayer’s profit in the process of liquidation shall be taxed in accordance with that law. Continue reading Tax aspect of liquidation of companies
Taxpayers shall be granted tax incentives for the purpose of achieving economic policy aims relating to the fostering of economic growth. The provisions of the Corporate Profit Tax Law alone shall determine the tax incentives relating to corporate profit tax.
Tax incentives in relation to the tax on profits of legal entities are only made by provisions of the Corporate Profit Tax Law and the conditions for their realization are prescribed for:
Status and position of the entrepreneur and the company is governed by the provisions of the Law on Companies.
The entrepreneur, according to the provisions of Article 83 of the Law on Companies, is definied as a natural person with full capacity who is registered in the Business Entities Register and is engaged in a business activity for the purpose of profit generation.
Also the entrepreneur in terms of the Law on Companies, shall be a natural person registered with a special register who carries on a professional activity governed by a special regulation, if this is provided by such regulation. Continue reading Entrepreneur or company