Payment of Corporate Income Tax Ele
Payment of Corporate Income Tax Electronically
A recent change to Income Tax Law No. 91 of 2005[1] was enacted by Presidential Decree No. 201 of 2014 (the "Decree").[2] The Decree added a second paragraph to Article 103 of the legislation, which deals mainly with tax payment methods.
On the basis of this new amendment, payment of income tax for corporations and public legal persons may now be made electronically. However, before this process can take effect, the Executive Regulations of the Income Tax Law must be passed, in order to determine the procedures required for electronic payment.
This latest change to the Income Tax Law once again raises the question as to when the Executive Regulations relating to amendments thereto will be issued. The Income Tax Law has been amended three times in as many years. There remains a need to provide guidance on the Income Tax Law, specifically the amendments promulgated by Law No. 101 of 2012,[3] subsequently re-amended by Law No. 11 of 2013,[4] and the separate amendment of Law No. 53 of 2014.[5]
The delay in issuance and implementation of the Executive Regulations increases confusion for investors and companies. Those dealing in the stock market are in particular need of clarification, following the taxes on dividends and capital gains stipulated by the Law. This Law does not define when taxes will be due, how and when they will be collected, and the measures that need to be undertaken to avoid double taxation.
[1] Tax Law No. 91/2005, Official Gazette, Issue No. 23, (bis) (b), 9 June 2005.
[2] Presidential Decree-Law No. 201/2014 amending certain provisions of the Income Tax Law, Official Gazette, Issue No. 50 (bis) (b), 16 December 2014.
[3] Presidential Decree-Law No. 101/2012 amending certain provisions of the Income Tax Law with regards improving social justice and combatting tax evasion, Official Gazette, Issue No. 49 (bis) (a), 6 December 2012.
[4] Presidential Decree-Law No. 11/2013 amending certain provisions of the Income Tax Law as amended by Law No. 101/2012, Official Gazette, Issue No. 20 (bis), 18 May 2013.
[5] Law No. 53/2014 amending certain provisions of the Income Tax Law No. 91/2005 and Stamp Duty Law No. 111/1980, Official Gazette, Issue No. 26 (bis) (a), 30 June 2014.
A recent change to Income Tax Law No. 91 of 2005[1] was enacted by Presidential Decree No. 201 of 2014 (the "Decree").[2] The Decree added a second paragraph to Article 103 of the legislation, which deals mainly with tax payment methods.
On the basis of this new amendment, payment of income tax for corporations and public legal persons may now be made electronically. However, before this process can take effect, the Executive Regulations of the Income Tax Law must be passed, in order to determine the procedures required for electronic payment.
This latest change to the Income Tax Law once again raises the question as to when the Executive Regulations relating to amendments thereto will be issued. The Income Tax Law has been amended three times in as many years. There remains a need to provide guidance on the Income Tax Law, specifically the amendments promulgated by Law No. 101 of 2012,[3] subsequently re-amended by Law No. 11 of 2013,[4] and the separate amendment of Law No. 53 of 2014.[5]
The delay in issuance and implementation of the Executive Regulations increases confusion for investors and companies. Those dealing in the stock market are in particular need of clarification, following the taxes on dividends and capital gains stipulated by the Law. This Law does not define when taxes will be due, how and when they will be collected, and the measures that need to be undertaken to avoid double taxation.
[1] Tax Law No. 91/2005, Official Gazette, Issue No. 23, (bis) (b), 9 June 2005.
[2] Presidential Decree-Law No. 201/2014 amending certain provisions of the Income Tax Law, Official Gazette, Issue No. 50 (bis) (b), 16 December 2014.
[3] Presidential Decree-Law No. 101/2012 amending certain provisions of the Income Tax Law with regards improving social justice and combatting tax evasion, Official Gazette, Issue No. 49 (bis) (a), 6 December 2012.
[4] Presidential Decree-Law No. 11/2013 amending certain provisions of the Income Tax Law as amended by Law No. 101/2012, Official Gazette, Issue No. 20 (bis), 18 May 2013.
[5] Law No. 53/2014 amending certain provisions of the Income Tax Law No. 91/2005 and Stamp Duty Law No. 111/1980, Official Gazette, Issue No. 26 (bis) (a), 30 June 2014.