Tax Calculation Done Right for the Right Measures

 Tax Calculation Done Right for the Right Measures

In this article, we summarize the answers of FURS, given to the most frequently asked questions regarding the first package of tax measures introduced by the new intervention law to help the economy and the population.

Furs corresponds to coronavirus

Annual calculation of DDPO and payment of personal income tax advances

Has the deadline for submitting the annual DDPO (corporate income tax return) and (income tax advance and income tax return) been extended?

Yes, the deadline for submitting the annual report for 2019 is moved from 31.3.2020 to 31.5.2020 for companies and joint ventures (expiring on Monday 1.6.2020). The deadlines for submitting DDPO accounts in the event of windings, status changes or insolvency proceedings remain the same.

Which installments of the DDPO advance payment do not need to be paid and is it possible to pay the installments anyway?

The Intervention Act relieves taxpayers of the payment of advance installments for the duration of the intervention measures. Advance installments are due on the last day of the period to which they relate. Taxpayers are not required to pay the installments due from the entry into force of the law until 31 May 2020 (ie for April and May). In the event that the epidemic is not canceled by 15 May 2020, the measure also covers the June installment. The March installment of the advance payment must be paid and must be paid within 10 days of maturity.

The law stipulates that the April and May installments of the advance payment are not paid. Therefore, FURS has no basis in the accounting records for establishing a debit, which means that such a payment would represent an undistributed payment and could, in accordance with the agreement, cover the next installment of the advance payment due to the taxpayer. For that the taxpayer can make use of the taxfyle’s tax calculator  now.

By when is it necessary to pay the March installment of the advance payment?

For taxpayers who submitted the DDPO tax return for 2019 by 31.3.2020 on 10.4.2020, the deadline for payment expires:

  • Advances for March, or installment for the first quarter of 2020 (on a new basis),
  • Positive difference in the amount of installments for already due installments (January, February 2020) – the so-called budget advance,
  • For those taxpayers who did not submit a tax return for 2019 due to the extension of the deadline and intend to submit it in April, the deadline for payment of the above obligations expires on 11 May 2020. Those who will submit the invoice in May or June 1, respectively, the deadline for payment expires on June 10, 2020.

Can you request a deferral of taxes and contributions and for which tax liabilities is this possible?

Due to the loss of income generation due to the epidemic, the taxpayer may request a deferral of tax payment for up to 2 years or an installment payment in a maximum of 24 monthly installments. In the case of tax withholding, deferral or installment payment is only possible with an advance payment of tax, but not for contributions.

Paul Petersen