Tax payments

Uroš Čop Attorney-at-law Partner Telehpone:  +386 (0)1 252 80 00 E-mail:  uros.cop@senica.si Foreign languages: English, Croatian, Serbian

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Q&A

Running of deadlines in Tax procedures

Q: Do deadlines run in tax offence procedures?

A: Generally, deadlines do not run in tax offence procedures. They run only in urgent tax offence matters, whereby the responsible authority must notify the offender of that in writing.

Q: Do deadlines in tax procedures run during the intervention period?

A: Deadlines run only in urgent matters such as tax assessment procedures, customs procedures, submission of self-assessment tax return, procedures of write-off, deferment and instalment payments of tax, termination or suspension of tax enforcement, etc.

Deadlines do not run in non-urgent matters such as tax audit procedure, etc. Similarly, deadlines do not run in matters where substantive deadlines are exercised, i.e. where the expiry of the deadline implies the loss of the right if the request is not lodged in time before the expiry of a deadline.

When the deadlines do not run, they are extended and expire on the eighth day after the termination of the intervention measures or on 9 July 2020 at the latest.

Write-off, deferment and instalment payments of tax

Q: The company has major liquidity problems and cannot pay tax liabilities that had arisen before the intervention measures came into force. What can we do?

A: We advise that you submit a request for a deferral or an instalment tax payment. The condition is that the company has lost its ability to generate revenue due to the COVID-19 epidemic.

Q: Is it possible to write-off taxes or defer the payment of tax liabilities for business entities?

A: It is not possible to write-off taxes related to the pursuit of a business activity due to the impact of the COVID-19 epidemic.

Deferments and instalment payments of tax liabilities can be claimed due to the loss of the ability to generate revenue as a result of the COVID-19 epidemic. A deferment of tax payment can be claimed for a period of up to two years, while it is possible to pay due taxes in no more than 24 monthly instalments over a period of 24 months. Deferment and instalment payments of tax liabilities is now also allowed for tax pre-payment and withholding tax, but is not applicable for social security contributions (in the case of withholding taxes).

Deferment and instalment payments of tax liabilities can be claimed by submitting an application, in which you must state the facts and provide supporting evidence to demonstrate the loss of ability to generate revenue as a result of the COVID-19 epidemic.

 

During the period when the tax payment is deferred or paid in instalments, no interest shall accrue.

Deadlines for filing tax returns

Q: The company has major liquidity problems and cannot pay the due March instalment of the corporate/private income tax in advance. What can be done?

A: We advise you submit a request for a deferral or an instalment tax payment due to the loss of ability to generate revenue during the COVID-19 epidemic. This aid will be granted if you do not have sufficient liquidity funds to pay the instalment due to the impact of the COVID-19 epidemic.

Q: Do I have to pay income tax pre-payments and withholdings during intervention measures?

A: Taxpayers are not liable to pay the income tax pre-payments and withholdings for April and May during the course of the intervention. If the COVID-19 epidemic continues after 15 May 2020, the same rule will apply for pre-payments and withholdings for June 2020. However, if the taxable person pays pre-payments or withholdings, the payments in question will be considered as an unallocated payment. In this case, the taxable person should try to conclude an agreement with the FURS, on the basis of which those payments would be refunded or used to cover future liabilities.

Q: In 2019 my tax base was not determined by using flate rate expenses. I wish to change the method of determining my tax base by using flat rate expenditure in 2020. Has the deadline for changing the method of determining the tax base been prolonged by extending the deadline for submitting the tax return?

A: Yes. You must indicate the selected method for determining your tax base in your tax return for the prepayment of income tax and self-employment income tax which must be filed by 31 May 2020. Accordingly, if you wish to change the method of determining the tax base from usingflat rate expenses, you must notify the FURS on the cessation of establishing the tax base using flat rate expenses by 31 May 2020.

Q: The new deadline for submitting tax return is 31 May 2020, but it falls on a Sunday. When is the last day for submission?

A: As the last day of the statutory deadline for filing the tax return is Sunday, the deadline in question ends on the first following working day, i.e. 1 June 2020.

Q: Was the deadline for filing personal income tax return of an individual – self-employed person for the tax year 2019 extended?

A: Yes. According to ZIUJP the deadline for submitting a self-assessment tax return for personal income tax prepayment and personal income tax on income deriving from self-employment for the calendar year 2019 was extended from 31 March 2020 to 31 May 2020.

The deadlines for the notification of establishing the tax base by using flat rate expenditure and for the notification of the cessation of establishing the tax base using standardized expenditures in the calendar year 2020 were extended from 31 March 2020 to 31 May 2020. Furthermore, the deadline for submitting annual reports for the previous year to the AJPES was extended to 31 May 2020.

Q: My company is in the process of being liquidated in a summary winding-up procedure. Does the extended deadline for submitting the corporate income tax return apply to my company?

A: No, in the case where a taxable person is obliged to file a corporate income tax return due to the termination of a company in a summary winding-up procedure, an initiated or completed insolvency procedure,  voluntary liquidation procedure, an initiated compulsory settlement or change of status, the deadline for submitting the corporate income tax return is not prolonged.

Q: When must the corporate income tax return for the calendar year 2019 be submitted to the tax authorities?

A: Corporate income tax is systematically regulated by the Corporate Income Tax Act (hereinafter: “ZDDPO-2”), which in the second paragraph of Article 358 stipulates that in case a tax period corresponds to the calendar year, the taxable person must submit the tax return to the tax authorities (hereinafter: “FURS”) within three months after the end of the relevant tax period, i.e. 31 March 2020. However, in accordance with the Intervention Measures in the Fiscal Area Act (hereinafter: “ZIUJP”), this deadline was extended until 31 May 2020.

In case your company has a tax period or fiscal year which does not correspond to the calendar year, and the deadline for the submission of the tax return expires during the period of validity of the ZIUJP, the deadline for submitting the tax return is extended for 2 months, i.e. from 3 months after the end of the period to 5 months after the end of the period.

Q: Have there been any measures taken regarding reduction of the advance payment of tax?

 

A: The second tax measure relates to the right of the taxpayer to request a reduction of the advance payment of tax, which is determined on the basis of the amount of tax of the previous period. In the time of applicability of the intervention act this procedure is simplified, since it will not be required to attach the tax return for the current tax period.

 

The third tax measure is a possibility of deferral and instalment payment of taxes. The taxpayer may apply for a deferral of tax for up to two years, or for payment of tax in a maximum of 24 monthly instalments because of the loss of ability to generate revenue due to the COVID-19 epidemic.

Accounting and tax payment

Q: Has the Government of Slovenia changed the deadline for submitting tax returns and annual reports for companies performing business operations in Slovenia?

A: Yes, the first measure adopted in the area of taxation is an extension of certain deadlines. According to the Intervention Measures in the Area of Public Finance Act taxpayers will have more time to submit tax returns and annual reports than usual. Instead of by 31 March the tax return for corporate tax for the previous year as well as the annual report will have to be submitted by 31 May.