The liquidation period will be valid instead of the accounting period for the taxation of the institutions entering into liquidation. Liquidation starts on the date of registration of the general assembly decision regarding the liquidation of the institution and ends on the date of registration of the liquidation decision.
The period from the starting date until the end of the same calendar year and each calendar year after this period and the period from the beginning of the relevant calendar year until the end date of the liquidation for the period in which the liquidation ends shall be considered as an independent liquidation period. In the event that the liquidation ends within the same calendar year, the liquidation period shall commence on the date the organization enters into liquidation and continue until the end of the liquidation.
In the event that the liquidation is closed with a loss, the liquidation result is corrected towards the previous liquidation periods and the overpaid taxes in the previous periods are refunded to the taxpayer. If the tax base is declared as a result of the final liquidation, the correction of the previous liquidation periods is not possible.
Changes in the tax rate during the liquidation process will not require the aforementioned correction. Adjustments will only be made if the last liquidation period results in a loss.
If the liquidation is abandoned, the liquidation provisions are not applied to the institution. In this case, the decision to abandon the liquidation will be valid from the beginning of the liquidation period in which this decision is taken, and the liquidation period declarations submitted until the date of the decision to abandon the liquidation will replace the normal activity declarations.
The provisional tax liabilities of the organization whose liquidation has been abandoned shall also be subject to the provisional tax covering the date of the decision to abandon the liquidation.
the beginning of the taxation period.
The liquidation declaration shall be submitted to the tax office to which the corporation is affiliated within thirty days from the date of the liquidation, if the liquidation commences and concludes within the same calendar year.
In the event that the date of entry into liquidation and the date of conclusion of the liquidation take place in different calendar years, the liquidation declaration for each liquidation period will be submitted by the liquidation officer to the tax office to which the taxpayer is affiliated until the evening of the last day of the fourth month following the month in which the liquidation period is closed.
The liquidation declaration for the period in which the liquidation ends will be submitted to the tax office to which the corporation is affiliated within thirty days from the date of the liquidation.
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
