Guide
Corporate income tax
Biro Vision manages the entire corporate income tax process, from preparing the tax balance and determining taxable profit, through monthly advance payments, to the annual tax return and its timely filing.
Corporate income tax is a tax paid by companies, primarily a d.o.o., on the profit they earn during the year. The rate is a single 15%, but it is not applied to the profit from the income statement, rather to the taxable profit determined separately in the tax balance. There the accounting result is adjusted under the rules of the law, so the actual tax liability is often not the same as what the company sees in its books. During the year the tax is paid in monthly advances, and the final calculation is done in the annual tax return. For owners it is important to understand that this tax differs from the tax paid by an entrepreneur who keeps books, because the latter applies a 10% rate on income from self-employment.
What you should know
- The corporate income tax payer is a company, most often a d.o.o., while entrepreneurs who keep books instead pay self-employment income tax.
- The corporate income tax rate is a single 15%, applied to taxable profit and not to the accounting profit from the financial statements.
- The tax base is the taxable profit determined in the tax balance, starting from the accounting result that is adjusted for non-deductible or limited expenses, tax depreciation and capital gains.
- During the year the tax is paid in monthly advances, by the 15th of the month for the previous month, and the advance amount is based on the last filed tax return.
- The annual tax return, together with the tax balance, is filed within 180 days from the end of the tax period, which for companies on a calendar year falls at the end of June of the following year.
- If the final liability in the return exceeds the total advances paid, the difference is paid by the filing deadline, and if too much was paid, the surplus is applied to future advances or refunded on request.
How we handle it
- 01 We prepare the tax balance We start from your accounting result and prepare the tax balance, in which we adjust income and expenses under the rules of the law to determine the taxable profit.
- 02 We determine the base and the tax We apply the 15% rate to the taxable profit and clearly show you how the amount was reached, including non-deductible expenses, tax depreciation and capital gains.
- 03 We manage monthly advances We track and pay the monthly tax advances by the 15th of the month for the previous month, based on the last filed return, so you do not fall behind on your obligations.
- 04 We file the annual return We prepare and electronically file the annual tax return with the tax balance, within the legal deadline of 180 days from the end of the tax period.
- 05 We reconcile the final liability We compare the final tax with the advances paid, pay the difference or request that an overpayment be applied to future advances, and keep all documentation for any inspection.
Frequently asked questions
Who pays corporate income tax?
Corporate income tax is paid by companies, most often a d.o.o., on the taxable profit they earn. Entrepreneurs who keep books do not pay this tax, but rather self-employment income tax at a rate of 10% on the taxable profit from that activity.
What is the rate and what exactly does it apply to?
The corporate income tax rate is 15% and applies to taxable profit, not to the accounting profit from the income statement. Taxable profit is determined in the tax balance, where the accounting result is adjusted for non-deductible or limited expenses, tax depreciation and capital gains.
When is the tax paid and by when is the return filed?
During the year the tax is paid in monthly advances, by the 15th of the month for the previous month. The annual tax return with the tax balance is filed within 180 days from the end of the tax period, which for companies on a calendar year falls at the end of June of the following year.
How does corporate income tax differ from the tax of an entrepreneur who keeps books?
A company pays corporate income tax at 15% on the taxable profit determined in the tax balance. An entrepreneur who keeps books pays self-employment income tax at 10% on taxable profit, with their own annual return and the same monthly advances by the 15th of the month for the previous month.
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