Linkedin
Facebook
Email
more
- Activities done through a limited company is considered to be taxable.
- Income is taxable when you receive an unconditional right to the income.
- Costs related to taxable income are generally deductible when you receive an unconditional obligation to cover the cost.
- However, costs that are not finally incurred are not deductible until the offense actually occurs, typically through the winding up and flow of assets. In such cases, deduction is given in the form of annual depreciation according to the Tax Code’s tax system (Tax Act, Chapter 14).
- Net profit for one year (when revenue exceeds cost) is taxed by 23% (for 2018).
- Net deficit for one year (when costs are greater than revenue) can be deducted from net profit in recent years.
- Dividends and gains/losses on shares and companies in other companies are exempt under the exemption method.
- Reporting takes place through annual tax returns, related business tasks and other forms (depending on the type of business you are running).
Business driven through general partnership companies (DA, ANS, etc.) is taxed almost equal to limited liability companies, but net profits and losses are distributed between owners by ownership, and taxed by the owners. The reporting also takes place in other forms than for limited liability companies.
