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Hidden profit distribution in the Tax Declaration

The procedure for announcing the amounts, representing hidden profit distribution in the annual tax declaration has changed. There is special line for this in the tax declaration. Costs and amounts which are not connected with the main activity of the company or diverse from normal market rates, which are accrued, paid or distributed in any form for the benefit of shareholders, members or associated persons (except dividends) are treated as hidden profit distribution.

They are not recognized for tax purposes and on them 20% pecuniary penalties plus 5% dividend tax have to be paid. Companies which declare those amounts in the annual tax declaration will avoid penalty and will pay only 5% dividend tax.


20.01.15


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