Cessation of Business
The taxpayer is considered to have permanently ceased business in the following cases:
- Cessation due to death.
- Cessation that requires the taxpayer, regardless of legal form, to carry out self-liquidation procedures for fixed and current assets, settle obligations, and complete deregistration procedures from the commercial register or civil register for those registered in either of these registers.
- Cessation that requires a taxpayer who is obligated to join a syndicate in order to practice the profession to remove their name from the syndicate register, or to transfer their name to the list of retired or non-practicing members.
- Cessation resulting from a court judgment due to bankruptcy or any other reason, requiring the bankruptcy trustee or court-appointed liquidator to complete compulsory liquidation procedures for the taxpayer’s fixed and current assets, settle obligations, and complete deregistration procedures from the commercial register. The date of declaration of bankruptcy is considered the date on which the bankrupt person ceased business.
The taxpayer is considered to have temporarily ceased business in case of interruption of business without such interruption requiring the procedures referred to in paragraph A of this article, particularly where the taxpayer retains their registration number in the commercial register, civil register, or syndicate register, or where their name is not transferred to the list of retired or non-practicing members. Accordingly, the taxpayer must submit a temporary cessation of business declaration within two months from the date of cessation, according to a form prepared by the Ministry of Finance.
An employee who leaves their job is considered to have ceased work with respect to the employer. The employer must submit to the tax administration a list of the names of employees who have left work, together with the annual declaration related to the tax on salaries and wages, according to a form prepared by the Ministry of Finance.