Obligations of Taxpayers Ceasing Business

Obligations of Taxpayers Who Have Ceased Business

1. Partnerships and capital companies, including offshore companies and holding companies:
   • Submit the cessation of business declaration, Form M6, attached with the minutes in which the cessation of business was decided for capital companies, and the partnership termination and company dissolution agreement for partnerships.
   • Submit all tax declarations for the period from January 1 until the date of cessation of business, and pay all due taxes within two months from the date of cessation.
   • Submit the auditor’s report within 3 months from the date of cessation of business for companies required to submit it, and within two months from the date of cessation if the liquidation works were completed on the date of cessation.
   • If the company that ceased business is a partnership and one of its partners continues working individually or in another partnership, the partner must declare their share in the result of the company that ceased business within their annual declaration.
   • If the company still owns fixed assets or inventory after ceasing business, it is converted in the tax system to the status of “company under liquidation”, and a special fiscal year is assigned to it starting from the date of cessation of business and ending on the corresponding day of the following year.
   • If the liquidation period exceeds this special fiscal year, the liquidator must prepare the annual balance sheet and pay the taxes due for that year within the legal declaration deadline, 3 months or 5 months depending on the company’s legal form, starting from the end of the special fiscal year, and submit the auditor’s report within the legal deadline.
   • If the liquidation works are completed, and the general assembly of joint-stock companies, the assembly of quota holders in limited liability companies, and the partners in partnerships approve the liquidation result, the annual non-operation declaration remains required until the company is deregistered from the commercial register.
   • Notify the competent financial unit when the company is deregistered from the commercial register.
2. Natural persons subject to the actual-profit or fixed-profit method who own a commercial establishment registered in the commercial register:
   • Submit the cessation of business declaration, Form M6.
   • Submit all tax declarations for the period from January 1 until the date of cessation of business, and pay all due taxes within two months from the date of cessation, unless the taxpayer continues working individually or as a partner in a partnership, in which case the taxpayer must declare their share in the result of the establishment that ceased business within their annual declaration where they continue practicing their business.
   • The annual non-operation declaration remains required until the establishment is deregistered from the commercial register.
   • Notify the competent financial unit when the establishment is deregistered from the commercial register.
3. Natural persons subject to the actual-profit or fixed-profit method, liberal professionals or owners of commercial establishments not registered in the commercial register:
   • Submit the cessation of business declaration, Form M6.
   • Submit all tax declarations for the period from January 1 until the date of cessation of business, and pay all due taxes within two months from the date of cessation, unless the taxpayer continues working individually or as a partner in a partnership, in which case the taxpayer must declare their share in the result of the establishment that ceased business within their annual declaration where they continue practicing their business.
4. Liberal professionals required to join a syndicate:
   • If the cessation of business is due to occupying a position in the public or private sector that prohibits them from practicing their activity subject to Chapter One tax, they are not required to submit the annual non-operation declaration after cessation.
   • If the cessation of business is due to travel, they must submit the non-operation declaration annually within the legal deadline.
5. Taxpayers subject to the estimated-profit method:
   • Submit the cessation of business declaration, Form M6.
   • Pay the taxes due from them.
   • Submit all tax declarations, where applicable.
6. Cessation of business due to the death of a taxpayer who was a partner in a partnership or practiced business independently:
   • The heirs must submit the cessation of business declaration for the deceased, Form M6, along with the declaration of the deceased’s share in the company’s business result within two months from the date of death. They must also submit all tax declarations for the period extending from the end of the previous declared tax period until the date of death if the taxpayer was subject to the fixed-profit or estimated-profit method.
7. Persons exempt from profits tax other than companies:
   • Submit the cessation of business declaration, Form M6.
   • Submit all tax declarations for the period from January 1 until the date of cessation of business, and pay all due taxes within two months from the date of cessation.

Note

The provisions mentioned above apply to heirs, who must submit the information and statements required for tax assessment within two months from the date of death.

The provisions mentioned above also apply to court-appointed liquidators and bankruptcy trustees in the event of bankruptcy. In such case, the deadline begins from the date of issuance of the decision appointing them.