Obligations of Taxpayers Ceasing Business

Obligations of Taxpayers Ceasing Business

1. Partnerships and capital companies, including offshore companies, holding companies and holding entities:
   • Submit the cessation of business declaration, form (A6), attached to the transfer report in case the cessation is due to the transfer of the activities of the establishment or capital company.
   • Submit all tax declarations for the period from the first of January until the date of cessation of business, and settle all taxes due within two months from the date of cessation.
   • Submit the auditor’s report within three 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 work was completed on the date of cessation.
   • If the company ceasing business is a general partnership and one of its partners continues operating individually or within another partnership, that partner must declare his share of the result of the company that ceased business within his annual declaration.
   • If, after ceasing business, the company still owns fixed assets or inventory, it is treated for tax purposes as a “company under liquidation,” and a special fiscal year is assigned to it, starting from the date of cessation 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 settle the tax due for that year within the legal declaration deadline, either three or five months depending on the company’s legal form, from the end date of the special fiscal year, and must submit the auditor’s report within the legal deadline.
   • If the liquidation is completed and the general assembly of shareholders in joint-stock companies, or the partners’ assembly in limited liability companies and partnerships, approves the liquidation result, the annual non-practice of business declaration remains required until the company is struck off the Commercial Register.
   • Notify the competent financial unit when the company is struck off the Commercial Register.
2. Natural persons taxed on the basis of real profit or lump-sum profit and owning a commercial establishment registered in the Commercial Register:
   • Submit the cessation of business declaration, form (A6).
   • Submit all tax declarations for the period from the first of January until the date of cessation of business, and settle all taxes due within two months from the date of cessation. However, if the taxpayer continues operating individually or as a partner in a partnership, he must declare his share of the result of the establishment that ceased business within his annual declaration, since he is still carrying on his activity.
   • The annual non-practice of business declaration remains required until the establishment is struck off the Commercial Register.
   • Notify the competent financial unit when the establishment is struck off the Commercial Register.
3. Natural persons taxed on the basis of real profit or lump-sum profit, liberal professionals or owners of commercial establishments not registered in the Commercial Register:
   • Submit the cessation of business declaration, form (A6).
   • Submit all tax declarations for the period from the first of January until the date of cessation of business, and settle all taxes due within two months from the date of cessation. However, if the taxpayer continues operating individually or as a partner in a partnership, he must declare his share of the result of the establishment that ceased business within his annual declaration, since he is still carrying on his activity.
4. Liberal professionals required to be members of a professional syndicate:
   • If the cessation is due to employment in the public or private sector, and such employment prevents them from practicing their activity subject to Chapter One income tax, they are not required to submit the annual declaration of non-practice of business after cessation.
   • If the cessation is due to another reason, they must submit the annual declaration of non-practice of business within the legal deadline.
5. Taxpayers subject to the estimated profit basis:
   • Submit the cessation of business declaration, form (A6).
   • Settle the taxes due.
   • Settle all tax declarations, if any.
6. Cessation of business due to the death of the taxpayer, whether a partner in a partnership or a person practicing independently:
   • Submit the cessation of business declaration for settlement, form (A6), by the heirs, together with the declaration of the deceased person’s share of the result of the company’s business, within two months from the date of death. All tax declarations for the period extending from the beginning of the previous tax period until the declaration date must also be submitted, whether the taxpayer was subject to the lump-sum profit basis or the estimated profit basis.
7. Persons taxed on profits other than companies:
   • Submit the cessation of business declaration, form (A6).
   • Submit all tax declarations for the period from the first of January until the date of cessation of business, and settle all taxes due within two months from the date of cessation.

Note:

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

The same provisions also apply to court-appointed liquidators and bankruptcy trustees from the date of bankruptcy, with the deadline starting from the date of the decision appointing them.