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The publication of regulation extending the deadline in submitting CIT return

2021-04-21

On 29 March 2021, the regulation of the Minister of Finance, Funds and Regional Policy on extending the deadline for filing the returns on the amount of income earned (loss incurred) and payment of due tax by corporate income taxpayers was published in the Journal of Laws.

Let us remind you that pursuant to Art. 27 (1) of the Corporate Income Tax Act, taxpayers are obliged to file CIT-8 returns with the tax office by the end of the third month after the end of the financial year and to pay the tax due or the difference between the tax due and the sum of the advances due paid from the beginning of the year. Thus, in the case of taxpayers for whom the tax year coincides with the calendar year, the indicated deadline should have expired on March 31, 2021.

According to the Ministry of Finance, however, due to the current epidemic state, it is reasonable to implement solutions for taxpayers helping them to fulfil their obligation to file the annual tax returns.

In consequence, the deadline has been extended until June 30, 2021 to:

  • submit a return on the amount of income earned (loss incurred) in the tax year that ended between December 1, 2020 and February 28, 2021.
  • pay the tax due indicated in that return or the difference between the tax due on the income indicated in that return and the sum of the advance payments due for the period from the beginning of the year

The extension also applies to taxpayers of lump-sum tax on the income of companies (the so-called Estonian CIT), whose first year of lump-sum taxation began in the period from 1 January 2021 to 1 March 2021.

It is worth mentioning that a similar regulation extending the deadline for the performance of the tax obligations mentioned above was included in the draft amendment to the Act on Excise Duty and certain other acts. However, due to the fact that the course of work on the act did not guarantee that the changes provided for therein would enter into force prior to March 31, 2021, it proved necessary to issue the regulation in question.

Furthermore, in response to the demands of business owners and accountants, it was also decided to extend the deadlines for the preparation of the financial statements for the financial year 2020, for the private sector and non-profit organizations – by 3 months, and for entities in the public finance sector – by 1 month. The Regulation of the Minister of Finance, Development Funds and Regional Policy on this matter was also published on March 29, 2021.

The Regulations extending the deadlines of submitting the CIT-8 return and preparing financial statements for 2020 came into force on March 30, 2021.

 

Anna Skórska, Tax Consultant, ATA Tax Sp. z o.o.

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