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Rules on Registration of Business Facilities and Tax Exemptions
Rules on Registration of Business Facilities and Tax Exemptions
We inform you that according to the provisions of Article 33.2 of the Tax Code, if a taxpayer has a business entity (facility), it must be registered for tax purposes at the address where the entity (facility) is located. Thus, the registration of the business entity used in entrepreneurial activity with the tax authorities is a legal requirement.
The failure of a taxpayer to register their business entity with the tax authorities does not restrict the taxpayer’s right to exemption from income tax, as no such restriction is provided for in the tax legislation.
However, in order for agricultural producers to benefit from the relevant exemptions stipulated in the Tax Code, they must provide documents confirming that the products sold were grown on land owned or used by them (documents confirming ownership or use of the land and assets used in the process). Additionally, if the products were produced by a family farming household, a copy of the certificate issued by the municipality confirming registration, along with other necessary documents, must be available.
Furthermore, we inform you that, according to Article 58.15 of the Tax Code, if persons entitled to tax benefits and exemptions under this Code fail to declare or underreport their exempt income, a financial sanction amounting to 6% of the undeclared or underreported income (before expenses) shall be imposed on the taxpayer.
We inform you that according to the provisions of Article 33.2 of the Tax Code, if a taxpayer has a business entity (facility), it must be registered for tax purposes at the address where the entity (facility) is located. Thus, the registration of the business entity used in entrepreneurial activity with the tax authorities is a legal requirement.
The failure of a taxpayer to register their business entity with the tax authorities does not restrict the taxpayer’s right to exemption from income tax, as no such restriction is provided for in the tax legislation.
However, in order for agricultural producers to benefit from the relevant exemptions stipulated in the Tax Code, they must provide documents confirming that the products sold were grown on land owned or used by them (documents confirming ownership or use of the land and assets used in the process). Additionally, if the products were produced by a family farming household, a copy of the certificate issued by the municipality confirming registration, along with other necessary documents, must be available.
Furthermore, we inform you that, according to Article 58.15 of the Tax Code, if persons entitled to tax benefits and exemptions under this Code fail to declare or underreport their exempt income, a financial sanction amounting to 6% of the undeclared or underreported income (before expenses) shall be imposed on the taxpayer.