Are there set dates for payment of tax, provisionally or in arrears, and what happens with amounts of tax in dispute with the regulatory authority?

Tax (4th edition)

Angola Small Flag Angola

Yes. The deadlines to pay tax due are expressly set forth in the law. For example, for the major part of the corporate taxpayers, Industrial Tax must be paid until the end of May.

For amounts of tax in dispute the taxpayer may opt either to pay the tax (and then request a refund in case of a positive outcome) or provide a guarantee to suspend the enforced collection procedure.

Brazil Small Flag Brazil

Given the number of taxes that a taxpayer is required to pay, there is an official calendar that is made available by the tax authorities stating the due dates of each tax. Certain taxes (such as income tax) in certain situations may be paid provisionally or in advance throughout the year and, at the end of the fiscal year, either a credit or a debt may be ascertained. Other taxes are due at their final amounts and on dates preestablished by the government.

Should the taxpayer fail to pay a given tax, but remedies the mistake before an audit, such tax amount may be subject only to the adjustment according to the SELIC rate, depending on certain premises. On the other hand, in the event of a tax assessment, the taxpayer will be required to pay the tax amount increased by interest at the SELIC rate plus an automatic fine ranging from 50% to more than 200%, in the most serious cases, depending on the type of tax.

Canada Small Flag Canada

Taxes are typically payable by individuals on or before April 30, each year. Taxes are also paid by instalments by taxpayers (including individuals and corporations) generating business income, in which case instalments are paid every quarter (March, June, September and December).

When an assessment is being contested, collection measures are normally suspended and the taxpayer can wait until the Tax Court judgment before any payment is required to be made. For large corporations, 50% must be paid in spite of an objection. For sales taxes and payroll taxes assessments, 100% must be paid even if an objection is filed.

Should the collection measures be suspended, compound interest is applicable on a daily basis. If taxes are paid and later refunded by the Canada Revenue Agency (e.g. if the Tax Court finds in favor of the taxpayer), interest will be paid to the taxpayer form the date the amount had been paid.

Colombia Small Flag Colombia

There are set dates for the compliance with tax payments and related tax obligations. Certain taxes may be paid in arrears as determined either by the law or by the competent governmental authority.

The payment of added taxes in disputes with the regulatory authority shall only be mandatory with a definitive adverse decision either at a tax authority level (if the taxpayer does not challenge the tax authority’s official acts before the courts), or at a court level.

Should the dispute refer to amounts paid in excess by the taxpayer, its refund shall depend of a definitive favorable decision either at a tax authority level or at a court level.

Cyprus Small Flag Cyprus

The tax year in Cyprus for individuals and companies is the calendar year.

Both individuals and companies must submit a provisional estimate of income, profits and tax payable for the year by 31 July of the tax year, together with a remittance of half the estimated tax payable. The estimates may be revised at any time before 31 December of the tax year, and the balance of the estimated tax payable must be paid by then. A penalty may be imposed in the event of an excessive difference between the first and the final estimate.

Individuals who are exempt from the requirement to provide audited financial statements are required to submit their final tax return for the year, with a remittance for any tax payable, by 30 September following the end of the tax year. Tax returns must be submitted electronically via the official TAXISNET system.

Employers must submit their return of payments to employees and tax deducted for each tax year (I.R.7 ) no later than 31 July of the following year.

Companies and individuals who are obliged to provide audited financial statements are required to pay the balance of tax due by 1 August following the end of the tax year. Currently a penalty of 10% is imposed if the tax paid under the provisional assessment is less than 75% tax charge of the year. The final tax return must be submitted before 31 March of the following year (15 months after the end of the year in question).

Germany Small Flag Germany

There are set dates for the prepayment of income and corporate taxes on 10 March, 10 June, 10 September and 10 December each year, whereas trade tax prepayments are set on 15 February, 15 May, 15 August and 15 November. Wage tax has to be paid by way of withholding on a monthly, quarterly or yearly basis depending on the amount of wage tax due.

Tax assessed but appealed against is regularly still due and enforceable. In order for the tax not to be payable, the taxpayer has to apply for a suspension of enforcement by the competent tax authority or the Fiscal Court. A suspension of enforcement has to be granted if the legality of the underlying tax assessment raises serious doubts. However, payment suspension of enforcement gives rise to a monthly interest charge of 0.5 % (6 % p.a.) of the suspended tax payment which will only be due if the taxpayer finally has to pay the disputed tax amount.

Due to doubts as to the compatibility of the statutory interest rate with German constitutional law, the German Federal Ministry of Finance (Bundesministerium der Finanzen) has recently decided to grant the suspension of interest accrued upon the taxpayer’s request. Therefore, an amendment of the interest rate by the legislature is expected in the near future. The Ministry’s decision is binding for all tax authorities in Germany.

Gibraltar Small Flag Gibraltar

Individuals

Taxes from income from employment is deducted from wages and salaries under the Pay As Your Earn (“PAYE”)_system. Every employer paying emoluments to an employee is required to deduct from the amount of emoluments a specified amount of tax and social contributions. Payment is due by the 15th day the following month.

Self-employed individuals must make two payments on account, by 31 January and 30 June, in each year and each payment on account should be 50% of the tax paid in the previous year’s assessment. Final payment of any outstanding tax for that year should be submitted with the individual’s tax return (30 November following the end of the tax year) and should be the tax liability for that year less the two payments on account made.

Companies

Companies are required to make two payments on account, by 28 February and 30 September, in each year and each payment should be 50% of the tax paid for a relevant accounting period as defined within the Income Tax Act 2010 (“Tax Act”). Final payment of any outstanding tax for that year should be submitted with the company’s tax return and should be the tax liability for that year less the two tax payments on account made.

Trusts

Trustees of a trust with income assessable to taxation in Gibraltar must make two payments on account, by 31 January and 30 June, in each year and each payment on account should be 50% of the tax paid in the previous year’s assessment. Final payment of any outstanding tax for that year should be submitted with the trust’s tax return (30 November following the end of the tax year) and should be the tax liability for that year less the two payments on account made.

Disputes

If a tax payer disputes an assessment, he may appeal against that assessment by notice in writing addressed to the Commissioner within 28 days of the date of service of the notice of the assessment. Any appeal shall be to the Tribunal and the notice of appeal against any assessment shall state the grounds of the appeal, in such reasonable detail as to enable all parties to the appeal to be aware of the issues to be contested.

Greece Small Flag Greece

The dates for payment of tax and advance tax are set. Individuals pay income tax in three equal bi-monthly installments. Legal persons and entities pay income tax at maximum in six monthly equal installments whereas they also prepay 100% of their tax as an advance payment of the subsequent year’s tax. The dates for withholding tax as well as paying other taxes such as VAT are also set, whereas the time of payment of one-off taxes is usually set by reference to the specific transaction triggering the relevant tax obligation. When a tax becomes overdue, it bears interest for each month the payment is delayed. When a tax assessment is challenged before the Dispute Resolution Unit, 50% of the assessed amount can be suspended until a final court judgement is issued, provided that the taxpayer pays the remaining 50%. However, in case the taxpayer loses the case at court, the suspended 50% of the assessed amount should be paid together with interest which is calculated from the date of the assessment.

India Small Flag India

IT Act requires a taxpayer to estimate its tax liability for entire FY in advance and pay tax in advance on quarterly basis within the statutory due dates outlined below:

Due date

Amount of advance tax to be paid

15th June of relevant FY

15% of total estimated tax liability

15th September of relevant FY

45% of total estimated tax liability

15th December of relevant FY

75% of total estimated tax liability

15th March of relevant FY

100% of total estimated tax liability

Further, where on payments received by a taxpayer, the payer has deducted tax at source (“TDS”) and deposited the same with the Government of India, the taxpayer can claim credit of such amount. The balance tax, if any, after adjusting advance tax and TDS is to be paid by way of self-assessment tax along with applicable interest prior to filing the annual return of income.

For the disputed tax amount, the taxpayer can either make entire payment or obtain a ‘stay’ on disputed tax demand by depositing 20% down payment where it has filed an appeal before the CIT(A). In case the matter is eventually ruled in favour of the taxpayer, the tax paid in dispute would be refunded along with interest at 0.5% per month or part of the month. However, where the matter is ruled against the taxpayer, the taxpayer would be required to pay the outstanding tax along with the interest at 1% per month or part of the month.

Ireland Small Flag Ireland

Individuals who have an income tax filing obligation must pay preliminary tax for a calendar year by 31 October of that year. To avoid possible interest charges the payment must be 90% of the current year liability or 100% of the prior year liability. Any balancing tax payment in respect of a calendar year must be paid by 31 October of the following calendar year.

Companies generally pay corporation tax in three installments: (i) on the 21st day of the sixth month of the current financial year a payment equal to 45% of the current year tax liability (or 50% of the preceding year tax liability); (ii) on the 21st day of the eleventh month of the current financial year a payment to bring the total payments for the year to 90% of the current year tax liability; (iii) on the 21st day of the ninth month following the relevant financial year (along with the corporation tax filing) a balancing payment of the remaining 10% of the relevant financial year liability.

VAT and payroll withholding tax payments are made either bimonthly or monthly in arrears along with the relevant filing.

In order to lodge an appeal the taxpayer must pay the tax that the taxpayer believes is due. There is no requirement to pay the disputed amount. However if there is an additional tax liability following the determination of an appeal the additional amount becomes due and payable from the original due date of the disputed amount.

Israel Small Flag Israel

Taxpayers are generally required to make monthly advance payments of corporate taxes (typically calculated as a percentage of the taxpayer’s turnover) throughout the tax year, on account of the annual tax liability, and to pay any balance shown on the tax return when submitted.

If a taxpayer appeals an assessment to the District Court and pending its ruling, tax amounts under dispute (including interest and indexing payments thereon) are suspended.

Payment of VAT is made on a periodic basis with submission of a periodic VAT return (filed on a monthly basis if a certain turnover threshold is exceeded, and if not, bi-monthly). Similar treatment with respect to payment of disputed VAT amounts applies.

Italy Small Flag Italy

Income taxes are usually to be paid in three moments of the year: a first advance payment by the end of the sixth month of the relevant tax year; a second advance payment by the end of the eleventh month of the relevant tax year and the balance payment by the end of the sixth month following the end of the relevant tax year. The advance payments are computed on the basis of the tax payments of previous years. Such deadlines may be postponed. It is possible to pay the relevant amounts of taxes in instalments (in such a case, interest is due).

In the case of assessment notices issued by the tax authorities, additional taxes as well as penalties and interest are usually to be paid within 60 days from receipt of the notice. In the case the assessment notice is appealed, the taxpayer is required to make provisional partial payment of the tax in dispute. In certain instances, e.g., transfer pricing adjustments for which the taxpayer wishes to require a MAP, the taxpayer can claim the suspension of collection.

Austria Small Flag Austria

Prepayments of income tax are due by the middle of each annual quarter. Prepayments of VAT are due by the 15th of the second month following the prepayment-period, which can be either the annual quarter or the calendar month (the latter for annual turnovers exceeding € 100.000). As regards annual tax returns, see above point 2.

Assessment decrees can be appealed against, in which case the tax still remains due and enforceable. A suspension of enforcement is usually granted upon request in case that the appeal has a chance of success and the taxpayer does not jeopardize the enforcement of taxes. However, suspension of enforcement gives rise to a monthly interest charge (of 2% above the base rate) of the suspended tax payment which will only be due if the taxpayer finally has to pay the disputed tax amount.

Japan Small Flag Japan

Yes, there are set dates for the payment of tax for corporate taxpayers and individual taxpayers. For example, for corporate taxpayers, corporation tax and consumption tax should be paid within two months from the tax return filing date (a one-month extension is available only for corporation tax). In addition, particular corporate taxpayers should pay interim tax for corporate tax and consumption tax if they paid at least a certain amount of corporate tax and consumption tax in the previous fiscal year.

Even if taxpayers file a grievance, such as a request for reinvestigation, a request for reconsideration or a tax lawsuit, the tax authority may still enforce collection of tax over an objection by the taxpayer according to Japanese tax law. Therefore, taxpayers usually pay the tax amount at first and then file the grievance. Of course, when the taxpayers finally emerge victorious in the claim, they can recover the paid tax amount plus interest calculated at a designated rate.

Luxembourg Small Flag Luxembourg

Please see below the fiscal calendar summarized in a table:

Taxes

Taxpayer

Relevant tax authority

Deadlines

Frequency

Personal income tax

 

Natural persons

 

Partnerships

 

Sole proprietorships

ACD

On the 10th of March, June, September and December.

On a quarterly basis

Corporate income tax

Capital companies

ACD

On the 10th of March, June, September and December.

quarterly advances

Municipal business tax

 

Capital companies

 

Partnerships

Sole proprietorships

ACD

On the 10th of February, May, August and November.

quarterly advances

Net wealth tax

Capital companies

ACD

On the 10th of February, May, August and November.

quarterly advances

VAT

VAT taxpayers (incl. companies, individuals carrying on a business activity, landlords if they have opted for VAT). If the turnover is:

 

-    < EUR 112,000

 

-    > EUR 112,000 < EUR 620,000

 

 

 

 

 

 

-    > EUR 620,000

 

 

AED

 

 

 

 

 

 

 

 

 

-     Before the 1st of May;

-     Before the 15th of January, April, July and October with an annual return to be filed before the 1st of May;

 

-     Before the 15th of each month.

 

 

 

 

 

 

 

 

 

-     yearly

 

-     quarterly and yearly

 

 

 

 

 

 

-     monthly and yearly

Subscription tax

Special investment Funds

 

Holding companies

AED

To be paid before the end of each quarter

 

quarterly

Malaysia Small Flag Malaysia

Taxes payable under an assessment for a year of assessment are due and payable on the due date whether or not that person appeals against the assessment.

Taxpayers are required to make payment of taxes for the amount raised by the IRB within 30 days from service of the assessment in question. Failure to make payment of taxes on time would result in the imposition of additional penalties.

In exceptional cases, however, a taxpayer may apply for judicial review, where the High Court may grant a stay order against the payment of the disputed taxes.

Mexico Small Flag Mexico

Depending on the tax at hand or the applicable tax regime, different set dates for payment could apply. For instance, income tax is generally paid by means of an annual tax return that must be filed within the first three months following the end of the fiscal year for which it is being filed. However, taxpayers are also required to file estimated monthly returns relating to income tax due. Concerning value added tax, taxpayers ought to file their corresponding returns on a monthly basis.

In pursuance of the Federal Tax Code, whenever the applicable law does not indicate the relevant tax’s date of payment, it ought to be paid by means of a tax return filed: (i) within the first seventeen days of the subsequent month for which the corresponding tax is being paid, in cases where the taxpayer is required to withhold; or (ii) within the next five days after the corresponding tax has been caused for all other cases.

In cases where taxpayers challenge a tax liability before the Tax Administration Service, the payment in dispute is postponed until the corresponding administrative resolution is issued and served to the taxpayer.

Notwithstanding the foregoing, whenever taxpayers challenge a tax liability before the Local or Federal Court of Administrative Justice or any court of the judicial branch, the disputed amount ought to be guaranteed by the taxpayer in order for it not to be collected by the tax authorities.

In any case, once the tax dispute has been resolved, the winning party is entitled to receive the disputed amount updated to present value as well as interests accrued in connection therewith (interests are accruable for up to five years).

The Netherlands Small Flag The Netherlands

In principle, corporate taxpayer receive a preliminary assessment from the Dutch tax authorities at the start of the fiscal year concerned with an amount calculated on the basis of data from previous years. The amount due under the preliminary assessment may be paid in monthly installments. Generally, tax must be paid within 6 weeks after a final assessment.

If an objection is lodged against an assessment, it can contain a request to have the payment of tax postponed until a final judgment is rendered.

Peru Small Flag Peru

As a general rule, taxes for which there is no specific due date set for its payment must be paid up to the 12th business day of the month following that of its accrual. In the case of taxes collected by SUNAT, this entity set the due dates for each taxpayer (based on the last digit of its tax identification number), but these due dates are normally located between the second and the third week of the month following that of the accrual of the tax.

In the case of the income tax, both individuals and corporations are required to submit a return (save in certain punctual cases) and pay the tax in March or April of the following year to that in which the tax accrued. SUNAT set the due date for each taxpayer based on the last digit of its tax ID. However, advance payments must be made by corporations and sole proprietors on a monthly basis.

Payment of any amounts disputed by taxpayers can be suspended so long as they have timely submitted a claim or an appeal at the administrative state. Once the administrative stage is completed, any disputed amounts needs be paid, unless the taxpayer gets a preliminary order from the Judiciary suspending the payment under certain conditions, which, generally speaking, consist in the placement of a bond for an amount equal to 60% of the amount disputed, together with interests and penalties.

Philippines Small Flag Philippines

The dates for payment of taxes are the dates prescribed for the filing of tax returns. This is the “pay as you file system” followed in the Philippines. The dates for filing of returns depend on the type of taxpayer and the nature of tax to be paid. Generally, individuals are required to file their income tax returns on or before the fifteenth day of April each year covering the income for the preceding taxable year while corporations are required to file on or before the fifteenth day of April or on or before the fifteenth day of the fourth month following the close of its fiscal year, as the case may be.

When the tax due is in excess of two thousand pesos (Php2,000.00), the taxpayer other than a corporation may elect to pay the tax in two (2) equal installments, in which case the first installment shall be paid at the time when the return is filed and the second installment on or before October 15 following the close of the calendar year.

In case of dispute with the tax authority, a taxpayer can avail of the administrative remedy of filing a protest. If the protest is denied or is not resolved by the Commissioner of Internal Revenue, the taxpayer can avail of judicial remedy by filing a petition for review before the Court of Tax Appeals and the Supreme Court.

There is no requirement to pay a disputed tax assessment. Even if the tax dispute reaches the court, its collection, in most cases, is suspended upon the posting of a bond. However, the amount of unpaid tax as finally determined by the court is subject to interest and penalties computed from the date when the tax was due.

Poland Small Flag Poland

CIT taxpayers are required to make monthly advance payments of corporate income tax by the 20th day of the following month, and advance payment based on the cumulative taxable income or tax loss for the tax year. Individuals are required to pay all their tax liabilities by 30 April after the end of the tax year.

In accordance with the Polish tax law, the tax assessment shall not be enforced before the deadline for filing an appeal to the second instance authority – within 14 days from the date of delivery or the announcement of the decision. Appeal suspends the execution of the decision of the tax office.

This means that in principle, the taxpayer is obliged to immediately pay the tax amount + interest on late payment resulting from the final decision. On the other hand, the tax authority is entitled to immediately enforce the amount of tax or initiate enforcement after the lapse of the fourteen day period from the issuance of the final decision.

The final decision is enforceable, unless it has been suspended. According to the applicable law, the taxpayer may submit an application to suspend the execution of the decision either to the tax authority of the first instance or directly to the voivodship administrative court.

The tax authority of the first instance stops the execution of the final decision at the request of the taxpayer in the event of lodging a complaint to the voivodship administrative court until the decision of the court becomes final.

In such a case, the tax authority takes the pertinent security (such as a bank guarantee) ensuring performance of tax obligation resulting from the final decision. If the taxpayer provides the tax authority with the security, the tax authorities would be automatically obliged to suspend the execution of the decision. In this case the interest is not calculated.

An alternative solution for taxpayers who do not have sufficient fund to be able to establish security on its assets is to request to suspend the decision by the administrative court. The court may suspend the execution of the decision at the request of the taxpayer upon receipt of a complaint lodged by him. The condition for applying this solution is that the taxpayer demonstrates that the execution of the decision creates the risk of causing significant damage or causing irreversible consequences. In this case interest on tax arrears is accrued.

Portugal Small Flag Portugal

Each of the existing taxes in Portugal has different dates and procedures for the respective payment.

As an example, the CIT is paid in instalments. Three payments on account of the final tax due in July, September, and up to 15 December of the year in which taxable income arises corresponding to 95% of the previous year's corporate tax assessment (for taxpayers with a turnover above EUR 500,000.

Generally, for tax litigation pending before the Tax Authority or in judicial proceedings, instead of paying the amount of tax in dispute, taxpayers may provide bank guarantees.
This solution has two advantages, in case of success in the pending case:

  • The taxpayer does not need a request for reimbursement to the Tax Authorities;
  • The taxpayer may be reimbursed for expenses related to the provision of bank guarantee (including Stamp Duty), by means of a request to the Tax Authorities.

South Africa Small Flag South Africa

South Africa has a complex tax system with various tax types applying to a broad spectrum of entities and individuals. There are set dates for payment of each different tax and these dates are as follows:

  • Corporate income tax is paid on a provisional tax basis. The first payment must be made within six months from the beginning of the year of assessment. The second payment must be made on or before the last day of the year of assessment. The third and final payment must be made within seven months after the year of assessment if the tax period ends in February and within six months for all other cases. Generally, individuals with multiple sources of income will also be registered as provisional taxpayers.
  • The payment dates for VAT vary depending on the total value of taxable supplies made by a registered VAT vendor, which are categorised as follows:
    • VAT will be paid monthly if, amongst other requirements, the value of taxable supplies made exceeds R30 million;
    • VAT will be paid ever two months if the value of taxable supplies made is between R1 million and R30 million;
    • VAT will paid bi-annually if an enterprise is carrying out agricultural, pastoral or other farming activities and the value of taxable supplies made does not exceed R1.5 million; and
    • VAT will be paid annually upon written application to SARS indicating that it has been agreed between the VAT vendor and the recipient of the taxable supplies that the tax invoices are issued and consideration is received only once a year. In order to pay VAT annually:

      i. The VAT vendor must be either a company or a trust;

      ii. The business must consist entirely of letting fixed property, the renting of moveable goods or the provision of a management or administration service to connected persons; and

      iii. The application should also indicate that both the VAT vendor and the recipients of the services are registered for VAT and may claim the relevant input tax deductions regarding the taxable supplies.

  • Turnover tax (being a tax levied on small business with an annual turnover of R1 000 000 or less) has three payment dates. The first payment is in the middle of the tax year on the last business day of August. The second payment is at the end of the tax year on the last business day of February. The final payment is after the annual tax return is submitted and processed, which occurs between 1 July and 31 January of the following year.
  • Individuals must submit personal income tax returns annually, usually by 31 October of the year following the applicable year of assessment, and any income tax must be paid by the date stipulated by SARS on the relevant notice of assessment. Individuals who earn less than R500 000 per annum may not be required to file income tax returns where they comply with certain further requirements, including that they:
    • received income from one employer only for the full year of assessment;
    • received no other income (e.g. rental income, income from another employer or business income); and
    • did not claim additional deductions (e.g. for medical costs, retirement annuity fund contributions or travel expenses).
  • Employer's must deduct and pay over employees' tax to SARS by the 7th day of every month following the month in which the amount was deduct from employees' salaries.
  • Donations tax must usually be paid at the end of the month following the month during which the donation took place.
  • Returns for withholding taxes on interest, dividends and royalties should be submitted to SARS before the end of the month after the month when the interest, dividend or royalty was paid. The tax withheld on interest, dividends and royalties must be paid over to SARS by the withholding agent (either the company or a regulated intermediary) on or before the last day of the month when it was paid.
  • Generally, a broker or transfer secretary must pay securities transfer tax on the transfer of listed securities by the 14th day of the month following the month during which a transfer took place. The person for whose benefit that security is transferred will be required to place the broker or transfer secretary in funds to settle the tax. For unlisted securities, securities transfer tax must be paid within two months from the end of the month in which the transfer of the unlisted security took place. The entity whose shares are transferred will have the obligation to pay the securities transfer tax. However, such company will have a right of recourse against the purchaser of the shares.
  • Transfer duty is payable within six months of the date of acquisition of the immovable property.

Generally, SARS adopts the "pay now, argue later" principle regarding the payment of any tax due. Subject to complying with a non-exhaustive list of requirements, a taxpayer may, however, request SARS to suspend the payment of any tax, or a portion thereof, due under an assessment, which the taxpayer disputes.

Spain Small Flag Spain

Main taxes are payable when the tax returns are filed and in any case before the last day for the voluntary payment.

For Corporate Income Tax the payment should be made by the 25th day following the sixth months after the closing (ie. If the financial closing were on the 31st of December the deadline is the 25th of July, while if the closing were on the 31st of March the last day for the voluntary payment would be the 25th of October).

For VAT and withholdings, the deadline for the payment is generally by the 20th day of the following month (small companies file these returns on a quarterly basis and the deadline is the 20 first days of the following quarter).

When the tax debt is not self-assessed but issued by the Tax Authorities the payment should be made within the legal deadline which depends on the tax debt’s notification date.

  • Those debts communicated by the 15th of the month should be paid by the 20th of the following month.
  • Those debts communicated between the 16th and the end of the month should be paid by the 5th of the second following month.

If the taxpayers failed to meet the payment deadline the late payment triggers surcharges depending on the delay.

In case the late payment occurs before three months after the deadline the surcharge amounts to 5 per cent of the total tax debt.

A delay longer than three months up to six months triggers a surcharge of 10 per cent of the total debt.

In case the delay were between six months and twelve months the surcharge would amount to 15 per cent of the total debt.

A delay longer than twelve months entails a surcharge of 20 per cent plus late payment interests for each day exceeding the twelve months period.

Switzerland Small Flag Switzerland

When taxpayers file a tax return, they have to make instalments that are supposed to cover their taxes for the current year. The following year, taxpayers receive tax slips based on the items indicated in their tax return. These slips tell you the difference between the deposits you have paid and the actual amount of your tax: if the difference is in your favour, the tax authorities will refund you with interest within 30 days; otherwise, you have 30 days to pay the balance of your tax.

Except before the Swiss Federal Supreme Court, taxpayers do not need to pay the disputed amounts in advance of litigation.

United States Small Flag United States

In the case of a calendar year taxpayer, corporate tax returns are due by April 15 of the following year or with an extension, by October 15. Payment of tax shown on the return is due with the return. In addition, taxpayers are required to make quarterly estimated tax payments of their amounts due throughout the year.

If the taxpayer overpays their taxes for a year, the taxpayer may file for a refund with the IRS. Both underpayments and overpayments of tax bear interest at statutory rates. Taxpayers facing a potential tax deficiency may make a deposit of tax to prevent the accrual of interest pending resolution of the dispute.

Zambia Small Flag Zambia

The Income Tax Act provides that Provisional Tax is due and payable on the following dates in a respective charge year:

  1. 1st instalment – 31st March, payable by 10th April;
  2. 2nd instalment – 30th June, payable by 10th July;
  3. 3rd installment – 30th September, payable by 10th October; and
  4. 4th instalment – 31st December, payable by 10th January;
  5. The final income tax instalment is payable on or before the 30th day June.

Withholding Tax should be paid within 14 days of the transaction.

Property Transfer Tax should be paid within 14 days of ZRA raising the tax assessment upon filing a return.

The VAT Act provides that a monthly return should be made by the 16th or 18th day of the month following the transaction period. The former date being with respect to manual returns and the latter being for electronic returns. The tax payer is expected to pay simultaneously with the filing of the return.

With regard to Customs Duty, a tax payer is requested to make payment upon assessment at the port of entry.

The Excise Duty should be paid within 14 days of the date of the transaction.

United Kingdom Small Flag United Kingdom

For corporates with taxable profits of up to £1.5m, tax must be paid nine months and one day after the end of the accounting period. Where taxable profits exceed £1.5m, businesses must pay their tax in four equal instalments. If a company has a 12-month accounting period, instalments are due:

  • 6 months and 13 days after the first day of the accounting period
  • 3 months after the first instalment
  • 3 months after the second instalment (14 days after the last day of the accounting period)
  • 3 months and 14 days after the last day of the accounting period.

The ultimate date for payment of self-assessed income tax is 31 January following the tax year ending in the previous April. There is also a system of advance payments, known as payments on account, which operates in some cases. However, a year’s income tax liability must be settled by 31 January.

It is possible on application to defer paying tax where the amount is in dispute. However, since 2014, in the case of tax avoidance schemes which are or should have been registered under the Disclosure of Tax Avoidance Schemes (DOTAS) rules HMRC has the power in certain circumstances to require payment of disputed tax in advance of ultimate resolution of the dispute. HMRC exercises the power to require prior payment by issuing an “Accelerated Payment Notice” or “Partner Payment Notice” (APN or PPN) depending on whether the scheme in question involved a partnership (sections 199-233 and Schedule 30-33 Finance Act 2014). The taxpayer has 90 days to object in writing, following which HMRC will confirm, withdraw or amend the notice. There is no right of appeal against the confirmation of an APN or PPN.

Similarly, the Diverted Profits Tax incorporates an advance payment procedure, against which there are only very limited appeal rights.

Belgium Small Flag Belgium

Corporate tax must be prepaid on a quarterly basis. The prepayments correspond to the estimated current year's income.

Non-deductible surcharges will be imposed if the prepayments are not done, or if they are insufficient.

A late payment interest ("LPI") at an annual rate of (currently) 7% is due on tax that is paid belatedly. If the taxpayer contests the tax assessment and leaves the tax unpaid, the LPI will eventually be due if he loses the tax dispute. Whenever possible in practice, the taxpayer will choose to pay the disputed tax, as this will allow him to avoid the LPI and will even generate a LPI of (currently) 7% in his favor if he wins the tax dispute.

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There are set dates for the payment of regular taxes. If the payment is done after such days there will be interest and surcharge to cover.

Only the tax debts that are under a payment agreement with the tax authority have set days of payment in order to comply with the articles or clauses of such agreement.

Surcharge of ten (10%) and monthly interest will rise regarding the amount under dispute. Interest will rise until the date the payment is done in case the resolution of the dispute is against the taxpayer.

Updated: October 9, 2019