What are the principal procedural obligations of a taxpayer, that is, the maintenance of records over what period and how regularly must it file a return or accounts?

Tax (3rd edition)

Switzerland Small Flag Switzerland

Taxpayers are required to file an annual tax return. Generally, individuals must file by 31 March of the following calendar year and companies file following approval of their statutory financial statements, but no later than six months after the closing date of the financial statements. An extension can be requested. Taxpayers are generally required to pay their taxes in monthly instalments.

Typically, taxpayers are required to maintain adequate records for at least ten years.

United States Small Flag United States

Taxpayers are required to file Federal income tax returns on an annual basis. Taxpayers are required to file payroll tax returns (relating to social security and withholding taxes) on a quarterly basis. In addition, indirect taxes (e.g., sales and use taxes) are administered at the state and local levels and require quarterly or annual tax return filings in each jurisdiction in which the taxpayer is required to collect tax.

Under Code Section 6001, the taxpayer must maintain records necessary to substantiate the treatment of items on its Federal income tax returns for as long as those items may become material. The normal statute of limitations is three (3) years from the filing date of a tax return, although this period may be extended by agreement of the taxpayer or through various exceptions.

Canada Small Flag Canada

Canadian-resident taxpayers, including individuals, corporations and trusts, are required to file income tax returns each year. Non-residents may also be required to file tax returns in Canada if they are employed or carry on business in Canada or dispose of certain types of Canadian property.

Most individuals are obliged to file tax return for the year by April 30 of the following year; the deadline for self-employed individuals and their spouses is June 15, but the interest on any balance of taxes owing for the year (after instalment payments) begins to accrue after April 30. For corporations, income tax returns must be filed within six months after the end of each fiscal year.

Taxpayers are generally required to maintain all books and records necessary to calculate and verify their taxes payable (and any other amounts required to be deducted, withheld or collected), for six years after the end of the tax year to which the records relate. In practice, this means that tax records may have to be kept for much longer than six years; a tax return may contain information that can only be verified with much older records.

Taxpayers typically bear the onus of proving that their tax returns are correct, and failure to maintain relevant records may result in the denial of their filing position. Records are generally required to be kept at the taxpayer’s place of business or residence in Canada, and most records may be retained in electronic form.

Austria Small Flag Austria

Tax returns for VAT and income tax / corporate income tax are generally due by 30 April (or 30 June in case of electronic filing) after the calendar year to be assessed. If the taxpayer is represented by a tax adviser, tax returns are due by the end of March of the second year following the assessed calendar year at the latest, unless the tax office requests them earlier. Additionally there are monthly or quarterly pre-payments for VAT and quarterly prepayments for income tax and corporate income tax.

Taxpayer falling under the scope of the Austrian Transfer Pricing Documentation Act must file the master and local file within one month upon request of the tax authority. The CbC-report (if required) has to be filed with the tax office within one year after the end of the pertaining accounting year.

All taxpayers must keep basic records relevant for taxation for at least 7 years, but are advised to keep them as long as the pertaining periods can be re-opened (10 years after the assessed periods). For VAT it is recommendable to keep certain documents regarding investments in real estate for 20 years.

France Small Flag France

Procedural obligations

To be filed

Corporate income tax return (Form 2065)

Within 3 months at the end of each tax year

For companies closing their accounts on December 31st, it is to be filed by the second working day following May 1st of the following year

Transfer pricing return (Form 2257) includes general information about the group’s activities and intangible assets of and more specific information about the French subsidiary transactions with related entities

Within 6 months of the filing of the corporate income tax return

Country by country report (Form 2258)

Within 12 months at the end of the tax year

Value added tax returns (Form 3310)

On a monthly basis

Contribution on added value of enterprises return – Contribution on companies added value (CVAE)

By the second working day following May 1st of the year following the year in which CVAE is due

Investment income ('Imprimé Fiscal Unique', Forms 2561) concerning entities paying investment income (dividend and interest)

By February 15th

New wages declaration including tax aspects ('Declaration Sociale Nominative') implemented for the needs of the new withholding at source to be made by enterprises on their employees' remunerations as from 1st January 2019

By 5 or 15 of each month

General statute of limitation

 

Maintenance of records / booking

10 years

General tax statute of limitation

31 December of Y+6

Corporate income tax / value added tax VAT / Contribution on companies' added value CVAE

31 December of Y+3

Property tax

31 December Y+1

Cyprus Small Flag Cyprus

For income tax purposes, books and records and supporting documentation must be retained for six years after the end of the tax year to which they relate.

Taxpayers are required to submit annual returns of income for income tax purposes, based on audited financial statements complying with IFRS if the taxpayer is a company, or an individual with income above a certain threshold (currently EUR70,000). There is a self-assessment system for income tax, under which taxpayers must submit an estimated tax return part-way through the tax year accompanied by payment of half the estimated liability, and the balance of the estimated liability by the end of the tax year. The final tax return is submitted after the end of the tax year, together with payment of any final balance. See the answer to question 5 for details of due dates.

Employers are also required to submit returns of employees’ pay and tax deducted under PAYE.

Special Defence Contribution, commonly known as SDC tax, is payable on rents, interest and dividends. Subject to certain exemptions, companies making such payments must deduct SDC tax at source and account for it to the Tax Department. Taxpayers receiving rents, interest or dividends from which SDC tax has not been deducted must submit semi-annual returns together with payment of the amount due.

All returns and payments in respect of income tax, SDC tax and PAYE must be made online.
Taxpayers must report any capital gains as they arise. However, as capital gains tax only applies to a very limited range of assets this is not an issue that affects most taxpayers.

There is a separate tax system for qualifying businesses engaged in international shipping, which is outlined in the answer to question 15.

Brazil Small Flag Brazil

As a result of the complexity of the Brazilian tax system as outlined above, complying with all the ancillary tax obligations created by the three levels of tax authorities (federal, state and municipal) can be more challenging than paying the numerous taxes levied upon the Brazilian taxpayer and transactions.

In this regard, after timely paying the taxes, the principal procedural obligations of a Brazilian taxpayer is to fully comply with all other tax ancillary obligations, as set forth by each of the three levels of tax authorities. It is important to note that the non-compliance of tax ancillary obligations may result in huge penalties, that may be higher that the tax itself.

There are currently various tax returns, that are requested by Federal, State and Municipal authorities.

At the federal level, as described below in more details, the following tax returns shall be filed:

  • Corporate income taxes - ECF;
  • Digital Accounting Records - ECD
  • Turnover taxes (PIS and Cofins social contributions) – EFD Contribuiçoes;
  • Value added taxes – IPI – EFD
  • Social contributions – GFIP;
  • Withholding income tax – DIRF
  • Tax Debts and Credits Statement – DCTF;
  • Import and Export of Services declaration - SISCOSERV
  • Statement regarding federal taxes that were offset (DCOMP).

The list above is not exhaustive.

At the state level, the main tax return is related to the ICMS tax (tax on the circulation of goods and transportation and communication services), a state sales tax. Since each of the 26 Brazilian States may create its own reporting system, with different payment dates, periods, forms and requirements, a Brazilian taxpayer must be very cautious in observing all different rules to avoid the imposition of heavy penalties that can reach up in some cases to 50% of the amount of the transactions.

The other State taxes do not require a monthly tax return; they are linked to specific events that must be filed whenever they occur. For instance, the Tax on Death and Donations (ITCMD) is only levied upon inheritance and donation.

At the municipal level, the main tax payable to the government is the ISS – tax on services, which is monthly levied at a rate that varies from 2% to 5%. As the ISS is a municipal tax, each municipality may again create its own compliance rules. In this sense, companies that, for instance, are established in more than one municipality, may observe different rules applicable in each location.

In order to provide a glimpse of the various bureaucratic ancillary obligations in Brazil, we will describe more in depth the main obligations at the federal level. All of them shall be submitted to the Brazilian Federal Revenue (RFB) via internet through the SPED, which is a Public digital bookkeeping system.

Electronically Commercial and Fiscal Bookkeeping (SPED) is a system which unifies the receipt, validation, storage and authentication of the books and documents that are part of a company’s commercial and fiscal bookkeeping.

The digital bookkeeping will include certain ancillary obligations that taxpayers will have to comply with such as (i) ECF, (ii) ECD and (iii) EFD-Contribuições.

a) Fiscal-Account bookkeeping (ECF)

The ECF replaced the Brazilian Corporate Income Tax Return (DIPJ) where Brazilian taxpayers need to inform all transactions that impact the computation bases for IRPJ (income tax) and CSLL (social contribution on profits) purposes.

The taxpayer must transmit the ECF on an annual basis through the SPED system up to the last working day of July of the subsequent year to calendar year it refers. In case of certain events, such as mergers, liquidation, spin-offs, it must be filled in the last business day of the third subsequent month following the event.

The penalties for nonsubmission or submission in delay is 0.25% per month or fraction (limited to 10%), of net profit before IRPJ and CSLL of the assessment period.

In addition, the presentation of the ECF with any missing or incorrect amount informed can result in penalties of up to 3% on the amount mistakenly informed or omitted. This last penalty shall not apply if the taxpayer amends the ECF file before any tax notice from tax authorities; and shall be reduced to 50%, if amended after a tax notice.

b) Digital Accounting Records (ECD)

The ECD has the purpose of turn into digital the company’s financial statement, such as the accounting book, ledger, trial balance, balances, etc.

The ECD must be filled once a year by May of the subsequent year to the calendar year it refers (January 1st to December 31st). In case of certain events such as mergers, liquidation, spin-offs, etc. occurs between the months of May and December, the ECD must be filled up to the last business day of the subsequent month of the event.

c) Turnover taxes (PIS and Cofins social contributions) – EFD Contribuições - PIS/COFINS Digital Fiscal Bookkeeping

The EFD-Contribuições is a digital archive related mostly to the payment of PIS and COFINS (gross revenue states) and other taxes like ICMS (State VAT)and IPI (Federal VAT). The archive contains documents and other information from the taxpayer, such as tax calculation related with the company’s operations, revenue, costs, expenses, among other important information.

The taxpayer must fill the EFD on a monthly basis until the 10th day of the subsequent month of the reference.

d) Value added taxes – IPI and ICMS – EFD

The Digital Tax Bookkeeping (EFD) for value added taxes (ICMS and IPI) is compulsory for taxpayers that are subject to State VAT (ICMS) and Federal VAT (IPI) and it replaces bookkeeping and printing of the following books and records: Inventory Ledger, IPI Control Register, ICMS Control Register, Fiscal Book Register for the entry and for the exit of goods and merchandise; Inbound Fiscal Book Register and Control over ICMS tax credits for fixed assets.

As mentioned above, due to the complexity of the system, each of the 26 Brazilian states may impose its own requirements for the filing of the ICMS information, as well as its own deadlines for the filing and paying of the tax. Thus, taxpayers could incur significant fines if they do not comply with such requirements.

For instance, failure to transmit the Tax SPED on a timely manner, may subject the taxpayer in some states to a 1% fine on the total amount shown in the missing file.

e) Social contributions – GFIP and DCTFWeb

DCTFWeb shall replace as of July 2018 on, the payment form of the Working Time Guarantee and Social Security Information Fund (GFIP) within the scope of the Brazilian Internal Revenue Service, generating simplification for taxpayers. This ancillary obligation will be automatically generated from the (eSocial) and/or (EFD-Reinf), new modules of the Public Digital Bookkeeping System (Sped).

f) Withholding income tax statement – DIRF

The DIRF (Income Tax Withholding Statement) is an ancillary tax obligation that shall be annually submitted by every corporate taxpayer to the Federal Revenue also through the SPED System. The purpose of DIRF is to allow the Federal Revenue to cross-check payments with income reported by taxpayers and avoid misreporting or undue claims for tax refunds. Since 2011, the DIRF shall also contain information related to cross-border payments made to nonresident beneficiaries, such as dividend and profit distributions, even if those payments are tax exempt.

Penalties are applicable if the taxpayer fails to deliver the DIRF or if it is sent with incorrect information. These are:

  • Application of the percentage of 2% to the month calendar or fraction, incident on the value of the taxes and contributions informed in the document, even if paid in full, in case of non-delivery of the DIRF or its delivery after the deadline, up to the limit up to 20%;
  • Minimum fine in the amount of R $ 200 for individuals, non-operational legal entities and legal entities opting for the Simplified National Regime (SIMPLES);
  • Fine in the amount of R $ 500 in other cases.

g) Tax Debits and Credits Statement – DCTF

  • DCTF (Federal Tax Debits and Credits Statement) is another statement submitted monthly to the Federal Revenue., whereby the corporate taxpayers report the taxes and contributions to the Federal Revenue, such as:
  • Corporate Income Tax Statement, (IRPJ)
  • Income Tax Withheld at the Source, (IRRF)
  • Tax on Industrialized Products, (IPI)
  • Social Contribution on Net Profits (CSLL)
  • Tax on Financial Operations (IOF)
  • Contributions for Social Integration Program (PIS)
  • Contribution for Social Security Financing (COFINS)
  • Contribution of Intervention in the Economic Domain (CIDE)

Entities which fail to submit their DCTF within the correspondent time frame or present it with incorrect information may subject to the following fines:

  • 2% per month over the amount of taxes and contributions informed in the DCTF, even if fully paid, limited to 20% of the amount of taxes, in the event of failure of submission, or submission after the deadline imposed the Brazilian Internal Revenue Service.
  • BRL 20,00 for every 10 incorrect or omitted information
    The fines will be reduced:
  • By 50%, when the Statement is submitted after the deadline, but before any legal procedure is taken by the Federal Revenue.
  • By 25%, if the Statement is submitted within the period specified in the subpoena.

h) Import and Export of Services declaration - SISCOSERV

The SISCOSERV is another ancillary obligation related to transactions carried out between Brazilian residents and non-residents involving import and export of services, intangible assets, and other operations. The filing of this ancillary obligation shall occur whenever one of the previous situations take place.

i) Statement regarding federal taxes that were offset (DCOMP).

The scope of PER/DCOMP (Electronic Request for Refunds, Restitution or Reimbursement, and Offset Declaration) is to make it possible for taxpayers to request refunds for federal taxes that have been unduly paid or paid in excess, and to offset existing credits with tax authorities. The Revenue Service Offices decide on the requests. They have five years to approve or reject a request to offset credit. If there is no decision issued within that period, approval of the request is deemed tacit.

In view of the facts mentioned above, it is easy to understand why Brazilian companies are required to hire specialised accounting firms to comply with the municipal, state and federal tax regulations.

Considering that the statute of limitations for most taxes and social charges in Brazil is of 5 years - under certain circumstances, the statute of limitations can reach six years – it is advisable to keep all tax records for a period of at least 6 years. However, if taxes are being challenged before the administrative or judicial sphere, it is advisable to maintain those records until the end of the tax proceeding.

Germany Small Flag Germany

In general, German resident taxpayers have to file an annual income tax return, whereas entrepreneurial entities have to submit their tax return electronically. For employees there are certain exemptions from the obligation to file an income tax return since wage taxes are in principle already withheld by the domestic employer.

As of the tax year 2018, the income tax return is due until 31 July of the following year, and if the tax payer is represented by a certified tax advisor or any other tax professional with the permission to render tax advice, until the end of February of the year thereafter. In addition, entrepreneurial entities have to submit a tax balance sheet together with their annual tax return.

Certain events (e.g. real estate transactions or charitable gifts) may require the taxpayer to file additional one-time tax returns.

In principle, the books and records for tax purposes have to be maintained for 10 years. However, there are several exceptions depending on the type of records. Private taxpayers have only a limited obligation to maintain records for tax purposes.

Ireland Small Flag Ireland

Companies are obliged to file a corporation tax return annually, typically 8 months and 21 days after the company’s financial year end. Individuals, with employment income only, typically have no personal income tax filing obligations as their tax obligations are fulfilled by their employer under a system of payroll withholding taxes. Individuals with other sources of income file a tax return annually on 31 October (extension available for online filing).

There are bimonthly and annual VAT filings and employers have monthly and annual payroll withholding tax filings.

Taxpayers are obliged to maintain adequate books and records to support a tax filing for a period of six years. This time period is extended where there is an ongoing inquiry or audit.

Israel Small Flag Israel

Following its incorporation and upon commencement of operations in Israel, a corporate entity must register with the Israel Tax Authority (the “ITA”) and open income tax; value added tax (“VAT”) and withholding tax files as well as a file with the National Insurance Institute (the “NII”).

Taxpayers are required to file income tax returns annually and include a self-assessment of the tax liability. Absent extensions that may be applicable or granted, the tax return filing deadline is five months following the end of the tax year for which the tax return is filed. Audited financial statements and a tax–accounting reconciliation report are generally required to be submitted with the annual tax return. In addition, certain monthly reports are required to be filed with respect to income tax advances, VAT, withholding taxes, and National Insurance.

Taxpayers are required to retain documentation until the later of seven years from the end of the tax year for which such documents relate or six years from the submission date of the tax return.

Malaysia Small Flag Malaysia

Under the self-assessment tax system (SAS), taxpayers who has income accruing in or derived from Malaysia are required to disclose their taxable income, furnish their returns for each year of assessment, pay taxes and maintain the relevant documents and records.

Salaried individuals must submit their income tax return forms and pay the balance of tax liability by 30 April every year whilst individuals with business income are to submit their returns by 30 June every year. A company has to file its tax return 7 months after the end of its financial year.

Taxpayers are also required to keep and retain in safe custody sufficient records which any income from that business relates, give receipts in respect of goods sold or services performed in the course of or in connection with the business, retain a duplicate of every receipt issued if the gross takings from the business for the basis year for any year of assessment exceeded a certain threshold and keep sufficient documents for ascertaining chargeable income and tax payable for a period of 7 years from the end of the year of assessment in question.

Mexico Small Flag Mexico

As a general rule, Mexican taxpayers must maintain accounting records for a period of five years, although this period may be prolonged in specific cases.

Records that must be maintained and duly kept include accounting books, systems and registries, financial statements, working papers, tax and information returns and, in general, all documentation that supports the information included in tax returns filed by the taxpayer.

For income tax purposes, taxpayers are required to file definitive annual tax returns every year, whereas for excise taxes and VAT, the definitive returns have to be filed on a monthly basis no later than the 17th day of the following month. Corporations are required to file the annual tax return no later than March of the following tax year, whereas individuals have until April of the following relevant tax year to file theirs. Additionally, taxpayers must file provisional income tax returns on the 17th of every month at the latest, alongside their monthly value added tax returns.

There are taxpayers that are required to file certain informative returns before tax authorities, in which, for instance, they will need to report about specific transactions or about income derived from foreign jurisdictions.

In general, the most important procedural obligations of taxpayers include the following:

Filing

Deadline

Monthly tax returns of income tax, VAT, IEPS and withholdings taxes.

- Income tax: 17th day of the following month.

 

- VAT: 17th day of the following month.

 

- IEPS: 17th day of the following month.

Monthly informative return of transactions carried out with third parties (DIOT).

Last day of the following month.

Annual income tax return.

Within the first three months of the following fiscal year.

Multiple informative return (DIM).

February 15th of the following fiscal year.

Informative return of tax situation (DISIF).

Within the first three months of the following fiscal year, alongside the annual tax return.

Tax audit report

Optional and no later than July 15th of the following fiscal year.

If a taxpayer chooses to file the tax audit report, it would not be obliged to file the informative return of the tax situation (DISIF).

Electronic accounting.

Within the first three business days of the second following month.

Informative Return of Relevant Operations.

Within the following 60 days after the end of each trimester.

Transfer pricing returns (master file, local file and country-by-country).

No later than December 31st of the following fiscal year in which the relevant transactions are performed.

Payroll tax.

17th day of the following month.

Social security contribution (IMSS).

17th day of the following month.

National housing fund for workers (INFONAVIT).

17th day of the following month (every two months).

Norway Small Flag Norway

The income tax year follows the calendar year, and companies and individuals that do business, have to file tax returns by 31 May in the year following the income year. As a general rule this also applies to foreign companies operating in Norway. Individuals must submit their tax returns by 30 April each year.

VAT liable companies are also obliged to submit VAT returns during the course of the year – usually every two months.

Companies that are liable to keep accounting records must complete their accounts each year. Primary documentation (the annual accounts, etc.) must be maintained for 5 years, whereas secondary documentation (essential agreements that are important for the business etc.) must be kept for 3,5 years.

Panama Small Flag Panama

Tax payer are oblige to comply with the presentation of tax forms applicable depending the business and operations perform within Panama. Some of the tax obligations are occasional, meaning that are applicable to certain transactions that are not part of the regular business of the taxpayer.

The most common obligations are:

  • Filing an annual tax return only if the company performs operations within Panama subject to tax. The annual return is filed ninety (90) days after the ending of the fiscal period (general tax period goes from 1st January to December 31st). Payment of annual income tax must be complete on March 31st at the latest.
  • VAT tax form must be file within the next fifteen (15) days after the month that is declare.
  • Franchise tax must be paid on an annual base, before January 15 or July 15 depending the date of the company incorporation.

Accountings records are not file with the annual return neither the Financial Statements, nonetheless such information must be kept at hand in case it’s required by the Tax Authority. Accounting records must be maintain for a five (5) years period.

Regulated companies such as Insurance companies, banks, financial institutions, free trade zone companies, are oblige to present to the regulatory agent its audited Financial Statements.

Philippines Small Flag Philippines

As a rule, all corporations, partnerships or persons required by law to pay internal revenue taxes are also required to keep books of accounts and records in accordance with standard accounting rules and regulations. These books of accounts consist mainly of a journal and a ledger, or their equivalents, and should contain all information necessary for the accurate determination of the internal revenue taxes due on the business. Subsidiary books can also be maintained depending on the requirements of the business and at the option of the taxpayer. These records should be registered with the Philippine Bureau of Internal Revenue and can be either computer based or the traditional manual books of accounts. The law requires that the records be preserved for a period of three (3) years from the date of the last entry thereon. However, tax regulations require that the taxpayer preserve the records for ten (10) years for purposes of tax assessments.

Filing of returns are regularly done on a monthly, quarterly or annual basis depending on the type of taxes involved.

Portugal Small Flag Portugal

Tax resident taxpayers must keep their records (physically or electronically) for at least 10 civil years.

Income tax returns must be filed on an annual basis and until the end of May of the following year, as a rule, both for corporate and individual taxpayers.

Value Added Tax (VAT) periodic returns must be filed monthly (until the 10th of the second month following the month when the operations took place) or quarterly (until the 15th of the second month following the quarter when the operations took place), depending on if the turnover obtained by the taxpayer in the previous year was equal or higher than € 650.000 (monthly regime) or lower (quarterly regime).

Italy Small Flag Italy

Companies shall submit their annual tax return relevant to corporate income tax, Regional Tax on Productive Activities (IRAP) and VAT by the end of the nine month after the end of their tax year. The tax year of companies coincides with their financial year.

For tax purposes, companies shall keep and maintain daily accounts, inventory accounts, VAT register as well as any other necessary account until the statute of limitation for the assessment of the relevant taxes is expired.

Individuals shall file their tax return every year. The tax year of individuals is the calendar year. The deadline is usually the end of September of the year following the relevant calendar year.

Turkey Small Flag Turkey

Main rights and duties of the taxpayers are defined under Articles 153-257 of Tax Procedure Law. Basically most taxpayers have to;

  • Notify the tax authority of certain activities or change of status, e.g. starting a business,
  • Keep records of their transactions in designated legal books according to Turkish accounting principles and issue certain documents, e.g. invoice, after certain transactions.
  • Preserve the legal books and documents for 5 years (10 years for non-tax purposes as per commercial law) and make them available whenever requested.

Furthermore, taxpayers have to file several tax returns throughout the year depending on the tax type and taxpayer’s status. Submission requirements of each type of tax are specified in their separate laws. Most returns are filed periodically (monthly, trimonthly or annually) but some of them are submitted within a certain time as from the taxable event.

Submission deadlines for major tax types are as follows:

  • Corporate tax → by April 25 of the following year
  • Advance corporate tax → by 14th of May, August, November and February
  • Income tax withholding → by 23rd of the following month
  • VAT → by 24th of each month
  • Stamp tax → by 23rd of the following month
  • Banking and insurance tax → by 15th of following month

Japan Small Flag Japan

It is very common practice in Japan that corporate taxpayers adopt the so-called ‘blue-form’ tax return filing for their Japanese corporate income tax, which is a system of tax computation and return filing based upon double-entry bookkeeping system. Under this system, corporate taxpayers are required to keep their books and records for a fiscal year using double-entry bookkeeping system.

Then, based upon such books and records, corporate taxpayers prepare and file a corporation tax return, once a fiscal year, within three months (assuming one-month’s extension is secured per the prevailing practice) from the close of the relevant fiscal year. Similarly, for Japanese consumption taxes or VAT, corporate taxpayers keep books and records, and prepare and file a consumption tax return, once a fiscal year, within two months from the close of the relevant fiscal year. There are similar return filings for local taxes.

Corporate taxpayers are obligated to maintain such books and records for seven years, and have to provide them to the tax authority for inspection if tax audit is conducted.

The Netherlands Small Flag The Netherlands

Financial Statements

A Dutch company must keep its books and records for a period of seven years. A company can decide to keep its records not in euros but in its functional currency.

If the book year is equal to the calendar year, the annual accounts need to be prepared and signed by the board before June the following year. This period can be extended for a maximum of five months by a resolution of the general meeting on grounds of special circumstances. Within two months after the lapse of the (if applicable: extended) period during which the annual accounts are to be prepared, the annual accounts should be submitted to the general meeting of shareholders for approval. In the event that the annual accounts need to be audited (which depends on the size of the enterprise of the company), the general meeting of shareholders may only approve the annual accounts if the annual accounts have been audited. The annual accounts must be published within 8 days after their approval by filing them with the Dutch Chamber of Commerce.

Corporate income tax returns

If the book year is equal to the calendar year, the corporate income tax (CIT) return needs to be filed within five months after the end of the book year.

If the CIT return is being filed by a professional tax adviser a filing extension can be obtained for a period of 11 months. In that situation, the CIT return of the financial year 2018, needs to be filled before May 2020.

Romania Small Flag Romania

Specific obligations are prescribed with regard to the various types of tax obligations incumbent to a taxpayer. As a general rule, bookkeeping obligations are set for all taxpayers performing economic activities, while the obligations related to filing tax returns depend on the type of taxpayer, its activity etc. Starting 2016 the new Tax Procedure Code introduced a new penalty imposed on taxpayers for not declaring the taxable base, which is 29% per annum and is computed until the payment of the assessed liability. In reality, this penalty is a sanction for all additional liabilities assessed through a tax audit because under the Romanian tax system any tax due has to be initially declared by the taxpayer. Thus, the beginning of a tax audit constitutes a very important deadline for making any final corrections in order to avoid such a penalty. Health checks for every tax period are becoming a real necessity for any taxpayer.

The Romanian Accounting law provides that the accounting books of an entity need to be kept on a contemporaneous basis, in Romanian language and in national currency (lei).

Moreover, the statutory trial balances should be available annually, quarterly or whenever the tax authorities are requesting such documents.

In respect of filling the accounts, according to the Romanian Accounting Law, in case of Romanian entities and non-SEE resident entities, depending of the threshold of the entity, the entities are required to prepare semiannual accounting reports and annual Financial Statements. There are certain thresholds above which the entities which are preparing annual financial statements are required to be audited.
In case of subsidiaries opened in Romania by members of European Economic Area (SEE) resident entities, according to the Romanian accountancy law, are required to submit Annual Accounting reports.

In respect of the maintenance of records, as per the local legislation in place, the payroll statements shall be archived for 50 years, the accounting registers, accounting documents and supporting documents shall be retained for 10 years (with exceptions applicable for certain types of documents for which the retention period is 5 years).

Gibraltar Small Flag Gibraltar

The Gibraltar tax year runs from 1 July – 30 June.

Persons other than companies (i.e. individuals and trusts)
Non-companies with income assessable to taxation in Gibraltar must prepare and file their tax returns for each tax year by the 30 November following the end of that tax year.

Companies
Companies must prepare their tax returns according to their financial year end. Companies’ tax returns must be filed within nine months after the date of its financial year end. For example, a company with a 31 December year end must prepare its tax return from 1 January to 31 December and file it by 30 September and a company with a 30 June year end must prepare its tax return from 1 July to 30 June and file it by 30 March etc.

Maintenance of records
Individuals, Companies and Trusts are all required to keep records of all business transactions including books containing daily entries of all cash received and cash paid, statements of annual stocktaking, all goods sold and purchased showing sufficient detail to enable those goods, buyers and sellers to be identified and any contracts, invoices or other underlying documentation significant to the trade, business profession or vocation undertaken, for at least six years from the end of the period for which they are required to deliver a return.

United Kingdom Small Flag United Kingdom

The principal tax procedural obligation in the UK is to file a tax return. Companies are required to provide self-assessments of their corporate tax liability on delivering the return. Returns must normally be filed within 12 months of the end of the accounting period for which the return is made.

Most employees pay their income tax through the employer company’s payroll system and are therefore not required to submit an individual tax return. However, where an employee’s tax affairs are complicated in some way (for example, by having a source of untaxed income) or where an individual is self-employed, that person is required to complete a tax return.

Updated: October 12, 2018