The General Department of Taxation (“GDT”) issued Notification № 1458 on the Submission of Tax on Profit (“TOP”) Returns for Fiscal Year 2014.  The notification reiterates previous rules and reminds taxpayers of tax filing deadlines and procedures.  However, it also adopts a new rule which requires branches to submit a Profit and Loss (“P&L”) report to the GDT tax office which has jurisdiction over them. The main points of the notification are as follows:

  1. A real regime taxpayer whose tax year is the calendar year (i.e. 01 January to 31 December) must file the 2014 TOP return by 31 March 2015.
  2. A taxpayer whose tax year is not the calendar year must file the TOP return within three months after the end of its tax year.
  3. The branch of a taxpayer which is regulated by a GDT tax office different from the one that is responsible for the taxpayer’s head office, must submit a P&L report of its operations to the GDT tax office that has jurisdiction over this branch. This branch P&L report must be in the same format as that prescribed in the standard TOP return. The TOP return for the whole enterprise must still be filed by the head office with the GDT office that has jurisdiction over the head office. A P&L statement which consolidates the financial information of the head office and all the branches is among the documents that must be submitted with the TOP return.
  4. Any taxpayer engaged in a Qualified Investment Project (“QIP”), whether as its only business activity or as one of its business activities must file the TOP return in accordance to points 1 – 3 above.  It must also observe the additional guidelines provided by the Ministry of Economy and Finance for QIPs.
  5. The GDT requires tax representatives to have a Power of Attorney when acting on behalf of a taxpayer.
  6. Taxpayers must file the TOP return along with the balance sheet, P&L statement and details of related party transactions.