Corporations’ taxes are calculated in accordance with traditional accounting principles, which are based on the concept of “economic competence.” Income that is subject to taxation is determined by the difference between these two numbers with ยื่นประกันสังคม.
Income that is eligible to be deducted from one’s tax liability
The limits imposed by Presidential Decree No. 917/86 have been adhered to for joint stock companies, taxation is carried out via the application of the IRES, but for sole proprietorships and partnerships, taxation is carried out through the application of the IRPEF. Businesses engaged in ordinary accounting are subject to the application of the Regional Tax on Manufacturing Activities.
According to the quantity of transactions completed, VAT payments are made either monthly or quarterly, depending on the amount of VAT payable.
The regime has been made more straightforward
Because the goal of the simplified accounting regime is to monitor solely the economic performance of the business, and hence expenditures and revenues particular to each year, it is less complicated to implement than the standard accounting regime.
To what extent does this regime have the power to be implemented? In order to be eligible to participate in the competition, individual enterprises and partnerships must have registered or plan to register a total income of not more than €400,000 for the supply of services or €700,000 for other activities in the previous calendar year.
For VAT reasons, the following registers must be kept up to date: the register of purchase invoices, the register of issued invoices, and the register of payment receipts. Apart from meeting the aforementioned standards, it is also necessary to keep a record of depreciable assets. Overall, less promises are made, which results in less onerous management duties.
Conclusion
In line with the requirements of Presidential Decree, companies that use simplified accounting evaluate their revenue for tax purposes according to the notion of economic competence by paying IRPEF, which is a refundable tax credit. Companies that employ simplified accounting are also subject to the application of the IRAP and are required to pay additional personal income tax as a result of their actions. The payments for VAT are paid on a quarterly basis, according to the VAT regulations.
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