Annual Information

General Information

Non-profit organizations (NPOs) and Public Entities/State-Owned Enterprises, regardless of the generally non-profit nature of their activities, are obliged to maintain accounts and report their information according to the legislation in force.

This information is subject to self-declaration and is particularly important when it derives from the profit-making activities of a non-profit organization.

In this case, the Non-Profit Organization, in its capacity as a taxpayer, must self-declare its income, the amount of tax liability, or the contribution, without waiting for an assessment, notice, or request from the Tax Administration, and must pay the tax to the account of the tax authorities.

The information included in the annual taxable income declaration contains data for the purpose of calculating taxable income (financial statements):

• The Balance Sheet is one of the financial statements that shows the financial position (assets, liabilities, and equity) of a reporting entity on a specific date.
• The Income and Expenditure Statement is another financial statement that shows the economic performance (income, expenses, and profit/loss) of a reporting entity during an accounting period.
• The Cash Flow Statement shows the flow of cash (cash receipts and payments and its equivalents) of a reporting entity during an accounting period.

The request for information is extensive and includes every possible and necessary detail to conduct a tax assessment of the taxpayer, which serves in calculating the taxable income for tax purposes.

Importance of Reporting Accuracy

Due to the very important role that the reported information has for the taxpayer, which also brings effects for third parties, it is important that all annual information is reported accurately and on time.

Even if NPOs and Public Entities are, in principle, exempt from profit tax, according to Law No. 8438, dated 28.12.1998 , “On Income Tax” – as amended, Article 18 stipulates:

Their obligation to submit the tax declaration and the annual balance sheet to the tax authorities, following the same procedures as taxpayers subject to Corporate Profit Tax.

The deadline for submitting the Profit Tax declaration is March 31st of the following year, along with the financial statements that constitute the balance sheet.

Source: General Directorate of Taxes.