Derecognition and De-registration of Non-Profit Organizations and Public Entities

De-registration of Non-Profit Organizations

To de-register an NPO, the following steps are followed:

• The taxpayer applies to the Court to initiate the de-registration procedure.
• Upon receiving notification from the court, the Tax Administration verifies the taxpayer's standing regarding the fulfillment of legal obligations (declarations and payments). When a taxpayer has the status "Application for De-registration," they can generate the final payroll even in the middle of a tax period via e-filing.
• The Tax Administration notifies the Court of the above (confirming or opposing the de-registration).

In case of an objection by the Tax Administration, the Court does not proceed with the de-registration of the entity until all outstanding liabilities are settled.

In case of confirmation by the Tax Administration, the Court proceeds with the de-registration of the entity, and its decision is used by the Tax Administration to finalize the de-registration in the Tax System. The date of de-registration in the Tax System is the date specified in the Court Decision.

De-registration of Public Entities

To de-register a Public Entity, the following steps are followed:

• Upon receiving the decision or sub-legal act for the closure of a Public Entity, its representative submits the decision to the tax authorities.
• The Tax Administration verifies the taxpayer's standing regarding the fulfillment of legal obligations (declarations and payments). When a taxpayer has the status "Application for De-registration," they can generate the final payroll even in the middle of a tax period via e-filing.
• The Tax Administration confirms or opposes the de-registration depending on the fulfillment of these legal obligations.

In case of an objection, the Tax Administration does not proceed with the de-registration of the entity until the tax liabilities are settled.

In case of confirmation, the Tax Administration proceeds with the de-registration of the entity from the Tax System. The date of de-registration in the Tax System is the date of the Decision.

Source: General Directorate of Taxes.