Tax return

What it means

A tax return is the filing in which the taxpayer computes their own liability. A company files its corporate income tax return within three months of the period end; the deadline can be extended by notification, usually by three months, or six with foreign income.

The return is not a standalone document. It builds on the annual closing, contains the tax base computation with schedules, and sets the size of advances for the next period.

A tax return is not a decision by the authority. By filing it the taxpayer sets the tax itself, and unless the tax office challenges it, the tax counts as assessed at the stated amount; the office can still review it later, until the assessment period runs out. That distinguishes it from tax set by an assessment decision, as with real estate tax in years without changes.

How it works in practice

It is filed electronically through the financial administration portal, with the official e-mailbox confirming the exchange. The tax falls due on the filing deadline - extending the filing date moves the payment date with it.

Besides income tax a company may file VAT, motor vehicle tax and real estate tax returns. Each has its own deadline, which is why we keep the compliance calendar on the client’s behalf.

The company is responsible for the return being correct, even when an accounting firm prepares and files it under a power of attorney. Before filing we therefore send the managing director the computation with a short explanation of the main adjustments and the size of future advances, so they know what is being filed in their name and how much cash the coming months will need.

What to watch out for

An error in a filed return is corrected by an amended return - and filing one before the authority raises the point makes the penalty markedly lower. Failing to file carries its own fine regardless of whether any tax was due.

The corporate income tax return is filed together with the financial statements, which travel from there into the register of financial statements. If the statements are missing or incomplete, the tax office asks for them, and the company risks a fine even when the tax was correctly computed and paid.