Which tax regime does a new company start on?

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Accepted Answer

The one it chooses at registration — turnover tax from day one, or VAT and profit tax. At filing The choice is made at state registration — a newly created legal entity may elect turnover tax from the day of registration, by indicating it in the filing. Excluded Some activities cannot choose it — importers first among them: the general regime applies from the import contract or the import, whichever is first. Reversible The choice is not final — voluntary VAT is open from the next month; the way back to turnover tax takes twelve months and income within the threshold. A new legal entity elects turnover tax at state registration, by stating the chosen regime in the filing itself, and pays it from the day of registration. Without the election — or where the activity is excluded from turnover tax — the company is on VAT and profit tax. For a fast-growing company the Code sets one more rule worth knowing at the start: a newly created entity whose income crosses the one-billion-sum threshold pro-rated for its first calendar year moves to the general regime from the start of the following year.

Which tax regime does a new company start on?

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