Taxable Persons are required to file a Corporate Tax return for each Tax Period within 9 months from the end of the relevant period. The same deadline would generally apply for the payment of any Corporate Tax due in respect of the Tax Period for which a return is filed.
There can be some scenarios where a taxable person might require to submit the Tax returns before the end of the tax period in such scenario authority may decide other due date for payment of Corporate Tax. For example, in case of cease of business in between of tax period.
At the time of filing the tax return a taxable person declare about its taxable income & calculate the taxes thereon. During this filing, one also declares about the taxes paid by him during the tax period. If taxes paid are the more than the taxes need to be paid then this position is called as tax refund position. A Taxable person by filing an application to Authority to claim this access amount of taxes paid.
There can be various ways a taxable person’s payable tax is less then actual taxes for paid for the taxable income. however, he is eligible for the tax refund for the following 2 scenario only.
Withholding Taxes Credit
State sourced income earned by a Non resident person is liable for Withholding taxes. These taxes are deducted from its gross amount payable by the resident and remitted to the authority. A non-resident person is eligible for taking credit of these taxes paid on its state sourced income. Filling the Tax return if the net amount payable for the taxable income is less than the amount deducted under withholding taxes then applicant can apply for Tax refund. Since law has given 0% of withholding tax rate, it is situation is not possible, however once law comes up with another rate for it, Refund position may arise.
Excess Corporate Tax payment
Law does not mandate a taxable person for any kind of Advance tax or provisional tax to paid in between of the taxable period. However, for any reason if a taxable person paid the taxes before filling the return or even after filing the return which is more than the amount due for that period can be claimed by taxable person through a separate application.
A Foreign branch of taxable person might pay the taxes more than 9 % to foreign authority and take credit of these taxes, however such excess amount of taxes paid is not eligible for the Tax refund.
In either of the above cases Authority will a notice for the approval or rejection of the refund request applied by the Tax payer as per the Tax Procedures Law.
