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Companies to become inactive in case they miss two deadlines for financial reports

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Companies and taxable natural persons who fail to submit the annual financial reports for two deadlines in a row will be attributed the „inactive” status, according to the new changes in the Fiscal Procedure law. Starting on July 1, 2008, the inactive companies will no longer have the right to issue invoices, typified documents or other special regime papers, while authorizations, licenses and other documents that allow the company to function are suspended according to the law. Given that fiscal statements for income tax and social contributions are submitted monthly, companies may become inactive after only two months.

The statements that are currently submitted monthly are: the tax on salaries, the copyright income tax, the technical, juridical and accounting expertise income tax, the civil convention income tax, the interest income tax and the tax on transferring property rights over bonds.

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