Suppose your company is taxed by the Economic Activities Tax (EAT), and you have reduced your activity. In that case, it is necessary to check whether the amount of this tax can be reduced.
For example, if you have sold machinery or changed premises for a lower amount, this will affect the calculation of the amount of EAT.
How do we reduce the amount of this tax?
You have to notify the tax authorities and reduce the amount of this tax:
- Submitting a variation declaration is compulsory if the tax elements vary by more than 20%.
- If the tax elements decrease, the notification is voluntary. It is advisable to do so to be able to reduce the amount without having to wait for a minimum decrease.
Variations affect the tax liability in the year following the year they occur. It is necessary to file the 840 variation form before the end of the year so that the IAE tax liability is lower in the following year.
It may also happen that the company has ceased some activity. In this case, you must notify the tax authorities within one month of the cessation.
Afterward, you can apply in writing for a refund of the part of the IAE quota proportional to those complete quarters where the activity will no longer be carried out.
Remember that you can count on Leialta as your consultancy to help you optimize your company.
