If you have received fees under civil contracts, you must submit a declaration in all cases. If you are not a self-insured person (lawyer, notary, farmer, partner, etc. are not covered in this article), then your client has withheld the tax due (and insurance, where applicable). That is, you will not have anything to pay extra. Nevertheless, not only will you have to declare this income, but your client will also have to submit information to the NRA for the second time about the amount of this income (the so-called Information under Article 73 of the Personal Income Tax Act).
How the Traditional Options Works
Traditionally, this double declaration obligation is explained by the need to detect income data. However, this argument is seriously exhausted, as there is no surcharge tax. Then the detection is for what purpose? In any case, the contracting authority is subject to tax control in order to establish the correct advance taxation of these incomes. If there are errors and omissions, the responsibility lies with the contracting authority. Then the declaration of the person who received income under a civil contract does not perform any function. Moreover, the incomes taxed with final tax are declared with the same Information under Art. 73, but no tax returns are filed by the persons who received the income. In other words, there is no and does not aim at any double detection of income. You need to calculate the estimate tax refund also.
Dividends and liquidation shares
These are the incomes taxed with the so-called final tax. If you have received only such income (as well as other non-taxable income), you are not obliged to file a tax return.
If you are a landlord and your tenant is a natural person (citizen), you must calculate the due quarterly advance payments for the tax and you must, of course, file a tax return. If your tenant is a company, it is obliged to calculate and deduct the advance rent tax due. In this case, you will again have to file a tax return even if you do not have any surcharge tax. The meaning or more precisely the nonsense is the same as in civil contracts.
Sale of assets
If you have made taxable profits from the sale of assets (eg real estate, cars, precious metals), you are required to file a return. The logic is that in these cases there was no advance taxation and only with the filing of the annual tax return you will tax the income.
Loans and interest
If you have earned interest income (except for non-taxable ones – such as bank deposits) on loans granted by you, you are required to file a declaration and pay the tax, because here, as in the sale of assets, there was no advance payment.
On the other hand, even if you have not received interest income, but have loans granted by you or received by you (excluding bank loans) in excess of certain amounts, you are again obliged to file a declaration. In these cases, however, the declaration is primarily aimed at proving the origin of the funds at your disposal.
And finally the fine for failure to file a declaration under the Personal Income Tax Act is up to $ 500if you have no other job.