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Prepayments deadlines for tax year 2025

Corporate Tax Alert | Business Tax alert

It is recommended for companies to make advance corporate income tax (“CIT”) payments (“prepayments”) considering that in case of insufficient or lack of prepayments a tax increase (applied on the CIT due) of 9% for tax year 2025 will be levied.

Deadlines payments

Prepayments are due no later than the tenth day of the fourth, seventh, tenth month and twentieth day of the last month of the financial year. For financial years equal to the calendar year following dates apply:

  • April, 10
  • July, 10
  • October, 10
  • December, 20

These deadlines must be met unless the dates fall on weekends or holidays. In this case, the next working day is considered the deadline. Please note that the payment should be received on the tax authorities’ account on these dates in order to qualify for the respective quarter.

Tax increase and benefits

As mentioned in the introduction, a tax increase of 9% for tax year 2025 will be levied as a consequence of the increase in the ECB interest rates.

The basis of calculation is equal to the tax you have to pay on the income on which the increase will be calculated. From that tax, we deduct the withholding taxes and other deductible items that go on this income (such as the fixed portion of foreign tax, tax credits, withholding tax, etc.).

If prepayments have been made, the overall increase due shall be reduced by the total benefits granted to the advance payments made. These benefits are calculated as follows (for tax year 2025):

  • Prepayment during the 1st quarter: payment made * 12.00%;
  • Prepayment during the 2nd quarter: payment made * 10.00%;
  • Prepayment during the 3rd quarter: payment made * 8.00%;
  • Prepayment during the final quarter: payment made * 6.00%.