7 reasons why the companies has to submit a zero tax declarations
1. Because it is Legal to do it and because Filing returns provides official proof the company hasn’t had any activity during the financial year, as opposed to failed to file returns.
2. Legally, paying expenditures such as council tax, utilities, etc/ is also considered as a company activity. (Even if the expenditures amounts to under 500 lv per year, it could be declared as non-activity)
3. In the event of a check / tax revision you will need to provide additional proof of non-activity, as opposed to relying on already filed returns.
4. A company which does not file returns is more likely to attract attention resulting in checks / tax revisions.
5. Because in the future the company will have a clear annual history which will provide transparency to a potential buyer, showing there are no hidden non-declared activities.
6. Should you need to close the company in the future, ie after selling a property, the company can be closed more easily / quickly with up to date returns.
7. Because except for the Trade Register a declaration should also be filed in NSI /National Statistics Institute
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