Accounting issues - consequences of non-payment of income tax.

Periodically, customers ask questions like: in the previous month I had a profit and now I have a loss in the same amount, should I pay income tax?

If a company makes a profit, it should pay tax on profit regardless of whether it will have a loss in the next tax period. Income tax settlement is made cumulatively for the period declared by the company, monthly or quarterly. Let us show this by way of example, if in January the company ended the month with a profit of PLN 100,000, then if it is subject to a tax rate of 9%, it should pay a profit tax of PLN 9,000. If the company did not pay the tax, and in February the company achieved a loss of PLN 90,000, the cumulative profit is PLN 10,000 and the tax is only PLN 900.

In the following months the result was zero. At the end of the year, the company obtained a cumulative profit of PLN 10,000. Thus, the tax on profits will amount to PLN 900. The company paid this tax in February. However, the tax office will calculate interest from PLN 9,000, which is 9% from PLN 100,000, for the period from the tax obligation, i.e. February 20 to March 31 of the following year, in the amount of 8%, i.e. PLN 717. In other words, the tax office was deprived of the possibility of using funds of the company’s money for the period from February 20 to March 31 of the following year in the amount of PLN 8,100. If the company’s financial result is very hesitant, it is better to report the quarterly settlement to the tax office.