MoF Circular No. 1657-S1 dated May 21, 2018 with respect to the exemption of the entities that did not perform any activity from the annual flat fee (lump sum tax)

The Ministry of Finance (MoF) has recently issued a notification #1657/S1 dated 21st May 2018 (attached a scanned copy) related to the Article 29 of the Law #173 dated 14/2/2000 (Budget Law of the year 2000) amended by the Law #20/2017 (attached a scanned copy) that has set an annual lump sum fee (lump sum tax) on all taxpayers to be paid before the 30th September of each year starting from the year 2018 (as confirmed by the MoF decision #993/1 dated 31st October 2016).


According to this MoF notification, the taxpayers (individuals and corporations) who haven’t perform any professional activity during the fiscal year 2017 and are still not performing any effective activity related to their business in 2018 (“non-active taxpayers”) are exempted from this annual lump sum fee provided that they submit a written commitment to the MoF before the 30th September 2018 (commitment forms attached to this MoF notification) that they didn’t perform any professional activity in 2017, are still not performing any professional activity in 2018 and will notify the MoF as soon as they resume their professional activity. The tax authority will verify the accuracy of these commitments and will do its best effort to implement an electronic declaration for non-active taxpayers starting from the fiscal year 2018.

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