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Income Reporting — Why It Is Mandatory and What Carries an 80% Tax

If you do not report income, the tax inspection is entitled to assess 80% tax on the difference between reported and determined income. The law protects both you and the state.

FP Finance Plus 4 December 2023

If you fail to report income, the tax inspection is entitled to assess 80% tax on the difference between the reported and the determined income.

Why this rule matters

This mechanism was introduced in order to:

  • Prevent systemic tax evasion
  • Ensure fair distribution of the tax burden
  • Protect taxpayers who report income in a timely and accurate manner

Practical advice

  • Report all sources of income — whether resident or not, domestic or foreign
  • If in doubt — it is better to consult an accountant than to pay 80% later
  • The deadline for GPP-FL is 30 April of the current year for the previous year

Need help with income reporting or the GPP-FL form? Contact Finance Plus.

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