After several proposals already during its previous terms of office, the new Federal Government has approved the liability of inter-municipal organisations to corporate income tax as from 1st January 2015.
According to our experience, transiting from the tax on corporate bodies to corporate income tax is a complex issue to manage since the tax legislation in force has several grey areas in this field, notably as regards the situation of reserves accrued before the transition, the tax system applicable to provisions, the hidden capital gains on assets during the transition, the deduction of prior years’ tax losses, the property tax/withholding tax on investment income and other local and regional taxes.
Needless to say, for the inter-municipal organisations, all these grey areas represent a risk that will have to be correctly monitored and planned in order to anticipate at best this compulsory transition to corporate income tax.
PwC can help in this respect and has a multidisciplinary team of experts who have already assisted some public entities in anticipating these changes and who can support your organisation during the process.
We remain at your disposal to meet you in order to identify with you the existing risks for your organisation and help you define the courses of action that need to be implemented so as to have a smooth transition.