Advance tax is declared by taxpayers earning business or professional income in separate returns for the first three quarters of the year. Advance tax paid is offset against annual income or corporate tax; any amount that cannot be offset may be refunded.
Source: Income Tax Law repeated Art. 120
Related terms
Corporate income taxThe tax levied on the earnings of capital companies, cooperatives and other corporate entities.Tax returnThe official document in which a taxpayer reports the tax base and the tax calculated to the tax administration.Arm's length principleThe principle that transactions between related persons should be carried out at the prices and on the terms that would apply between independent parties with no such relationship.Capital gainGains of individuals from disposing of certain assets and rights that are subject to income tax.Certified public accountant (SMMM)A professional authorised to keep taxpayers' books, prepare their financial statements and advise on accounting and tax matters.Current account interest calculationThe product of the amount of current account movements and the number of days elapsed, used to calculate interest on a current account.
Last updated: October 22, 2026 · This definition is for general information only.