Applying the Cash Basis After a Company Absorption

• A company under the general accrual regime absorbed another company under the special cash basis regime for VAT.
• The absorbing company, under the general regime, inherits the rights and obligations of the absorbed company.
• The absorbing company must continue to declare operations according to the general regime and accrual rules.
• The absorbing company can choose to apply the special cash basis regime for its operations after the merger.
• The option must be exercised in December before the year it takes effect, through a tax declaration and meeting other requirements.

Source: audiconsultores-etlglobal.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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