Malta’s Tax Filing Requirements for New Businesses

There's a growing interest among entrepreneurs in Malta, as its favorable tax system attracts new businesses. Understanding the tax filing requirements is vital for anyone aiming to establish a company in this Mediterranean nation. He, she, or they must navigate the various obligations, which include registration, submission deadlines, and compliance with local regulations. This blog post outlines the key elements of Malta's tax filing landscape, providing valuable guidance for individuals launching on their business journey in this vibrant economy.

Registration Requirements for New Businesses

To establish a new business in Malta, entrepreneurs must first comply with the registration requirements which are determined by their chosen business structure. This foundational step is vital for ensuring legal recognition and liability protection for the owners. Malta offers a variety of business structures including sole proprietorships, partnerships, and various types of companies, each presenting distinct advantages and obligations. Hence, making the right selection can significantly impact their operations, tax liabilities, and personal liabilities.

Business Structure Selection

Below are the fundamental considerations entrepreneurs should keep in mind while deciding on a business structure. Sole proprietorships are the simplest form of business; however, the owner bears unlimited liability. In contrast, setting up a limited liability company offers protection against personal risk, as shareholders are only liable for the company's debts up to the amount they invested. Partnerships also present a blend of shared responsibility and liability, and their structure may vary depending on the arrangement between partners.

Company Registration Process

Beside selecting an appropriate business structure, prospective business owners must undergo the company registration process with Malta's Registration of Companies. This encompasses filing necessary documents such as the Memorandum and Articles of Association, alongside details about directors and shareholders. The registration process typically takes just a few days, making it relatively swift compared to other jurisdictions. Once registered, the business obtains a Certificate of Incorporation, signifying its legal standing.

Process continues with opening a business bank account and obtaining additional permits or licenses, depending on the nature of the business. It is crucial for entrepreneurs to carry out these steps promptly to ensure a smooth transition into operating their business legally and effectively. The registration process establishes a clear framework under which the business will operate, providing peace of mind to its owners.

Obtaining a Tax Identification Number (TIN)

About the tax filing requirements, every new business in Malta must obtain a Tax Identification Number (TIN) from the Maltese tax authorities. This number is crucial for tax reporting and ensures that the business complies with local tax regulations. It serves as a unique identifier for all tax obligations and dealings with the Inland Revenue. All business structures must apply for a TIN as part of their registration process.

Registration for a TIN is typically straightforward and can be completed through an online application or in person at the relevant government office. Businesses are advised to secure their TIN promptly to facilitate smooth transactions and tax compliance from the outset, as failure to do so may lead to complications during the tax reporting process. Obtaining a TIN is a necessary step that reinforces the legitimacy of the new business venture.

Types of Taxes Relevant to New Businesses

For new businesses operating in Malta, understanding the various tax obligations is necessary to ensure compliance and to avoid potential pitfalls. New entrepreneurs will encounter several tax types that are significant for their operations and overall financial health. Below is a breakdown of the key taxes that may apply:

Tax Type	Description
Income Tax	Tax on profits earned by the business.
Value Added Tax (VAT)	Tax on goods and services sold.
Social Security Contributions	Contributions towards state social security schemes.
Withholding Tax	Tax that is withheld from certain types of payments.
Excise Duties	Tax on specific goods such as alcohol and tobacco.

Perceiving the complexities of these taxes may seem daunting, but a structured approach can facilitate a smoother experience for new business owners.

Income Tax

Along with corporate tax regulations, new businesses in Malta must adhere to the income tax requirements, which are based on the profits generated during the financial year. It is important for entrepreneurs to accurately calculate their taxable income to determine the correct amount owed to the tax authorities. Depending on the legal structure of the business, the rates may vary, but it's advisable for owners to keep diligent records of income and expenditures.

Moreover, Malta offers a tax refund system that can be beneficial for certain profit distributions, allowing business owners to effectively manage their overall tax liability. Engaging a tax advisor may provide further insights into optimizing tax positions while remaining compliant with local regulations.

Value Added Tax (VAT)

Among the various tax types, Value Added Tax (VAT) plays a prominent role for businesses in Malta. VAT is implemented on the sale of goods and services, and businesses that exceed a specific revenue threshold are required to register for VAT. This tax is passed on to the consumers, thereby necessitating that businesses accurately charge and remit the correct amounts to the tax authorities regularly.

Additionally, businesses should be aware of the VAT exemptions and reduced rates that might apply in certain scenarios, which can significantly influence pricing strategies and overall competitiveness in the market. Compliance with VAT regulations involves meticulous record-keeping and regular filing of VAT returns to avoid penalties.

For instance, businesses must submit VAT returns on a quarterly or monthly basis, depending on their annual turnover. Late submissions or inaccuracies can lead to fines, so diligent attention to deadlines is necessary for new business owners.

Social Security Contributions

Around Malta's tax landscape, social security contributions are another critical financial obligation that new businesses should not overlook. These contributions are necessary for the funding of public health and social systems and are generally calculated based on the company's payroll. New business owners must ensure they understand both employer and employee contributions required by law.

It is necessary for new businesses to budget appropriately for these contributions as they can impact overall financial planning and cash flow. Timely payments and accurate calculation of contributions will help maintain compliance and support employee welfare.

Income Tax Filing Requirements

Keep in mind that understanding income tax filing requirements is vital for new businesses in Malta. By adhering to these guidelines, entrepreneurs can ensure compliance with local regulations and avoid potential penalties. It is important for businesses to stay informed about the specific filing requirements that apply to their structure and operations, as this can significantly impact their financial health and operational planning.

Filing Periods for Different Business Structures

For new businesses in Malta, the filing periods for income tax can vary based on the type of business structure. Sole proprietors are typically required to submit their income tax returns annually, with the submission deadline falling on July 31 of the following year. On the other hand, companies operating in Malta must file their tax returns within nine months of the end of their financial year, with a provisional tax payment due within the first six months.

It is advisable for businesses to keep track of their specific deadlines, as failing to file returns on time can lead to fines or increased scrutiny from the tax authorities. Additionally, they might want to consult a tax professional who can provide guidance tailored to their unique situation, thus simplifying the compliance process.

Documentation Required for Income Tax Filing

At the time of filing income taxes, new businesses in Malta must present a range of documentation to support their claims and statements. They are generally required to provide financial statements, including profit and loss accounts and balance sheets, which clearly outline the financial position and performance of the business. Additional documents may include invoices, receipts, and records of expenses, as well as bank statements that substantiate figures reported in the tax return.

With proper documentation, businesses can substantiate their income and expenses, minimizing the likelihood of disputes with the tax authorities. Moreover, maintaining thorough and organized records can facilitate the filing process, ensuring that all necessary information is readily available when required.

Common Deductions and Allowances

To effectively manage their tax liability, new businesses should take advantage of common deductions and allowances available under Maltese tax law. Eligible deductions can often include business-related expenses such as salaries, rent, utilities, and certain professional fees. Additionally, capital allowances can be claimed on tangible fixed assets, allowing businesses to deduct a portion of the cost of these assets over time, further reducing their taxable income.

Structures that are properly utilized can lead to significant savings for new business owners. By understanding and optimizing their eligible deductions and allowances, they can enhance their cash flow and reinvest in their operations more effectively, fostering growth and sustainability in the competitive Maltese market.

Value Added Tax (VAT) Filing Requirements

All entrepreneurs operating in Malta should be aware of the Value Added Tax (VAT) implications as they commence on setting up their new businesses. VAT is a consumption tax levied on goods and services, and it is imperative for businesses to comply with the VAT filing requirements to avoid potential penalties. Each business must determine whether they meet the VAT registration thresholds, which indicates if they are required to register for VAT in Malta. These thresholds vary depending on the type of goods or services offered and the turnover of the business.

Understanding VAT Registration Thresholds

By understanding VAT registration thresholds, he or she can assess whether they need to register for VAT in Malta. As of the latest guidelines, the general VAT registration threshold for businesses providing goods is set at €35,000 in annual turnover, while for those providing services, the threshold is €30,000. If their annual income exceeds these amounts, they must complete the VAT registration process and start charging VAT on their sales.

By ensuring compliance with these thresholds, they can avoid unnecessary complications. Conversely, businesses below these thresholds have the option to register voluntarily, which can be advantageous as it allows them to reclaim VAT on purchases if they choose to do so.

Filing Frequency and Deadlines

Among other responsibilities, businesses in Malta must adhere to specific filing frequencies and deadlines for VAT returns. The standard practice is to submit VAT returns quarterly, although some businesses may qualify for monthly or annual filing, depending on their individual circumstances. It is important for them to be aware of the filing deadlines to ensure timely submissions, as failures in this regard can lead to fines.

Understanding the filing schedule is important for maintaining good standing with the tax authorities. Generally, VAT returns are due by the end of the month following the end of the quarter or tax period, which means timely preparation of financial records becomes crucial for a smooth filing process.

Required Documentation for VAT Filing

About the required documentation for VAT filing, businesses will need to maintain accurate records of all sales and purchases. This documentation typically includes invoices, receipts, and relevant accounting records that substantiate their VAT returns. These documents must be retained for a specified period, usually for six years, as tax authorities may request to review them during audits.

About these requirements, VAT filers should also ensure that their invoices are correctly issued, featuring important information such as the VAT number, total amounts, and the applicable VAT rate. This level of thoroughness in documentation is important for a seamless VAT filing experience.

Filing VAT returns periodically requires not only accurate calculations but also comprehensive documentation throughout the reporting period to substantiate the amounts reported. As such, businesses should develop an organized approach to bookkeeping and record-keeping, facilitating easier access to information come filing time.

Important Deadlines for Tax Compliance

Despite Malta's welcoming environment for new businesses, understanding and adhering to tax filing deadlines is necessary for compliance and avoiding penalties. Businesses must align their financial activities with established timelines to ensure they remain in good standing and enjoy the benefits of the Maltese tax system.

Annual Tax Return Deadlines

Around 30 days following the conclusion of the financial year, businesses are required to submit their annual tax return to the Maltese Revenue Department. For many entities, this corresponds with the calendar year, making the deadline typically fall on April 30th. However, if a company's financial year differs from the calendar year, the deadline aligns with the end of their specifically defined fiscal period. Proper planning and timely submission are necessary to avoid late fees and interest charges.

Additionally, entities must ensure they file their returns using the appropriate forms. The process may necessitate financial statements and other supporting documents that outline income and expenses incurred throughout the year. By preparing these documents ahead of time, businesses not only comply with tax obligations but also gain insights into their financial performance.

VAT Return Submission Deadlines

Annual VAT return submissions are required to be filed quarterly or biannually, depending on the business's classification and turnover. Businesses that opt for quarterly submissions will have due dates at the end of each quarter, while those eligible for biannual submissions have deadlines falling in January and July. In the case of quarterly submissions, deadlines typically fall on the 15th day of the month following the end of the respective quarter, demanding regular attention to ensure compliance.

Return filings must include all relevant sales and purchases as well as the VAT charged and paid during the reporting period. Businesses are encouraged to keep meticulous records throughout the period to simplify this process and maintain accuracy in their VAT obligations.

Quarterly and Monthly Reporting Requirements

Before initiating any new business activities, entrepreneurs must familiarize themselves with the required quarterly and monthly reporting requirements set forth by Maltese authorities. Such requirements typically include income tax prepayments and local business tax submissions due at specified intervals throughout the fiscal year. These prepayments are calculated based on the expected annual tax liability and must be submitted to avoid the accumulation of undeclared taxes.

Reporting responsibilities vary according to the size and nature of the business. Large enterprises may face more stringent requirements, while smaller businesses might benefit from simplified processes. Business owners are advised to consult the Maltese tax authority or a qualified advisor to ensure they comprehend their specific obligations and avoid any pitfalls associated with non-compliance.

Preparing Financial Statements for Tax Purposes

Many new entrepreneurs in Malta find that preparing financial statements for tax purposes is an imperative part of establishing their business's financial framework. These financial statements serve not only to comply with taxation laws but also to provide insight into the business's financial health. Preparing these documents accurately and timely enables them to meet regulatory standards and avoid unnecessary penalties.

Types of Financial Statements Required

In Malta, there are specific financial statements that an entrepreneur must prepare for tax purposes. These documents typically include the balance sheet, the income statement, and the cash flow statement. Each of these financial statements conveys distinct information that is vital for assessing the corporation's financial performance and position.

• Balance Sheet
• Income Statement
• Cash Flow Statement
• Notes to Financial Statements
• Tax Computation

Assume that the new business is a limited liability company; the preparation of full financial statements following generally accepted accounting principles (GAAP) is mandatory.

Financial Statement	Description
Balance Sheet	Shows the company's assets, liabilities, and shareholders' equity at a specific point in time.
Income Statement	Details the revenues, expenses, and profits or losses over a specific period.
Cash Flow Statement	Tracks the flow of cash in and out of the business.
Notes to Financial Statements	Offers additional context and details to the figures presented in the main statements.
Tax Computation	Calculates the tax liability based on profits and applicable deductions.

Accounting Standards in Malta

Below the surface of financial documentation lies the importance of adhering to accounting standards in Malta. The country aligns itself with the International Financial Reporting Standards (IFRS), which provide guidelines for the preparation of financial statements. This not only facilitates better comparability with other businesses but also enhances investor confidence.

Consequently, new entrepreneurs must ensure that their financial statements comply with IFRS or the local standards prescribed by the Malta Financial Services Authority (MFSA). By doing so, they will guarantee accurate financial reporting that is in alignment with strict compliance norms, thereby minimizing the risks associated with financial misrepresentation.

The Role of Auditors in Compliance

Against the backdrop of formal accounting practices, the role of auditors becomes pertinent. Auditors are responsible for examining the financial statements to ensure that they present a true and fair view of the business's financial position. This process not only augments the credibility of the financial reports but also helps in identifying any discrepancies or areas of concern early on.

Also, having a qualified auditor can significantly ease the tax filing process, as their expertise ensures that statements are prepared in accordance with applicable taxation laws. By engaging an auditor, businesses can also receive insights on optimizations and adjustments that could have a positive effect on their tax liabilities.

Consequences of Non-Compliance

Now, entrepreneurs and business owners in Malta must be aware of the potential ramifications of failing to meet tax filing requirements. Non-compliance can lead to a variety of penalties and negative consequences that can affect both their finances and their reputation in the marketplace.

Penalties for Late Filing

Non-compliance with Malta's tax filing deadlines can result in severe monetary penalties. The Maltese tax authorities impose late filing fees based on the duration of the delay and the specific tax obligations not met. It is important for new businesses to maintain a punctual filing schedule to avoid incurring these additional costs which can accumulate rapidly, straining their financial resources.

Additionally, the authorities may charge interest on any outstanding tax liabilities. This interest is calculated based on the time elapsed since the original due date, which can significantly increase the total amount owed. New businesses should prioritize understanding and adhering to tax deadlines, as late submissions can result in heightened financial pressure.

Criminal Liabilities

Non-compliance can also lead to criminal liabilities, particularly in cases where there is evidence of tax evasion or fraud. Business owners who knowingly fail to file their taxes or submit false information can face serious legal consequences, including fines and potential imprisonment. These actions are viewed as deliberate attempts to deceive the tax authorities, triggering severe penalties aimed at discouraging such behavior.

In light of this, it becomes imperative for new business owners to ensure accurate and timely tax submissions. They must keep thorough records and seek professional assistance if needed, to mitigate risks associated with potential legal consequences.

It is also worth noting that the Maltese legal system takes tax offenses seriously. They have established checkpoints and audits to identify cases of non-compliance. Consequently, business owners may find themselves under scrutiny if they are unable to provide the required documentation or if discrepancies arise during audits.

Reputational Impact on New Businesses

Beside the financial and legal implications, non-compliance can have a significant reputational impact on new businesses. In today's interconnected economy, public perception is vital. A business that struggles with tax compliance may be viewed as unreliable or untrustworthy by customers, partners, and investors. This negative perception can hinder growth opportunities and limit market reach.

Similarly, negative media attention or Government action resulting from non-compliance can tarnish a new business's image. Maintaining a solid reputation is critical for a competitive edge, and adhering to tax filing requirements is a foundational aspect of establishing credibility in the marketplace.

In fact, cultivating a reputation for transparency and compliance can differentiate a business in a crowded market. New businesses that prioritize compliance not only safeguard themselves against penalties and legal issues but also foster trust among stakeholders, important for long-term success.

Revising and Amending Tax Returns

Your ability to revise and amend tax returns is an crucial aspect of compliance for new businesses in Malta. As entrepreneurs navigate the complexities of tax regulations, they may discover that certain information was either omitted or inaccurately reported on their initial filings. In such instances, understanding when to amend a filed return can significantly impact their overall tax liability and ensure accurate record-keeping moving forward.

When and Why to Amend Filed Returns

To determine the need for amending a filed return, individuals should examine their submitted documents for errors or omissions, such as incorrect income figures, misclassified expenses, or missed deductions. An amended return can be advantageous if it leads to a tax refund or a reduced tax liability. In addition, companies may need to amend their records to reflect changes in the business structure or applicable tax laws, ensuring compliance with Maltese tax regulations.

The Process of Amending Tax Returns

Behind the process of amending tax returns lies a systematic approach that new business owners must adopt to reflect accurate information on their filings. Initially, an entrepreneur should gather supporting documents that substantiates the corrections needed, such as receipts, additional income records, or revised financial statements. Subsequently, they must complete the appropriate amendment form provided by the Maltese tax authority, which typically involves listing the original figures alongside the revised amounts.

Amending a tax return requires careful attention to detail. It is advisable for individuals to maintain comprehensive records of all correspondence and documents related to the amendment process. Ensuring that these records are organized will aid in establishing transparency with the tax authority and may prove beneficial should any further inquiries arise.

Time Limits for Amendments

After identifying the need for an amendment, new businesses must be aware of the time constraints imposed on filing amended returns in Malta. Generally, the Maltese tax authority allows taxpayers to amend their returns within a specific timeframe—usually up to four years from the original filing date. This timeframe is designed to encourage prompt corrections and ensure that tax obligations are met in a timely manner.

Amendments must be submitted within this designated period to avoid potential penalties or additional scrutiny from tax authorities. New business owners should mark their calendars and stay informed about the specific deadlines for each tax year to remain compliant with Maltese tax laws.

Amendments made after the stipulated time limits may result in the forfeiture of any potential refunds or adjustments. Thus, being proactive in identifying and addressing errors is crucial for maintaining the integrity of a business's tax compliance and financial reputation.

Merging with Other Entities and Tax Implications

Once again, when a new business contemplates merging with other entities, understanding the tax implications is a significant aspect that they must navigate to ensure compliance and maximize benefits.

Tax Considerations When Merging

Below are some of the primary tax considerations that a business must keep in mind during a merger. First, it's imperative to identify whether the merger will be structured as an asset purchase or a stock purchase, as each has different tax consequences. In an asset purchase, the acquiring company generally receives a step-up in the basis of the assets to their fair market value, allowing for increased depreciation expenses. Conversely, in a stock purchase, the basis of the acquired company's assets remains unchanged, which may have implications for future tax deductions and liabilities.

Furthermore, businesses should evaluate tax losses and credits that can be carried over or utilized post-merger. If either entity possesses tax attributes that can benefit the merged entity, understanding how these can be applied is vital for long-term financial health. Tax planning in this phase can help optimize outcomes and mitigate future tax liabilities.

Reporting Requirements for Merged Entities

Any business involved in a merger must also bear in mind the reporting requirements that will result from the consolidation. Merged entities typically need to file consolidated tax returns, which may significantly change their reporting obligations. The merging parties should consult tax professionals to understand the specific forms and documentation that will be necessary to comply with local regulations.

A proper understanding of reporting requirements is imperative for maintaining transparency with tax authorities. The entities must keep accurate records of their financial positions prior to and after the merger, ensuring that all relevant transactions align with the declared financial statements. This ideal documentation can prevent discrepancies that could lead to audits or penalties.

Long-term Tax Planning Post-Merger

Beside the immediate considerations during the merger, businesses should engage in long-term tax planning to ensure that the advantages of the merger are maximized over time. This planning involves assessing how the merger will affect the overall tax strategy and operational efficiency of the newly formed entity. Strategic alignment of tax policies can result in potential savings and a more favorable tax profile.

Further, companies should continuously review their tax situation post-merger to capitalize on any new opportunities for deductions, credits, and adjustments to their operational approach. Regular assessments can provide insights into adjusting strategies in response to changes in the business landscape or tax legislation, ultimately supporting sustained growth and contributing to the long-term success of the merged entity.

Future Trends in Malta's Taxation Policy

After reviewing the current landscape for tax filing in Malta, stakeholders in new businesses are increasingly interested in future trends that may influence their operations. As Malta continues to evolve its taxation policy, it is necessary for entrepreneurs to be aware of emerging changes that could impact their tax obligations and opportunities.

Changes Influencing New Business Taxation

Influencing factors such as economic conditions, technological advancements, and political shifts play a significant role in shaping the tax landscape for new businesses in Malta. As the global economy embraces innovation and sustainability, Malta's government may adjust its tax policies to incentivize sectors aligned with these values. For instance, businesses involved in green technologies might receive enhanced tax breaks as part of an effort to foster environmentally friendly practices.

Additionally, the shift towards digitalization has prompted discussions about implementing a more streamlined tax filing process for new businesses. With the increase in online operations, authorities are likely to invest in tax software solutions that facilitate compliance and reporting, thereby providing support to entrepreneurs navigating the requirements.

Possible Reforms and their Implications

Above the existing tax framework, there are proposed reforms that could alter the landscape for new businesses in Malta. These reforms may include changes to tax rates, deductions, and credits that are available to startups and small enterprises. As he or she evaluates these potential changes, an entrepreneur should consider how these reforms could either alleviate their tax burdens or introduce new complexities into their operations.

Reforms aimed at simplifying the tax structure may lead to a more favorable environment for entrepreneurs. Streamlined regulations could facilitate higher compliance rates among new businesses, allowing them to allocate more resources toward growth and innovation, rather than navigating intricate tax codes.

Impact of EU Regulations on Maltese Taxation

Regulations set forth by the European Union (EU) significantly influence Malta's taxation policy, particularly as it relates to new businesses. As Malta aims to maintain competitive tax rates while aligning with EU standards, entrepreneurs must be cognizant of changes that arise from EU directives. These regulations often introduce stringent guidelines intended to foster tax transparency and prevent tax evasion, which in turn could affect how new businesses manage their finances.

This alignment with EU regulations ensures that Malta remains an attractive destination for foreign investment, but it also means that new businesses must stay informed about ongoing regulatory changes. As these developments unfold, it is vital for entrepreneurs to adapt their tax strategies to comply with both local and EU laws while maximizing potential incentives available for their ventures.

Final Words

To wrap up, Malta's tax filing requirements for new businesses present a structured approach to compliance that entrepreneurs must navigate. They should familiarize themselves with the Maltese tax system, which includes registration with the Maltese tax authorities and timely submission of their tax returns. Adhering to local laws not only prevents potential penalties but also fosters a trustworthy reputation in the business landscape. He or she should also be aware of the different tax incentives and benefits offered in Malta, which may enhance their overall financial strategy.

Moreover, it is advisable for new business owners to consult with a local tax advisor or accountant who can provide invaluable guidance tailored to their specific situation. They may benefit from expert advice on optimizing their tax obligations and fully understanding their responsibilities. As they establish and grow their businesses, maintaining compliance with Malta's tax requirements will empower them to focus on their core operations and contribute to the vibrant Maltese economy.

FAQs

What are the registration requirements for a new business in Malta?
Entrepreneurs must choose a business structure (sole proprietorship, partnership, or limited liability company), register with the Malta Registration of Companies, and obtain a Tax Identification Number (TIN).

How long does the company registration process take in Malta?
The company registration process is relatively swift and typically takes just a few days.

What is a Tax Identification Number (TIN) and why is it important?
A TIN is a unique identifier required for all tax obligations in Malta, ensuring compliance with local tax regulations.

What types of taxes apply to new businesses in Malta?
New businesses may be subject to income tax, VAT, social security contributions, withholding tax, and excise duties.

What is the VAT registration threshold in Malta?
The VAT registration threshold is €35,000 for businesses selling goods and €30,000 for businesses providing services.

What are the income tax filing requirements for businesses in Malta?
Businesses must file income tax returns annually, with deadlines depending on the business structure, and submit necessary financial documentation.

What documentation is required for income tax filing in Malta?
Businesses must submit financial statements, such as profit and loss accounts, balance sheets, invoices, receipts, and bank statements.

How often are VAT returns required to be filed in Malta?
VAT returns are typically filed quarterly, though businesses may qualify for monthly or annual filing depending on turnover.

What is the deadline for filing the annual tax return in Malta?
The deadline for submitting the annual tax return is generally 30 days after the end of the financial year, typically falling on April 30th.

Do businesses in Malta need to prepare financial statements for tax purposes?
Yes, businesses must prepare financial statements such as the balance sheet, income statement, and cash flow statement for tax purposes.