Article 159 bis 5 provides flexibility for growing enterprises to remain in the simplified regime under certain conditions. An enterprise continues to be subject to the special small-business provisions even if: (1) it changes its activity (provided the new activity is also eligible); (2) its capital, income, or employee count increases, provided the increase does not exceed a percentage/number specifically prescribed by the Chairman; or (3) it takes on an additional activity. This prevents minor growth or operational changes from immediately triggering the more complex and costly standard tax regime requirements.
Part 5 bis - Provisions Relating to Tax on Enterprises
Chapter 1 - Basic Rules
Article 159 bis 5
[GTL Notes: Specified instances where Special Provisions can continue]
In exception from the provisions of Article 159 bis of this Law, the enterprise shall continue to be subject to the provisions of this part in the following cases:
Change of activity to any other activity falling within the provisions of Article 159 bis 1 of this Law;
Increase of capital or gross income or average number of employees to above the limits specified in Article 159 bis 3, 2 and 4 of this Law, provided that such increase should not exceed the percentage or the number prescribed by the Chairman;
Carrying on an additional activity on condition that the capital, gross income, or the average number of employees shall not exceed the limits specified in item 2 of this Article.
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