FISCAL AND ACCOUNTING ASPECTS REGARDING THE PROFIT TAX

Abstract

The profit tax, in Romania, is determined by applying the rate of 16% to the taxable profit. It is determined by deducting, from gross profit, non-taxable income and tax deductions, and adding non-deductible expenses from a tax point of view. For activities such as night bars, nightclubs, discos or casinos, the profit tax due may not be less than 5% of the income generated. The profit tax is determined and is due annually or quarterly, cumulated from the beginning of the year. Profit invested in technological equipment, electronic computers and peripherals, machines and household appliances, control and billing, in computer programs is exempt from tax. Those assets must be kept in the patrimony for at least half the duration of the economic use, but not more than 5 years. The limitation period for determining the profit tax is 5 years from 1 July of the year following that for which the tax is determined. Profit tax accounting is performed using account 4411 "Profit tax". The correct declaration and full payment of corporate income tax determines fair competition for taxpayers.

Keywords

• profit tax
• accounting and fiscal apects
• tax deductions
• income tax on micro-enterprises