TAX TREATMENT OF COMMON COSTS
Accounting provides information on financial performance of an entity. For companies who ows profit tax, it is important to establish the right amount of deductible expenses. According to the current Romanian fiscal law, the taxable profit of a company is calculated as a difference between revenue...
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| Format: | Article |
| Language: | English |
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Academica Brâncuşi
2020-08-01
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| Series: | Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie |
| Subjects: | |
| Online Access: | http://www.utgjiu.ro/revista/ec/pdf/2020-04/06_Teiusan.pdf |
| Summary: | Accounting provides information on financial performance of an entity. For companies who ows profit tax, it is
important to establish the right amount of deductible expenses. According to the current Romanian fiscal law, the
taxable profit of a company is calculated as a difference between revenues and expenses registered according to the
applicable accounting regulations, adjusted by deducting non-taxable revenues and tax deductions and by adding nondeductible expenses. Also, elements similar to revenues and expenses are taken into account when calculating the
taxable profit. The purpose of the paper is to analyze how the common costs can influence the profit tax amount a
company has to pay, and to describe the manner how this kind of costs is allocated in the tax calculation process. |
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| ISSN: | 1844-7007 1844-7007 |