Business units use property, plant and equipment and intangible. Property, plant and equipment are assets that generate future economic benefits and are held for more than one year. The accounts in ...group 21 "Property, plant and equipment" are used to record property, plant and equipment. Expenses related to the acquisition, production, construction of depreciable fixed assets and investments made in them are recovered by including in the operating expenses the value of the depreciation produced. Tax depreciation is deductible when calculating corporate income tax and may be equal to or different from accounting depreciation.
Economic entities may register, for VAT purposes, before or after the start of economic activity. In practice, for taxable persons registered for VAT purposes, situations may arise that lead to the ...cancellation of the VAT code. These taxpayers may be re-registered as value added tax payers if they meet certain conditions. That is why we have presented the fiscal and accounting effects regarding the cancellation of the VAT code, on the date of cancellation, in the period in which the code is canceled as well as from the date of re-registration for VAT purposes. The case studies present the situation of a taxpayer, supplier, in the three periods, but also the effects on the taxpayer-client of the person who has the VAT code canceled and subsequently regained it.
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.
The payment installment is an agreement between the debtor taxpayer and the tax authorities establishing that the amounts owed are to be paid within a period between 6 and 60 months, with monthly ...installments. The purpose of the staggering is to help the entities that are in financial difficulty to overcome this moment and to continue their activity. Also, the fiscal body collects debts from the taxpayer, monthly, without any other expenses. The debtor benefits from the payment exemption of the delay penalties if the scheduling schedule is respected. The delay increases are paid, monthly being included in the installment rates. In order to benefit from staggering the debtor constitutes guarantees in the form of money means, insurance seizure on the goods or gas contract or mortgage in favor of the fiscal body. The main condition for maintaining the validity of the payment installment is the declaration and payment of the tax obligations with payment terms starting with the date of the communication of the staggering decision, except in the case in which the payment scheduling is requested. During the period for which they were granted payment installments, interest is currently due of 0.02% for each day of delay.
Value added tax is an indirect tax, calculated on value added tax incurred by taxable persons registered for VAT purposes and borne by final consumers. At the end of each month, the deductible tax is ...offset by the tax collected. If the deductible tax is higher than the collected tax, the tax to be recovered from the state budget results. The VAT is regularized through the tax return, which is submitted monthly or quarterly. Taxable persons who register a tax to be recovered may request a refund. If the fiscal risk is low, the VAT Refund Decision is issued; for medium fiscal risk, the documentary analysis is performed, and for high fiscal risk, the refund is made after the fiscal inspection. A temporary procedure is in place for the COVID-19 pandemic. Thus, the returns with negative amounts of VAT with the option of reimbursement are settled with subsequent control.
Fiscal facilities concern: measures to restructure the outstanding budgetary obligations as of December 31, 2018 for debtors with debts greater than or equal to one million lei, based on a ...restructuring plan, staggered payment and fiscal supervision during the easing period; the cancellation of the accessories (increases and penalties) in the case of debts under one million lei, if the main budgetary obligations are paid by December 15, 2019. The potential beneficiaries are required to submit a notification regarding the intention to restructure the budgetary obligations until October 31, 2019. The date of submission of the notification of the restructuring intention is suspended the forced execution by the fiscal body. Debtors who request the cancellation of accessory budgetary obligations submit a notification to the fiscal body's register, by post or through the service „Virtual private space”. The central fiscal body analyzes the fulfillment of the declarative obligations according to the fiscal vector, the extinguishing, compensations, in order to establish with certainty the budgetary obligations that constitute a condition for granting the fiscal facility. The debtor must submit the application for cancellation of the accessories in due time. Otherwise, the tax authorities issue and communicate to the debtor, the decision to lose the validity of the postponement of payment of the accessory payment obligations.
Value added tax is an indirect tax on supplies of goods, services and similar activities, generated by economic activities and paid for by taxable persons, regardless of their legal status, in an ...independent manner, which are three conditions, which must be fulfilled cumulatively. At the end of the period (month, quarter) taxable persons determine the value added tax payable, if the value added tax collected is higher than the deductible value added tax, or the value added tax to be recovered, if the deductible value added tax is higher higher than the value added tax collected. The deductible value added tax can also be influenced by any adjustments that can be positive, ie deductible amounts set in addition, or negative, ie deductible amounts set in minus. The adjustment may relate to capital goods or purchases of services or goods other than capital goods. There are also other possibilities for adjusting the deductible VAT, which will be presented in this paper.
The measures for combat the COVID-19 pandemic have caused financial difficulties for most economic entities due to the restriction of their activity or even the temporary suspension of activities in ...tourism, transport, hospitality and restaurants. The shock wave has affected other areas of activity because all industries are interconnected. As a continuation of the tax measures beneficial to the business environment given the severe lack of liquidity, the Government approved the simplified procedure for granting the payment rescheduling of outstanding debts registered after the onset of the state of emergency. The Executive also decided to extend until December 25 the period in which no interest and penalties are not perceived for unpaid tax obligations, whose maturity has expired after the start of the state of emergency.
Revaluation of tangible assets, namely the determination of fair value is required to provide a fair image of its financial position and performance. This activity is performed by authorized persons. ...The value differences may be additional when the fair value is bigger than the book one, or less when it is smaller. The accumulated depreciation to the revaluation date may be recalculated in proportion to the change of the gross asset value or it can be removed from the gross asset value. The entity may record reserves, expenses and corresponding revenues, depending on the plus or the minus of the value. For tax purposes, among the deductible expenses in the calculation of the income tax there are accepted only those related to the reserves’ depreciation, on the condition that they are considered taxable income. The calculation of the income tax, the establishing of taxes on buildings, the revaluation of tangible assets and, especially, the buildings revaluation should be treated with great care and professionalism, due to the fact that they involve fiscal effects.
This research provided a careful and objective examination of the European Directive and of national regulations in force, and also of the literature from the scope of the addressed theme and thus, ...it created the premises needed to identify several relevant issues, of which: 1. the characteristics of the activity organized by the temporary working staff, which influence the related financial-accounting information, 2. the existence of some regulation and contractual shortcomings, and their application at the debated issues, and 3. the report of some possible risks which may affect the proper conduct of the temporary work and also of the proper management of the financial-accounting information that it generates. The shortcomings and the identified possible risks were targets for the expression of some opinions or argued personal proposals, that the authors consider to be proper and opportune, of which they present those with significant effects, including from the point of view of a plus of information.
