NEW TAXATION AND ACCOUNTING COORDINATES ABOUT PROFIT TAX

Marin Ciumag and Coconetu Vasilica Ramona
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Coconetu Vasilica Ramona: TITU MAIORESCU UNIVERSITY BUCHAREST

Annals - Economy Series, 2024, vol. 5, 166-174

Abstract: Legal entities that carry out economic activities and earn income, from Romania and abroad, have the obligation to pay to the state budget profit tax or microenterprise income tax, as a form of taxation of profits [12]. Profit tax is due quarterly, cumulatively from the beginning of the fiscal year. Entities use the Fiscal Record Register to determine the payment tax. The recording of profit tax in accounting is done with the help of account 441 "Profit tax and other taxes", analytical account 4411 "Profit tax". The general rate, which is applied to the taxable profit, is 16%; as an exception, there is also a 5% rate applied to income from activities of the nature of night bars, night clubs, discotheques or casinos, if the amount due, resulting from the application of the general rate to the taxable profit, is lower than this. Fiscal losses established through the profit tax declaration, submitted to the competent fiscal body (Form 101), are recovered from the taxable profits made, within the limit of 70% inclusive, in the next 5 consecutive years. Taxable profit is determined taking into account the accounting result, non-taxable income, non-taxable expenses and tax deductions. The new regulations regarding the profit tax will cause a reduction in economic growth and foreign investments and implicitly a reduction in net profit, moving some economic agents to countries with more favorable tax provisions. In order to avoid paying fines and penalties, taxpayers must know the new fiscal provisions regarding the profit tax due and apply them.

Keywords: tax profit; non-deductible expenses; minimum turnover tax; non-taxable income (search for similar items in EconPapers)
Date: 2024
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