by Florentina Gagiu | 21 February 2008 | 0 comments
The term of deductibility represents from the accounting and fiscal point of view, an admission of an element from the financial reports which is allowed to be carried on by an economic agent in his activity. Reported to the costs, in the determination and accounting process of the profit tax, the deductible costs represent those costs which are recognized from the fiscal point of view. As regarding the fiscal regime the deductible costs are analyzed from two points of view.
A first aspect makes reference to the fact that the economic agents use the cost articles enumerated in the Fiscal Code and other fiscal paperwork accordingly to this process. The Fiscal Code defines this category as being those costs that are carried out in order to achieve taxable incomes, inclusively the ones regulated by normative documents in force. The categories of costs enumerated in the Fiscal Code are:
a. costs with acquisition of packs, during the life period established by the tax payers;
b. costs carried out for the labor protection and preventing of the work accidents and occupational diseases;
c. costs representing the shares for the insurance for work accidents and occupational diseases and costs with insurance premiums for occupational risks;
d. advertising costs carried out aiming to popularize the company, the products or services, in base of a written contract, as the costs associated of bringing out of the necessary materials for the broadcast of the advertising messages, of the samples within the advertising campaign, in order to test the products and demonstrations at the sale points, as other goods and services granted with the purpose of stimulating the salles;
e. transportation and accommodation costs in the country and foreign countries, carried out by employees and administrators;
f. the share to the mutual reserve of guarantee for the central house of the credit cooperatives;
g. registration taxes, subscriptions and compulsory shares, regulated by the valid normative documents, as the shares for the fund meant to the negotiation of the collective labour agreement;
h. costs for the professional formation and training of the employers;
i. costs for marketing, market analysis, promotion on the existent or new markets, participation in fairs and expositions, to business missions, publication of own informative materials;
j. research costs, as development costs that don’t carry on the conditions of being recognized as immobility from accounting point of view;
k. costs for the improvement of the management, informatics systems, introduction, maintenance and the perfecting of the management system of quality, the obtaining of the attestation according the quality standards ;
l. costs for environment protection and resource preservation;
m. registration taxes, subscriptions and shares owned to the Chambers of Commerce and Industry, union organizations and employers associations;
n. the losses registered at the elimination from the evidence of the uncollected debts, in cases such as the bankruptcy procedure of the debtors was closed in base of the judicial decisions; the debtor died and the debt can’t be recovered from the heir; the debtor is dissolved, in case of a company with limited responsibility with single associate, or liquidated, without successor; the debtor records major financial difficulties which affect the entire patrimony.
A second aspect makes reference to the fact that the deductible costs must respect the principle of connecting the costs to incomes, meaning the costs are recognized from the accounting and fiscal point of view only if they are incomes producers. If a cost isn’t income producer, this isn’t recognized in the tax profit calculation, being framed as non deductible, the taxable base of this fiscal index increases, and implicit the tax profit value which the company has to pay. There are a few examples which demonstrate the applicability of this principle.
A minus of stock due to a natural disaster will generate a cost through writings in the cost chapter the stock value. If this stock was insured and the company will encash from the insurance company the value of the stock found on minus at the inventory, the value of this cost is considered to be deductible from the fiscal point of view; on the contrary the value of the respective cost is considered to be non deductible.
If a company generates costs during the period when there aren’t carried out activities, the occasioned costs are considered to be non deductible from the fiscal point of view.
Another fiscal management rule consists in the fact that the value of the occasioned costs must generate a value of minim the value of the realized incomes in this sense. The professional reason has an important role in the application of this principle. For example, an auto dealer has in the activity object the trade with auto parts. It has in the patrimony an auto, which fails and for its mending is necessary the substitution of a part which a deposit owns it.
The company replaces the respective part, which is further discharged from the balance sheet and will generate for the company an equal cost with the value of the acquisition price of that. The company generates in its activity a cost and it is raised the problem of quantifying the proper income for compensating its value. In this case we aren’t speaking of the effective accounting of an income, but the professional reasoning interferes and it is judged by the fact that if the company didn’t repair auto, this couldn’t carry on transportation and implicit is affected the delivery process of merchandise that occasions effective incomes.
The deductibility of costs draws up naturally and the deductibility of others indexes, such as VAT due to those acquisitions used within the activity object of a company. In this situation, the VAT value due to the acquisition of necessary parts for mending is considered to be deductible, because the cost that is on base of this consumption is deductible. If this part was find out lack to inventory, tax-free, the cost value was considered non deductible and implicit the cost value was considered non deductible and implicit the afferent VAT value of the acquisition. VAT which is considered non deductible from the point of view of the monthly or quarter process of regulation this index, will be passed on the current costs of the respective financial exercise. The fiscal implications are the following: if deductible VAT becomes non deductible, the gap between deductible VAT and the collected one increases in favor of the second one, and the company must pay the value of VAT for the respective high period; the cost which takes over the VAT non deductible is at its turn non deductible from the point of view of the profit tax calculation, and a non deductible cost from the fiscal point of view will generate a higher tax profit.
29.07.2010
29.07.2010
