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Tax Treatment Of Common Costs


  • Teiusan Sorin-Ciprian



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 non-deductible 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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  • Teiusan Sorin-Ciprian, 2020. "Tax Treatment Of Common Costs," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 54-64, August.
  • Handle: RePEc:cbu:jrnlec:y:2020:v:4:p:54-64

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    References listed on IDEAS

    1. European Commission, 2018. "Taxation trends in the European Union: 2018 edition," Taxation trends 2018, Directorate General Taxation and Customs Union, European Commission.
    2. European Fiscal Board (EFB), 2019. "Assessment of EU fiscal rules with a focus on the six and two-pack legislation," Reports 2019, European Fiscal Board.
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