TAX TREATMENT OF COMMON COSTS

TAX TREATMENT OF COMMON COSTS

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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 soiebiologique.com 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 gymnastics wall decals to describe the manner how this kind of costs is allocated in the tax calculation process.