Question

A company, profit taxpayer since 2017, recorded in 2018 a fiscal loss amounting 10,000 lei. In 2019, it recorded the following profits (cumulatively presented for the quarters):

	Q 1- Q 2	Q3	Q4
Revenues, from which	0	315,000	540,000
Turnover	0	270,000	480,000
Reversal of a fine paid to the tax authority	0	0	7,500
Income from interest	0	3,000	4,500
Revenue from dividends received from a Romanian Company	0	0	6,000
Expenses, from which	0	279,000	360,000
Salary fund	0	160,000	200,000
Social expenses	0	0	12,000
Expenses without proper justifying documents	0	2,000	6,000
Gas for a rented car with mixt usage	0	800	1,200
Sponsorship	0	0	3,000
Penalties payable for commercial contracts	0	0	800
Fines payable to tax authority	0	3,000	7,500
Acquisition from inactive taxpayers	0	0	7,500
Protocol	0	2,000	4,000
Accounting profit	0	36,000	180,000

1.     Compute the profit tax payable for the 3^rd quarter of 2019

2.     Compute the final profit tax for the year 2019

3.     State the deadline for declaring and paying the differences of profit tax for year 2019

Romanian taxation system...

Answer 1

Solution:

1. Profit Tax payable for the 3^rd Quarter of 2019:

Computation of Profit and Taxable Income

Income from Business	Q3
LEI	LEI
Turnover	2,70,000
Income from interest	3,000
Other Income (Total Revenue-Turnover-Interest Income	42,000
Total Revenue		3,15,000
Less: Expenses
Salary fund	1,60,000
Expenses without proper justifying documents	2,000
Gas for a rented car with mix usage	800
Fines payable to tax authority	3,000
Protocol	2,000
Other Expesnes	1,11,200
Total Expenses		2,79,000
Accounting Profit		36,000
Add: Inadmissable Expenses
Expenses without proper justifying documents	2,000
Fines payable to tax authority	3,000	5,000
Taxable Income		41,000

Profit Tax @ 16% on the Taxable Income

LEI

6,560

2. Final profit tax for the year 2019:

Income From Business	2019
LEI	LEI
Turnover	4,80,000
Reversal of a fine paid to the tax authority	7,500
Income from interest	4,500
Revenue from dividends received from a Romanian Company	6,000
Other Income	42000
Total Revenue (540000-Expenses above)		5,40,000
Salary fund	2,00,000
Social expenses	12,000
Expenses without proper justifying documents	6,000
Gas for a rented car with mix usage	1,200
Sponsorship	3,000
Penalties payable for commercial contracts	800
Fines payable to tax authority	7,500
Acquisition from inactive taxpayers	7,500
Protocol	4,000
Other Expenses(360000-Expenses above)	1,18,000	3,60,000
Accounting profit		1,80,000
Add: Expenses inadmissable by Tax Authorities
Expenses without proper justifying documents	6,000
Fines payable to tax authority	7,500	13,500
		1,93,500
Less: Income Exempted/not admissable
Reversal of a fine paid to the tax authority	7,500
Revenue from dividends received from a Romanian Company	6,000	13,500
Gross Total Income		1,80,000
Less: Fiscal Loss carried forward from 2018		10,000
Net Taxable Income		1,70,000
Profit Tax @ 16% on the Taxable Income	LEI	27,200

3. The deadline for declaring and paying the differences of profit tax for year 2019 is March 15, 2020