made in such period, but shall have to pay the collected VAT related to the taxable operations carried out in such period, and the beneficiaries purchasing goods and/or services from such taxpayers shall not be entitled to deduct the value added tax related to such acquisitions, except for the acquisitions of goods made during enforcement proceedings. New detailed fiscal rules are inserted with a view to assisting upon the calculation of the profit tax by the taxpayers implementing the international financial reporting standards. At the same time, it is supplemented the list of non-taxable income upon the calculation of taxable profit of such taxpayers, as well as the method of making quarterly advanced payments. GEO No. 125/2011 supplements the list of deductible and non-deductible expenses and of reserves and provisions, by adding the following: •
Expenses incurred due to the repayment of subsidies granted, according to law, by the Government, Governmental
agencies and
other domestic and international institutions; •
Expenses incurred with the benefits granted to employees as capital instruments with cash settlement upon actual grant of benefits, if they are taxed according to Title III (Income Tax).
•
50% of the expenses incurred with fuel for the motor vehicles exclusively intended for road person transportation, which vehicles are owned or used by the taxpayer. This provision is regulated in a similar fashion as the income tax is concerned. In addition, under such circumstances we have to add the 50% deductibility of VAT upon purchasing such vehicles and the fuel required to their use.
Income Tax The income made from selling movable assets as waste via collection centres, for scrapping purposes, which form the object of national programmes financed by the State budget or other public funds are not to be deemed as taxable income, and such provision shall be effective as of 30 December 2011. Taxpayers performing activities for which the net income is determined based on income rates shall have to fill in the part of the Cash Income and Expenses Ledger referring only to incomes, according to the accounting regulations prepared to this effect. Taxpayers, for whom the net income is established based on income rates and 27