To optimize companies’ tax planning, we would like to present below the current treatment of the profit that a company can invest in purchasing fixed assets, benefiting from tax exemption.

 

The reinvested profit in technological equipment, electronic computers, cars and devices, and software, including those bought based on financial leasing contracts and operated for economic purposes, is exempt from tax on profit.

 

The company is obliged to comply with the below conditions to benefit from tax exemption:

1. The asset must be new and not be used before the purchase date;

2. The asset has to remain in the company patrimony for a period equal with:

a. ½ from the economic use, but

b. no longer than five years.

 

Based on the function report, the tax exemption shall be applied in the quarter the asset is used.

The reinvested profit is:

– the gross profit year-to-date cumulated of the quarter/ the year of commissioning the assets

– the gross profit registered from the beginning of the quarter, investing in the assets used, starting the quarter the company has become profit taxpayer.

 

The tax exemption is provided in the limit of:

– profit tax calculated from the beginning of the year until the quarter the assets started to be used for those companies that are quarterly taxpayers;

– profit tax is calculated for the full year in the case of annual taxpayers.