Law no. 163/2018 published in the Official Gazette no. 595 of 12 July 2018

 

The present Law brings amendments and/or completions to the Accounting Law no. 82/1991, the Companies Law no. 31/1990, as well as to Law no. 1/2005 on the organisation and functioning of the cooperative companies.

 

Thus, starting with 15 July 2018, companies can distribute dividends quarterly, having, where they have chosen this option, the obligation to prepare interim financial statements.

 

The amounts related to the interim allocation of dividends are reflected in the interim financial statements as receivables against the shareholders/associates.

 

The quarterly allocation of profit to shareholders or associates is performed by option, during the financial year, based on the interim financial statements approved by the general meeting of shareholders or associates, as the case may be.

 

At the same time, the quarterly allocation of profit is performed within the limit of the quarterly net accounting profit, plus any potential retained earnings and amounts withdrawn to this purpose from available reserves, minus any carried forward losses and reserves set up in accordance with the legal or statutory requirements.

 

Discover more: Quarterly distribution of dividends

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Taxand's Take

In order to avoid the taxpayers’ risk of non-compliance to the new legal provisions, the deadline for the submission of the Sole Tax Return is extended to 31 July 2018.

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