Romania’s Finance Ministry sets up procedure for companies to report dividends paid quarterly

The Ministry of Public Finance has established the way in which companies can report the amounts paid as dividends over the fiscal year. The Ministry proposes to distinguish distinctly, on the receivables, the amount of dividends distributed during the financial year, the dividend reporting mechanism distributed quarterly by the economic operators being established by a draft order of the responsible minister, according a press release.

The draft bill also establishes the deadline for the submission of the interim financial statements to the MFP territorial units, respectively 30 days after their approval by the general meeting of the shareholder/associates.

“To this end, the law has allowed companies to opt for the quarterly distribution of dividends, which will allow flexible planning of the budget both for the entrepreneurs, who will benefit sooner from the profit of their own businesses, as well as with the execution of the budgetary expenditures, and thus will also collect during the year tax revenues from the dividend tax,” said finance minister Eugen Teodorovici.

The draft provides that entities that have opted for dividend distributions quarterly, prepare interim financial statements of profit and loss account and these components have the same structure as those applicable to annual financial statements prepared under these regulations. Revenues and expenses thus reported are cumulatively determined from the beginning of the financial year to the end of the quarter for which the entity has opted to allocate dividends.

The Project Approval Report stresses that it is proposed that the amount of the dividends be recognized through a separate account, account no. 463 “Receivables representing dividends distributed during the financial year.”

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