Tax News Reporter - Week ended 8 October 1996
Presidential Decree No. 685 of 8 May 1996 (see our Tax Alert 4/96 of 27 May 1996) purported to establish as from 1 October 1996 a mixed cash/accrual system for profits tax purposes: income would be considered as received if advance payment had been received or if the goods had been shipped, whichever is earlier. In the absence of amendments to existing profits tax legislation, it has now been confirmed that the principle should not be applied until "specific instructions" are given.
Telegram of the State Tax Service and the Ministry of Finance No. PV-6-02/676 and No. 04-02-04 of 27 September 1996
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