Peculiarities while documenting the calculation of interest upon the provision of loans between economic agents

Marina Dandara, deputy director of Priminfo-Grup: we would like to bring an explanation as regards the documentary confirmation for the calculation of interest upon the provision of loans between economic agents.

By its economic essence, the provision of loans with interest rates on behalf of an entity which is not a financial institution to another entity which develops entrepreneurship activity can not be expressly qualified as service provision. For this reason, when documenting such operations, it is not necessary to fill in special regime blanks/forms, such as an invoice or fiscal invoice. Moreover, the latter, by their form and content, do not allow the calculation of the interest, but only include columns stating the alienation of goods or provision of services, which can be clearly defined and have a pre-set price.

Thus, in order to document the calculation of the interest in such situations, the application of the following principle can be recommended: with a view to document the calculation of the interest for the provided loan and, respectively, to decide upon the income and costs for fiscal purposes, the economic agent must fill in a tally-sheet for calculating the interest, as a primary document, to be attached to the contract and payment orders.

The concerned procedure results from the fact that, given the lack of standardized blanks/forms or if such do not meet the entity’s needs, the company is entitled to develop and use own documents approved by its management, including certain requisites which result from the requirements set by Art. 19 paragraph (2) and paragraph (6) from Law on accounting.

*The information has been confirmed for Priminfo-Grup by the Main State Tax Inspectorate.