Deloitte launches SmarTax app which automates companies’ corporate income tax compliance process

Deloitte Romania launches SmarTax application, a digital tool that allows companies to calculate and prepare the quarterly and annual corporate income tax (CIT) computation based on accounting documents available on any fixed or mobile device connected to the internet, thus digitizing their compliance process with corporate income tax reporting requirements. The application incorporates the entire fiscal legislation in force, while also remaining flexible to adjust to any future changes in the corporate tax area.

The tool addresses any Romanian company, regardless of its size and field of activity, except financial services industry, whose particularities are to be implemented in a future version. The SmarTax app ensures a high level of automation and control and thus considerably reduces human errors and the time allocated by tax and accounting professionals for this process.

“In Romania, the tax compliance process is extremely complex, due to the constantly changing legislation and the difficulties that often appear when applying the regulations from one year to another. Our team has created SmarTax starting from clients’ needs to improve their ability to make decisions quickly based on updated tax provisions and to compare quarterly or annual tax treatment with the previous ones, in order to better manage the tax results and the supporting documentation for sensitive transactions. The application may prove to be even more useful in the context of the COVID-19 pandemic, in which remote work is encouraged. The launch of SmarTax completes Deloitte’s portfolio of innovative technology-enabled tax solutions, a field in which we are worldwide recognized,” said Dan Bădin, Tax Partner, Deloitte Romania.

The new tool allows users to reduce the time spent with the calculations, thanks to the automation of repetitive processes, to replicate tax treatments from a quarter or year to another for the new transactions. It also improves the archiving process of supporting documentation for transactions and provides better control over the entire CIT compliance process throughout the years.

Thus, the application, functional through a simple internet connection, archives the information necessary for completing the corporate tax returns , establishes the applicable tax treatment, based on the type o transaction or tax treatment previously applied and automates calculations on limited deductibility in cases specifically provided by the tax legislation, such as the legal reserve, interest expenses, sponsorships etc. Finally, with a single click, the application automatically generates the corporate income tax return to be signed and submitted to the tax authority.

The portfolio of in-house developed digital tools provided by Deloitte Romania also includes solutions such as PartnerSCAN app, which allows companies to assess the potential tax risk of their business partners, D.Tax, an innovative application dedicated to VAT reporting, Total Rewards, an automated tool allowing companies to model their HR policies, a calculator that estimates wage costs for employers which are affected by the restrictions imposed in the context of the COVID-19 pandemic.

Deloitte provides worldwide audit, consulting, legal, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500 companies through a globally connected network of member firms in more than 150 countries and territories, bringing world-class capabilities, insights, and high-quality service to address clients' most complex business challenges. Deloitte's goal is to make an impact that matters through its more than 312,000 professionals.

Deloitte Romania is one of the leading professional services organizations in the country providing, in cooperation with Reff & Associates | Deloitte Legal, services in audit, tax, legal, consulting, financial advisory, risk advisory, business processes as well as technology services and other related services, through more than 1,700 professionals.