Subsidies - Concept, Recognition and Tax Implications

Even if, theoretically speaking the specialty literature accepted and validated the concept of perfect competition, this remains, only a hypothetical issue that cannot be met in its pure form - in the real economy. The impossibility of the market to regulate itself as well as the anti-competition practices or unfair competition make absolute necessary the intervention of the state at the economic level in order to re-establish the market equilibrium and to relaunch the economic growth. But this intervention - both at world level as well as at EU level - or more specific at the Romanian level - takes place in a controlled way based upon some specific regulations. Such regulations aim at the domains of state intervention, type and quantum of aid, concession conditions, as well as at the reflection in the beneficiaries’ financial situations of the aid received and their influence upon the economic - financial results. We try hereafter a brief presentation of the concept, recognition and fiscal implications of the most used form of state aid in the economy: subsidies.