Software and hardware forensic tools: an overview of the accounting and tax framework in portuguese non-state intitutions

Abstract

The main goal of this paper is to research the accounting and tax treatment of the hardware and software's good purchase by the private companies that provide forensic services. For this purpose, it studies accounting and taxation law in Portugal. Concerning to the accounting issues, it analyses the Portuguese Accounting Standardization System, and the other and, about taxation matters it assays the Value-Add Tax and the Corporate Income Tax law. The results show that accounting rules determine the recognition of computer equipment, as a tangible fixed asset. In the purchase moment, that equipment is a non-current asset, and the corresponding cost is the depreciation’ recordation of each economic period. In taxation sphere, in particular, in Corporate Income Tax Law, the treatment is similar, and the depreciation is a deductible tax cost. Furthermore, the company does not support the VAT taxof the purchase because the entity is a VAT taxpayer.