New amendments have been brought to the Romanian Fiscal Code by Emergency Ordinance no.102/ 2013 (published in Official Gazette no.703/ 15th of November 2013). These will enter into force starting 1st of January 2013 and will impact at least almost every company
Download – Romanian Fiscal Code: new amendments effective from 1st of January 2014 (Tax & Fiscal Alert) and find out more about how the following matters will be applied starting January 2014:
Introduction of a new tax – Tax on constructions
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- Categories of taxpayers will have the obligation to pay the new tax,
- Types of constructions subject to new tax
- Applicable tax rate and taxable base
- Reporting and payment obligations
Corporate income tax
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- New provisions have been introduced to sustain holding companies
- Possibility to use a fiscal year different from the calendar year and the related requirements
- The sponsorship expenses not allowed for deduction at corporate income tax computation may be carried forward for seven years
- New provisions have been introduced regarding the possibility and conditions for deferral of deduction rights for interest and net losses from foreign exchange differences, in case of mergers/ spin-off projects
- Provisions are available regarding the possibility and conditions through which legal entities from EU Member States/ European Economic Area, that operate through a permanent establishment in Romania, to benefit from a foreign tax credit for income taxed abroad
Income tax
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- Income from independent activities
- Income from the rental activities
- Income from agricultural activities
- Incomes from prizes and gambling
- International fiscal aspects
Micro-enterprises revenue tax
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- The type of tax due is now clarified for micro-enterprises that obtain income from consultancy and management activities.
- Starting 1st of January 2014, the Fiscal Code also brings new amendments to taxable base computation method
Withholding tax
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- Modifications related to holding period
- The application of provisions of the Interest and Royalties Directive 2003/49/EC – limitations
VAT
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- The insurance cost related to leased goods – alignment with EU jurisprudence
- Exemption applicable for vessels intended to be used for sea navigation
- VAT adjustment is no longer needed in case of stolen goods in certain conditions
- New information has been added for VAT adjustment in case of capital goods used for other purposes than economic activities
- New VAT registration requirements have been published for Romanian legal entities
Excise duties
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- Introduction of the prohibition of selling cigarettes to individuals at a price lower than the declared retail price, and its related offence
- Exchange rate used for conversion for excise duties and tax on oil from domestic production expressed in EUR amount
- New level of excises is established for the following goods: leaded gasoline, unleaded gasoline, diesel fuel and kerosene used as motor fuel
Local taxes
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- Clarifications related to building tax
Other tax changes of interest
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- Taxpayers declared inactive or having an invalid VAT number/ canceled
- Mining royalties
Download full Tax & Fiscal Alert
Contact Ana Maria Graure Tax Manager Anamaria.Graure@accace.com
