Recently, the corporate tax relief on reinvested profit has been reintroduced (OUG 19/2014, MO 308/2014)
Starting 1st of July 2014, taxpayers may benefit of tax exemption for reinvested profit in the production and/ or acquisition of technological equipment (machinery, tools and working plant), if these are included in subgroup 2.1 of the Catalogue regarding the classification and the useful life of fixed assets, if they are new, are designed for generating taxable income and are commissioned by 31 December 2016 inclusively.
The new provisions make reference also to the limits based on which such exemption can be granted, defines the invested profit, provides for the applicable rules in case of different categories of taxpayers, the taxation method for reserves, the holding period of equipment, the depreciation method that must be used, etc.
However, the new provisions lacks clarifications for certain aspects and, hence, we envisage that new ones will be made available once the Methodological Norms for the application of the Fiscal Code will be published.
If you are interested in a detailed analysis regarding this measure of fiscal relaxation, please do not hesitate to contact us.
Download – Tax incentive reintroduced in the Fiscal Code starting 1st of July 2014 in Romania
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