In the Official Gazette no. 1269 was published Law no. 296/2020 for the amendment and completion of Law no. 227/2015 regarding the Fiscal Code.
I. General provisions
The definitions regarding “place of effective management”, “affiliated person”, “resident” and “participation titles” are modified in order to facilitate the understanding in practice of these notions.
A new article is also introduced, detailing the procedure for determining the place of effective management.
II. Corporate income tax
1. Fiscal consolidation
A new chapter is set up regarding the fiscal consolidation and the fiscal group in the field of corporate income tax.
Thus, for the establishment of a tax group eligible to apply for tax consolidation, the following conditions must be met cumulatively at the date of the application submission:
- The holding condition of 75% must be fulfilled for an uninterrupted period of one year;
- The members of the group are corporate income taxpayers who apply the same system of payment of corporate income tax;
- The members of the group have the same fiscal year;
- The members of the group are not part of another fiscal group in the field of corporate income tax;
- The members of the group are not payers of micro-enterprises income tax or are not ,simultaneously, payers of corporate income tax and payers of specific tax;
- The members of the group do not fall under the incidence of the provisions regarding the activities of night bars, night clubs, discos, casinos;
- The members of the groups are not in dissolution/liquidation.
Note: The fiscal consolidation system is applicable for 5 fiscal years.
2. Other changes in the field of corporate income tax
The category of deductible expenses includes those incurred by the employer, related to the telework activity for the employees who carry out the activity in this regime.
In the category of non-deductible expenses are introduced those made as a result of transactions with a person located in a state declared as non-cooperating jurisdiction.
The 30% ceiling for the deduction of provisions with uncollected receivables is eliminated, if they meet the conditions provided by the law.
New provisions are instituted that regulate the merger/division/separation operations in which the company paying the income tax of the micro-enterprises is also involved.
III. Income tax
Clarifications and novelties are brought regarding the taxation at the level of a non-resident natural person who becomes a resident in Romania by meeting the conditions of fiscal residence. Thus, the natural person owes income tax from the first day of arrival in Romania, if he has a presence exceeding 183 days or if he is declaring the center of vital interests in Romania.
The advantages in the form of personal use of vehicles that are not used exclusively for the purpose of economic activity, owned or used by legal entities, that apply the tax regime of micro-enterprises or the specific tax of certain activities, are not taxed.
The amounts granted to employees who carry out telework activities for supporting the expenses with utilities, within a ceiling of RON 400, are not taxed. Employees are not obligedto present supporting documents.
Expenses with epidemiological testing or vaccination of employees borne by the employer are not taxed.
Regulations are set in motion regarding the person obliged to calculate, withhold, pay and declare the benefits in cash and/or in kind received from third parties as a result of the provisions of the individual employment contract, a service report, deed of secondment or a special status provided by law or a contractual relationship between the parties.
IV. Tax on income obtained by non-residents from Romania
The term for submitting the informative declaration regarding the calculation and withholding of the tax due by non-residents is extended until the last day of February inclusive of the current year for the expired year.
The tax rate of 10% is established for certain incomes obtained from Romania by natural persons residents in a member state of the European Union or in a state with which Romania has concluded a double taxation agreement.
It will be possible to adjust the VAT for invoices that have not been collected from the individual beneficiaries within 12 months.
New conditions are initiated for the exemption from VAT payment in customs for imports.