Fiscal Code amendments

Fiscal Code amendments

View this page in: Romanian
6 August 2013

Government Ordinance no. 16/2013 amending the Fiscal Code was published on 2 August 2013.

The major changes are summarised below:

I. Profit tax

  • The provisions of the Fiscal Code transposing the Merger Directive (2009/133), the Parent-Subsidiary Directive (2011/96) and the Interest and Royalties Directive (2003/49) have been updated as result of Croatia's accession to the European Union on 1 July 2013.

Entry into force: 5 August 2013

II. Personal income tax

  • The Fiscal Code provision whereby expenses for collective savings for housing are deductible for individual income tax purposes has been abolished. Previously, such expenses were deductible from salary income up to the annual limit of RON 300.

Entry into force: 5 August 2013

III. Social security contributions

  • Measures clarifying the procedure for withholding health contributions for people deriving income from independent activities, as provided by art. 52, para. (1), as well as income obtained from associations without legal personality has been introduced. The payer of income has to report the social security contributions in Form 112 (“Return for reporting liabilities in the form of social security contributions, individual income tax and the name list of subscribers”).

Entry into force: 5 August 2013

IV. Value added tax

  • As of 1 September 2013, the reduced VAT rate of 9% applies for the supply of bread, wheat and flour.
  • As of 1 September 2013, the simplification measures apply for supply of energy to taxable persons and for green certificate transactions. This provision applies until 31 December 2018.
  • The application of the simplification measures for the domestic supply of cereals and industrial crops is extended to 31 December 2018.

Entry into force: 1 September 2013

  • Beneficiaries purchasing goods / services from inactive taxpayers or from other taxable persons that have been de-registered for VAT purposes may deduct the VAT corresponding to these services in the following situations:
    • for goods purchased under an enforcement procedure;
    • for goods / services purchased from suppliers in bankruptcy proceedings under Law 85/2006.
  • Taxable persons who do not have a valid VAT code can deduct the VAT on acquisition of goods and / or services for transactions to be made after their registration. The VAT deduction is performed in the first VAT return after the taxable person’s registration for VAT purposes.
  • For companies established according to Law 31/1990, the registration for VAT purposes is cancelled if the main shareholders have or, if the case, the sole shareholder has criminal offenses in their fiscal record.
  • Taxable persons that have been de-registered for VAT purposes for not submitting the VAT returns for a period of six months or two consecutive calendar quarters may re-register for VAT purposes at any time, provided that they present the returns not submitted within the legal deadlines with and a statement in which they undertake to file their future returns within the legal deadlines.
  • If the supplier’s VAT code is cancelled, the beneficiary cannot deduct the input VAT starting the day following that on which the cancellation is performed in the Register of taxable persons whose VAT registration was cancelled.
  • Taxable persons whose VAT code was erroneously cancelled by default are still regarded as taxable persons for VAT purposes, with the right to deduct input VAT.
  • Persons erroneously registered for VAT purposes by the tax authorities are not obliged to invoice with VAT. In such circumstances, however, those persons have the obligation to pay the tax and their beneficiaries have the right to deduct the input VAT.

Entry into force: 5 August 2013

V. Excise duties

  • The excise duty rate for ethyl alcohol was increased from EUR 750 / hl pure alcohol to EUR 1,000 / hl pure alcohol.
  • The scope of application of the non-harmonised excise duties is extended for a series of luxury products, as follows:
    • gold and / or platinum jewelleries, except wedding rings;
    • natural fur garments;
    • cars and SUVs, including imported or purchase from EU, new or used, whose engine capacity is greater than or equal to 3,000 cc;
    • hunting rifles and guns for personal use, other those for military or sports purposes, as well as the related ammunition;
    • yachts and other vessels, with or without motors, for pleasure, except those used in professional sports.
  • The level of the guarantee to be provided by the registered consignors is decreased from 100% of the excise value related to the goods moving under an excise duty suspension arrangement to 6% of the excise value related to the dispatched excise goods, estimated for one year.
  • Used oils resulting from combustion engines, transmissions motors, turbines, compressors, etc., which are used for heating, are excluded from the marking and colouring obligation.

Entry into force: 1 September 2013

[Source: Official Gazette of Romania no. 490/2 August 2013]

For more information, please contact Peter de Ruiter, Mihaela Mitroi, Ionut Simion and Daniel Anghel.

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