The assets taken into account for the determination indicators I and A when calculating the minimum turnover tax: OMF no. 10/2024

The takeaway 

Order of the Minister of Finance (OMF) no. 10/2024 introduced the eligible assets to be taken into account when determining indicators I and A in the formula to establish:

• the minimum turnover tax owed by companies with a turnover of over EUR 50 million, according to art. 181 para. (3) Fiscal Code; and

• the specific tax on turnover due in addition to the profit tax by companies that carry out activities in the oil and natural gas sectors, according to art. 183 para. (2) the Fiscal Code.

In detail

Law no. 296/2023 introduced the minimum turnover tax (IMCA) for taxpayers which registered a turnover of over EUR 50 million in the previous year and for which the profit tax is lower than the IMCA. Those taxpayers will be obliged to pay profit tax at the level of the IMCA.

As an exception, companies that have activities in the oil and natural gas sectors and that registered in the previous year a turnover of more than EUR 50 million will owe, in addition to the profit tax, a specific turnover tax.

The formula for calculating the IMCA and the specific turnover tax is the same: (VT - Vs - I - A). The indicators are defined as:

VT = total revenues;

Vs = revenues that are deducted from total revenues, specifically regulated by the Fiscal Code;

I = the value of fixed assets in progress caused by the acquisition/production of assets, recorded in the accounting records as of 1 January 2024 or the first day of the modified tax year starting in 2024;

A = accounting depreciation at historical cost related to assets purchased/produced as of 1 January 2024 or the first day of the amended fiscal year starting in 2024 (excluding accounting depreciation of assets included in indicator I above).

OMF no. 10/2024 establishes that the following eligible assets are to be taken into account when determining the value of indicators I and A:

• Tangible assets are those provided in the following subgroups of the Catalogue regarding the classification and normal operating durations of fixed assets, approved by Government decision, as follows:

Subgroup 1.1 Industrial constructions;

Subgroup 1.2 Agricultural buildings;

Subgroup 1.3 Constructions for postal transport and telecommunications;

Subgroup 1.4 Hydrotechnical constructions;

Subgroup 1.5 Buildings for business, trade and storage, except for classes 1.5.1 Business centres and 1.5.2 Commercial buildings for storage, trading and distribution. Shops, 1.5.14 Other buildings for business, trade and storage not found in subgroup 1.5;

Subgroup 1.7 Constructions for electricity transmission;

Subgroup 1.8 Constructions for water supply, sewerage and land improvements;

Subgroup 1.9 Constructions for the transport and distribution of oil, gas, industrial liquids, compressed air and heating;

Subgroup 2.1 Technological equipment (machines  and work installations);

Subgroup 2.2 Measuring, controlling and regulating apparatus and installations;

Subgroup 2.3 Means of transport;

Subgroup 2.4 Animals and plants.

• The intangible assets represented by the intangible fixed assets recognised from an accounting perspective, with the exception of the establishment expenses, the goodwill and intangible fixed assets with an indefinite useful life, thus classified according to the applicable accounting regulations.

The value of indicators I and A will also include certain investments made in the above assets.

In the value of the indicator A, only the acquisitions of new assets which have not been used before the date of acquisition are included.

The eligible assets must be used in the economic activity of the taxpayer and connected to the object of its activity.

Source: [OMF no. 10/2024 regarding the establishment of assets included in indicators I and A provided for in art. 181 para. (3) and art. 183 para. (2) from Law no. 227/2015 regarding the Fiscal Code, published in the Official Gazette no. 6 of 4 January 2024]