The major amendments to the Methodological Norms for the application of the Tax Code cover the following:
Title II – Profit Tax
- Clarification on the deductibility of expenses representing loss on receivables deriving from the adjustment of assigned receivables from their nominal value to their acquisition cost;
- Clarification on the supporting documents which should be kept by a Romanian legal entity so that the income related to the dividends received from a foreign legal entity may be deemed non-taxable;
- Harmonisation with the provisions of the Tax Code of the condition referring to the minimum period required for a shareholder to obtain dividends when holding 10% of the share capital of a dividend-distributing legal entity (such period has been shortened from two (2) years to one (1) year);
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Introduction of mentions related to the deduction of sponsorship expenses, such as:
- definition of “turnover” as an indicator in the cases in which accounting regulations fail to define it (e.g. the case of credit institutions);
- rules regarding the carry-forward of sponsorship expenses in the next seven (7) years.
- Clarification on the manner in which the taxpayers opting for a tax year different from the calendar year should declare and pay profit tax.
Title IV1 – Tax on Microenterprises’ Income
- Clarifications on the application of the tax on microenterprises’ income (e.g. conditions for the application of this tax system in 2014, the income taken into account upon the determination of the tax basis, etc.) in order to harmonise it with the new provisions of the Tax Code in effect from 1 January 2014.
Title V – Tax on Non-residents’ Income from Romania
- The notion of international transport is defined in relation to the income obtained in Romania by non-residents, which is not taxable in Romania.
Title VI – Value Added Tax
- Additional provisions regarding the VAT cash accounting system and exercise of the option for the application of such system;
- Specific mention, in respect to the adjustment of VAT related to damaged, lost or stolen goods, of taxpayer’s obligation to appropriately demonstrate or certify such damage, loss or theft, all while observing the principle of proportionality; whenever tax inspectors consider the documents provided by taxpayer as being insufficient, the tax authorities may impose the VAT adjustment;
- The possibility for any taxable person that is not established or registered for VAT purposes in Romania and has requested VAT refund for the invoices issued in the period spanning 1 January 2009 – 31 December 2013 and unpaid until the date of the refund request, to submit another VAT refund application relating to such invoices until 30 September 2014, without being required to provide any evidence of payment;
- Introduction of provisions regarding the obligation of the taxable persons applying the VAT cash accounting system to mention the issued cash register receipts in the sales ledgers, in compliance with the information contained in the daily tax reports.
Title VII – Excise Duties
- Clarifications and further provisions for the application of Title VII “Excise Duties,” such as conversion of the amounts from EUR into RON in respect to the excise duties levied on crude oil obtained from domestic production, tax warehouses documentation, etc.
