Certain amendments and clarifications have been introduced concerning corporate income tax, personal income tax, microenterprises tax, withholding tax, VAT, excise duties and social contributions.
We outlined below the key changes:
Corporate income tax
Specific regulations have been introduced as regards the deductibility of the remaining undepreciated fiscal value in case ofretirement of fixed assets used in oil industry by the taxpayers which apply the accounting regulationsin line with the International Financial Reporting Standards and which set accounting policies specific to the industry’s activity for depreciation of these assets. The related regulations are also applicable to the remaining undepreciated fiscal value at the moment of the restatement of assets.
The tax consolidation has been introduced for foreign legal entities which have several permanent establishments in Romania (i.e. offset the taxable profits of a permanent establishment against the tax losses of another permanent establishment).
Travel allowance expenses
The travel allowance expenses granted to employees for travel in Romania and abroad are fully deductible for corporate income tax.
Limited deductibility for depreciation of vehicles
The RON 1,500 per month deduction limit for tax depreciation allowances related vehicles to will be no longer applicable to certain categories of vehicles (i.e. vehicles solely used for emergency, security and protection and courier services; vehicles used by sales and procurement agents; vehicles used for the carriage of passengers for consideration, etc).
Income tax and social charges
Allowances and any related amounts received by the foreign legal entities’ employees during the delegation and secondment period in Romania are non-taxable and are not included in the taxable base of the social charges if they are granted in certain limits, as well as the amounts received for covering the travel and accommodation expenses.
Amendments have been introduced regarding the income categories from agriculture activities which are subject to the income tax respectively are non-taxable.
The newly set-up legal entities having at the moment of incorporation a share capital of (at least) EUR 25,000 can opt for the profits tax system even if they fulfill the rest of the conditions regarding the microenterprise tax system.
The 50% withholding tax for income paid in countries with which Romania does not have in place an exchange of information agreemeent applies only if such income is paid in connection with transactions found as artificial.
The implementing rule of the reverse charge for the supply of cereal and technical plants is extending until 31 May 2013, in the same conditions.
A maximum ceiling is brought regarding the guarantees that has to be set-up by warehousekeepers authorized for production, in accordance with the excise goods group that are to be manufactured or stored.