The New Tax Code and the New Tax Procedure Code Amended

Monitorul Oficial al Romaniei, Part I, No 817 of 3 November 2015 has published Government Emergency

Ordinance No 50/2015 amending and supplementing Law No 227/2015, regarding the Tax Code, and Law No 207/2015, regarding the Tax Procedure Code (Ordinance 50/2015).

A. The major amendments to the new Tax Code (Law 227/2015) cover the following:

Title II – Profit Tax

·The tax rate on dividends, referred to in Art.43 – Tax on Dividends, shall be 5%.

Title III – Microenterprise Income Tax

·The ceiling for the entry into this system has been increased to EUR 100,000;

·A new tax rate system has been set which is differentiated subject to the number of employees. The new rates range between 1% and 3%.

Title IV – Income Tax

·The income deriving from dividends, inclusive of the gains from equity securities as defined by the legislation regarding collective placement bodies, shall be taxed at a 5% rate.

The 5% rate shall apply to the proceeds from the dividends distributed as of 1 January 2016.

Title VI – Tax on Non-residents’ Income and Tax on Representative Offices Established by Foreign Companies in Romania

·The tax rate on the dividends obtained by non-residents from Romania shall be 5%.

Title VII – Value Added Tax (VAT)

·The reduced 9% VAT rate shall also apply to the supply of drinking water and of the water used for irrigation in agriculture.

Title IX – Local Taxes

·The 31st of March 2016 shall be the deadline for the submission of:

declarations regarding the buildings owned by natural entities, which are non-residential or are mixed- use structures, as well as the buildings in the property of legal entities;

declarations on the means of transportation which have been erased from the traffic register and are owned by legal and natural entities.

B. The main amendments to the new Tax Procedure Code (Law 207/2015) refer, inter alia, to:

the restatement of Art.167 (12) which, in its new form, should correlate with the provisions of the Tax Code referring to the negative VAT amount in the tax period prior to the date on which insolvency proceedings are initiated;

the temporary and final provisions contained in Title XII of the new Tax Procedure Code, which have been supplemented in respect to:

·the exercise of assessment rights (Art.6), the official language in tax administration (Art.8), the interpretation of law (Art.13), the provisional tax decision (Art.133), which shall also apply to the administration procedures in progress on 1 January 2016;

·the causes for the interruption or suspension of the statute of limitations, which shall be subject to the law in force at their occurrence date;


The provisions of Ordinance 50/2015 shall be effective from 1 January 2016.

TAX ALERT by Duncea, Stefanescu & Associates / DS Tax Advisory Services


Member of MARCALLIANCE: www.marcalliance.com

Tax Alert contains a selection of the latest major issues occurred in the Romanian legislative framework, is intended only to provide information and, hence, shall not be deemed to provide professional advice or consultancy. Therefore, we assume no responsibility in this respect. Should you require any information related to the foregoing, please do not hesitate to contact us.

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