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New amendments to the Tax Code, published in the Official Gazette

The Official Gazette of Romania, part I, no.54 of January 23, 2013 has published the Government Emergency Ordinance nr. 8/2013 which modifies and supplements Law no. 571/2003 regarding the Tax Code and which also covers a few financial measures.

This legislative act contains major changes of the Tax Code, mainly concerning provisions regarding the minimum level of car depreciation, taxation allowance that exceeds the legal limit, the fiscal reinstatement of micro enterprises, reformulating provisions on VAT collection system, changes regarding the tax owed by the nonresident. The act also amends the provisions of the Tax Procedure Code for reviewing the financial situation of the individual.

Among the main changes, we mention:

Income Taxes

For vehicles that have at least 9 passenger seats, including the driver’s seat, of category M1 (passenger cars), depreciation expenses are deductible for every one of them, limited to 1,500 lei / month. The limitation also applies to vehicles purchased before February 1, 2013, for the depreciation expenses unamortised at this time.
Research and development expenses will have an additional deduction in calculating income tax of 50%.
It is redefined the fiscal value of depreciable fixed assets classified as organic, meaning that it will represent the cost of acquisition, production or the market value for the ones that are acquired free of charge or the ones that are provided as contribution when they enter the patrimony. If after a revaluation, results a decrease of its value, tax value is recalculated at the cost of acquisition or production.

Income tax from salaries

It shall be considered income from salary the compensation received by employees during a delegation or detachment (per diem) for the part that exceeds 2.5 the legal level established for staff in public institutions, regardless of the employer’s organization.
For the income that represents salaries, sallary differences, interests regarding salaries, as well as their update and concerning the inflation index, based on final and irrevocable court decision, the tax is calculated and withheld at the payment date, in accordance with the regulations in force at the date of payment and they are transferred until the 25th of the month following the month in which they were paid.

Income from agricultural activities, forestry and pisciculture

The income from forestry and pisciculture is also a part of the taxable income produced by a natural person. This income is subject to taxation under the provisions regarding the income from independent activities, the annual net income being determined in the real system, based on data from single-entry accountancy.
Likewise, beyond certain limits, the income from growth and exploitation of animals, including the income that results from the utilization of animal products, is also subject to taxation.

Regarding the income tax from agricultural activities, this one is calculated by applying the tax of 16% on annual income from agricultural activities, based on the annual standard, which is final. The payment of the annual tax to the state budget requires two equal installments as following: 50% of the tax until October 25 inclusive, 50% of the tax until December 15.

Income tax from micro-enterprises

According to the new provisions of the law, the legal entities which pay an income tax and which on December 31, 2012 have achieved a turnover of less than 65,000 euros, at the current course of the Romanian National Bank, pass as micro enterprises, starting 01 February 2013. It is repealed the condition of having 1-9 employees.
The income tax of a micro enterprise is 3% of the accomplished taxable income and it is mandatory for companies that have a turnover of less than 65,000 euros.

Valued added tax (VAT)

In what concerns the VAT collection, we have changes regarding the procedure of input and output from the VAT collection system and it is stated that the person who payes the VAT and who exceeds thresholds £ 2,250,000, must submit a notification until the 25th of the month following the month in which the person exceeded the limit. We can also discover provisions concerning the storage of invoices, including electronic invoice. Thus, it is mentioned that bills can be stored on paper or electronically, regardless of the original form in which they were sent or made available. In case of invoices stored by electronic methods, the tax payers will also store electronically the data guaranteeing the authenticity and integrity of the invoices content. In case of electronic storage of invoices, including those that were converted from paper to electronic format, it is not necessary to apply the provisions of Law no. 135/2007 on archiving documents electronically.
For the taxable persons who are registered in the Register of Intra-Community Operators, they must submit the criminal record of the new administrators to the tax authorities, within 30 days from the day that the list of administrators was modified. Also, legal entities registered in the Register of Intra-Community Operators, except for stock companies, have the obligation of submitting to the tax authorities, the criminal record of the new associates holding at least 5% of the share capital of the company, within 30 days of the date when the list of associates was modified.

Social Contributions

The calculation base of compulsory social contributions includes the subsistence which exceeds the level of the public institutions with 2,5.

Changes of the Tax Procedure Code

We find clarifications regarding the way that the tax authorities can verify a natural person. In this respect, the provisions establish that the natural person has the obligation to deposit an income statement at the request of the tax authority.

>> The source: JURIDICE.ro

Adina OPREA

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