Further amendments to the tax legislation

Monitorul Oficial al Romaniei no. 310/30 May 2013 has published Government Resolution no. 276/21 May 2013 on the establishment of the initial cost of noncurrent assets.

According to this Resolution, starting 1 July 2013, the minimum initial cost of noncurrent assets has been set at RON 2,500, which means that the threshold value of this type of assets has been increased. The Resolution also establishes the treatment of the net book value of noncurrent assets worth between RON 1,800 and RON 2,500, which are in entity’s property on 1 July 2013.

Monitorul Oficial no. 331/6 June 2013 has published Government Emergency Ordinance no. 55/4 June 2013, regarding tax and budgetary measures, and amendment of legislative acts.

The Ordinance regulates the organisation and functioning of the Financial Supervisory Authority and introduces a provision derogating from art. 43 of Law no. 571/2003, regarding the Tax Code, which stipulates the generally applicable 16% income tax rate, by establishing an 85% tax rate on the compensatory income offered at the termination of employment contracts to employees who have held executive positions, being members of administration / executive boards.

It is likely that, in the period to come, further clarifications will be made on the application of this Ordinance the provisions of which have come into force on 6 June 2013.

TAX ALERT by Mazars Consulting / MAZARS ROMANIA

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* 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.

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