Modification of the rules for implementing the Fiscal Code

In the Official Gazette of Romania, Part I, no. 108 of 12 February 2014 was published the Government Decision no. 77/2014  amending and supplementing the methodological norms of application of Law no. 571/2003 regarding the Fiscal Code, approved by Government Decision no . 44/2004.

The endorsement of norms was due to changes to the Fiscal Code by GEO. 102/2013 and GEO. 111/2013.
The normative act refers mainly to:

Income tax
Linking the methodological norms with the additions and the changes brought to the provision of the Fiscal Code in respect of:
– The conditions of granting the non-taxation of dividend income received from legal entities from third countries;
– Changing the retention period of the participants as Romanian legal entities or the subsidiaries situated in a Member State from 2 years to 1;
– Regulating the mechanism for reporting and deduction of sponsorship expenses in the following 7 years;
– Method of calculation, payment and declaration of income tax for taxpayers who opted for fiscal year different from the calendar year.

Income tax
Clarification of the method of framing in the limit of taxable income from agricultural activities imposed based on income norms, in the case of the taxpayers / unincorpo rated associations holding areas for crop production / animal in different places.

Enterprises’ income tax
Linking methodological norms to the additions and changes brought to the provisions of the Fiscal Code in respect of:
– Conditions of framing of a Romanian legal person, as micro enterprise ;
– Conditions of exit from enterprises’ income tax system during the fiscal year;
– Inserting the share condition of revenues made from consulting and management of over 20% as an exit condition of enterprises’ income tax system;
– Construction of taxable base.

Income tax of non-residents
Linking methodological norms of application of Title V of the Fiscal Code with amendments brought to Law no. 571/2003 regarding the Fiscal Code.
Need for technical clarification.

Value added tax
Linking methodological norms of Title VI of the Tax Code with amendments to Law no. 571/2003 regarding the Fiscal Code regarding:
– Legal provisions on VAT collection system applicable from 1 January 2014;
– Adjustment of VAT on goods lost, destroyed or stolen;
– Refund of VAT to taxable persons not settled and registered for VAT purposes in Romania;
– Adjustment of the tax base of VAT on the total or partial dissolution of the contract for the supply of goods or services;
– Exclusion from the tax base of the VAT on the cost of leasing services to ensure property under contract, when that cost is recovered through leasing companies invoicing users.

Clarification of technical provisions concerning:
– The definition of public postal services for the purposes of the VAT exemption provided by the Fiscal Code;
– Deduction of VAT on purchases of taxable persons not established in Romania and exempted from registration for VAT purposes in Romania;
– Highlighting how tax receipts journals for sales, taxable persons registered for VAT applicable VAT collection system;
– Cancellation of registration and re-registration for VAT to taxable persons by tax authorities;
– The conditions under which it is considered that a person acts or in an independent manner in terms of qualification as a taxable person for VAT purposes;
– Apply the reverse charge for the delivery of electricity to traders taxable.

Excise and other special charges
Linking methodological norms for the application of the Fiscal Code amendments and additions to the Fiscal Code.
Need for clarification and technical specifications.

:: The source:


LinkedIn | Facebook