Tax Flash No. 9/2014

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Government Decision no. 421/2014 amending and completing the Methodological Norms for the application of Law no. 571/2003 regarding the Fiscal Code was published in Official Gazette 384/2014

We hereby mention the main amendments and completions:

Corporate Income Tax

  • Technical clarifications were brought for taxpayers applying the accounting regulations in accordance with the International Financial Reporting Standards which at the restatement date use the fair value as deemed cost
  • Clarifications for the application of the exemption for reinvested profits were introduced as follows:
    • the term “production” of technological equipment is clarified;
    • certain examples for the computation of reinvested profits for companies applying this facility, are provided function of the quarterly or annual declaration and payment system

VAT

  • The derogation allowed under certain conditions for companies under insolvency or other circumstances to maintain the taxable regime applied for operations subject to simplification measures (for which the VAT reverse-charge mechanism was mandatory) was repealed

Excises

  • Storage fiscal warehouses that are licensed exclusively for the supply of fuel to aircraft, ships and boats, must achieve an average quarterly outflow of excisable goods higher than 30 tons
  • The marking and staining of diesel and kerosene traded within the European Community and destined for an exempt purpose should be performed in the dispatching Member State
  • The marking and staining of diesel and kerosene imported and intended to be placed in storage fiscal warehouses authorised exclusively for the supply of aircraft, ships and vessels must be performed prior to the release for free circulation (the operation can be carried out even in a third country). The responsibility of the marking and staining lies with the warehouse keeper authorised exclusively for the supply of ships with fuel for shipping

Tax on Constructions

  • Clarifications were brought on the computation of the taxable base for the tax on constructions, such as:
    • the value of the constructions included in the taxpayers’ patrimony at December 31 of last year refers to the value reflected for accounting purposes as the balancing value of the construction related accounts, excluding the constructions recorded in off balance sheet accounts, as per the applicable accounting rules;
    • the constructions included in the taxpayers’ patrimony at December 31 of last year, do not include the following:
      • “tangible assets in progress” recorded according to the applicable accounting regulations;
      • the value related to the state-owned constructions or administrative units as per specific laws;
      • the value of the written-off fixed assets, for taxpayers applying the accounting regulations in accordance with the International Financial Reporting Standards and setting industry-specific accounting policies for the depreciation of fixed assets specific to the exploration and production activities of oil and gas and other mineral industry resources

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