Tax Flash no.2/2021 – The amendment and completion of the Fiscal Code and the Accounting Law

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10.03.2021 – Emergency Ordinance no. 13/2021 amending and supplementing Law no. 227/2015 on the Fiscal Code and the Accounting Law no. 82/1991 was published in Official Gazette 197/2021

The Fiscal Code

Corporate income tax

Expenses incurred by corporate income taxpayers with transactions performed with a person located in a State which is included in Annex II of the EU List of non-cooperating jurisdictions for tax purposes (e.g., Turkey) shall no longer be considered non-deductible for corporate income tax purposes.

This treatment applies also to transactions performed between January 1, 2021 and the date of entry into force of this emergency government ordinance.

Also, expenses with transactions performed with a person located in a State included in Annex I are non-deductible only if the expenses are performed in respect of transactions which do not have an economic purpose.

Income tax & social contributions

Technical correlations are performed to ensure unitary treatment for income tax and social contributions, mainly in respect of tourism services and treatment benefits, and in respect of salary incomes and revenues assimilated to salaries in case such benefits are granted by other entities than the employer (for example, for gift vouchers granted by Romanian residents to persons that are not their own employees, the income tax and social security obligations stay with the persons granting and paying the benefits).


The provisions regarding the application of the VAT cash deferment system are updated following the increase of the ceiling from lei 2,250,000 to lei 4,500,000.

Accounting law no. 82/1991

The obligation of foreign legal entities that carry out activity through a permanent establishment / several permanent establishments in Romania, as well as of foreign legal entities that have the place of exercising effective management in Romania to organize and manage their own accounting is expressly mentioned.

New conditions are established in respect of the supply by the Ministry of Finance of information presented in the financial statements/accounting reports to other institutions, based on collaboration protocols.

The Romanian version of this newsletter is available HERE.

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