Tax Flash No. 5/2016

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Decision no. 159/2016 amending the methodological Norms for the application of Law no. 227/2015 regarding the Fiscal Code, as subsequently amended and completed, was published in Official Gazette 208/2016

MICROENTERPRISES INCOME TAX

– In case the number of employees changes during the quarter, the tax rate is applied by taking into account the existing number of employees at the end of the last month of the respective quarter.

INCOME TAX

– Clarifications are brought in respect of benefits representing the personal use of vehicles for which expenses are deductible within the limit of 50%, respectively such benefits are not taxable at the individual’s level.

VAT

– Clarifications are introduced with respect to the VAT treatment applicable to tooling contracts.

– Clarifications are introduced with respect to date when chargeable event occurs for certain operations, such as renting, leasing, chartering of goods, granting certain real rights such as the right of usufruct and superficies over an immovable property, where the contract does not specify the due date for payment of services. Examples in this respect are introduced.

– Clarifications were brought with respect to VAT treatment applicable to multi-purpose vouchers and prepaid phone cards, used for several purposes.  The amounts collected from the sale of multiple-purpose vouchers without the delivery of goods or the provision of services in exchange, do not represent considerations for operations within the VAT scope.

– Provisions regarding the VAT regime applicable to intra-community acquisitions of medication that are the object of the resulting cost-volume contracts and are transported from another member state to Romania for testing are introduced.

– It mentions that, in the case of taxable persons whose registration for VAT purposes was annulled by the competent tax authorities, there will be no VAT adjustments for services that are not used, goods having the nature of stocks and fixed tangible assets subject to an enforcement proceeding.

– An example was given for the situation in which the goods resulting from the joint venture are distributed to the members, namely that such distribution represents, from a VAT perspective, a delivery of goods for considerations, within the VAT scope.

– Clarifications were brought on the requirements for the application of reverse charge mechanism for goods provided at art. 331, para. (2), letters i) – k) of the Fiscal Code, taking into account the requirement that the value reflected in the invoice must be equal to or higher than RON 22,500 and an example was given in this respect.

– The possibility of adjusting the VAT deducted for capital assets was introduced, with respect to taxpayers whose registration for VAT purposes was annulled, where, by mistake, no VAT adjustment was made in the last tax return filed.

EXCISES

– The territorial tax authority executes the guarantee if the economic operator incurs delays on the payment of excise duties (exceeding the legal term), or delays with respect to the payment of other tax liabilities of more than 30 days beyond the legal deadline.

– Failure to submit the excise refund application and accompanying documents within the deadline provided by point 75 of the Fiscal Code Norm does not trigger the loss of the refund right, as long as such documents are submitted within the statute of limitation provided by the Fiscal Procedure Code.

– The documents that operators must provide in order to benefit from the refund in case of indirect excise exemptions from excise duty are specified.

LOCAL TAXES

– In case of buildings owned by individuals, having mixed destination, for which the areas used for residential and non-residential purposes are not provided distinctly, the building tax for non-residential buildings shall be due if the costs with utilities are borne by the persons performing economic activities.

– Expenses with utilities are defined as common expenses related to the respective building, electricity, natural gas, heating, water, sewer.

Emergency Ordinance no. 8/2016, regarding certain measures in order to complete the projects financed from EU funds programmed for the period 2007-2013 and certain fiscal-budgetary measures was published in Official Gazette 225/2016

– Emergency Ordinance amends Law no. 227/2015 regarding the Fiscal Code so as to extend the deadline for submitting local taxes returns and the deadline for payment of local taxes.

The deadline for submitting the local statements is extended from 31 March 2016 to 31 May 2016 for the following categories of taxpayers:

  • individuals  that as of 31 December 31, 2015 own non-residential buildings or buildings having mixed purposes;
  • legal entities that as of 31 December 2015 own buildings;
  • individuals and legal entities that as of 31 December 2015 own vehicles removed from circulation.

– For 2016, the first deadline for the payment of building tax, land tax and tax on vehicles has been extended to 30 June 2016, taxpayers beeing able to still benefit of the bonus granted by the local council, where the case.

Order no. 378/2016 amending and supplementing the Procedure for the application of Emergency
Ordinance no. 44/2015 on granting tax incentives to claims administered by the central fiscal authority, approved by Order no. 3831/2015 was published in Official Gazette 219/2016

– The term “ongoing tax audit” reffers to the inspections commenced before the entry into force of the Emergency Ordinance no. 44/2015 and for which the tax decision:

  • was issued and communicated starting with the next day the Emergency Ordinance entered into force;
  • was issued before the date of entry into force of the Emergency Ordinance and was communicated starting with the day after this date.

A procedure for the cases of withdrawal of the notification submitted by the taxpayer was adopted.

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