Tax Flash No. 6/2017

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Decision no. 284/2017 amending and completing the methodological norms for the application of Law no. 227/2017 regarding the Fiscal Code, approved by Decision no. 1/2016 was published in the Official Gazette 319/2017

Corporate income tax

  • It is clarified that the specific tax applies only to hotel and public catering companies paying corporate income tax, not to microenterprises.
  • The tax exemption for the profit invested in the acquisition of the right to use software programs shall apply to those purchased and used starting 1 January 2017.

Microenterprise income tax

  • Clarifications are brought as regards:
    • the transition from a corporate income taxpayer to a microenterprise taxpayer;
    • the fiscal treatment applicable in the first quarter of 2017;
    • the recovery of fiscal loss registered by taxpayers.

Income tax

  • Clarifications are brought as regards the income tax exemption for the employees of the companies paying specific tax.
  • It is mentioned that medical services rendered based on medical subscriptions and voluntary health insurance, borne by employees, shall be considered non-taxable within the limit of the equivalent in RON of cumulated EUR 400 per year.
  • Clarifications are brought as regards the income tax on the transfer of real-estate from the personal patrimony:
    • the value of the transaction will not include VAT, if such is applicable;
    • in case of the properties transferred as a contribution to the share capital, the taxable income is determined by deducting the non-taxable amount of lei 450,000 from the value of the transactions (determined based on an approval report or through the transfer deed, as the case);
    • in case of exchange with another real estate or with movable asset the income is determined at the value of the transaction representing the value of the immovable property from the transfer act diminished with the non-taxable ceiling of lei 450,000.

VAT

  • The adjustment of the taxable amount is allowed within a 5 years’ period, starting with the 1st January of the year following the one of issuance of the court decision confirming the reorganization plan / the date of the court decision for closing the bankruptcy proceedings of the client.
  • As regards the imports of goods, it is provided that the value of the works / evaluations on tangible movable property, regardless of whether the services are performed in or outside the European Union, is excluded from the value of the taxable amount for customs purposes.
  • The VAT reimbursement for the acquisitions performed by the non-EU taxable persons that performed electronically, telecommunication, broadcasting or television services to non-taxable persons established in Romania and that apply the special regime for electronically telecommunication, broadcasting or television services is introduced.
  • For the purposes of the VAT reimbursement, the non-EU taxable persons that apply the special regime for electronically, telecommunication, broadcasting or television services are no longer required to appoint a representative in Romania.
  • Procedural provisions regarding the application of the special regime for farmers are introduced.
  • Clarifications and examples on the applications of the new rules regarding the annual adjustment for certain operations performed with capital goods are provided.
  • Examples regarding the exercising of the VAT deduction right by the taxable persons that re-registered for VAT purposes after their VAT registration code was canceled, are introduced. Provisions regarding the issuance of the invoices for supplies of goods and services performed by taxable persons during the period in which they had the VAT code annulled, as the beneficiaries to apply for the VAT deduction right for the purchases performed from these persons, are introduced.

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