The Law 72 brings the following amendments and supplements to the Fiscal Code.
VAT threshold
Starting from 1 April 2018 the annual VAT exemption threshold has been increased to RON 300,000 (the equivalent amount of EUR 88,500 at the exchange rate on the accession date) and transitional measures regarding the application of the new threshold have been introduced.
The taxable persons incorporated before 2018, who are not registered for VAT purposes, shall request the registration in the following cases:
• If they exceed the turnover threshold of RON 220,000 in the period 1 January – 31 March 2018;
• If they exceed the turnover threshold of RON 300,000 after 1 April until 31 December 2018.
The taxable persons incorporated in the period 1 January – 31 March 2018 will request the registration for VAT purposes if they exceed the turnover threshold of RON 220,000 until 31 March 2018, and RON 300,000, respectively after 1 April until 31 December 2018.
The taxable persons already registered for VAT purposes may request the cancellation of the registration for VAT purposes if they cumulatively meet the following conditions:
• They did not exceed the exemption threshold of RON 220,000 in 2017;
• They do not exceed the exemption threshold of RON 300,000 in 2018.
The request for cancellation of the registration for VAT purposes shall be made by submitting the form 010 until 10th of the month following the tax period.
These persons maintain their capacity of VAT payer until the issuance of the decision for cancellation of the registration for VAT purposes and they shall submit the last VAT return until 25th of the month following the month when the cancellation decision was issued.
The applicable VAT adjustments shall be made in the last VAT return (if the case may be).
Debt assignments
A deduction threshold of 30% applicable to the net loss resulted from the transfer of debts from the corporate tax perspective. Thus, the limitation of 30% shall apply to the value resulted from the assignment price, less the value of the assigned debt.
The difference between the assignment price and the debt purchase cost represents the net loss for the assignee.
In addition, the changes deal with the situation of the credit institutions which assign debts that are (partially) provisioned or recorded off-balance sheet. Thus, the changes mention that 70% of the difference between the value of the assigned debt and the assignment price represent elements similar to revenues.
Healthcare subscriptions
For the persons who carry out independent activities which determine the income tax in real system, the deduction in the calculation of the income tax of the medical subscriptions in addition to the voluntary health insurance premiums is allowed at a threshold of EUR 400 per person per year. The exemption from the income tax and social security contributions for the private health insurance premiums and/or medical subscriptions is still maintained for the employees at the annual threshold of EUR 400 per each person, both in case when the premium is covered by the employer and in case when the employee bears these premiums.
B. The Emergency Ordinance 25/2018 brings the following changes to the Fisal Code
Corporate tax
The taxpayers who currently apply the microenterprise income tax will be able to opt for the application of the corporate tax if the following two conditions are cumulatively fulfilled:
a) Minimum share capital of RON 45,000;
b) At least 2 employees.
The option is applicable once, without the possibility of return during the year. The option is applicable starting from the quarter when the above mentioned conditions are fulfilled.
The possibility for the microenterprises to grant sponsorships for which they may benefit from deduction from the microenterprise income tax in amount of maximum 20% of the tax related to the quarter in which they incurred the respective expenses is also regulated.
Facilities for the support of NGOs
The amounts which may be redirected from the income tax for the support of NGOs and religious denominations which provide social services will be in percentage of 3.5%. In case of non-profit entities and religious denominations which are not providers of social services accredited for at least one licensed social service, the share will remain at 2%.
Return of the vehicle tax
The Ordinance contains provisions concerning the simplification of the vehicle tax return. The obligation of the taxpayer to attach to the return request the documents related to the tax payment, the registration certificate and the vehicle registration document is removed because the tax body may check the respective information included by the taxpayer in the request in the database which it has or to which it has access.
VAT threshold
Starting from 1 April 2018 the annual VAT exemption threshold has been increased to RON 300,000 (the equivalent amount of EUR 88,500 at the exchange rate on the accession date) and transitional measures regarding the application of the new threshold have been introduced.
The taxable persons incorporated before 2018, who are not registered for VAT purposes, shall request the registration in the following cases:
• If they exceed the turnover threshold of RON 220,000 in the period 1 January – 31 March 2018;
• If they exceed the turnover threshold of RON 300,000 after 1 April until 31 December 2018.
The taxable persons incorporated in the period 1 January – 31 March 2018 will request the registration for VAT purposes if they exceed the turnover threshold of RON 220,000 until 31 March 2018, and RON 300,000, respectively after 1 April until 31 December 2018.
The taxable persons already registered for VAT purposes may request the cancellation of the registration for VAT purposes if they cumulatively meet the following conditions:
• They did not exceed the exemption threshold of RON 220,000 in 2017;
• They do not exceed the exemption threshold of RON 300,000 in 2018.
The request for cancellation of the registration for VAT purposes shall be made by submitting the form 010 until 10th of the month following the tax period.
These persons maintain their capacity of VAT payer until the issuance of the decision for cancellation of the registration for VAT purposes and they shall submit the last VAT return until 25th of the month following the month when the cancellation decision was issued.
The applicable VAT adjustments shall be made in the last VAT return (if the case may be).
Debt assignments
A deduction threshold of 30% applicable to the net loss resulted from the transfer of debts from the corporate tax perspective. Thus, the limitation of 30% shall apply to the value resulted from the assignment price, less the value of the assigned debt.
The difference between the assignment price and the debt purchase cost represents the net loss for the assignee.
In addition, the changes deal with the situation of the credit institutions which assign debts that are (partially) provisioned or recorded off-balance sheet. Thus, the changes mention that 70% of the difference between the value of the assigned debt and the assignment price represent elements similar to revenues.
Healthcare subscriptions
For the persons who carry out independent activities which determine the income tax in real system, the deduction in the calculation of the income tax of the medical subscriptions in addition to the voluntary health insurance premiums is allowed at a threshold of EUR 400 per person per year. The exemption from the income tax and social security contributions for the private health insurance premiums and/or medical subscriptions is still maintained for the employees at the annual threshold of EUR 400 per each person, both in case when the premium is covered by the employer and in case when the employee bears these premiums.
B. The Emergency Ordinance 25/2018 brings the following changes to the Fisal Code
Corporate tax
The taxpayers who currently apply the microenterprise income tax will be able to opt for the application of the corporate tax if the following two conditions are cumulatively fulfilled:
a) Minimum share capital of RON 45,000;
b) At least 2 employees.
The option is applicable once, without the possibility of return during the year. The option is applicable starting from the quarter when the above mentioned conditions are fulfilled.
The possibility for the microenterprises to grant sponsorships for which they may benefit from deduction from the microenterprise income tax in amount of maximum 20% of the tax related to the quarter in which they incurred the respective expenses is also regulated.
Facilities for the support of NGOs
The amounts which may be redirected from the income tax for the support of NGOs and religious denominations which provide social services will be in percentage of 3.5%. In case of non-profit entities and religious denominations which are not providers of social services accredited for at least one licensed social service, the share will remain at 2%.
Return of the vehicle tax
The Ordinance contains provisions concerning the simplification of the vehicle tax return. The obligation of the taxpayer to attach to the return request the documents related to the tax payment, the registration certificate and the vehicle registration document is removed because the tax body may check the respective information included by the taxpayer in the request in the database which it has or to which it has access.
Any presented information is general and is not meant to address the specific conditions of a particular individual or legal person. Although we try to provide accurate and up-to-date information, there is no warranty that such information is accurate at the time of its receipt or that it continues to be accurate. No action should be taken based on this information without relevant professional assistance following a careful examination of the circumstances that are typical of a particular state of affairs.
