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Amendments to the Fiscal Code
Taxand Romania looks at the amendments brought to the Fiscal Code in their January newsletter.
This Emergency Ordinance amends and supplements Law no. 227/2015 regarding the Fiscal Code, as follows:
- Taxpayers carrying out exclusively innovation, research and development and related activities are exempted from corporate income tax in the first 10 years of their activity whereas taxpayers who are already registered, on a 10 years period from the date of entry into force of this Emergency Ordinance
- The Ordinance provides the modification of one of the conditions that has to be fulfilled by Romanian legal entities in order to qualify as microenterprises, i.e. the increase to 500.000 Euro of the cap on revenues obtained until 31 December of the previous fiscal year
- For 2017, the Romanian corporate income tax payers that at 31 December 2016 meet the criteria to be considered microenterprise tax payers have to pay, as of 1 February 2017, the tax on the income derived and, in this respect, they have to notify the relevant tax authorities on the modification of their taxation system, until 25 February 2017. Within this latter deadline, said taxpayers have to submit the corporate income tax return for the taxable income obtained during 1 - 31 January 2017
- The income tax rate on the income derived by microenterprise tax payers is 1% for those that have one or more employees
- Starting with the revenues obtained in February 2017, individuals are exempt from the income tax on salaries or salary related income obtained from activities carried out, based on an individual employment contract concluded for 12 months, with Romanian legal entities carrying out seasonal activities provided by law
- Starting with the revenues obtained in February 2017, medical services provided in the form of subscriptions, incurred by employees, are deductible for income tax purposes if these amounts, together with the voluntary health insurance premiums do not exceed, on an annual basis, the equivalent in RON of EUR 400
- For transactions concluded starting with 1 February 2017, when transferring, by inter vivos legal acts, the ownership right and its dependent parts over constructions of any kind and related land, as well as over plots of land of any kind without constructions, taxpayers are liable to pay an income tax computed by applying 3% on the taxable income established by deducting the non-taxable amount of RON 450,000 of the transaction value.
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