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Fiscal Code & Fiscal Procedure Code Updates
The Romanian Government has brought amendments and completions to the Fiscal Code and Fiscal Procedure Code. Taxand Romania discusses what these updates involve.
- Starting 1 July 2013, foreign legal entities performing activities in Romania through more than one permanent establishment are required to appoint a permanent establishment to compute, declare and pay the cumulated corporate income tax, based on the revenues and expenses incurred by all permanent establishments of the same foreign legal entity.
- Corporate income tax
Newly set up legal entities which, at the registration date with the Trade Register, have a share capital of at least the RON equivalent of EUR 25,000 can opt to apply the corporate income tax system.
- Tax on incomes obtained from Romania by non-residents
The new provisions limit the list of revenues derived from services rendered outside Romania, falling under the tax on incomes obtained from Romania by non-residents.
- Excise duties
Exceptions are introduced for practicing selling prices lower than the costs related to production, import or disposal of excisable goods, to which excise duties and value added tax will be added.
Fiscal Procedure Code
The main amendments and completions brought to the Fiscal Procedure Code are as follows:
- For non-resident taxpayers who perform activities on Romanian territory through one or more permanent establishments, the relevant tax authority is the one which is based in the same location as the appointed permanent establishment according to Title II of the Fiscal Code
- Tax registration returns will be submitted, for tax registration purposes, with the tax authority which is based in the same jurisdiction as the appointed permanent establishment