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A Romanian tax update - the latest in tax developments

Romania

The Romanian Government have recently brought into law several Orders and Decisions concerning tax issues. Taxand Romania takes a look at the key new Orders affecting multinationals and individuals alike.

Decision of the Central Tax Commission regarding the performance of anticipated payments
The Order approves the Decision of the Central Tax Commission no. 2/2014 regarding the amendment and completion of point no. (5) of the Decision of the Central Tax Commission no. 6/2004 regarding the common application of certain provisions regarding individual income tax, value added tax and fiscal procedure aspects. Taxpayers who did not have the obligation to perform advance payments during the previous year, are required to perform during the current year advance payments, for the amounts due as individual income tax or social contributions. However, in this case, no late payment charges are due by taxpayers for the period between the payment deadline for advance payments and the date when the tax decision has been communicated.

The Charter of rights and obligations of the individuals subject to tax audit
According to the legislative act, the Charter of rights and obligations of the individuals subject to tax audit includes general information regarding the upcoming tax audit, the taxpayer’s rights, as well as their obligations.

Amendments and completions regarding the corporate tax relief on reinvested profit
According to the new provisions, profit reinvested in the production and/or acquisition of technological equipment starting 1 July 2014 and put into operation no later than 31 December 2016 inclusively, is exempt from corporate income tax. In this respect, the tax exemption for reinvested profit is applicable only for the profit which is reinvested in new technological equipment, defined in subgroup 2.1 of the Catalogue regarding the classification and the normal useful life of fixed assets.

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Your Taxand contact for further queries is:
Angela Rosca
T. +40 21 316 06 45
E. angela.rosca@taxhouse.ro

Also published in Thomson Reuters' Taxnet Pro, 05 June 2014

Taxand's Take

Multinationals and individuals alike should further investigate all recent tax developments in Romania to ensure they remain compliant with the local tax laws and keep afresh of the current tax environment. 

Taxand's Take Author

Angela Rosca
Romania

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