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Tax update: Recent developments in Romanian tax legislation


The Romanian Government has recently made various updates to tax legislation. Taxand Romania discovers the key highlights.

International tax: Ratification of the Convention between Romania and Uruguay
The Law ratifies the Convention between Romania and the Oriental Republic of Uruguay for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital, which will be effective from 1 January of the year following the one during which it entered into force.

Compensation tax: Clarifications regarding the 85% tax for certain types of compensatory income
According to the provisions of the present Law, the 85% tax on income representing salaries/ allowances/compensatory amounts granted upon termination of the employment contract, the labour relation or of the mandate agreement applies only to employees holding management positions or to persons who were appointed as members in the Council of the Financial Supervisory Authority or of the National Securities Commission, the Insurance Supervisory Commission and the Supervisory Committee of the Private Pension System.

Indirect tax: Procedure for VAT registration upon request
According to the new provisions, in order to proceed with the VAT registration, upon request in the case of companies regulated by Law no. 31/1990, it shall be checked if the current majority shareholders or, as the case may be, the sole shareholder have registered in their fiscal record offenses and/or situations of joint and several liability as provided under art. 2 para. (2) letter a) of the Government Ordinance no. 75/2001 regarding the organisation and operation of the fiscal record.

Energy tax: Taxation for exploitation of natural resources
The present Law approves GO no. 6/2013 with certain amendments and completions. Therefore the exploitation permits issued according to the law are also treated as exploitation licenses. Moreover, the law introduces different computation methods for the revenues obtained by economic operators falling under the scope of this tax, based on how the natural resources are used and on whether their price is listed or not on the exchange market. The tax is due also for resources exploited before 1 February 2013 and sold after this date.

Discover more: Recent tax updates to Romanian legislation

Your Taxand contact for further queries is:
Angela Rosca
T. +40 21 316 06 45

Taxand's Take

Multinationals with operations in Romania should further investigate all recent tax developments in order to remain compliant. 

Taxand's Take Author

Angela Rosca