An important change brought by this law to the Fiscal Code, is related to exemption from the minimum tax of persons insolvent or dissolved. Thus, taxpayers who are in the insolvency procedure will no longer due minimum tax – since the initiation date of this procedure, under the law. If taxpayers are in dissolution, the minimum tax exemption applies since the registration date of the mention of dissolution in the trade register or to the courts, under the law.
For taxpayers who dissolve by operation of law following the expiry of the existing set in the memorandum or, as appropriate, the amended act, the exemption of minimum tax runs from the date of dissolution set in these documents. There do not fall under these provisions those taxpayers who are in dissolution without liquidation.
Another change relates to the express mention of the fact that tax authorities may adjust the amount of income or expenditure in transactions between affiliated Romanian people, to reflect the market price of goods or services supplied in the transaction. This means that if the transactions between affiliated persons were made at prices much lower than the market price or at prices much higher, both revenue and expenditure will be adjusted to market value of goods or services and automatically will be recalculated the related taxes.
Although there was a similar provision before, and the fiscal code stipulated no difference between affiliated Romanian persons and non-residents, in the implementing rules of Fiscal Code there was the indication that transactions between affiliated Romanian legal entities will not be adjusted depending on market prices for recalculation of fees. This indication has not been changed yet, but, according to the legal power of normative acts, law prevails, which means that we should expect controls by tax authorities to reconsider including transactions made between affiliated Romanian persons.
All these changes will come into force starting from May 14, 2010.
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