Corporation tax amendments
there are presented practical examples in respect to the assignment of tax exemption of the reinvested profit;
the disbursement under the collective labour agreement, which can be enframed as deductible social expenditure in the limit of 2% from the wage fund consist of those social costs established nationally within the collective labour agreements, by branch, enterprise groups and enterprises, others than the costs expressly specified in Article 21 paragraph (3) letter c) Tax Code. Practically, the sums of money granted to the employees under labour agreements concluded by enterprises or individual employment contracts cannot be considered social expenditure;
when calculating the income tax, non-deductible expenses are considered those expenses that represent the difference between the market price and the preferred purchase price, in the case of stock transactions conducted within the stock options plan system, and also remuneration costs of company’s capital instruments granted to employees;
determinations are made according to which the arrearage part from the reevaluation of the fixed assets which has been deducted by means of tax depreciation until the 30th of April inclusively, and which has not been capitalized through direct transfer to account 1065 “Provisions representing the surplus achieved from reevaluation arrearage” in proportion as fixed assets have been utilized is not subject to tax assessment (practically it deals with that arrearage deducted until the 30th of April 2009 and which remained in account 105, without being monthly transferred to account 1065). This part of the arrearage is subject to tax assessment only when utilized;
for the tax payers who conduct advance payments as profit tax, in the case that, over the year for which advance payments are performed, the tax on income corresponding to the preceding year is altered and corrected under the conditions provided by the Fiscal Procedure Code, the advance payments that are due beginning with the trimester of the alteration performance are defined on the basis of the tax on recalculated income;
the tax payers that have been paying tax on microenterprise income will perform advance payments in the account of profit tax calculated up to tax on income owed for the preceding year.
Income tax amendments:
in the case of registered sole service providers appear determinations according to which deductible expenses are also considered those conducted for the maintenance and operation of the spaces used to perform the business activities even if the corresponding documents are issued on behalf of the owner and not the tax payer;
The reimbursements received from the employees on the termination date of the employer-employee relationship are assimilated to the wage income and subject to tax as such;
For taxing, insurance rates corresponding to the professional civil insurance contracts for administrators/managers, concluded and borne by the trading company for which they perform their activity, according to the provisions of Law 31/1990 regarding trading companies are not considered advantages;
the physical persons that cease achieving wage income or wage assimilated income over the year must receive from the employers an issue of the tax sheet once the discharge formalities have been completed or at the termination of the relations according to which the wage income has been achieved;
in respect to rental income achieved by individuals, the value of the investments in chose transitory or real assets of the owner, beneficent owner or other legal holder are regarded as gross income, even though the goods are objects of some commodatum contracts, provided that the investments are conducted by the other contracting party. Within 30 days from investments’ finalizing, the part that conducted the investment is compelled to inform the owner, beneficent owner or any other legal holder about the value of the investment. The owner, beneficent owner or other legal holder has the obligation to declare the value of the investment, within the tax return to the appropriate fiscal body.
there have been made determinations in respect to the calculation procedure of the tax rate in the case of exclusion/abandonment or attainment of company shares by mean of heredity. Thus, in the case of exclusion/abandonment/attainment of company shares by means of heredity, the taxable basis is assessed as follows:
one determines the amount representing the remainder between the elements of the assets and the amounts representing the debts of the company;
one determines the surplus over the social capital contribution of the beneficiary individual in respect to the amount assessed in the previous paragraph. In the case of heredities, the amount corresponding to the social capital contribution is zero.
Attention!!! The calculation, deduction and transfer of tax will be conducted by the legal entity whereat the individual withheld social shares. The tax transfer deadline is due on the date of submission of the documents required for the registration of the referred to operations in the Trade Registry or the stock transfer book, as the case may be, regardless if the payment of the relative instruments will be effected staggered or not.
Non-resident income tax amendments:
there are provided additional determinations concerning the meaning of the term royalty. Thus, according to the determinations, are not regarded as royalties:
the amounts paid in exchange for acquiring the exclusive distribution rights of a product or service, since the resident intermediate distributor is not paying for the right to use the trademark or the name under which the goods are sold, but he attains only the exclusive right to sell the goods purchased from the producer;
the amounts paid by the intermediate distributors of software, based on an agreement, where through the distribution right of some software official copies is frequently granted, without granting the copyright. The distribution can be performed using hard copies or electronic format copies, while the distributor has no copyright concerning the software.
the amount paid for a software that is due to be submitted to a customization process with the purpose of installation. Within these transactions, the intermediate distributors pay only for the acquisition of software official copies and not to exploit a software copyright.
the reimbursement of the non-resident beneficiary additionally deducted assessment will be performed under the conditions of the Fiscal Procedure Code, the provisions according to which the assessment was being reimbursed regardless of the debt situation of the Romanian resident to the budget being abrogated;
in order to benefit by the provisions of the European Union, the non-residents that have realized income in Romania, at the time of the income attainment will hand in to the appropriate income payer, the original or a copy of the certificate of tax residency as well as, if applicable, a declaration of honour in respect to the cumulative fulfilment of the conditions regarding: minimum possession period, condition for minimum participation to the capital of the Romanian legal person, classification in one of the organization forms provided under Title II or Title V, as applicable, the quality of taxpayer paying profit tax or a similar tax, without the possibility of an option or exemption.
Value added tax amendments
there are determined the documents based on which the value added tax exemption can be applied for services performed by non-residents wherefore the business to business rule;
a series of concept are defined, such as: permanent headquarters, office of the economic activity, as well as the justificatory conditions and documents that can be presented in order to prove that a specific service is performed for the permanent headquarters or the office of the economic activity;
there are presented the situations and the conditions that have to be met so that a non-resident can apply for the reimbursement of the value added tax paid in Romania.
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