THE GOVERNMENT DECISION NO. 1/2016 HAS BEEN LAUNCHED INTO PUBLIC DEBATE AT THE BEGINNING OF THE MONTH OF MARCH 2017, AND HAS BEEN ADOPTED BY THE EXECUTIVE ON 28.04.2017. THUS, IT ONLY NEEDS TO BE PUBLISHED IN THE OFFICIAL GAZETTE TO ENTER INTO FORCE

The main proposals for the amendments, which shall soon apply are summarized in the following:
  1. The profit Tax:
    • For the profits invested in the purchase of computer programs licenses, the corporate income tax exemption will apply for the licenses purchased and used starting with the first day of this year.
    • Will clarify that the specific tax shall apply only to companies in the hotel sector and of public catering enterprises which owed profit tax, only if they have not switched to the “micro” regime of taxation.
  2. The profit tax of the “microenterprises”
    • It is emphasized that the microenterprises that paid taxes under the “micro” regime in 2016 and the tax paying companies that starting with 1 January 2017 have become microenterprises shall apply the “micro” regime of taxation, not the specific profit tax.
    • It is explained that the companies registered with profit tax at the end of January 2017 do not need to switch to the “micro” regime of taxation if they have a minimum share capital of 45.000 RON.
    • Taxable companies are not affected by the transition to the “micro” tax on 1 February 2017, if in 2016 they have paid the specific profit tax.
  3. Income Tax
    • In the case of income tax exemption for employees of companies that apply specific tax, this shall be granted for the period of the contract. In addition, will write that the exemption shall be valid regardless of the fact that the employees are employed full-time, as long as the length of the contract is at least 12 months.
    • The 3% tax for the sale of real-estate shall be determined as the difference between the value of the transaction and the non-taxable ceiling of 450.000 RON. The authorities will point out that the value of the transaction shall not include VAT, if this fee is applicable.
  4. Compulsory social contributions
    • Will be clarified how the annual base of calculation for the contribution to health insurance in the minimum ceiling representing the value of twelve monthly minimum gross wages, taking into account the income from wages, revenues from investments and/or from other sources.
    • In the case of individuals with income from dividends will specify that the monthly basis for the calculation of the contribution to health insurance is the total amount of gross revenues from dividends, in cash or in kind, and distributed in the previous fiscal year.
  5. VAT
    • Will introduce the explanations and examples for the situation of those who are registered for the purposes of VAT, after the registration code was canceled, so to be able to deduct the tax charge on purchases of the period in which have had that code canceled and to issue the invoices for supplies of goods and services carried out in the period concerned.
    • In the case of imported goods, will be excluded from the tax base in the customs of the VAT value the value of works/ assessments of chattels, regardless if the services in question are to be carried out in or outside the European Union.
    • Will introduce the detailed guidance on the application of the special arrangements of VAT for the famers.