The new tax legislation imposed a new tax on the value of construction, other than the buildings for which the tax on buildings is due.
Taxpayers shall be the Romanian or foreign legal persons, who carrying out activities through a permanent establishment in Romania, as well as the legal entities headquartered in Romania constituted according to European legislation.

The tax on construction value shall be 1.5% of the annual value declared on December 31 of the following year. The taxpayer shall declare the tax annually, until 25 of May inclusively of the year for which is due, and shall be paid in two equal installments until 25 May, respectively 25 September.

The new created legal persons will pay the construction tax starting with the next fiscal year.
Emergency Ordinance no. 102/2013 brings modifications also regarding the excise duty, namely:
  • The excise taxes on leaded gasoline will increase to 637.91 Euro / ton respectively to 491.19 euros per 1,000 liters;
  • The excise duties on unleaded petrol will increase to 557.91 Euro / ton respectively to 429.59 euros per 1,000 liters;
  • The excise duty on diesel would increase to 473.85 Euro / ton, respectively to 400 395 euros per 1,000 liters;
  • The excise duty on kerosene will increase to 557.39 Euro / ton respectively to 445.91 euros per 1,000 liters.
For taxpayers who have opted for a different fiscal year from the calendar year, the annual tax statement will be filed by the 25th of the third month following the closing of the last fiscal year.

Also, the taxpayers who opted for a tax year changed and who intends to apply the system of advance payments are required to notify the tax authorities in this regard within 30 days from the start of the modified fiscal year.

The mining royalties provided by Law no. 85/2003 shall be increased by 25%, except the coal royalty which shall maintain the current rate, respectively the royalties for precious metals which shall be increased by 50%.

In case of the holding companies the taxable income in calculating the tax will include both dividend income and the income from sale/assignment of shares and the income from the liquidation of another legal person, no matter if the legal persons to which the shares are held are Romanian or legal persons, from states with which Romania has concluded convention for avoidance of the double taxation, including the ones outside UE. The income shall be tax free if certain conditions are fulfilled: on the date of sale/assignments of shares or on the date of the commencement of the winding operation is accomplished the minimum period of 1 year of uninterrupted possession of a holding of at least 10%.

For the dividend income to be tax free on the taxable profit calculation the minimum period of uninterrupted possession of a holding of at least 10% at dividend payment date shall reduce from 2 years to one year.

The minimum period was reduced to one year and also in the case of the tax exemption for the dividends paid by a Romanian legal person to another Romanian legal person;

The sponsorship expenses can be carried over a period of 7 consecutive years if they have not been deducted from the tax profit.

If the taxpayer ceases to operate as a result of the merger or division the right to carry over expenses with interest and net losses from exchange differences are transferred to the new established taxpayers in proportion to assets and liabilities transferred to the beneficiary legal persons. If the taxpayer does not ceases to operate the right to carry exist is divided between this one and those who take a part of the assignor company’s patrimony (the case of a partial division);

Since 2014 it was amended the holding period of at least 10% of the share capital of a Romanian legal person, for the exemption from tax on dividends paid to non-resident legal persons, legislative changes which have their source in Directive 2011/96/EU on the common system of taxation of parent companies and subsidiaries.

The inactive legal persons who are not established in Romania, as well as the persons who purchase goods and / or services from such persons shall have the right to deduct their VAT related to the purchases made during their inactivity. Equally, these changes shall apply in the case of the restriction of VAT deduction for purchases made by / from taxpayers to whom it was canceled the VAT registration purposes in the light of Art. 153 paragraph 9 letters b) – e) of the Tax Code.

Published in the Official Gazette no. 703 of 15.11.2013
The Act shall enter into force on 1st of January 2014
Issued by: Government of Romania