DECISION NO. 284 OF 27 APRIL 2017 FOR CHANGING AND COMPLETING THE DETAILED RULES FOR THE APPLICATION OF LAW NO. 227/2015 ON THE FISCAL CODE AND APPROVED BY GOVERNMENT DECISION NO. 1/2016 (OFFICIAL GAZETTE NO. 319/2017)

The Specific Tax
  • Clarifies that Romanian taxable companies, which have registered as main or secondary activity the CAEN activity/activities for which the specific tax is applied, but which do not actually carry out the respective activities, are not required to pay tax for specific activities.
  • The specific tax for some activities also applies to Romanian companies which have become liable for paying the tax on profit as a result of exercising this option (micro-enterprises which have a capital of more than 45,000 RON).
  • The companies which apply the micro-enterprise regime starting with 1 January 2017 do not apply the specific tax on activities. The fulfillment of the conditions shall be verified since the date of entry into force of the law, at the beginning of each financial year, on the basis of the situation existing on the 31 December of the preceding year. Communication to the competent fiscal authority shall be carried out by 31 March of the following year.
  • The taxpayers who also make revenues from other activities in addition to those subject to specific tax shall be obliged to determine and to pay at the same time, the specific tax for the activities falling within its scope and profit tax for the rest of the activities.
  • Romanian legal persons liable to pay profit tax, which have opted for the fiscal year to be different from the calendar year, shall fall into the specific tax system starting with 1 January 2017.
Profit Tax
  • For the profit invested in the purchase and use of computer programs, the exemption from tax shall apply for those purchased and used starting with 1 January 2017.
  • More practical examples are given for the determination of the non-deductible expenditures relating to non-taxable incomes, especially in those cases in which it cannot be determined directly from the accounting registers (example: non-taxable income from dividends should be allocated a share of the costs of management and administration, these being tax nondeductible).
Income Tax for micro-enterprises
  • Micro-enterprises do not apply the specific tax, even if they carry out activities covered by the specific tax.
  • Companies which applied tax on profit at the end of January 2017 cannot switch to micro-enterprise regime if they don’t have a minimum share capital of 45,000 RON.
Income Tax
  • In the case of income tax exemption for employees of companies with seasonal activities, companies that apply the specific tax, the exemption shall be granted for the period of the contract. The exemption shall apply regardless of the fact that employees are employed full-times or part-time, as long as the duration of the contract is 12 months.
  • The tax of 3% for the sale of immovable property shall be determined as the difference between the value of the transaction and the non-taxation ceiling of 450,000 RON. It is noted that the value of the transaction not include VAT, if this fee is applicable.
Mandatory Social Contributions
  • It clarifies the means of fitting the annual base for the calculation of the contribution to the health system 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.
VAT
  • Explanations and examples are introduced for the situation of those companies who re-register for VAT purposes, after they had their VAT code disabled, so to be able to deduct the taxes charged on purchases for the period in which they have had their VAT code disabled and to issue invoices for supplies of goods and for the provision of services carried out in the respective period.
  • Detailed explanations are introduced regarding the application of the special VAT regime for farmers.
  • Further examples are given for the adjustment of VAT on capital goods.