References: OUG 3/2017, Law 227/2015
In the Official Gazette no. 16 from 6 January 2017, it was published the Emergency Ordinance no. 3/2017 for amending and supplementing normative acts from financial and tax legislation.
You may find below the main amendments brought to the Fiscal Code through the mentioned Ordinance, amendments that enter into force from 1st February 2017.
INCOME TAX FOR MICROENTERPRISES
According to the Ordinance, the maximum threshold value for applying the tax on income microenterprise, increase from EUR 100,000 to EUR 500,000 for total annual revenues.
Corporate income tax payers which as of 31 December 2016 fulfil the conditions for being a microenterprise according to the new threshold, have the obligation to change the taxation system starting with 1 February 2017. In this context, they have the obligation to submit a statement for changing the taxation system (form 010) no later than 25 February 2017.
Additionally, for the fiscal period 01.01.2017-31.01.2017, they have the obligation to submit the Annual Tax Return for corporate income tax (form 101) no later than same date of 25 February 2017.
Starting with February 2017, the tax rate of 1% applies to all microenterprises with one or more employees (previously, those with one employee applied a rate of 2%).
For microenterprises with no employees, the tax rate of 3% remains unchanged.
Pension Contribution (cas)
Starting with the income obtained in February 2017, the cap representing the value of five average gross salary incomes for calculating the individual social insurance contribution due by individuals deriving salary income and salary related income, as well as for the calculation of the contribution due by the employer, has been repealed.
Health fund contribution (cass)
Similarly, the cap representing the value of five average gross salary incomes for calculating the individual health insurance contribution due by individuals deriving salary income and salary related income, as well as for the calculation of the contribution due by the employer, has been repealed.
The cap representing the value of five average gross salary incomes it has been repealed also for calculating the health insurance contribution due by the individuals deriving investment income or income from other sources.
The individuals deriving investment incomes (e.g., dividends) or income from other sources do not owe CASS for the respective income if they derive other types of income, as salary income, pensions or income from the pursuit of self-employment activities. Thus, this provision initially introduced only for the year 2016, becomes general rule applicable for an unlimited period.
CORPORATE INCOME TAX
Corporate income tax exemption
The Ordinance introduces an exemption regarding the corporate income tax obligations for the taxpayers which exclusively perform innovation and R&D activities.
This exemption applies for the first 10 years of activity subject to compliance with state aid regulations.
The medical services provided by means of subscription, borne by the employees, might be deducted when calculating the tax for salary income, in addition to the voluntary health insurance, within the limit of EUR 400 per year.
Income derived from the transfer of real estate
In determining the tax income derived by the taxpayers from the transfer of real estate from the personal property, a deduction of 450,000 lei is granted, the difference being taxed at a rate of 3%.
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