During March, certain amendments were brought to the Fiscal Code through the following normative acts: Law no. 72/2018 regarding the approval of Government Ordinance no. 25/2017 for the amendment and completion of the Law 227/2015 regarding Fiscal Code and Government Emergency Ordinance no. 18/2018 amending and supplementing the Fiscal Code, both published in the Official Gazette no. 260/23.03.2018. Also, in the Official Gazette no. 291/30.03.2018 was published the Government Emergency Ordinance no. 25/2018 amending and supplementing certain normative acts, as well as for the approval of some fiscal-budgetary measures.
You may find below the main amendments brought to the Fiscal Code through the above mentioned normative acts, amendments that recently entered into force.
INCOME TAX FOR MICROENTERPRISES
Amendments to the scope of application
Starting 1st of April, 2018, microenterprises that have a minimum share capital of RON 45.000 and at least 2 employees may choose to apply the corporate income tax system, starting from the quarter in which the mentioned conditions are cumulatively met, the option being a definitive one.
Microenterprises who perform sponsorships for supporting non-profit entities that are social service providers accredited with at least one licensed social service, may deduct these amounts up to 20% of the income tax due. The amounts exceeding this threshold can be carried forward for the next 28 quarters. Microenterprises that perform sponsorships will have the obligation of submitting an informative statement with the beneficiaries of the sponsorships until 25 January.
VALUE ADDED TAX
The VAT exemption threshold for small enterprises was increased from RON 220.000 to RON 300.000. The new threshold is in force from 1 April 2018 and the normative act also provides the necessary transitional measures for the current year.
CORPORATE INCOME TAX
Rules of deductibility applied to the assignment of receivables
The computation base for the deductibility limit applied to the losses arising from the disposal of the assigned receivables has changed. Thus, the net loss representing the difference between the assignment price and nominal value of the receivables, is deductible up to a limit of 30% (previously, the limit was applied to the expenses representing the nominal value of the receivables).
Taxpayers who perform sponsorships will have the obligation of submitting an informative statement with the beneficiaries of these sponsorships, corresponding to the year in which the respective expenses were incurred, until submitting the annual corporate income tax return.
WITHHOLDING TAX FOR NONRESIDENT COMPANIES
The informative statement for the computation and withholding of tax for each income beneficiary (Form 207) will be submitted until January 31st (previously February 28th) of the following year.
PERSONAL INCOME TAX AND SOCIAL CONTRIBUTIONS
Supporting non-profit entities
The taxpayers may opt for the destination of an amount representing 2% or 3,5% from the tax due, as follows:
The single statement
The Single Statement (Form 212) has been introduced for income tax and social security contributions due by individuals. It replaces the forms 200, 201, 220, 221, 600, 604, 605.
The statement must be submitted until March 15 of the current year for the income estimated for the year, other than the income from wages.
Next, until March 15 of the following year the statement will be submitted for the final income tax and social security contributions to be paid. The same date (March 15 of the next year) represents the payment deadline for the amounts due. As an exception, for the income received in 2017 and the one estimated for 2018, the submission deadline of the single statement is July 15, 2018.
As a result, the old system in which the tax authorities issued payment notifications is replaced by a self-taxation system, in which the taxpayer makes the payments based on his own computation, as per the information in the single statement.
Two types of income will continue to apply the tax withholding system, in which the payer withholds and pays the income tax and related contributions for the income receiver: the income from intellectual property and the lease of land.
For the amounts due for 2018, the following discounts may apply:
The single statement also will be used by the individuals who obtain income other than wages for informing the tax authorities if they exceed or not the threshold after which they owe social security contribution or health security contribution (if the case). For 2018, the threshold of 12 gross minimum wages is RON 22,800.
The information submitted by taxpayers in the single statement (Form 212) will be matched by the authorities with the information submitted by the income payers through the informative statement 205, which should be submitted until January 31st (previously February 28th) of the year following the one in which the payments were made.
References: Law 227/2015, Law 72/2018, GEO 25/2018, GEO 18/2018
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