Tax Flash - Important legislative changes made by GO 11/2022

Published in the Official Gazette no. 97 of January 31, Government Ordinance 11/2022 brought a series of important amendments to the Fiscal Code and the Fiscal Procedure Code, as follows:

1. FISCAL CODE

• Starting with 2022, sponsorship and/or patronage expenses, expenses related to private scholarships that cannot be deducted from the corporate tax related to the current year, will no longer be carried forward. Thus, the year 2021 is the last year for which it is possible to carry forward such expenses in the next 7 years, until 2028. Similarly, the provisions regarding the possibility of carrying forward the unused amounts of sponsorships, patronage, or private scholarships in the case of micro-enterprises are also amended. 

• Taxpayers who apply the tax regime of transfers of assets, tax residency and / or economic activity carried out through a permanent establishment for which Romania loses the right to tax will declare and pay a quarterly tax, known as "exit tax". It also removes the obligation to include this tax in the annual return D101.

• New provisions are introduced for members of the tax group who can benefit from the facilities introduced by GEO 153/2020. Thus, it is specified that, if at least one of the group members falls under GEO 153/2020, the responsible legal entity is required to submit the consolidated annual declaration by June 25 inclusive of the following year, respectively by the 25th of the sixth month, inclusive, from the end of the amended fiscal year.

• The obligation of public notaries to declare transfers of real estate properties that have a value below the non-taxable limit of RON 450,000 is established.

2. FISCAL PROCEDURE CODE

• The dividends payer shall submit a statement of adjustment to the competent tax authority if the annual adjustment of the dividends partially distributed during the year results in amounts to be returned to the budget.

• The deadline for solving the request for issuing the anticipated individual tax solutions has been extended from 3 to 6 months. Also, the activity of issuing anticipated individual tax solutions, passes into the competence of the Ministry of Finance.

• Taxpayers who provide an electronic interface to facilitate online business transactions are required to report periodically to the central tax authority information on transactions conducted through a self-declaration. The model of this declaration is going to be approved by ANAF order.

• Entities (SRL, SA, PFA, II, IF) that have registered in the Trade Register the mention of temporary inactivity or have their activity suspended, do not have the obligation to submit tax returns related to the period of inactivity / suspension. Previously, the derogation was granted only at the request of the taxpayer. The application of the provision ceases on the date of resumption of activity or on the expiry of a period of 3 years from the date of registration of the entry in the Trade Register.

• The possibility of submitting the application for instalment payment by the debtors in the insolvency proceedings was introduced, as long as they leave the insolvency proceedings until the instalment payment decision is issued.

The amendments to the Fiscal Procedure Code enter into force starting with March 1, 2022. 

OTHER CHANGES

• The exemption of taxpayers who must pay the tax on specific activities (HoReCa) was extended, according to Law no. 170/2016, for a period of 180 days, calculated from 3rd of February 2022.

• For economic agents that provide goods or services through vending machines operating on the basis of payment by card, as well as the acceptance of banknotes or coins, the obligation to equip vending machines with electronic fiscal cash registers is postponed until December 31, 2022.

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