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Changes in the fiscal legislation

Amendments brought to the fiscal legislation

In view of complying with the commitments undertaken by the Romanian Government towards the IMF, Government Emergency Ordinance no. 24/2012 (“GEO 24/2012”) for amending and supplementing the Fiscal Code was enacted [in Romanian Ordonanta de urgenta nr. 24 din 6 iunie 2012 pentru modificarea si completarea Legii nr. 571/2003 privind Codul fiscal si reglementarea unor masuri financiar-fiscale].

Relevant amendments in this field concern:

  • the taxation of dividendes received from EU Member States; e.g. the dividends received by a Romanian legal entity from its subsidy headquartered in another Member State are not taxable if the Romanian legal entity owns at least 10% of the share capital of its subsidy;
  • the profit tax and income tax; e.g the operation, maintenance and repair costs regarding the vehicles used by the persons having management and executive positions of a legal entity are 50% deductible for at most a single vehicle per each person having such attributions; such costs are  deductible in full in case of vehicles used for emergency services, for transportation  services, used by sales agents, vehicles which are used for renting services or by drivers’ schools or vehicles used as merchandise for commercial purposes;
  • the VAT: e.g. special rules for VAT exemption regime applicable to small enterprises, the limitation of the VAT deduction right, the increase of the VAT exemption threshold at EUR 65,000;
  • the amendment of GEO 29/2011 for the regulation of the payment installments, e.g. the regulation of the possibility to request the payment of fines and other fiscal obligations by installments.