Starting with the year 2019, law 30/2019 approves Government
Emergency Ordinance 25/2018 bringing some amendments and changes to the tax
code and the new tax procedure started being applicable since 2019. Therefore,
business owners are obliged to deduct finance costs up to 1 million Eur, plus
30% of EBIDTA. Even companies that recognize a division or merge must carry
over excess costs of debt and be in line with the new regulations and the Court
of Justice of the EU position. According to these new regulations, the
limitation of the land area under this treatment is lifter, and the purchase of
more buildings for which to pay only 5% VAT by the same person is allowed. In
addition, gains resulting from crypto-currencies transactions are also
clarified now.
Starting with April 2019, sponsorship expenses and related
tax credit for individuals or companies granting them, will fall under new
regulations as well. New and essential provisions have been inserted, due to
which taxpayers must be allocated to 3 risk classes. Central tax authorities
can continue to automatically enroll taxpayers under electronic communications
through filling the papers online. The relationship with the tax authority will
be established through a mediation procedure that can be initiated by the
taxpayer after receiving the payment orders, in order to identify the best
solution for erasing al liabilities, even payment reschedule.
The most important changes brought by Law 30/2019, that was
published in the Official Journal of Romania on 17.01.2019, regarding taxation:
Micro-enterprises and corporate tax:
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The excess cost of debt over 1.000.000 Eur can
be deducted when corporate tax is within 30% of the calculation base, instead
of 200.000 Eur that was deducted within 10% of the calculation base (EBITDA).
This way cases where negative or zero calculation basis will be avoided.
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Taxpayers that want to take advantage of the
sponsorship tax credit can only do so if the beneficiary is registered, in the
entity bodies register for which tax deduction is possible.
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The deadline has also changed at 25th
of the month after the firs quarter of which the tax is due to be paid.
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Income from adjustments to expected loss due to
financial assets is now a new revenue category that can be deducted from the
tax base for micro-enterprises that operate in the banking, insurance or
capital markets sectors.
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Social expenditures for which you can deduct 5%
of the total amount on salaries, now include cultural vouchers.
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Controlled foreign companies are excluded from
these rules now.
VAT :
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A taxable person can now adjust tax base of the
payment for services or goods supple cannot be collected after client bankruptcy.
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Lifting or the restrictions limiting the
application of the 5% VAT rate for property to one per individual, and the
limit of maximum 250 m2 surface per land.
Fiscal procedure:
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3 main risk classes for taxpayers: low risk,
medium risk and high risk.
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Elimination of the obligation of tax authorities
to publish on their site the list of individuals with tax liabilities
