Minister of Public Finances Order no 2986//2013 to amend point 1 of Appendix no 2 to ANAF Order no. 3.596/2011 regarding declaration of deliveries and acquisitions made on national territory by persons registered for VAT, was published into Official Gazette no 582/13.09.2013 (Return 394)

In return 394, the tax receipts qualified as simplified invoices are not reported (fiscal receipts below 100 euros). It also will not report any self- invoice.
Exemption from reporting shall apply only until 31 December 2014.

Emergency Government Ordinance no 88//2013 on adopting certain fiscal measures to achieve the commitments agreed with international organisations, was published into Official Gazette no 593/20.09.2013

Starting 1 January 2014, income from rental of goods is subject to social health insurance contribution.

Monthly calculation basis, both for those who earn rentals and for those who derive income from rental of agricultural lands under withholding tax regime, should not be smaller than a minimum gross salary and may not exceed the value of the 5 gross national average salary (for 2014 it is lei11,490 = lei 2,298 x 5.

If income is received from renting rooms located in private properties, rental for tourism, taxation will be based on the tax decision issued by the tax authorities, and payment is made in two equal instalments until 25 July and 25 November inclusive.

Emergency Government Ordinance no 102/2013, amending Law no. 571/2003 regarding the Fiscal Code and the regulation of financial and fiscal measures, was published into Official Gazette no 703/15.11.2013

Taxpayers who choose for a financial accounting year different from the calendar year can opt for the fiscal year to coincide with annual accounting year.

New holding criteria have been introduced for including certain items in non-taxable income category: holding of more than 10% of the share capital for an uninterrupted period of 1 year for legal persons with which Romania has concluded a Convention for the avoidance of double taxation.

For example, dividends received by a Romanian legal person from another Romanian legal person or from a foreign legal person, which are both corporate tax payers, with which Romania has concluded a Convention for the avoidance of double taxation are considered non-taxable if they meet the above mentioned criteria.

The sponsorship expenses that cannot be deducted from the corporate tax in the year that were paid may be carried forward and deducted from the corporate tax in the following 7 fiscal years.

Income tax
If the rent is in kind and average prices of agricultural products change during the fiscal year the income is earned, evaluation in lei of these revenues is based on the new prices applying from the 1st of the month following their communication by General Directorates of Public Finance.

The provision related to taxpayer option of determining net income from rent using real system it is repealed.

Income obtained from abroad are adjusted for tax purposes so as to have the same tax treatment as the incomes of the same nature obtained in Romania.

Microenterprise
If the proportion of revenues from consulting and management in total revenues is over 20% inclusive, microenterprises will move into the category of corporate tax payers.

In this case it will be paid cumulated corporate tax at the beginning of the year.

Value added tax
VAT exemption is granted for insurance reinvoicing by the lessor (leasing companies) to the lessee, for amounts collected on behalf and in the account of another person.

Clarifications have been made with respect to the adjustment of the VAT taxable base. VAT taxable base is reduced as a result of total or partial dissolution of the contract for supply of goods / services. Previous legal provisions for adjusting the VAT base was limited to total or partial cancellation of an operation.

The VAT for destroyed, lost or stolen properties is not subject to adjustment, under the conditions that the damages are properly proved or confirmed by the taxpayer. The documents issued by juridical institutions are the documents in prove in case of stolen goods.

Local taxes
A new tax, on constructions, is due starting with 2014. the tax applies to constructions other than buildings (as the building tax is already regulated).

The tax applies to the items provided in the Group 1 of the Catalogue of the classification of the fixed assets, such as: roads, pools, bridges, dams, electricity networks, pillars, fences.

The construction tax is calculated by applying a rate of 1.5% on the value of constructions existing in the patrimony of taxpayers at December 31st of the previous year. The Construction tax expense is deductible for the income tax purposes.

Construction tax is due to be paid in two equal instalments up to 25 May and up to 25 September.

Government Decision no.871 / 2013 on the guaranteed gross minimum wage, was published into Official Gazette no 703/15.11.2013.

Monthly gross minimum wage is:
– Lei 850 starting 1 January 2014;
– Lei 900 starting 1 July 2014.

OUG no. 111/2013 for the regulation of fiscal measures and for amending certain laws, was published into Official Gazette no 809/19.12.2013.

VAT cash system is optionally applied as from 1 January 2014.

The provision regarding the obligation to cash VAT on 90 days for unpaid invoices for delivery of goods / services in the VAT cash system it is repealed.

Both for the entities who continue to apply VAT cash system and the leaving the system, the invoices issued before 31 December 2013 and unpaid 90 days after date of issue, the chargeability of VAT is not 90 days from the issue as in present, but on cashing in full or partial of the consideration of goods delivered / services rendered.

Taxable persons who have applied VAT cash system in 2013 can still apply the system if do not exceed the threshold of 2,250,000 lei without submitting a notification to ANAF or can apply the VAT cash system by submitting a notification to the tax authority between 1st and 25th day of the month.

The increase of excise tax for petrol and diesel as provided by GEO no 102/2013, it is suspended until 1 April 2014.

Law no 148/2012 on the electronic registration of commercial transactions, which provided the procedure for issuing electronic invoices it is repealed.