{"id":11017,"date":"2014-04-28T15:35:17","date_gmt":"2014-04-28T12:35:17","guid":{"rendered":"https:\/\/www.kreston.ro\/2020\/06\/15\/changes-to-the-fiscal-code-income-tax-exemption-for-reinvested-profit\/"},"modified":"2020-06-15T16:27:27","modified_gmt":"2020-06-15T13:27:27","slug":"changes-to-the-fiscal-code-income-tax-exemption-for-reinvested-profit","status":"publish","type":"post","link":"https:\/\/www.kreston.ro\/en\/2014\/04\/28\/changes-to-the-fiscal-code-income-tax-exemption-for-reinvested-profit\/","title":{"rendered":"Changes to the Fiscal Code \u2013 income tax exemption for reinvested profit"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]Emergency Government Ordinance no 19\/2014 to amend Fiscal Code, was published into Official Gazette no 308\/25.04.2014<\/p>\n

Main amendments:<\/strong><\/p>\n

Tax exempted profit can be invested in technological equipment \u2013 machineries and working equipment – as provided in subgroup 2.1 of the Catalog on classification and useful life of fixed assets, used for business purposes.<\/p>\n

The profit is invested according to profit and loss account balance, i.e. the combined gross accounting profit from the beginning of the year, in the year the respective technological equipments are put in use.<\/p>\n

The profit tax exemption related to investments made is granted within the limit of the corporate tax due for the respective period.<\/p>\n

In order to apply the facility for the period 1 July to 31 December 2014, it should be considered the registered gross accounting profit of which investments have been made starting from 1 July 2014.<\/p>\n

The invested profit that benefits from tax relief, less the related legal reserve shall be distributed at the end of the financial year, primarily as reserves.<\/p>\n

Conditions for applying the facility:<\/p>\n

– Technological equipments must be new;
\n– Taxpayers have the obligation to keep in patrimony the technological equipments at least a period equal to half of the economic useful life, determined according to the applicable accounting regulations, but not more than 5 years;
\n– accelerated depreciation should not be applied for purchased equipments;<\/p>\n

The facility for investments made over several consecutive years, is granted for investments partially put in use during the respective year, based on partial work situations.[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

[vc_row][vc_column][vc_column_text]Emergency Government Ordinance no 19\/2014 to amend Fiscal Code, was published into Official Gazette no 308\/25.04.2014 Main amendments: Tax exempted profit can be invested in technological equipment \u2013 machineries and working equipment – as provided in subgroup 2.1 of the Catalog on classification and useful life of fixed assets, used for business purposes. The profit […]<\/p>\n","protected":false},"author":1,"featured_media":14902,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[262],"tags":[],"class_list":["post-11017","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-alert-en"],"featured_image_src":{"landsacpe":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover-1140x445.png",1140,445,true],"list":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover-463x348.png",463,348,true],"medium":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover-300x169.png",300,169,true],"full":["https:\/\/www.kreston.ro\/wp-content\/uploads\/2013\/03\/kreston_romania_news_cover.png",1500,845,false]},"yoast_head":"\nChanges to the Fiscal Code \u2013 income tax exemption for reinvested profit - Kreston Romania<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.kreston.ro\/en\/2014\/04\/28\/changes-to-the-fiscal-code-income-tax-exemption-for-reinvested-profit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Changes to the Fiscal Code \u2013 income tax exemption for reinvested profit\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_column_text]Emergency Government Ordinance no 19\/2014 to amend Fiscal Code, was published into Official Gazette no 308\/25.04.2014 Main amendments: Tax exempted profit can be invested in technological equipment \u2013 machineries and working equipment – as provided in subgroup 2.1 of the Catalog on classification and useful life of fixed assets, used for business purposes. 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