OUG 108/2014 – modifications to the Fiscal Code and the Fiscal Procedure Code


Emergency Government Ordinance no 108/2014 to amend certain fiscal laws, was published into Official Gazette no 151/28.02.2014

I Changes made to the Fiscal Code

Corporate tax

Incomes from sale / assignment of shares held in a Romanian/foreign legal person located in a state with which Romania has concluded a Convention for avoidance of double taxation are non-taxable, if on the date of sale the person who obtains the incomes holds more than 10% of the share capital of the Company for an uninterrupted period of one year.

For incomes derived by non-residents for which are not applicable the Conventions for avoidance of double taxation / European Directives due to the absence of tax residency certificate, tax will be applied in accordance with the Fiscal Code.

If the tax residency certificate is subsequently provided, the more favorable tax rates provided by national law, European Union law or Convention are applied, if the tax residency certificate states that the income beneficiary had fiscal residence in the Contracting State, during the prescription period. If there have been withholding tax, the amount of tax withheld in excess shall be refunded / compensated according to the Fiscal Procedure Code.


VAT treatment of electronic services, telecommunications, broadcasting it is regulated (entering into force from 1 January 2015).

II Changes made to the Fiscal Procedure Code

Repeal Obligation to certifiy the annual tax returns was repealed, thus the certification becomes optional.

Certification of annual tax returns by a tax consultant will be an evaluation criteria for risk analysis carried out by the tax authorities in order to select taxpayers for tax audit.
Means of evidence are listed. According to the law, means of evidence is any element which could be used to establish a fiscal state of fact, including audiovideo records, data and information in any recordable media, and any other evidence materials, which are not prohibited by law.

Taxpayers residents of other EU member states which derive income from immovable property situated in Romania must submit a statement regarding realized income until May 25 of the current year for the previous year. Residents of other Member States of the European Union who acquired ownership over immovable property in Romania by the date of entering into force of the present Ordinance (i.e. March 1, 2014) shall submit the statement until 30 June 2014.

For VAT refund applications for which the amount requested for reimbursement is up to 45,000 lei, the tax authorities refunds the VAT before a tax audit is performed.

Late payment interests level was decreased from 0.04% to 0.03% per day of delay.

For offsetting tax receivables, sequestration of bank accounts shall be made only after the completion of a period of 30 days from the communication of summons.