News for business environment from the first day of 2017: Changes in the Tax Code and additional obligations
VAT decreased from 20% to 19%, tax on special construction was eliminated, a new tax for tourism and restaurants was introduced, and accepting payment by card became mandatory for almost all retailers. These are the most important provisions that apply from January 1, 2017. Contexpert presents the legal changes with great impact on the business environment:
I. Tax Code
Law 227/2015 – which entered into force January 1, 2016 – provides a few measures for the first day of this year:
- VAT standard rate: 19%
- Tax on special construction, eliminated. This tax was calculated by appling 1% on the value of the constructions at the end of the previous year.
- Excises for gas were reduce with the equivalent of the extra excises introduced in 2014
Other provisions entered into force by OUG 84/2016:
- Stock-option plan: The definition of stock-option plan has been amended so that shares issued by entities which may be offered on a free basis or at a special price to certain beneficiaries no longer have to be admitted for trading on a regulated market or within an alternative trading system.
- Tax year different from the calendar year: provisions regarding the companies that have already applied a tax year different from the calendar year
- The facility for reinvested profit was extended (without another temporal limitation). The rights to use software among the elements may be subject to the exemption of taxation of reinvested profit.
- When determining the taxable profit, expenses for organising and developing professional and technical studies as per specific education legislation are considered deductible. Also, scholarships, prizes and other rights in the form of accommodation, meals, transport, workwear/safety wear and other similar rights are considered non-taxable when received by individuals enrolled in vocational and technical education, according to the national education regulations.
- Microenterprises : The threshold of the share capital which once reached by a taxpayer determines the right to opt in for the corporate income tax regime has been reduced from EUR 25,000 to RON 45,000.
- Gross remuneration received for work performed by day labourers are exempted from social insurance contributions.
- VAT: Registry of Intra Community Operators was eliminated. Special VAT regime for farmers was introduced ( individuals, individual companies or family businesses) performing agricultural activities / services.
- Informative declarations ( 392A, 392B și 393) were suspended till December 31, 2019.
- The taxpayers that will receive the VAT code, after fiscal authorities cancelled it, will be allowed to invoice with VAT to their clients for all transactions made during the period they no longer had a valid VAT code.
II. SPECIFIC TAX
Law 170/2016 regarding specific tax for several activities entered into force January 1, 2017. This tax is calculated based on surface allocated to the activity., rank of the locality, seasonality etc. The tax is due by the companies that have enrolled in their constituitive act, as principle or secondary activities, one or more of the activities provided by the CAEN codes for restaurants, hotels, bars, public food services, catering.
III. ACCEPTANCE OF PAYMENT CARD, MANDATORY
Law 209/2016 provides the obligation for the retailers with turnovers more than EUR 10,000 to accept card payments. Otherwise they risk fines of up to RON 7,500. Banks must put into operation the necessary infrastructure within 30 days from the date of request, otherwise, risking fines of up to RON 50,000.
