EY ROMANIA

  |  2018-01-15

Tax alert 2/2018 – Proposal to amend the methodological norms enforcing the Law 227/2015 regarding the Tax Code

Draft of Government Decision for approving and completing the methodological norms for applying the Law 227/2015 regarding the Tax Code, published on the website of the Ministry of Finance.

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On 10 January 2018, a Draft of Government Decision for the approving and completing the methodological norms for applying the Law 227/2015 regarding the Tax Code was published on the website of the Ministry of Finance. A series of modifications were proposed regarding:

Corporate income tax
Tax on income derived by micro-enterprise
Tax on foreign representative offices incorporated in Romania
Income tax
Mandatory Social contributions
Excise duties

We have summarized the most important modifications proposed below:

 

Corporate Income Tax

 

Only 30% of the value of the receivables sold can be deducted, irrespective if their value is charged as an expense or not. Also, to the extent that they are not accounted as income, the write-off of previously deducted provisions, as well as the assignment price of receivables, shall be considered elements similar to income.

Clarifications are provided regarding the method of calculating the tax deductible limit for exceeding borrowing costs, which replace the old limits on the deductibility of interest expense applicable until 31 December 2017.

 

Tax on income derived by micro-enterprises

The norms were aligned to the new provisions regarding the income derived by micro-enterprises included in the Tax Code applicable from 1 January 2018. For this purpose, among others, references to income from consultancy and management, as well as to legal entities operating in the banking, insurance, capital markets, etc., are eliminated as these conditions are no longer relevant for the classification in the system of taxation on micro-enterprise income as of 1 January 2018.

 

Tax on foreign representative offices incorporated in Romania

 

The provisions regarding the manner to establish the tax for foreign representative offices which are established / abolished during the year were eliminated from the norms, as a result of taking over these provisions in the Tax Code.

 

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TOP OPTICAL EQUIPMENT COMPANIES (2016)
Scoring Methodology by ERNST&YOUNG


 
#
COMPANY NAME
MCR TOTAL SCORING
 
1 SAV INTEGRATED SYSTEMS SRL 2,0000
2 HOYA LENS HUNGARY ZRT, BUDAPESTA - SUCURSALA ROMANIA 2,0000
3 OPHIR OPTICS SRL 1,0000
4 IOR SA 1,0000