Tax Alert 1st February 2013

PROFIT TAX
On January 23rd 2013 it was published the Cabinet Ordnance no. 8 (M.O. 54/2013), which changes the Fiscal Code starting February 1st 2013.

Thus, the additional deduction for eligible expenses of the R&D activity was increased at 50% (from 20%) for the calculus of the taxable profit. For the transportation means for persons that have maximum 9 passenger seats, the driver seat included, the depreciation expenses are deductible, for each car, in the limit of 1.500 lei/month. These transportation means can not be depreciated based on the mileage or on the number of functioning hours mentioned in the technical documentation, for those purchased after January 1st 2004. This limitation is applied also for transportation means purchased/produced before the date of February 1st 2013, for the value not yet depreciated at that date. Considering that the depreciation period of the transportation means for persons of this category is between 4 and 6 years in order the depreciation to be completely deductible (for acquisitions made after February 1st 2013), the purchasing value without VAT should be between 72.000 lei (= 16.000 EUR) and 108.000 lei (= 24.000 EUR).

INCOME TAX
Starting February 1st 2013, the amounts that surpass the lawful level of 2.5 times the allowance received by the employees during delegation and detachment in another locality, in Romania and abroad (per-diem) will be assimilated to incomes derived from salaries and will be taxed using the 16% ratio. Also they will be included in the calculus base of the individual social contributions. For Romania, the deductible level of the per-diem is 32,5 lei/day (13 lei * 2.5).
Also starting February 1st incomes derived from forestry and fish-farming are to be taxed.

For the incomes derived in Romania from consulting and management services by the non-residents, the income tax is not due starting February 1st 2013. Incomes from services provided in an=d outside Romania, excluding international transportation and the rendering of services accessory to international transportation, will be considered as derived in Romania, regardless if they are received in Romania or abroad. For the above-mentioned incomes derived abroad, according to the Ordnance, it is to be applied the 16% ratio even if they are paid in a country that has concluded with Romania a legal document establishing the information exchange, if the non-resident does not proof his/her fiscal residency.
The tax owed for the taxable incomes derived from Romania by non-residents are calculated by applying the 50% ratio to the gross incomes (dividends, interests, fees, royalties, and from conducting a free profession, etc), if they are paid in a country that has not concluded with Romania a legal document establishing the exchange of information (ex.: a convention for avoidance of the double taxation).

VAT
Adjustment of the VAT ? according to the Ordnance, for acquisitions of services and goods, other than capital goods, the taxable person loses the right of VAT deduction for undelivered mobile goods and not utilized services in case of events such changes of legislation, changes of the main activity, allotment of goods/services for operations that offer a deduction right and then their allotment for operations that do not offer a deduction right, goods that are missing from patrimony, including stolen goods.
Register of Intra-Community Operators – Persons registered with the Register of the Intra-Community Operators have the obligation, in 30 days after the modification of the list of the administrators and/or shareholders that own at least 5% of the shared capital of the company, to file at the competent fiscal authority the criminal record of the new administrators/ shareholders. Taxable persons that do not observe this obligation will be radiated ex-officio from the Register of Intra-Community Operators.

INDIVIDUAL SOCIAL CONTRIBUTIONS
The following types of persons have to file the statement regarding the payment obligations for social contributions, income tax and nominal record of persons insured directly or through a fiscal representative / attorney and who pay the individual social contributions and the social contributions due by the employer are in their duty:

• Resident or non-resident individuals who conduct their activity in Romania, and obtain incomes from salaries from employers from countries that do not fall under the incidence of the EU regulations regarding the coordination of the social security systems or from states that have not concluded with Romania agreements or conventions in the social security domain;
• Resident or non-resident individuals who conduct their activity in Romania and derive incomes from salaries from non-resident employers that do not have a social seat or a representative office in Romania, and who owe mandatory social contributions for their employees, according to legal international documents Romania takes part in, and who concluded with the employer an agreement regarding the statement and the payment of the social contributions.
• Romanian individuals that derive incomes from salaries obtained for activities conducted at the diplomatic missions and consulates accredited in Romania, if those missions and consulates do not opt for the fulfillment of stating and payment obligations for social contributions.