Tax Flash no.15/2020 – The amendment of the Methodological Norms for the application of the Fiscal Code
23.10.2020 – Decision no. 864/2020 amending and supplementing the Methodological Norms for the application of Law no. 227/2015 regarding the Fiscal Code, approved by Government Decision no. 1/2016 was published in Official Gazette 956/2020
Corporate income tax
- The expenses performed in order to comply with the compensation obligations provided by Government Emergency Ordinance no. 189/2002 on compensatory operations related to procurement contracts for defence, public order and national security needs, as subsequently amended and completed are listed among the expenses regulated by normative acts in force considered deductible when computing the fiscal result.
VAT
- Clarification regarding the moment when the VAT registration obligation arise in case of private individuals performing transactions with immovable properties are brought.
- In the category of the goods granted free of charge for the aim of performing the economic activity of the taxable person are included also the goods granted free of charge in order to comply with the compensation obligations provided by Government Emergency Ordinance no. 189/2002 on compensatory operations regarding procurement contracts for defence, public order and national security needs.
- Clarifications on the transfer of food intended for human consumption, which is close to the expiration date of minimum durability, regarding the conditions that have to be fulfilled in order for the transfer to not qualify as a supply of goods, are brought
- Clarifications regarding vouchers are made, such as the fact that they can be in both physical and electronic format or that they offer the right to receive goods or services and not discounts on the purchase of the goods or services.
- Credit management and/or credit guarantee operations, performed by one of the persons granting the syndicated loan and which is designated by the other participants in the syndicated credit agreement for the administration of the credit/administration of the credit guarantees are included in the category of VAT exempt financial-banking operations.
- Occupational pension funds are included in the category of special investment funds, for the administration of which the VAT exemption applies.
- Clarifications are brought regarding the VAT adjustment in the favour of the taxable person with respect to the VAT related to capital goods, in case of its re-registration for VAT purposes if, during the period in which the VAT code was cancelled, the capital goods were used for carrying out operations with deduction right, other than those consisting in the taxable supply of the respective goods.
EXCISES
- The provisions regarding the contribution for financing some health expenses and the 1% quota due to the Ministry of Youth and Sports, which were included in the excise level for certain excisable products were repealed following the elimination of the contribution by GEO 114/2018.
- Correlations are made in connection with the extension of the instruments for guaranteeing the payment of excise duties, as well as their issuing entities.
- Clarifications are brought regarding the minimum limit up to which the guarantee can be reduced at the request of the authorized warehouse keeper.
- The economic operator holding the end-user authorization must not have outstanding fiscal obligations to the general consolidated budget.
The Romanian version of this newsletter is available here.
