Tax Flash No. 3/2018
Law no. 72/2018 on the approval of Ordinance no. 25/2017 for amending and completing the Law no. 227/2015 regarding the Fiscal Code was published in Official Gazette 260/2018
- In the case of assigned receivables, the net loss representing the difference between the assignment price and the value of the assigned receivable is deductible within a limit of 30% of the amount of such loss. The net loss is determined as the difference between the assignment price and the acquisition cost of the receivable.
- In case of credit institutions, in the event that the assigned receivables are partially or fully covered by expected loss adjustments as well as when the receivables are written off and recorded in off balance sheets accounts and then sold, 70% of the difference between the value of the assigned receivable and the assignment price represent elements similar to revenues.
- In case of individuals deriving income from independent activities, medical subscriptions paid for personal purposes are deductible for income tax purposes within the limit of the RON equivalent of EUR 400 per year.
- The threshold for VAT registration has been increased from LEI 220,000 to LEI 300,000 [the equivalent of EUR 88.500, calculated at the exchange rate used at the date of Romania’s accession to the European Union] starting with 1 April 2018.
- Transitory rules have been established as follows:
- The VAT registration as taxable persons will be made depending on the turnover as follows:
- LEI 220,000 during the period 1 January – 31 March 2018 defined as „reference period”;
- LEI 300,000 starting April 1, 2018.
- The VAT deregistration request will be made depending on the turnover as follows:
- LEI 220,000 in the reference period inclusively for 2017;
- LEI 300,000 starting with 1 April 2018.
- When determining the threshold of LEI 300,000, the turnover achieved during the reference period is also taken into account;
- Taxable persons can opt to maintain the VAT registration, even if the threshold of LEI 300,000 achieved will not be exceeded.
Emergency Ordinance no. 18/2018 on fiscal-budgetary measures and for amending certain normative acts was published in Official Gazette 260/2018
- The Single Statement concerning the income tax and social contributions is introduced and it will replace a series of current statements (including forms 200/201, 220/221, 600).
- The submission deadline for the Single Statement on estimated income is March 15 of the current year, beginning with the fiscal year 2019. For 2018, the submission deadline is July 15, 2018.
- The deadline for paying income tax on the estimated income determined through the Single Statement is March 15 of the year following the one when the income was derived.
- The deadline for submitting the Single Statement regarding the realized income is March 15 of the following year, starting with the fiscal year 2018. For 2017, the submission deadline is July 15, 2018.
- The payment representing the settlement of income tax established through the Single Statement is due until March 15 of the year following the one when the income was derived.
- In the case of income categories for which, according to the current regulations, the compulsoriness of social contribution requirement is assessed based on the previous year’s income (independent activities, intellectual property, investments, etc.), it will be determined according to the estimated/realized income in the respective year. In this respect, taxpayers must submit the Single Statement within the above mentioned deadlines.
- For the early payment of income tax and social contributions, certain gratifications are granted.
- Revenues from intellectual property rights are regulated as a distinct category from income from independent activities. The taxation mechanisms of income from intellectual property rights no longer include the application of withholding tax, followed by a regularization performed by the taxpayer.
- The social security contributions due for income from intellectual property rights are established and withheld by the income payers, if they are legal entities or other persons that have the obligation to keep accounting records.
- The tax on incomes derived by individuals as a result of participating to online gambling is determined and withheld at source upon each withdrawal from the game platform account.
- The deadline for submission of Form 205
“Informative statement regarding the withheld tax and the gains/losses realized, per income beneficiaries” and Form 207 “Informative statement on withholding tax/exempted income, on non-resident income beneficiaries” is January 31 inclusive of each year for the previous year.
