Romania’s government passes new amendments to fiscal code

Newsroom 17/11/2013 | 12:00

The government approved this week a fresh raft of amendments to the fiscal code relating to special constructions, gas and diesel excises and mining royalties.

The fiscal year can be changed for tax payers asking for the change of the financial exercise.

The revenues taxed abroad, including the taxable profit of the permanent HQ in Romania of a company from another EU state or the SEE, can benefit from the fiscal advantage of the external fiscal credit granted to a Romanian company. This measure will apply even if the double taxation avoidance treaty between Romania and the respective state explicitly includes this provision or not.

The taxation of microenterprises’ revenues will apply if the firm generates less than 20 percent of its turnover from management and consulting services. This will not apply for companies exceeding this threshold.

The computation of excises will be changed so that it is pegged to the average inflation rate if the RON-EUR exchange rates fall year-on-year. Excises for gas and diesel have been hiked by 20 percent.

The government approved a special tax of 1.5 percent for special constructions, which applies primarily to the energy and telecom infrastructures.

Royalties for mineral resources have been hiked by 25 percent, excluding the oil and gas deposits. For noble metals, royalties will go up by 50 percent, respectively from 4 to 6 percent of the mining output. The royalty for coal exploitations remains unchanged at 4 percent.