Government modifies Fiscal Code and expands tax base

Newsroom 28/06/2010 | 11:25

The government has approved the emergency ordinance modifying the Fiscal Code by expanding the tax base from July 1. The minister of public finance, Sebastian Vladescu, said one of the main modifications targets intellectual property rights, reducing the quota of deductible expenses to 20 percent of gross revenues, compared to the current 40 percent. Vladescu said taxes amounting to 16 percent will be paid on the remaining sum after the 20 percent deductibility is subtracted. The minister added that the new stipulations are necessary for the beneficiary of the intellectual property rights to receive a pension.

Other modifications include the taxation of meal and vacation tickets, bank interest and gains from the capital market.

The emergency ordinance stipulates that meal tickets and holiday vouchers be taxed at 16 percent. Bank interest will also be taxed at 16 percent, whether for deposits or current accounts. Earnings from transactions on the currency or monetary market will also be taxed at 16 percent. In this case, the tax is applied to the difference between loss and profit, where the payment is made once a quarter, the re-imbursement carried out at the end of the year and the possibility to recover the losses expands over the next seven fiscal years.