• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 11/22/2013

Romania - Corporate income tax, indirect tax provisions effective 2014 

November 22:  New tax law changes effective in Romania beginning 1 January 2014 are intended to broaden the tax base in areas such as property taxation and excise taxes, and to align Romanian tax provisions to EU law.

The tax law changes concern:

  • New tax provisions for construction projects
  • Rules for taxpayers using a tax year not based on the calendar year
  • Sources of revenue now identified as “non-taxable” including revenue from the sale or transfer of shares and proceeds from liquidation, and include new holding period rules
  • Rules for carrying forward non-deductible interest expenses and net foreign exchange losses
  • The treatment of sponsorship expenses that are not deducted from corporate income tax
  • Tax credits claimed by Romanian permanent establishments of non-resident companies
  • Clarification of the tax treatment of “micro-enterprises” as a standard corporate income taxpayer
  • Relief concerning the taxation of dividends, interest, and royalties (generally in line with EU law)
  • Value added tax (VAT) changes include rules concerning purchases from “inactive taxpayers,” insurance for leasing services, VAT exemptions for goods or services relating to ships, VAT refunds and adjustments, VAT registration
  • Excise tax changes relating to fuel purchases
  • Increased mining royalties

Read a November 2013 report (English, Romanian) [PDF 544 KB] prepared by the KPMG member firm in Romania:Amendments to the Fiscal Code starting 1 January 2014

State aid for SME investments

Changes have been made to Romania’s de minimis state aid program for investments made by small and medium enterprises. The changes include a reduction in the maximum amount of aid to €100,000 (down from €200,000); a decrease in the maximum co-financing percentage by the state to 90% (from 100%); and amendments to the eligibility criteria, the processes for submission and evaluation of applications, and to the system for implementing de minimis state aid.

Read a November 2013 report (English, Romanian) [PDF 349 KB]: Changes to the de minimis state aid scheme for investments carried out by SMEs

Excise taxes

  • Law No. 303 reduces the excise duties on still fermented beverages, other than beer and wines, from €100/hl of product to €10/hl of product. In addition, the excise taxes on apple and pear cider as well as hydromel have been reduced from €100/hl of product to €0/hl of product. The new excise taxes are effective 22 November 2013.

    Read a November 2013 report (English, Romanian) [PDF 288 KB]: Excise duties reduced on still fermented beverages (other than beer and wine)

  • Order no. 3361/24.10.2013 establishes the form for certifying payment of excise taxes on vehicles purchased by individuals from other EU Member States, as well as the application form for the issuing of the certificate. The certificate is required by individuals who want to register a vehicle in Romania and is issued by the local tax authorities in the area where they reside, after the tax authorities have verified the tax records to make sure the excise taxes have been paid.

    Read a November 2013 report (English, Romanian) [PDF 353 KB]: New payment certificate for excise duties on vehicles from other Member States

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