On December 6, 2016 a Government Emergency Ordinance has been published in the Official Gazette no. 977, for the change of Law 227/2015 regarding the Tax Code and Law 207/2015 regarding the Tax Procedure Codedata.
The most important changes brought to the Tax Code are:
- Rephrasing the anti-abuse clause (art. 11)The tax exemption for reinvested profits is extended to the acquisition or production of software, and the 31 December 2016 deadline for applying the exemption is removed.
- The expenses incurred for professional and technical education are specifically mentioned as being tax deductible for corporate and individual income tax purposes.
- The minimum capital limit for applying the corporate income tax system (as opposed to the microenterprise taxation) for new companies is reduced from 25.000 EUR to 45.000 RON (approx. 10.000 EUR).
- The income payers that have the obligation of sumitting Form 112 are no loger required to submit Form 205.
- Articles regarding the adjustment of the deductible VAT for capital goods (art. 305), and the VAT registration (art. 317) are amended.
- A special VAT system for farmers is introduced (art. 3151).
- Most of the changes brought to the Tax Code will enter into force starting January 1st 2017.
The most important changes brought to the Tax Procedure Code are:
- Changes are brought in respect of the conditions to be met by inactive taxpayers in order to be reactivated.
- The simplification of the payment methods and the submission of the tax returns.
- In case of tax audits performed for the settlement of VAT returns with negative VAT amounts, the period subject to the VAT audit will exclusively cover the tax periods when the transactions which generated the negative VAT amounts were carried out, with certain exeptions.
- Most of the changes brought to the Tax Procedure Code entered into force when the Emergency Ordinance was published (ie. December 6, 2016).