The Ordinance introduces a series of fiscal measures to catalyze the maintenance or the increase of equity, and to amend several normative acts:
The ordinance introduces the possibility of applying tax discounts between 2% and 15% to the corporate income tax, the income tax on micro-enterprises, or the specific tax. The discount rate depends on a company's year on year growth.
To access these discounts, companies must first and foremost have positive equity.
The discounts start to apply on January 1st, 2021 and will be applicable for a 5 year period.
Because the value of the discounts is determined based either on financial statements or accounting reports, the deadline for submitting the tax returns has changed as follows:
— the deadline for submitting the 101 annual return is the 25th of June of the year following the reporting year, or the 25th of the sixth month following the year-end for taxpayers who opted for a modified fiscal year.
— the deadline for submitting the 100 return for the fourth quarter by taxpayers paying income tax on micro-enterprises is the 25th of June of the year following the reporting year.
Clarifications on G.E.O. no. 33/2020
Clarifications are provided regarding the calculation of tax bonuses regulated by G.E.O. no. 33/2020, namely:
— the ordinance introduces rules for taxpayers who opted for a modified fiscal year;
— the bonuses are determined by reference to the corporate income tax value after deducting foreign tax credit, tax exemptions or discounts, sponsorships, private scholarships (within the limit provided by law), discounts granted for using the split VAT payment system, and the cost of purchasing electronic fiscal cash registers.
The ordinance suspends monthly and non-recurring draws for the Fiscal Receipts Lottery until the expiration of 90 days from the end of the state of alert/emergency declared in the context of the COVID-19 pandemic.
The ordinance introduces a new article in the Tax Procedure Code to regulate collaboration by electronic means between the Ministry of Public Finance/NAFA and public authorities, public institutions from the central and local public administration, and other legal private entities.
*This info represents a brief presentation of the most recent legal developments and is not to be treated as consultancy. RSM Romania is not responsible for the use of this information without prior advice.