Amendments regarding large taxpayers and accounting regulations
Citeste varianta in limba romana

InfoTax no. 41, November 2013

I. Amendments regarding the criteria for determining large and medium sized taxpayers

Starting 1st of January 2014, according to Order no. 3581/2013 published in the Official Journal no. 728/26.11.2013, there will be classified as large taxpayers, the first 2,500 Romanian legal entities, selected in decreasing order based on the following criteria:

- the amount of due tax liabilities, in proportion of 50%;

- the turnover reported in the financial statements as of 31st of December of the year preceding the year in which the classification is realized, in proportion of 50%.

According to Order no. 3582/2013 published in the same Official Journal, these criteria will be valid also for the classification of the legal entities in the category of medium sized taxpayers, without indicating however, opposite to the case of large companies, the exact number of legal entities who will be assessed as medium sized taxpayers.

The list of the new large and medium sized taxpayers will be finalized until 30th of November and will be published on ANAF’s site.

II. Amendments regarding accounting regulations

Order no. 1898/2013 published in the Official Journal no. 727/26.11.2013 brings, starting 1st of January 2014, a series of amendments to the Accounting regulations pursuant to the CEE IVth Directive provided by Order no. 3055/2009, out of which we hereby present you the most important:

- assigned receivables will be booked in accounting at acquisition cost, following that, in case the transferee will recover a greater amount than the receivable’s acquisition cost, the difference is recorded as income. Under current regulations, assigned receivables are booked at nominal value, the difference between the value of the receivable and the amount to be paid to the transferor, being assessed as income at the time of purchase. Outstanding receivables as of 1st of January 2014 will be decreased from the nominal value down to the acquisition cost on the account of expenses;

- where a legal person established abroad carries on activity in Romania through several permanent establishments, the financial statements and the accounting reports shall be prepared by the permanent establishment designated to fulfil the tax obligations, the latter reflecting the activity of all permanent establishments;

- there are made addendums as regards the criteria for recognition of revenue and expenses in accounting;

- the criteria for recognition of tangible assets are supplemented, particularly in case of subsequent expenses incurred in connection with tangible assets, distinguishing between expenses of the period and items of tangible assets;

- at the date of write-off of re-evaluated land and buildings that have been subject to a partial disposal, the re-evaluation difference related to the transferred part is assessed as surplus from re-evaluation reserve ;

- there are brought clarifications regarding the accounting of awarding credits granted to customers under loyalty programs;

- in terms of recognizing revenue from sales of goods, there are made clarifications regarding the criteria for assessing when an entity transfers to the buyer the significant risks and rewards arising from the ownership right over the goods.