Amendments of the Methodological Norms for application of the Fiscal code
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InfoTax no. 45, February 2014

In the Official Gazette no. 108/12.02.2014 it was published the Government Decision no. 77/2014 amending and supplementing the Methodological Norms for application of the Fiscal code. We hereby present you the most important changes that are applicable from the date of publication of the GD.

1. Profits tax

- Expenses representing losses from receivables, recorded as a result of adjusting receivables taken over by assignment from their nominal value to the acquisition cost, are deductible for profits tax purposes;

- There are established the proving documents with a view of assessing dividends received from a foreign legal entity as non-taxable income;

- For sponsorship expenses, which may be carried forward 7 consecutive years for deduction from profits tax, there are bought clarifications regarding the turnover and there are given examples of computation;

- It is detailed the declaration and payment of the profits tax in case of taxpayers who opted for a fiscal year different from the calendar year;

2. Tax on income of microenterprises

- Following the amendment of the condition regarding the type and level of income obtained by companies for their inclusion in the category of microenterprises, there are bought clarifications regarding the method of calculating the taxable base and the level of the income;

3. VAT

- As per ECJ’s decision on Case 202/90, there are detailed the conditions under which persons do not act in an independent manner, the independence of the activity being a prerequisite in defining the taxable person from a VAT perspective;

- Following the insertion of the optional VAT cash accounting system, there are brought details on the implementation of this system, for example calculation of the turnover ceiling, the consequences of exceeding the ceiling, cashing the invoices by assignment of receivables, compensation, use of other payment instruments;

- It is defined the notion of “cancellation of a contract”, which constitutes reason for adjustment of the VAT taxable base;

- There are detailed, without being truly clarified, the conditions under which there is no adjustment of the VAT initially deducted for goods, including capital goods, destroyed, lost or stolen under circumstances such as natural disasters, force majeure, financial leasing contracts, assets such as stocks degraded in quality, perishables, disposal of fixed tangible assets;

- Persons applying the VAT cash accounting system must evidence in their sales ledgers the issued fiscal receipts, according to the information from the fiscal reports of daily closing;

4. Excise duties

- Authorized operators using electricity for their own consumption, other than the one to maintain the capacity to produce, transport and distribute electricity within the limits set by ANRE, are liable to pay excise duties which become chargeable at the time of consumption and are obliged to issue a self-invoice for excise purposes.