LEGISLATIVE NEWSLETTER 2 / 2009

Includes:

• Emergency Ordinance no.127/2008
• Emergency Ordinance no.200/2008

 
Emergency Ordinance no.127/2008

Modify Tax Code

includes:

            Title II - Tax on profit

1. Incomes obtained from trading securities to participate in the authorized and supervised by the National Securities between 01.01.2009 - 31.12.2009 are exempted from the calculation of tax.
2. Costs incurred on behalf of an employee, the voluntary retirement schemes, up to an amount equivalent in ROL of 400 euro in a year for each participant are deductible in calculating the tax. Earlier this costs ordinances performed on behalf of an employee to voluntary pension schemes were limited to 250 euro a year for each participant.
3. Costs with the first voluntary health insurance, up to an amount equivalent in ROL of 200 euro in a year for each participant are deductible in calculating the tax. Earlier this costs ordinances performed on behalf of an employee to voluntary pension schemes were limited to 200 euros year for each participant.
4. 4 paragraph (h) is modified and will have the following wording: " costs arising from differences unfavorable value of the securities to participate in legal persons which hold shares and value differences related adverse bonds issued in the long term, except those related to the sale-transfer them. The exception does not apply to expenses representing the registration of securities traded on the participation authorized and supervised by the National Securities Commission, in the period 1 January 2009-31 December 2009 inclusive;.

Title III - Income Tax
Cap. III - Tax on wages

1. Article 57 (2) a) is amended and shall read as follows:

a) the place where the base by applying a 16% share of the calculation due to the difference between net income from wages, calculated by deducting from gross income contributions mandatory for a month, and the following:
- personal deduction granted for the month
- union fees paid in that month
- contributions to voluntary pension funds, so the level of not to exceed the                                            equivalent in ROL of 400 euro;

Emergency Ordinance no.200/2008

Modify Tax Code

includes:

Tax on profit

            The calculation of taxable profit, for research and development is given the following tax incentives:
a) additional deduction in calculating taxable profits in more than 20% of eligible expenses for these activities, additional deduction is calculated quarterly / annual        basis; in case in which the tax loss, it shall be recovered under the provisions of    art. 26
b) the method and accelerated depreciation for equipment and equipment for research activities and development.
(2) Fiscal incentives for R & D is given in the preparation by the Ministry of Education and Research with the Ministry of Economy and Finance, a state aid schemes with the objective of R & D and innovation in meeting the provisions of Romania's Government Emergency Ordinance no. 117/2006 on the national state aid, approved with amendments by Law no. 137/2007 and Regulation (EC). 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market under Article. 87 and 88 of the Treaty (Regulation general exemption of aid). "

Value Added Tax
1. Has entered low rate of 5% and apply the tax base for the delivery of housing as part of social policy, including the land on which they are constructed. The land on which housing is built to include the footprint of the home soil. For the purposes of this title, residential delivered as part of social policy means:
a) the supply of buildings, including the land on which they are constructed, intended to be used as dormitories for the elderly and retirees,
b) the delivery of buildings, including land on which they are constructed, intended to be used as a case of children, and recovery centers and rehabilitation for children with disabilities;
c) the supply of housing that have a useful area exceeding 120 m2, excluding annexes household, whose value, including the land on which they are constructed, shall not exceed the amount of 380,000 lei, excluding value added tax, paid by any single person or family. Useful area of dwelling is the dwelling as defined by Law no. 114/1996, republished, with subsequent amendments. Annexes household are defined by Law no. 50/1991 on the authorization of the execution of construction works, republished, with subsequent amendments. The reduced rate applies only to housing at the time of sale that can be inhabited as such if the land on which housing is built does not exceed the area of 250 m2, including the footprint of the home ground, where individual houses. In the case of buildings having more than two dwellings, land listing individuals related to each housing area does not exceed 250 m2, including associated ground footprint of each dwelling. Any single person or family may purchase a single dwelling with reduced rate of 5%, respectively:
1.in the case of unmarried people should not be held to have no dwelling on that property purchased with a rate of 5%;
2.In the case of families, husband or wife should not be held to have each or together, no dwelling on the property that / have bought a share of 5%
d) the supply of buildings, including the land on which are built to municipalities for the award by the rent subsidy to persons or families whose economic situation does not allow them access to a dwelling owned or rented housing in market conditions. "

Dividends reinvested

tax exemption on reinvested dividends

1. Dividends reinvested since 2009, in order to preserve and increase jobs for the business development of Romanian legal persons distributing dividends, as the objects of their writing to the National Office of Trade Register, are exempted from tax on dividends.
2. Are exempted from tax on dividends and dividends on invested capital of another Romanian legal persons, in order to create new jobs, to develop its business, according to the object of activity recorded at the National Office of Trade Register.
3. The application of para. (1) and (2) approved by order of Minister of Economy and Finance and the President of the National Agency for Tax Administration.