LEGISLATIVE NEWSLETTER 7 / 2009

Amendments of the Fiscal Code

 

 

According with the Emergency Ordinance no. 34/2009 regulating fiscal-financial measures we bring in your attention the followings:

  • Starting with 1st of May 2009 the taxpayers will pay the higher of the corporate income tax computed according to the provisions of Title II of the Fiscal Code and the minimum quarterly/annually income tax established depending on the level of the total income derived in the previous year (except for certain categories of income).

The minimum tax established based on the total incomes registered at 31.12.2008 is:

Total annual incomes (lei)

Annual minimum tax (lei)

0-52.000

2.200

52.001-215.000

4.300

215.001-430.000

6.500

430.001-4.300.000

8.600

4.300.001- 21.500.000

11.000

21.500.001-129.000.000

22.000

Over 129.000.001

43.000
  • The minimum income tax does not apply to companies that are temporarily inactive, and registered as such at the Trade Registry. Moreover, taxpayers that are set-up during the year do not fall under the minimum income tax rules, but will compute the corporate income tax, for the year in which they are registered with the Trade Registry, as per the provisions of Title II of the Fiscal Code.
  • The reserves related to revaluations of fixed assets, including land, performed after 1 January 2004, that were included in the account “1065” as of 30 April 2009 inclusively, which were deducted for corporate income tax purposes, will be taxed when their destination is changed, as per art. 22, par. (5) of the Fiscal Code. Also the reserves related to revaluations of fixed assets, including land, performed after 1 of January 2004,  will be taxed at the moment when these assets will be out of the patrimony (selling or remove from the management).
  • The expenses made for vehicles maintenance, repairs and functioning, except the gas, are limited deductible for corporate income tax purposes at one vehicle for each person who have administrative and leading attributions.
  • The gas expenses are deductible for corporate income tax purpose only for the vehicles used for the following purposes: repairs works and intervention, security, delivery services, transport of personnel to and from their working place, recruitment of personnel services etc

 

The above mentioned regulations enter in force at 1st of May 2009.