The taxation for small companies in Romania and particularly for the ones with at least RON 45.000 representing the registered minimum share capital has changed starting with January 2018 and with the new legislation comprised by the Romanian Fiscal Code. However, such firms must apply for a different kind of taxation, which can be explained by our accountants in Romania. Our team can also provide small, medium and large companies with audits in Romania and related concerns.
In Romania, there are certain cases in which a company may lose the legal right to operate in the country. The VAT certificate which represents the main proof that a company is registered accordingly may not be attributed to businesses which had a temporarily closed activity. The good part is that companies can get back on the market if they respect several rules which can be explained by our accountants in Romania.
Due to the changes made to the Tax Code in Romania, the form 112 used for financial declarations has also met modifications. This is a document which needs to be filled each month with information about the social contributions of a person, juridical person, or company on behalf of the employees. Also, the tax declarations can be made once in three months, depending on the business form established in Romania and the related conditions. The new format and the additional rules can be explained by our team of accountants in Romania.
Companies in Romania have the possibility of preparing and implementing varied promotional campaigns through which they can identify new sale methods and advertising ideas. Such campaigns are usually subject to rewards or prizes which are considered taxable incomes. For a better understanding of how such revenues must be categorized from a taxation point of view, our accountants in Romania can guide you towards the legal method in order to avoid any misunderstandings.
According to the Romanian Tax Code, the taxpayers have the right to correct tax returns filed with the tax authority, if there are errors in the original statement. The National Fiscal Administration Agency (ANAF) published Order no. 3769/205 which details how to change the tax returns. There are specific situations when correcting the tax returns is applicable. Our accountants in Romania can give you detailed information on the matter of tax declarations.
Real estate properties can be bought in Romania by EU and EAA citizens in the same conditions as the locals. Land can be acquired in Romania only if there is an international agreement which allows Romanian citizens to purchase land in a foreign country. The legislation regarding the property tax in Romania has been recently amended and from February 1st, 2017, no taxes for real estate transactions are withheld, in certain conditions. Our accountants in Romania can give you detailed information about the conditions under which real estate can be purchased without any taxes.
Foreign businessmen who start contractual relations with a Romanian party need to know the rules that apply to registering contracts in Romania. The Romanian Fiscal Authority, in line with the Tax Code, has introduced new rules for registering contracts concluded with foreign legal persons or non-resident natural persons that provide services in Romania. Our accountants in Romania can offer detailed information about these new rules related to registering contracts.
A 19% value added tax (VAT) applies to retail prices in Romania. Certain businesses, like restaurants, hotels and shopping centers have retail prices that include the VAT. A 9% VAT rate is retained at all bread products since 2013. Public interest businesses, like medical treatments, social and cultural activities organized by public institutions, are exempt from VAT. According to the Romanian Tax Code, you can obtain a VAT refund in certain conditions. Our Romanian accountants can give further details about how to qualify for a VAT refund.
The changes brought to the Fiscal Code and the Fiscal Procedure Code were enacted by the Government and the Emergency Ordinance will soon be published in the Official Gazette. The new provisions will largely apply starting with January 1st, 2017 and they include various issues such as the elimination of a number of mandatory statements or reducing the cap on social capital for the microenterprises tax. Our Romanian accountants are able to provide complete information on these summarized changes.
The Ministry of Public Finance issued a draft law that will allow for an easier fiscal reactivation of a Romanian company. The tax inspectors from the National Agency for Fiscal Administration will not make any further checks to see if the company is still compliant as far as the fiscal domicile of the corporation is concerned. This check-up will not take place only in those situations in which the inactivity was not related to the company’s fiscal domicile. Our Romanian accountants can help you understand these new provisions.
A new draft law proposes a new taxation method for the avoidance of tax evasion. The project was proposed by a number of 23 deputies and it stipulates that surplus borrowing costs from mother companies to subsidiaries and/or branches to be deductible only to 30% of that taxpayer’s earnings. The project was proposed in order to deal with an unlawful practice used by some multinational corporations that have operational offices in Romania. One of the experts at our Bucharest accounting firm can give you adequate counseling on this matter if your corporation has or will open a branch or a subsidiary in the country.
Companies in Romania that activate in tourism and the public food sector will be subject to a different taxation regime starting with 2017. The new tax system will no longer be imposed based on the profits recorded in the country. It will be calculated according to several different factors, including the location of the company and the net area of the premises where the company is located. Our accountants in Bucharest can help you understand how this new calculation method applies to small, medium or large companies in Romania.
Small and medium-sized companies participating in public actions no longer benefit from the reductions that would have been applicable to them in these case, according to their turnover. The guarantee for participation and the guarantee for compliance were also abolished. The recent changes were included in a legislative document that was published in the Official Gazette. Our Romanian accountants are able to tell you more about these obligations.
The Chamber of Deputies approved the legislative project that will introduce a new type of flat tax starting with 2017. This type of tax will apply only to certain types of businesses, including those companies that operate in tourism and/or accommodation, restaurants and bars. Our Romanian accountants can give you more information about this tax, including how it will influence the current applicable reporting requirements.
The 1st of November 2017 is the deadline for companies to change old cash registers with registers with electronic journals. For this purpose, the Ministry for Public Finances has recently published a guideline for companies required to replace old cash registers. The guideline establishes the method through which electronic cash registers must be enrolled with the National Registry of Cash Registers which will be enabled by the National Agency for Fiscal Administration.
Small and medium-sized enterprises (SMEs) in the urban and rural areas will be eligible to apply for financial aid offered by the European Funds Ministry (EFM). SMEs could benefit from amounts starting with 200,000 euros and up to 1 million euros provided that these companies carry out non-agricultural activities. Our Romanian accountants can provide information about governmental grants for SMEs.
The National Agency for Fiscal Administration (ANAF) announced that starting this fall companies and individuals will be able to pay their taxes and other contributions online. According to the minister for public finances, ANAF has started to work on the enrollment procedures on the online platform. Our Romanian accountants can offer detailed information on the tax system in this country.
Social contribution quotas could go down if a recent bill passed by the Senate will also be voted favorably by the Chamber of Deputies. The new Fiscal Code could be amended so that these contributions decrease by 5%. Our Romanian accountants can offer information on the current contributions employers must pay.
In Romania, the standard corporate tax is 16%, applicable to both Romanian businesses and to foreign enterprises functioning through a permanent establishment in the country. In case of the Romanian corporation registered as a subsidiary of a foreign company profits may be send home solely by way of dividend circulation, which, according to domestic law, is permitted only after the annual monetary reports are accepted by the stockholders.
The new Tax Code in Romania carries, along with its implementation on the 1st of January 2016, adjustments regarding the fiscal regime applicable to listed sole traders and to small businesses, raising questions about the selection of the best method to make the activities, from the fiscal viewpoint.
At the end of May, a new law which provides for several fiscal facilities for companies setting up business incubators was passed. Our Romanian accountants can provide you with more information about the conditions under which a company can set up a business incubator in this country.
The new Fiscal Code brings certain changes to the local taxes payable by individuals who own residential or non-residential buildings. This local building tax is calculated according to the scope for which the building is used. Foreign investors in Romania who own property and lease it can request the services of our Romanian accountants for tax assistance.
The rules for the enforcement of the provisions of the new Fiscal Code have been amended for the second time. These new provisions will be entered into force as soon as the document adopted by the Government will be published in the Official Gazette. Our Romanian accountants can highlight the most important implementing rules and can help you adjust to these changes.