January 31, 2017
During January 2017 we have updated you with the tax news that has come into force or proposed: here, here and here. Because we are at the end of January we will dedicate this article to a review of the main tax changes produced this month.
Reducing the standard rate of VAT from 20%, as it was until the end of 2016, to 19%.
Repeal of the provisions relating to the Register of Intra-Community Operators, the VAT code of all taxable persons registered for VAT purposes being valid, by default, in VIES.
Optional introduction of the special VAT regime for farmers, individuals, individual enterprises or family enterprises carrying out agricultural activities/services.
The limitation until 31 December 2016 on the application of the tax exemption of reinvested profit is deleted, and this facility will be applied indefinitely. The tax exemption of the invested profit also applies to the right to use the software, without the acquisition of ownership of the software, the acquisition of patents, intellectual property rights on design and other innovations related to that software. Basically, it also applies to purchased licenses, not just software. Starting with 2017 the tax exemption can be applied for technological equipment, electronic computers and peripheral equipment, machines and appliances, control and billing, as well as in computer programs, products and/or purchased, including on the basis of financial leases and put into operation, used for the purpose of carrying out economic activity.
Construction tax was eliminated at the end of 2016, so for 2017 it is no longer due.
Also from 2017 came into force and Law No. 170/2016 on activity-specific tax. Specifically, the specific tax, which will be calculated according to several variables, such as the area, the rank of the locality or seasonality, will be due to all companies that have registered in the constitution, as main or secondary activities, one or more activities provided by eight CAEN codes in the fields of tourism, hotel, restaurants, bars and public food.
In the case of micro-enterprises, the share capital limit has been reduced from 25,000 euros to 45,000 lei (10,000 euros), for which they can choose to pay corporation tax.
Income payers with withholding tax on salaries, intellectual property rights, pensions, leases, association of a natural person with a legal person, will no longer submit form 205 for these categories of income in 2017.
Submission of information declarations (code 392A, 392B and 393) shall be suspended until 31 December 2019.