December 9, 2013 It was published in the Official Gazette no. 703 of 15.11.2013 Government Emergency Ordinance no. 102/2013, which amended and supplemented the Fiscal Code, which may be relevant in the context of economic and financial operations that your company carries out since January 1, 2014. The news introduced by it aiming at: Income tax • taxpayers who have a financial year different from the calendar year according to Order 3055/2009 for the approval of the Accounting Regulations compliant with the European directives, can choose that the fiscal year corresponds to the financial year; • dividends received from a Romanian legal entity / foreign legal entity are non-taxable when calculating the profit tax, if the Romanian legal entity receiving the dividends holds, for an uninterrupted period of 1 year, at least 10% of the share capital of the legal entity that distribute dividends; • also, the incomes from the sale / assignment of the participation titles held to a Romanian legal person / foreign legal person (located in a state with which Romania has concluded a double taxation avoidance agreement) are non-taxable, if at the date of sale / assignment including the taxpayer holds for an uninterrupted period of 1 year at least 10% of the share capital of the legal entity in which he holds the participation titles; • the incomes from the liquidation of another Romanian legal entity / foreign legal entities, if at the date of starting the liquidation operation, the taxpayer holds for an uninterrupted period of one year at least 10% of the share capital of the legal entity subject to the liquidation operation; • the expenses with the sponsorships that are not deducted from the profit tax, will be able to be carried forward in the next 7 consecutive years, recovering in the order of their registration, at each term of payment of the profit tax. • the possibility and the conditions under which the legal persons from EU / EEA member states that carry out activity through a permanent establishment in Romania to benefit from the advantage of the external fiscal credit for the income taxed abroad are regulated. Value added tax • the provisions regarding the adjustment of VAT are modified, in the sense that the adjustment is not required in case of lost, destroyed or stolen goods, in the conditions in which the loss, destruction or theft of the goods are duly demonstrated; • the condition regarding the payment of VAT requested for reimbursement by taxable persons not established in Romania has been eliminated. According to the new provisions, VAT refunds to taxable persons not established in Romania will be granted even if the VAT requested for refund is not paid; • the cost of insuring the good that is the object of the leasing contract was excluded from the VAT tax base related to the leasing services, this cost being recovered by the leasing companies by re-invoicing from the users; • the VAT exemption will be applied in the case of intra-community acquisitions made by non-residents not established in Romania, if they carry out operations that give the right to deduct VAT; • the express prohibition to sell cigarettes to individuals at a price lower than the declared retail price and the related contravention is introduced, • a new way of calculating the value of excise duties in lei is established, in case the exchange rate established for one year is lower than the one related to the previous year. According to this way of shit, the exchange rate applicable for 2014 is 4.738 lei / euro, 4.77% higher than in 2013. Income tax • the possibility of deducting from the gross income the obligatory social contributions, in Romania or abroad, is expressly confirmed, in accordance with the provisions of the international legal instruments to which Romania is a party (European regulations or bilateral conventions / agreements in the field); • it is provided to allow the deduction of the social health insurance contributions from the annual incomes realized from the transfer of the use of the goods. micro • if a micro-enterprise generates revenues from consulting and management of over 20% inclusive, in total revenues, it will pay profit tax;

• the exclusion from the taxable base of income from exchange rate differences and the taxation of favorable differences resulting from exchange rate differences recorded as a result of the settlement of receivables and payables based on a foreign exchange rate different from that at which they were initially recorded • the exclusion from the taxable amount of the value of commercial discounts granted after invoicing and the taxation of commercial discounts received after invoicing. (New) construction tax • a new tax on the value of constructions was introduced (other than buildings for which a building tax is due according to Title IX of the Fiscal Code), starting with January 1, 2014, applicable to constructions provided in group 1 of the Catalog on classification and normal operating times of fixed assets in HG2139 / 2004, • the tax rate is 1.5% and is applied on the value of the existing constructions in the taxpayers’ patrimony on December 31 of the previous year, highlighted in the accounts in the debit balance of the accounts, from which certain values ​​are deducted • its calculation and declaration is made by the taxpayers annually, until May 25, inclusive, of the year for which the tax is due. Payment is made in two equal installments, until May 25 and September 25, inclusive. Order 1898/2013 was published for the modification and completion of the Accounting Regulations compliant with the European directives, approved by the Order of the Minister of Public Finance no. 3,055 / 2009, applicable starting with January 1, 2014. Among the novelties introduced Order 1898/2013, we mention: • In the situation where legal entities with headquarters abroad carry out their activity in Romania through several permanent offices, the annual financial statements and the accounting reports will be drawn up by the permanent headquarters designated to fulfill the fiscal obligations; • Income is recognized in the income statement when an increase in future economic benefits related to an increase in the value of an asset or a decrease in the value of a debt can be reliably assessed – income is recognized simultaneously with the recognition of an increase in assets or a reduction in debt. . Expenses are recognized in the income statement when a decrease in future economic benefits related to a decrease in the value of an asset or an increase in the value of a liability can be measured reliably – the recognition of expenses occurs simultaneously with the recognition of increases or reductions. assets; • Recognition of tangible assets, according to professional reasoning, when applying the recognition criteria for the specific circumstances of each entity; • In the case of lands that were revalued, when removing them from the records, the difference in revaluation related to the ceded part is considered a surplus realized from revaluation reserves, corresponding to the book value of the lands removed from the records, and is highlighted in account 1065 “Reserves representing the surplus made from revaluation reserves. “

• Regarding the receivables taken over by assignment, they will be highlighted in the accounting at the acquisition cost (461 “Miscellaneous debtors” = 462 “Miscellaneous creditors”). The nominal value of the receivables thus taken over is highlighted outside the balance sheet (account 809 “Receivables taken over by assignment. When the assignee recovers from the taken over debtor an amount higher than the acquisition cost of the receivable from him, the difference between the amount collected and the acquisition cost is recorded as income (account 758 “Other operating income” / analytical separately) on the date of collection. receivables and miscellaneous debtors ”>), if the acquisition cost of the assigned receivable is higher than its assignment price, or as an income (account 758“ Other operating income ”/ analytical distinct), if the assignment price of the assigned receivable it is higher than its acquisition cost. • Government grants, including non-monetary grants at fair value, should not be recognized until there is sufficient certainty that the entity will comply with the conditions imposed by them and the grants will be received. The mere receipt of a grant does not itself provide conclusive evidence that all the conditions attached to the award of the grant have been or will be met. • Some entities may practice customer loyalty programs, which involve awarding them gift points. These gift points can be used to purchase free or discounted goods or services as part of a transaction for the sale of goods or services, subject to the fulfillment of any additional conditions. The entity accounts for gift items as an identifiable component of the transaction in which they are granted (account 472 “Revenue recorded in advance” / separate analytical). The amount corresponding to the gift points is recognized as income when the entity fulfills its obligation to provide the prizes or at the expiration of the period within which customers can use the gift points. If it is estimated that the level of expenses necessary to fulfill the obligation to provide the prizes exceeds the equivalent value received or receivable for them, at the date when the client redeems them, for the related difference the entity records a provision in the accounts. By Decision 871/2013 for establishing the minimum gross basic salary in the country guaranteed in payment, starting with 2014, it will increase in two tranches, as follows: • Starting with January 1, 2014, the guaranteed minimum gross basic salary in the country is set at 850 lei per month; • starting with July 1, 2014, the guaranteed minimum gross basic salary in the country is set at 900 lei per month.

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