Tax Flash no. 43
11 November 2020
Law 239/2020 for the amendment and completion of Law no. 227/2015 on the Fiscal Code
In the Official Gazette no. 1041 dated 6th November 2020 was published the Law no. 239/2020, which entered into force on the same day. Are introduced provisions regarding the calculation of corporate income tax for legal entities that set up nurseries / kindergartens for the children of their own employees or pay for the placement of children of employees in private or state nurseries / kindergartens, as follows:
- The expenses for the proper functioning of some units under the administration of taxpayers, such as nurseries, kindergartens, are removed from social expenses;
- The expenses for the proper functioning of early education units are included as expenses with limited deductibility. Taxpayers deduct from the corporate income tax due the expenses with early education, but not more than 1,500 RON / month for each child. If the amount exceeds the corporate income tax due, the difference will be deducted from the payroll tax withheld by the taxpayer for employees, from the VAT due or from the excise duties due;
- New categories of depreciable fixed assets are introduced, thus, the purchases of goods and equipment used in vocational and technical education, dual pre-university and university education are considered depreciable fixed assets, whose value is recovered, from the fiscal point of view, by deducting depreciation;
- New tax facilities for legal entities that intend to support the dual university education system. Thus, will be considered deductible expenses the expenses performed for the organization and development of vocational and technical education, dual pre-university and university education, according to the legal regulations in the field of national education;
- The amounts granted by the employer for the early education of employees’ children are introduced as non-taxable benefits from personal income tax perspective.
Law 241/2020 for the amendment of paragraph (1) of art. 459 of Law no. 227/2015 on the Fiscal Code
In the Official Gazette no. 1041 dated 6th November 2020 was published the Law no. 241/2020, which will enter into force on 1st January 2021. The law amends the method of calculating the local tax for mixed-use buildings owned by individuals, therefore, it will be calculated by summing the following:
- the tax calculated for the area used for residential purposes, determined by applying the quota and the specific conditions;
- the tax determined for the area related to the non-residential activity, indicated by a declaration on one's own responsibility, and provided that the utility expenses are not recorded in the charge of the person carrying out the economic activity. The tax rate related to the non-residential value will be applied starting from the value related to the residential use to the area corresponding to the non-residential activity.