Tax Flash nr. 50
04 March 2021
In the Official Gazette of February 26, 2021, GEO 13/2021 for the amendment of the Fiscal Code and the Accounting Law was published. We further present the main provisions:
- Are excluded from the scope of non-deductible expenses in the case of corporate income taxpayers the expenses incurred as a result of transactions with a person located in a State that is included in Annex II of the EU List of non-cooperating jurisdictions for tax purposes. Thus, only expenses incurred as a result of transactions with a person located in a State that is included in Annex I, as from 1 January 2021, are non-deductible if the expenses are incurred as a result of transactions not having an economic purpose.
Also, it is expressly mentioned that for the determination of the fiscal result starting with the first quarter of 2021, respectively for the fiscal result of 2021 in the case of taxpayers who apply the annual system of corporate income tax declaration and payment, expenses incurred as a result of transactions with a person located in a State which, at the date of recording them, is included in Annex II of the EU List of non-cooperating jurisdictions for tax purposes, represent deductible expenses.
- Clarifications are provided regarding the application of the VAT on collection system taking into account the threshold of 4,500,000 lei established by Law 296/2020 and the possibility to opt for the application of the system at any time during the year. Thus, all the references referring to the old threshold of the Fiscal Code were corrected.
- Accounting law no. 82/1991
- The provisions regarding the entities to which are applicable the regulations of the Accounting Law no. 82/1991 are updated. Thus, the scope of the provisions of the Accounting Law includes foreign legal entities that operate through a permanent establishment / several permanent establishments in Romania, as well as foreign legal entities that have the place of effective management in Romania.