Law no. 290/2024 | TaxFlash 113

By Law no. 290/2024 for the amendment and completion of Law no. 227/2015 on the Fiscal Code, published in the Official Gazette Part 1 no. 1163 of 21 November 2024, are amended the provisions relating to the supplementary tax for credit institutions and the supplementary tax for legal entities carrying out activities in the oil and natural gas sectors, as follows:

• The provisions relating to the supplementary tax for credit institutions and the supplementary tax for legal entities carrying out activities in the oil and natural gas sectors are transferred to articles 46¹ and 46² of the Fiscal Code, and articles 18² and 18³ being repealed;
• Are included in the category of non-deductible expenses under art. 25 of the Fiscal Code the expenses with the minimum turnover tax according to art. 18¹ of the Fiscal Code and expenses with the specific turnover tax according to art. 46¹ and 46² of the Fiscal Code;
• Regarding the supplementary tax for legal entities carrying out activities in the oil and gas sectors, is eliminated the exception from the minimum tax according to art. 18^1 Fiscal Code and the condition of registering a turnover of over 50,000,000 euros in the previous year. This amendment leads to the situation of taxpayers with a turnover of over 50 million euros in the oil and gas sectors to owe in 2025 both a supplementary tax at a rate of 0.5% and a minimum tax at a rate of 1% (if the minimum tax of 1% is higher than the 16% corporate tax);
• Taxpayers who exclusively carry out activities of distribution/supply/transport of electricity and natural gas and who are regulated/licensed by The National Regulatory Authority for Energy are not subject to the provisions relating to the supplementary tax for legal entities carrying out activities in the oil and natural gas sectors (previously, were excluded the taxpayers regulated/licensed by The National Regulatory Authority for Energy who in the previous year obtained income from distribution/supply/transport activities of electricity and natural gas in a proportion of over 95% of the total income from which the income included in the Vs indicator is subtracted);
• Subject to the supplementary tax for legal entities carrying out activities in the oil and natural gas sectors are also foreign legal entities that, individually or in a form of association, deliver goods or provide services on the territory of Romania carrying out activities in the oil and natural gas sectors. Also, it is mentioned that the income obtained by non-residents from such transactions is not part of the scope of Double Tax Treaties concluded by Romania with another state.

The provisions of Law no. 290/2024 will enter into force on 1st January 2025.