Order no. 5433/2023 & Order no. 10/2024 | TaxFlash 97

Please find below the tax amendments introduced by Order no. 5433/2023 regarding the taxpayers that carry out activities in the oil and natural gas sectors according to the article 183 paragraph (1) of the Tax Code (published in the Official Gazette no. 1185/28 December 2023) and Order no. 10/2024 for determining the assets to be included in indicators I and A stipulated at art. 181 paragraph (3) and art. 183 paragraph (2) from the Tax Code (published in the Official Gazette no. 6/4 January 2024).

We remind you that by Law no. 296/2023 were introduced:

• The minimum tax on turnover, due by taxpayers with turnover over 50 million euro in the previous year and that determine a corporate income tax lower than the minimum tax on turnover;
• An additional tax on turnover, due by taxpayers carrying out activity in the oil and natural gas sectors and that book a turnover over 50 million euro in the previous year.

A. ORDER NO. 5433/2023

Taxpayers that carry out activities in the oil and natural gas sectors, in the sense of the additional tax on turnover, are those that carry out activities, main or secondary, corresponding to the following NACE codes:

• 0610 - "Oil extraction";
• 0620 - "Natural gas extraction";
• 1920 - "The manufacture of products obtained by oil refining";
• 3522 - "Distribution of gaseous fuels through pipelines";
• 3523 - "Commercialization of gaseous fuels through pipelines”;
• 4671 - "Wholesale trade of solid, liquid and gaseous fuels and derived products";
• 4730 - "Retail trade of fuels for motor vehicles in specialized stores";
• 4950 - "Pipeline transport".

B. ORDER NO. 10/2024

This Order establishes the assets taken into account when determining the indicators I and A, included in the formula for calculating the minimum tax and the additional tax on turnover, respectively:

a) tangible assets provided in the following subgroups of the Catalog regarding the classification and normal operating durations of fixed assets:

(i) subgroup 1.1 “Industrial constructions”;

(ii) subgroup 1.2 „Agricultural constructions“;

(iii) subgroup 1.3 „Constructions for transports by post and telecommunications “;

(iv) subgroup 1.4 „Hydrotechnical constructions“;

(v) subgroup 1.5 „Constructions for business, trade and storage“, with the exception of classes 1.5.1 „Business centers“ and 1.5.2 „Commercial Buildings for storage, marketing and distribution. Stores“, 1.5.14 „Other constructions for business, trade, storage not found in the subgroup 1.5“;

(vi) subgroup 1.7 „Constructions for the transport of electricity “;

(vii) subgroup 1.8 „Constructions for water supply, sewerage and land improvements “;

(viii) subgroup 1.9 „Constructions for the transport and distribution of oil, gas, industrial liquids, compressed air and heating “;

(ix) subgroup 2.1 „Technological equipment (cars, machinery and work installations”)

(x) subgroup 2.2 „Devices and installations for measuring, control and regulation“;

(xi) subgroup 2.3 „Means of transportation“;

(xii) subgroup 2.4 „Animals and plantations”;

b) intangible assets recognized from an accounting point of view, with the exception of establishment expenses, goodwill, intangible assets with an indefinite useful life.

The assets must be new, must be used in the economic activity of the taxpayer and linked to the activity of the taxpayer.

In the value of indicators I and A, certain investments made in the above assets will also be included.