Tax News & Insight October 2020
01 October 2020
On the website of the Ministry of Public Finance (www.mfinante.gov.ro) was published, on 25 September 2020, the Draft Decision for amending the Methodological Norms for the application of Law no. 227/2015 on the Fiscal Code, approved by Government Decision no. 1/2016.
The Draft Decision proposes the update of the methodological norms in order to correlate them with the provisions of the Fiscal Code, considering the successive amendments brought to it. Thus, the most important changes provided are the following:
1. Corporate income tax:
- the types of examples of expenses considered deductible when calculating the tax result are completed, being included in this category the expenses registered by taxpayers as a result of participating in compensatory operations regarding procurement contracts for defense, public order and national security needs, as regulated of the Government Emergency Ordinance no. 189/2002;
- amendment of example no. 2 of point 4 para. (5) of the norms in order to correlate with the provisions of art. 310 and 316 of the Fiscal Code which provide that the natural person who exceeds during the year the exemption threshold has to request the registration for VAT purposes. In this respect, regardless of whether the second transaction is exempted or taxable, the natural person becomes a taxable person after this transaction and has to request the registration for VAT purposes if the cumulative value of the two transactions exceeds the exemption threshold, as the first transaction it would have been taxable;
- clarifications are provided on the applicable VAT treatment to goods granted free of charge. Thus, is mentioned that it does not represent a delivery of goods within the meaning of art. 270 para. (1) of the Fiscal Code, the transfer of food intended for human consumption, close to the expiry date of minimum durability, in the situation where it is carried out according to the legal provisions regarding the decrease of food waste;
- a section containing provisions for the application of the rules related to vouchers is introduced;
- is updated the reference to the provision of the Fiscal Code regarding the moment when the chargeable event occurs in case of the down payment charged for the transfer of the use of goods under a leasing contract;
- the amendment of point 38 par. (2) of the methodological norms, as the current text could lead to misinterpretations. Thus, for all housing deliveries as part of the social policy, including the land on which they are built, the same VAT rate applies, respectively the reduced rate of 5%, if the legal conditions are met;
- provisions regarding the VAT treatment related to credit management and / or credit guarantee operations, performed within syndicated credit agreements are introduced;
- including the occupational pensions in the category of special investment funds, for the administration of which the VAT exemption applies;
- including a provision regarding the possibility of adjusting in favor of the taxable person the tax related to capital goods, in the event of its re-registration for VAT purposes after having the VAT code canceled according to art. 316 para. (11) letters a) - e) and h of the Fiscal Code, in case the capital goods were used for carrying out operations with right of deduction, other than those consisting in the delivery under taxation of the respective goods, during the period when the person had the code canceled;
- repeal of par. (4) of point 83 of the methodological norms, according to which taxable persons who, if normally registered for tax purposes, would apply a special tax regime (for travel agencies, second-hand goods, etc.), will take into account for determining the turnover only the taxable base for those operations;
- in case of persons applying for VAT registration after starting the activity, the registration should be considered valid from the 1st of the month following the month in which registration is requested;
3. Excise duties:
- introduction of a provision by which the values provided in the methodological norms related to the subscribed and paid-up capital can be applied both by the operators established on the basis of the Companies Law no. 31/1990, as well as by the operators for whom the normative acts of establishment provide patrimony of affectation or other similar;
- some provisions regarding the method of constituting the guarantees are modified;
- provisions regarding the execution of guarantees are introduced;
- clarifications regarding the minimum limit up to which the guarantee can be reduced in the case of authorized warehousekeepers are introduced;
- adding a new condition for issuing the end-user authorization by the territorial customs authority, namely, that the applicant does not register outstanding fiscal obligations to N.A.F.A;
- a new deadline is introduced for the representative of the territorial customs authority to be present at the location where the process of destruction of alcoholic beverages and processed tobacco products that have become improperly for consumption takes place;
- in order to fill in correctly the monthly centralized situation of the acquisitions of excisable products in the EMCS-RO stocks application, respectively for the final stock to be the correct one actually existing at the economic operator, the column “Outgoing quantities” is introduced within the annex no. 19 of Title VIII of the Methodological Norms.
We mention that the above information is part of a draft published on the website of the National Agency for Fiscal Administration, and in order to be applied shall be published in the Official Gazette.
This publication represents a briefing on proposed amendments to legislation in force, as they are released by authorities. They do not represent amendments of the Romanian legislation, but proposals made by the authorities according to their legislative policy. The amendment project of the normative act is published by public authorities only for discussion, in accordance with legislation in force.
The project may suffer amendments from the time that is released to the public until its final form, as published in the Official Gazette.
BDO is not responsible for any loss as a result of actions made on information contained in this publication.