No.

4 January 2013

Nr. 4 Ianuarie 2013

Tax Alert Buletin Fiscal

In this issue: Amendments to the Fiscal Code Amendments to the Fiscal Procedure Code The level of local taxes for 2013 This update is accurate to the best of our knowledge at the time of issue. It is, however, meant as a general guide and comes with the recommendation that professional advice be sought before any action is taken.

Amendments to the Fiscal Code (Ordinance no. 8/2013 published in the Official Gazette no. 54 / 23 January 2013)

Modificari ale Codului fiscal (Ordonanta nr. 8/2013 publicata in Monitorul Oficial nr. 54 / 23 ianuarie 2013) Ordonanta aduce o serie de modificari Codului fiscal in ceea ce priveste impozitul pe profit, impozitul pe venit, impozitul pe venitul microintreprinderilor, impozitul pe venitul nerezidentilor, TVA, accize si contributii sociale, dar si Codului de procedura fiscala. Modificarile intra in vigoare incepand cu data de 1 februarie 2013, cu exceptia prevederilor privind nivelul accizei la tigarete, care va intra in vigoare incepand cu 1 aprilie 2013. Dintre modificarile cele mai importante, prezentam urmatoarele: Tranzactii artificiale Se prevede faptul ca tranzactiile calificate ca fiind artificiale (definite conform Codului fiscal) nu vor beneficia de prevederile conventiilor de evitare a dublei impuneri. Impozit pe profit Registrul de evidenta fiscala Registrul de evidenta fiscala va trebui sa evidentieze toate veniturile impozabile si cheltuielile efectuate in scopul realizarii acestora, aferente anului fiscal respectiv.

The Ordinance brings a series of amendments to the Fiscal Code with regard to the corporate income tax, personal income tax, microenterprises income tax, withholding tax, VAT, excise duties and social contributions, as well as to the Fiscal Procedure Code. The changes will enter into force starting with 1 February 2013, except for the provisions regarding the level of the excise duty for cigarettes, which will enter into force starting with 1 April 2013. Among the most important amendments, we present the following: Artificial transactions It is specified that the transactions classified as artificial (as defined by the Fiscal Code) will not benefit from the provisions of the double tax treaties. Corporate income tax Tax ledger The tax ledger will have to reflect all taxable income and related expenses, for the fiscal year in question.

n aceast ediie: Modificari ale Codului fiscal Modificari ale Codului de procedura fiscala Nivelul impozitelor locale pentru anul 2013 Acest material este conform informaiilor pe care le deinem la momentul redactrii. El are un caracter informativ i de aceea, se recomand apelarea la asisten specializat nainte de a ntreprinde orice aciune n baza lui.

All rights reserved. Ernst & Young 2013.

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Research and development expenses The additional deduction allowed for research and development expenses has been increased from 20% to 50% of the expenses eligible for these activities. Retained earnings from updating with the inflation rate as per IAS 29 for taxpayers who apply IFRS Amendments are brought regarding the fiscal treatment of the retained earnings resulted from the update with the inflation rate of the value of the depreciable fixed assets and land. Expenses related to acts of corruption Expenses booked and subsequently proven to be associated with acts of corruption are non-deductible. Non-deductible interest for contracts with deferred payment

Cheltuieli de cercetare-dezvoltare Deducerea suplimentara permisa pentru cheltuielile de cercetare-dezvoltare a fost marita de la 20% la 50% din cheltuielile eligibile pentru aceste activitati. Rezultatul reportat din actualizarea cu rata inflatiei potrivit IAS 29 in cazul contribuabililor care aplica IFRS Se aduc modificari in ceea ce priveste tratamentul fiscal al rezultatului reportat din actualizarea cu rata inflatiei a mijloacelor fixe amortizabile si a terenurilor. Cheltuieli legate de fapte de coruptie Cheltuielile inregistrate in contabilitate si dovedite ulterior a fi legate de fapte de coruptie sunt cheltuieli nedeductibile. Dobanzi nedeductibile in cazul contractelor cu plata amanata Sunt nedeductibile cheltuielile cu dobanzile, stabilite in conformitate cu reglementarile contabile conforme cu IFRS, in cazul in care mijloacele fixe/imobilizarile necorporale/stocurile sunt achizitionate in baza unor contracte cu plata amanata. Active biologice Sunt introduse prevederi referitoare la activele biologice, cu privire la valoarea fiscala a acestora, reevaluarea lor, amortizarea fiscala aferenta etc. Amortizarea fiscala a imobilizarilor necorporale Imobilizarile necorporale cu durata de viata utila nedeterminata nu se amortizeaza fiscal. Deductibilitate limitata a amortizarii autovehiculelor Cheltuielile cu amortizarea fiscala a mijloacelor de transport cu cel mult 9 locuri sunt deductibile in limita unei sume de 1.500 lei/luna. Impozitul datorat de persoanele juridice straine In cazul in care o persoana juridica straina obtine venituri din proprietati imobiliare si din vanzarea-cesionarea titlurilor de participare detinute la o persoana juridica romana, in cazul in care cumparatorul este o persoana juridica romana sau un sediu permanent inregistrat fiscal al unei persoane juridice straine, desi obligatia de a calcula, retine, declara si vira impozitul pe profit revine cumparatorului, persoana juridica straina va avea obligatia de a se inregistra fiscal in Romania, de a depune declaratia anuala de impozit pe profit si de a plati impozitulul conform art. 35 din Codul fiscal. Impozitul pe venitul microintreprinderilor Incepand cu 1 februarie 2013, sistemul de impozitare a veniturilor microintreprinderilor nu mai este optional, ci obligatoriu pentru contribuabilii care indeplinesc conditiile prevazute de lege. Nivelul veniturilor anuale sub care o persoana juridica romana este considerata microintreprindere a fost redus de la 100.000 euro la 65.000 euro.

Interest expenses established in compliance with IFRS for fixed assets/intangible assets/inventory acquired based on deferred payment agreements are non-deductible.

Biological assets A number of provisions regarding biological assets have been introduced, as regards their fiscal value, revaluation, tax depreciation, etc. Tax amortization of intangible assets Intangible assets with an indefinite operational life will not be amortized for tax purposes. Limited deductibility for depreciation of vehicles Deductible expenses related to the fiscal depreciation of vehicles having no more than 9 seats are limited to RON 1,500 /month.

Tax due by foreign legal entities In case a foreign legal entity derives income from real estate and from the sale or alienation of participation titles held in a Romanian legal entity, where the buyer is a Romanian legal entity or a permanent establishment of a foreign legal entity registered for tax purposes, even though the obligation to compute, withhold, declare and pay the corporate income tax stays with the buyer, the foreign entity will have the obligation to register for tax purposes in Romania, submit the annual corporate income tax return and pay the tax as per art. 35 of the Fiscal Code.

Taxation of micro-enterprises Starting with 1 February 2013 the system for taxation of micro-enterprises is no longer optional, but mandatory for the taxpayers that meet the conditions provided by the law. The level of annual income up to which a Romanian legal entity is considered a micro-enterprise was reduced from EUR 100,000 to EUR 65,000.

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One of the conditions for a Romanian legal entity to be considered a micro-enterprise was removed, namely the one requiring a number of employees between 1 and 9. The corporate income tax payers that meet, as of 31 December 2012, the conditions required in order to apply the system for taxation of micro-enterprises, will mandatorily apply it starting with 1 February 2013 and will notify the tax authorities by 25 March 2013. The corporate income tax return for January 2013 will be also submitted by this date. The taxpayers that opted for this system based on the legal provisions valid until 1 February 2013 will apply this tax regime in 2013, except for the case when, during 2013, the cap of EUR 65,000 is exceeded.

S-a eliminat una dintre conditiile ca o persoana juridica romana sa fie considerata microintreprindere, anume aceea de a avea intre 1 si 9 angajati. Platitorii de impozit pe profit care la data de 31 decembrie 2012 indeplinesc conditiile pentru a aplica sistemul impozitarii pe venitul microintreprinderilor, il aplica obligatoriu incepand cu data de 1 februarie 2013, urmand a comunica acest lucru organelor fiscale pana la data de 25 martie 2013. Tot pana la aceasta data se va depune si declaratia de impozit pe profit in luna ianuarie 2013. Contribuabilii care au optat pentru aplicarea acestui sistem de impunere in baza reglementarilor legale valabile pana la data de 1 februarie 2013 pastreaza acest regim de impozitare in anul 2013, cu exceptia cazului in care in cursul anului 2013 depasesc plafonul de 65.000 euro. Impozitul pe venitul nerezidentilor Impozitarea veniturilor din servicii prestate Devin venituri impozabile in Romania, pe langa veniturile obtinute de nerezidenti din servicii prestate in Romania, si cele obtinute de catre acestia din servicii prestate in afara Romaniei, indiferent de natura lor (cu exceptia transportului international si serviciilor accesorii acestuia). Cota de impozitare aplicabila in cazul in care nu exista un instrument juridic privind schimbul de informatii Cota de impozitare aplicabila anumitor tipuri de venituri (si anume dividende, dobanzi, redevente, comisioane, venituri din venituri din servicii si profesii independente) este de 50% din venitul brut in cazul in care veniturile sunt platite intr-un stat cu care Romania nu are incheiat un instrument juridic in baza caruia sa se realizeze schimbul de informatii. TVA Baza impozabila pentru livrari de bunuri/prestari de servicii intre parti afiliate Pentru livrari de bunuri/prestari de servicii intre parti afiliate, baza de impozitare este valoarea de piata atunci cand: contrapartida obtinuta este mai mica decat valoarea de piata, iar beneficiarul nu are drept de deducere integral; contrapartida obtinuta este mai mica decat valoarea de piata, iar furnizorul nu are drept de deducere integral si livrarea/prestarea este scutita de TVA fara drept de deducere; contrapartida obtinuta este mai mare decat valoarea de piata, iar furnizorul/prestatorul nu are drept de deducere integral. Operatiuni scutite fara drept de deducere Acordarea unui drept real asupra unui bun imobil, precum dreptul de uzufruct si dreptul de superficie, devine operatiune scutita fara drept de deducere. Bunuri furate In cazul bunurilor furate (inclusiv bunuri de capital), persoanele impozabile vor ajusta TVA dedusa initial, cu dreptul de a anula ajustarea la data la care furtul este dovedit legal prin hotarare judecatoreasca definiva. Tax Alert I Buletin Fiscal

Withholding tax Taxation of income from services rendered Besides the income earned by non-residents from services rendered in Romania, the income derived from services rendered abroad become taxable in Romania, regardless of their nature (with the exception of international transport services and the ancillary services). Tax rate applicable in cases where there is no legal instrument for the exchange of information The tax rate applicable to certain types of income (i.e. dividends, interest, royalties, commissions, income from services and independent professions) is 50% of the gross income if the income is paid to a state which has not concluded a legal instrument for the exchange of information with Romania.

VAT The taxable base for supplies of goods/services between related parties For supplies of goods/services between related parties, the taxable basis is the market value when: the consideration obtained is less than the market value and the recipient does not have a full deduction right; the consideration obtained is less than the market value and the supplier does not have full deduction right and the supply is VAT exempted without deduction right; the consideration obtained is higher than the market value and the supplier does not have full deduction right.

Transactions exempt without deduction right The granting of rights in rem over an immovable property, e.g. beneficial interest right and superficies right, becomes transaction exempt without deduction right. Stolen goods For stolen goods (including capital goods), the taxable person will adjust the VAT initially deducted, however they will have the right to cancel the adjustment when the theft is legally proven through a final court ruling. 3

Erroneous registration/deregistration in/from the Register of taxable persons that apply the VAT cash-in system In case of erroneous registration by the tax authorities, the taxable person in question applies the normal tax system between the date of registration and the date of error correction, in terms of both the collection and deduction of VAT. However, the taxable person will not be sanctioned in case it applies the VAT cash-in system over the above-mentioned period. In case of erroneous de-registration by the tax authorities, the taxable person in question applies the VAT cash-in system between the date of de-registration and the date of error correction, in terms of both the collection and deduction of VAT. However, the taxable person will not be sanctioned in case it applies the normal system over the above-mentioned period. In the above-mentioned situations, the beneficiary that does not apply the VAT cash-in system will exercise its deduction right according to the normal tax system. Excise duties Non-harmonised excise duties Beer, beer base from a mix with non-alcoholic beverages and also fermented beverages, other than beer and wine, which fulfil the specific requirements of the Fiscal Code were introduced in the list of products which are subject to non-harmonised excise duties. The amendments to the Fiscal Code include specific provisions regarding the taxation regime of these products, including the level of excise duty, the obligations of excise duty payers, the chargeability and payment of the excise duty. The value of the excise duties are of EUR 10/hl for beer, respectively EUR 25/hl for fermented beverages other than beer and wine. Harmonised excise The value of the excise duty for beer was increased from EUR 0.748/hl/1 Plato degree to EUR 0.8228/hl/1 Plato degree. The progressive increase of the excise duty for cigarettes, planned for the 2013-2018 period, will be made annually starting with 1 April of the respective year. Income tax Salary income Salary assimilated income subject to taxation will also include the following: - amounts that exceed 2.5 times the level set for the public institutions personnel, for the allowance received by the employees during delegation and secondment in another locality, within the country and abroad, for business purposes, as well as any other amounts of the same nature. The amounts granted within this limit, as well as those received for travel and accommodation expenses shall not be subject to taxation;

Inregistrarea/radierea eronata in/din Registrul persoanelor impozabile care aplica sistemul de TVA la incasare In cazul inregistrarii eronate de catre organele fiscale, persoana impozabila in cauza aplica regimul normal de taxare intre data inregistrarii si pana la data corectarii erorii, atat in ceea ce priveste colectarea, cat si deducerea TVA. Totusi, aceasta nu este sanctionata in cazul in care aplica sistemul de TVA la incasare in perioada respectiva. In cazul radierii eronate de catre organele fiscale, persoana impozabila in cauza aplica sistemul de TVA la incasare intre data radierii si pana la data corectarii erorii, atat in ceea ce priveste colectarea, cat si deducerea TVA. Totusi, aceasta nu este sanctionata in cazul in care aplica regimul normal de taxare in perioada respectiva. In cazurile de mai sus, beneficiarul care nu aplica sistemul de TVA la incasare, isi va exercita dreptul de deducere conform regimului normal de taxare. Accize Accize nearmonizate Berea, baza de bere din amestecul cu bauturi nealcoolice, precum si bauturile fermentate altele decat bere si vinuri, care indeplinesc conditiile specifice prevazute de Codul fiscal au fost introduse in lista produselor supuse accizelor nearmonizate. Modificarile la Codul fiscal contin prevederi specifice privind regimul de impozitare a acestor produse, inclusiv in ceea ce priveste nivelul accizei, obligatiile platitorilor de accize, exigibilitatea si plata accizei. Valoarea accizelor stabilite sunt de 10 euro/hl pentru bere, respectiv 25 euro/hl pentru bauturile fermentate, altele decat bere si vinuri. Accize armonizate Valoarea accizei la bere a fost marita de la 0,748 euro/hl/1 grad Plato la 0,8228 euro/hl/1 grad Plato. Cresterea progresiva a nivelul accizelor la tigarete, preconizata pentru perioada 2013-2018, va avea loc anual, din data de 1 aprilie a anului respectiv. Impozitul pe venit Veniturile din salarii In categoria veniturilor asimilate salariilor si supuse impozitarii se vor cuprinde si urmatoarele: - sumele ce depasesc 2,5 ori nivelul stabilit pentru personalul din institutiile publice, pentru indemnizatia primita de angajati pe perioada delegarii si detasarii in alta localitate, in tara si in strainatate, in interesul serviciului, precum si orice alte sume de aceeasi natura. Sumele acordate pana in aceasta limita, precum si cele primite pentru acoperirea cheltuielilor de transport si cazare fiind neimpozabile;

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interests granted in connection with wages and salary differences, as well as their updates with the inflation rate, determined on the basis of final and irrevocable court rulings. The income tax due on this income shall be calculated and withheld at the payment date and wired to the state budget by the 25th of the month following the payment.

dobanzile acordate in legatura cu salariile si diferentele de salarii, precum si actualizarea lor cu indicele inflatiei, stabilite in baza unor hotarari judecatoresti ramase definitive si irevocabile. Impozitul aferent se calculeaza si se retine la data efectuarii platii si se vireaza la bugetul de stat pana la data de 25 a lunii urmatoare cele in care au fost platite.

Further on, salary income paid by or on behalf of an employer who is a resident in Romania or has a permanent establishment in Romania becomes taxable in Romania solely if Romania is entitled to taxation. Investment income Relevant tax provisions have been correlated and, as such, the tax rules applicable to dividends will also be applied to income assimilated to dividends, representing amounts paid by a legal entity for goods or services provided to a participant in the legal entity, if the payment is made by the company for the personal benefit of the participant.

In cele ce urmeaza, veniturile salariale platite de catre sau in numele unui angajator care este rezident in Romania ori are sediul permanent in Romania, devin impozabile in Romania numai in situatia in care Romania are drept de impunere. Veniturile din investitii Se coreleaza prevederile fiscale potrivit carora, regimul fiscal aplicabil veniturilor din dividende se va aplica si in cazul veniturilor asimilate dividendelor, reprezentand sume platite de o persoana juridica pentru bunurile sau serviciile furnizate in favoarea unui participant la persoana juridica, daca plata este facuta de catre persoana juridica in folosul personal al participantului. Veniturile din activitati agricole, silvicultura si piscicultura Veniturile din silvicultura si piscicultura sunt incluse in categoria veniturilor impozabile, alaturi de veniturile din activitati agricole, fiind supuse unui impozit pe venit de 16%. Veniturile din silvicultura si piscicultura, veniturile din activitati agricole obtinute prin valorificarea produselor in alta modalitate decat cea naturala, precum si cele pentru care nu au fost stabilite norme de venit, se impun conform veniturilor din activitati independente. Limitele in care veniturile ar fi neimpozabile au fost reglementate. In aceasta categorie se vor include si veniturile obtinute de persoane fizice din valorificarea in stare naturala a produselor culese/capturate din flora si fauna salbatica. Impozitul pe venitul din activitatile agricole se calculeaza prin aplicarea cotei de 16% asupra venitului anual stabilit pe baza normei de venit. Plata impozitului anual se efectueaza catre bugetul de stat in 2 rate egale (25 octombrie, 15 decembrie). Contributii sociale obligatorii Angajatorii din state care nu intra sub incidenta regulamentelor Uniunii Europene privind coordonarea sistemelor de securitate sociala sau din state cu care Romania nu are incheiate acorduri/conventii in domeniul securitatii sociale si care datoreaza contributii sociale pentru angajatii lor, au si ei obligatia de a transmite organului fiscal competent informatii cu privire la acordul incheiat cu angajatii. In lipsa acordurilor, angajatorii mentionati mai sus au obligatia calcularii, retinerii si virarii lunare a contributiilor sociale datorate, precum si a depunerii formularului 112. Insa, daca angajatorul nu indeplineste aceste obligatii, persoanele care obtin venituri sub forma de salarii de la acesti angajatori vor depune declaratia 112, vor achita contributiile sociale individuale, in timp ce contributiile sociale la nivel de companie vor ramane in sarcina angajatorilor.

Income from agricultural activities, forestry and fisheries Income from forestry and fisheries are brought within the scope of taxable income, along with income from agricultural activities they will be subject to 16% income tax. Income from forestry and fisheries, income from agricultural activities earned by exploiting the products in a different state than the natural one, and also that for which income quotas have not been set, will be taxed similarly to the income from independent activities. The limits within which the income will not be taxable have been set. In this category are also included the income earned by individuals from the exploitation of products in natural form collected/captured from the wild flora and fauna. The income tax on income from agricultural activities is calculated by applying the 16% rate on the annual income calculated based on the income quotas. The annual income tax is paid to the State Budget in 2 equal amounts (25 October, 15 December). Mandatory Social Contributions Employers from states that do not fall under the EU regulations regarding the coordination of social security system or from countries with which Romania did not sign social security agreements/conventions and which are liable to social contributions for their employees, have also the obligation to send to the competent tax authority information regarding the agreement concluded with the employees. In the absence of agreements, the above mentioned employers have a monthly obligation to calculate, withhold, pay and declare the relevant social contributions, as well as to submit the form 112. In case the employer does not fulfill these obligations, the individuals that derive salary income from these employers will submit the 112 statement, will pay the individual social charges while the companys social contributions will stay with the employer.

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Details on the declaration and calculation of social contributions are set for the individuals deriving taxable income from agricultural activities, forestry and fisheries.

Sunt stabilite detaliile privind modul de declarare si calcul a contributiilor sociale obligatorii pentru persoanele care realizeaza venituri impozabile din activitati agricole, silvicultura si piscicultura. Modificari ale Codului de procedura fiscala (Ordonanta nr. 8/2013 publicata in Monitorul Oficial nr. 54 / 23 ianuarie 2013) Reguli privind verificarea persoanelor fizice In situatia in care contribuabilii la sistemul public de pensii si asigurari sociale de sanatate nu depun declaratia privind venitul asigurat la sistemul public, organul fiscal stabileste prin estimare baza lunara de calcul a contributiilor de asigurari sociale la nivelul minim prevazut de Codul Fiscal. Suspendarea procedurii de executarii silite Pe toata durata suspendarii executarii silite, in cazul depunerii unei scrisori de garantie bancara, creantele fiscale ce fac obiectul suspendarii nu se sting, cu exceptia situatiei in care sunt obligatii fiscale stabilite de organele de inspectie fiscala sau amenzi de orice fel, si contribuabilul opteaza pentru stingerea lor cu prioritate. Nivelul impozitelor locale pentru anul 2013 (Ordonanta nr. 8/2013 publicata in Monitorul Oficial nr. 54 / 23 ianuarie 2013) Ordonanta precizeaza faptul ca prevederile Ordonantei Guvernului 1/2013 care prevede faptul ca autoritatile locale pot adopta hotarari privind reducerea nivelului impozitelor si taxelor locale si a valorilor impozabile aplicabile in 2013 (adoptate prin Hotararea Guvernului nr. 1309/2012 Privind taxele locale aplicabile incepand cu anul din 2013) cel mult pana la nivelurile aplicabile in 2012 se aplica doar de catre autoritatile locale care nu au inregistrat arierate la data de 31 decembrie 2012.

Amendments to the Fiscal Procedure Code (Ordinance no. 8/2013 published in the Official Gazette no. 54 / 23 January 2013) Rules regarding the audit of individuals In case the contributors to the public pension and health insurance systems do not submit the statement regarding the insured income, the tax authorities shall estimate the monthly base for calculation of the social security contributions at the minimum level provided by the Fiscal Code. Suspension of the compulsory enforcement procedure Throughout the entire period of suspension of the compulsory enforcement, the tax liabilities subject to suspension shall not be settled, except for the case when they are tax liabilities established by the tax audit bodies or fines of any nature, and the taxpayer opts for their settlement with priority.

Level of local taxes for 2013 (Ordinance no. 8/2013 published in Official Gazette no. 54 / 23 January 2013) The Ordinance stipulates that the Government Ordinance 1/2013 which provides that the local authorities may adopt decisions on the reduction of local taxes and taxable values applicable in 2013 (adopted through Government Decision no. 1309/2012 regarding the local taxes applicable starting with 2013), not lower than the levels applicable in 2012, applies only to the local authorities which did not have arrears as of 31 December 2012.

For additional information, please contact: Venkatesh Srinivasan Partner Head of Tax & Legal Ernst & Young SRL 63-69 Dr. Iacob Felix Street th Premium Plaza Building, 15 Floor Sector 1, 011033, Bucharest, Romania Tel: (40-21) 402 4000 Fax: (40-21) 310 7124

Pentru informaii suplimentare, persoana de contact este: Venkatesh Srinivasan, Partener - Director al Departamentului de Asisten fiscal i juridic Ernst & Young SRL Strada Dr. Iacob Felix nr. 63-69, Cldirea Premium Plaza, etaj 15 Sector 1, 011033, Bucureti, Romnia Tel: (40-21) 402 4000 Fax: (40-21) 310 7124

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