New! 15-Jan-2016

As of 01/01/2016, important updates are introduced on Romanian Tax Code, on majority of national and local taxes. The most important updates, by type of tax, are as follows:

  1. Profit tax
    1. General profit tax rate confirmed for 16%.
    2. New allowance for reinvested profit in IT equipment (previously only for machinery)
    3. Maximum interest rate on inter-company loans allowed for deductibility for profit tax calculation is now 4% (previously 6%)
  2. Dividend tax
    1. As of 01/01/2016, new general dividend tax rate is 5% (previously 16%)
    2. Tax on dividends of 0% if a beneficiary hold a minimum 10% of share capital of dividend payer, for at least 1 year at date of payment of dividends.
  3.  VAT
    1. New: General VAT rate reduced at 20% (previously 24%)
    2. Reduced rate of 9% for food industry, accommodation in hotels, catering and restaurants, human and animal care, including drugs
    3. Reduced rate of 5% for books, expositions, museums
    4. New: reverse charge mechanism introduced for real estate industry – land, buildings, part of buildings.
    5. New: Reverse charge mechanism also available for deliveries of mobile phones, laptops, PCs, tablets, gaming console
  4. Local tax
    1. Local tax for buildings is now calculated on economical usage of building – residential or commercial (previously calculated based on ownership).

Please contact us for more details!

Fiscal facilities granted to individual investors – business angels

Law no. 120/2015 regarding fiscal facilities granted to individual investors – “business angels” – has been published. It introduces several fiscal facilities for individuals investing in micro-enterprises and small-sized enterprises, and presents the requirements that need to be fulfilled in order for the facilities to apply.

Details:

Individual investors – “business angels” can benefit from the following fiscal facilities upon investing in micro-enterprises and small-sized enterprises:

  • Exemption from tax on dividends for the first three years from the purchase of the shares. The exemption is granted up to the equivalent of the invested amount.
  • Exemption from tax on capital gains from sale of shares, if the sale takes place at least three years after the purchase of the shares.