Dc tax update tax updates 7 september 2011

1. Changes brought to the Romanian Fiscal Code
(Government Ordinance 30/2011 for the amendment of Law 571/2011 regarding the Fiscal Code, as
well as for the enforcement of other financial measures, published in the Official Gazette no. 627
of 2 September 2011)
The amendments brought to the Fiscal Code refer mainly to:
General provisions
the obligation to register the service contracts concluded with non-resident providers
(companies or individuals) with the tax authorities is extended to apply also to
Romanian permanent establishments of non-resident companies;
VAT
with regard to services triggering successive settlements or payments (construction,
assembling, consultancy, professional expertise, etc), the provision requiring the
maximum settlement period to be of one year has been eliminated;
starting with the declarative obligations of August 2011, the monthly recapitulative
statement related to intra-community supplies and/or acquisitions carried out (form
390) must be submitted until the 25th of the month following the one in which the
transactions were performed;
mandatory reverse charge on local Romanian transactions has been extended to
include the following categories of supplies:
supply of ferrous and non-ferrous waste, as well as used and recyclable material
consisting of cullet, glass, paper, paperboard and board, rags, rubber and plastic;
supply of the above mentioned materials after processing by cleaning, polishing,
selection, cutting, fragmenting, pressing or casting into ingots;
DCTAX S.R.L. Contact:
Str. Ermil Pangrati nr. 21, Sector 1, Bucuresti Emilia Dragu Alina Zarzu
Tel: 031 229 2200; 031 229 2201; Fax: 031 229 2202 emilia.dragu@dctax.ro alina.zarzu@dctax.ro

2. the level of fines for failure to submit on time or submitting incorrect or incomplete
EC Sales and Purchases Lists (recapitulative declaration 390) is modified as follows:
RON 1,000 – 5,000 for not submitting the declaration within the legal deadline;
RON 500 – 1,500 for submitting incorrect or incomplete declarations.
The fine does not apply if companies amend an EC Sales and Purchase List within the
legal deadline for submitting the next similar declaration or if the corrected
declaration has been initially erroneously submitted for reasons other than the
taxpayer’s own fault.
The new level of fines applies for contraventions spotted after 17 September 2011. For
services, the above mentioned fine is applicable only for failures occurring in relation to
services rendered or received after 17 September 2011.
Corporate income tax
the definition of transfer of shares performed between companies residing in different EU
member states was amended;
new provisions regarding taxation of the members of associations with legal personality,
incorporated in other states than Romania and which perform activities in Romania, as well
as new provisions related to their declarative obligations are instated;
starting 1 January 2013, companies may opt for annual payment and reporting of the
corporate income tax due with quarterly prepayments at the level of ¼ of the
corporate income tax paid by the company in respect of the previous year. However,
this option is available only for companies currently paying corporate income tax under the
actual figure system (i.e. not in a tax loss position). Newly set up companies, as well as
companies making fiscal losses in the previous year cannot opt for this system either. Once
opting for this system, companies may revert to the previous actual-figure payment system
only after 2 consecutive fiscal years.
starting with the fiscal year 2012, the deadline for annual reporting and settlement of
corporate income tax liabilities will be the 25th of March of the year following the one
in which the income was obtained.
Local taxes
for buildings not revaluated for accounting purposes for more than 3 years, the
applicable rate of local tax will be as follows:
DCTAX S.R.L. Contact:
Str. Ermil Pangrati nr. 21, Sector 1, Bucuresti Emilia Dragu Alina Zarzu
Tel: 031 229 2200; 031 229 2201; Fax: 031 229 2202 emilia.dragu@dctax.ro alina.zarzu@dctax.ro

3. between 10% and 20% for buildings which have not been revaluated in the last
3 years;
between 30% and 40% for buildings which have not been revaluated in the last
5 years.
The tax rate is applied to the inventory value of the building, until the end of the month in
which the revaluation is performed.
the tax rate applicable to buildings with touristic destination is of minimum 5% of the
book value of the building;
the hotel tax is reduced from 3% to 1% per day of the value of the accommodation
fee paid;
Changes brought to the Romanian Fiscal Procedure Code
(Government Emergency Ordinance 29/2011 for the amendment of Government Ordinance 92/2003
regarding the Fiscal Procedure Code, published in the Official Gazette no. 626 of 2 September 2011)
the tax registration certificate will be issued by the tax authorities within 10 days from
submission of the registration application (the previous deadline was of 15 days);
undisputed, liquid and due amounts that are to be cashed by the taxpayer from
contracting public authorities under contracts for public acquisition/works/services
can now be mentioned on tax certificates issued by the tax authorities. These will be
included based on a document issued by the contracting authorities certifying that the
amounts are undisputed, liquid and due;
starting 1 October 2011, the order in which tax payments are matched against tax liabilities
owed by the taxpayer is changed – the principal of the tax obligations are offset with priority,
followed by ancillary fiscal obligations such as late payment interest and late payment
penalties. The new settlement order reduces the level of late payment penalties due
for overdue tax obligations.
New fiscal incentives
new provisions with regard to cancelation of late payment penalties related to tax
liabilities overdue as at 31 August 2011, as follows:
DCTAX S.R.L. Contact:
Str. Ermil Pangrati nr. 21, Sector 1, Bucuresti Emilia Dragu Alina Zarzu
Tel: 031 229 2200; 031 229 2201; Fax: 031 229 2202 emilia.dragu@dctax.ro alina.zarzu@dctax.ro

4. if the tax liabilities and related late payment interest are voluntarily paid or offset
against other tax credits until 31 December 2011, the late payment penalties
accrued in relation to such tax liabilities will be cancelled and 50% of the late
payment raises (late payment penalties due before April 2010) will be forgiven;
if the tax liabilities and related late payment interest are voluntarily paid or offset
against other tax credits until 30 June 2012, the late payment penalties due will be
reduced to 50% and the late payment raises due (if any) will be reduced to
25%.
amendments brought to the tax debts rescheduling procedure: the value of guarantees
required to be provided is diminished, introduction of new conditions to be met in order
not to lose the validity of the tax debts reschedule plan, taxpayers are granted a
respite for the payment of late payment penalties due for tax liabilities included in the
debt reschedule plan and their total cancelation once the last debt rescheduling
instalment is paid.
Bucharest, 13 September 2011
DCTAX S.R.L. Contact:
Str. Ermil Pangrati nr. 21, Sector 1, Bucuresti Emilia Dragu Alina Zarzu
Tel: 031 229 2200; 031 229 2201; Fax: 031 229 2202 emilia.dragu@dctax.ro alina.zarzu@dctax.ro