Keeping up with the Tax Code amendments – August 2017

So, what does the Government Ordinance bring new?

  • First of all, a new partial deductible expense was added to the list for computing the corporate income tax. Therefore, you can now deduct the expenses with alienated debts within 30% of the value of these debts.
  • The income from independent actives was redefined to include all activities developed in Romania, no matter the source of income. The exception is for intellectual property rights, where they are considered of Romanian source only if they are paid by a Romanian resident or from a Romanian permanent establishment of a non-resident.
  • The benefits in kind or money granted for dependent activities at the carried on board of aircrafts operated in international traffic are exempted from individual income tax.
  • The taxpayers obtaining income from renting their personal property real estate will have to declare the ceasing of this activity within 30 days of the event for recalculating the due income tax for the corresponding year.
  • The medical services covered by the employer for its employees, granted under a monthly subscription are now also exempted from social security contribution.
  • The income on foreign representation will be paid on an annually basis, by the end of the month of February of the corresponding year.
  • The income on new incorporated foreign representations will be declared and paid within 30 days from the incorporation date. The income will be computed started with the 1st of the month of the incorporation until the end of the year.

The changes are not significant and many of them came only as clarifications and as an alignment with the taxpayer’s practice.