Legal and fiscal news for 2017

Starting with 2017 a series of legislative changes will take place. Some are applicable from the 1st of January, the others from the 1st of February. We have grouped them in several main categories:

The corporate income tax:

• The taxpayers engaged exclusively in innovation, research and development activities will be exempted from profit tax in the first 10 years of service;
• Will be extended the deadline for the tax exemption regarding reinvested profit in technological equipment, computers, electronics and peripheral equipment, and also software.

The income tax for microcompanies

The changes in the New Fiscal Code are making 2016 the best year for withdrawing dividends. The dividend tax was reduced from 16% to 5%. It is possible to benefit of this opportunity only in 2016.

If you haven`t already did it, you can still benefit from this tax relief only in December this year.

The only condition that must be fulfilled in order to pay only taxes rate of 5% is that the shareholder must obtain also other income for which he already pays the health insurance contribution. Therefore:

This is the time when we all are making plans for the New Year Eve, but did we properly budgeted expenditures for 2016?

And to do this, I propose you to review together the main changes of the new Tax Code and also the new provisions of the Ordinance 50/27.10.2015.

From a first look it’s noted that in 2016 the most vulnerable are individuals who are self-employed or freelancers, and the Fiscal Procedure Code is not meant to solve what really hurts, namely: the introduction of rules and procedural limitations about duration and conduct unannounced checks and anti-fraud, or the removal of the effects on third parties resulting from the declaration as being inactive of a taxpayer.

The Romanian Government published on 23^rd of July 2009 the implementing rules of the Emergency Ordinance 92/1009 for postponing the payment of unpaid tax obligations on time, due to the effects of economic and financial crisis, determining the framework within which companies may benefit from delaying the payment of the taxes. The provisions of GEO no. 92/2009 shall apply until 30^rd of June 2010.

The legal provisions refer to the payment of the tax obligations administered by ANAF: taxes, fees, contributions and other amounts due to general budget, and increases for the delay in respect thereof.

Conditions for the benefit of payment postponing

To qualify for postponing the payment of the taxes, taxpayers must fulfil the following cumulative conditions: