Romania: Amendments of fiscal legislation

04.08.2017

Law no. 177/2017, which approves Government Emergency Ordinance no. 3/2017 regarding the modification of the Fiscal Code, was published in Official Gazette no. 584/21 July 2017 and brings a series of amendments, of which the following are the most important:

  • Starting on 1 October 2017, food with a "use by" date that will expire soon can be written off as a deductible expense provided that the food products are transferred according to the legal requirements on decreasing food waste.
  • Starting on 24 July 2017, the microenterprise tax regime is also applicable to companies previously subject to tax for specific activities (e.g. restaurants or hotels).
  • Starting on 1 October 2017, Romanian companies with high fiscal risk (to be defined in more detail) will not be registered for VAT purposes or will have their VAT registration annulled.

Government Ordinance no. 4/2017 regarding the modification of the Fiscal Code was published in the Official Gazette no. 598/25 July 2017 and modifies the calculation of social contributions.

  • Starting on 1 August 2017, in case of part-time employment agreements with a value below the minimum gross salary, employers' pension/health insurance contribution is calculated based on the minimum gross salary and not the value of the part-time employment agreement (except for specific cases, such as if employees have several part-time employment agreements with a cumulative value above the minimum gross salary)