Romania: Fiscal update
CORPORATE INCOME TAX
Companies utilizing International Financial Reporting Standards must now handle valuation differences on shares as revenue or expense items. This applies specifically to amounts recorded in reserve accounts under IFRS 9 “Financial Instruments,” at the time of sale or valuation. These rules took effect on October 9, 2018.
INCOME TAX AND SOCIAL SECURITY CONTRIBUTIONS
The legislation establishes payment deadlines for tax decisions covering:
- Final annual income tax for individuals’ 2017 earnings
- Final social security contribution amounts for 2016-2017
- Final health insurance contribution amounts for 2014-2017
These provisions apply only to tax decisions issued and communicated after October 9, 2018. Early settlement of these liabilities qualifies for a 10% reduction.
VALUE ADDED TAX
Starting November 1, 2018, the reduced 5% VAT rate extends to:
- Sport facilities (NACE codes 9311 and 9313)
- Fair and amusement park access (NACE codes 9321 and 9329)
- Hotel accommodations and camping rentals
- Restaurant and catering services (excluding alcohol beverages, except beer)
Emergency Ordinance no. 89/2018 was published in Romania’s Official Gazette no. 854 on October 9, 2018.