Romania: Amendments to fiscal legislation

Below is a list of the main amendments included in the Emergency Government Ordinance no. 89/2018 regarding several budgetary-fiscal measures, and amendments for the modification and completion of some normative acts.

Corporate income tax

Taxpayers applying the International Financial Reporting Standards will tax/deduct as items assimilated to revenues/expenses, the amounts derived from differences in valuation/revaluation of shares which are recorded in reserve accounts in accordance with IFRS 9 "Financial Instruments", when selling/assessing said shares, to the extent that income from the sale/assignment is taxable.

These provisions entered into force on 9 October 2018.

Income tax and social security contributions

The new piece of legislation sets the deadline for the payment of the amounts set out in tax decisions for determining:

• the final annual income tax for the income obtained by individuals in 2017;
• the final amount of the social security contribution due by individuals for 2016-2017;
• the final amount of the health insurance contribution due by individuals for 2014-2017.

This amendment concerns only tax decisions issued and communicated after 9 October 2018, on which date these provisions entered into force. Additionally, for the early settlement of these liabilities, a 10% reduction will be granted.

Value Added Tax

As of 1 November 2018, the application of the reduced 5 % VAT rate is extended to:

• access to fairs, amusement parks and recreational parks having NACE codes 9321 and 9329;
• accommodation in the hotel sector or in similar-function sectors, including camping rental;
• restaurant and catering services except for alcohol beverages serving, others than beer included in the NC code 22 03 00 10;
• the right to use sport facilities having NACE codes 9311 and 9313.

Emergency Ordinance no. 89/2018 was published in the Official Gazette of Romania no. 854/09.10.2018.