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Tax exemption on reinvested profit on unlimited period comes into force on 1 January 2017, according to Government Ordinance (OG) No. 84, that is amending the Tax Code and the Tax Procedure Code, published in the Official Gazette. "The profit reinvested in technological outfitting, computers and peripheral tools, cash registers, control and billing machines, computer programmes, as well as for the right to use the software produced and/or purchased, based on the financial leasing contracts included, and enforced, used to develop an economic activity, is tax exempted. The tangible assets the tax exemption is applied to are those included in subgroup 2.1, class 2.2.9 respectively with the Catalogue on the classification and normal use duration of the fixed assets as approved by Government Decision," specifies the piece of legislation.
Tax exemption on reinvested profit has been introduced in mid-2014, yet on a limited period, and it was to come to an end on 31 December 2016. This time, the exemption was stretched indefinitely. Likewise, the piece of legislation introduces a break for the VAT paying companies, in the period their VAT code is lifted.
In addition, the Ordinance establishes a special VAT regime for the farmers. They are to be VAT exempted, but will pay a flat-rate compensation representing the sum resulted by applying the flat-rate compensation percentage upon the price/tariff excluding the tax, related to the supplies of agricultural products and services covered by a farmer. "The flat-rate compensation percentage is 1pct in 2017, 4pct in 2018 and 8pct starting with 2019," says the OG.
The said piece of legislation also provides the electronic attachment of accounts to avoiding the multiple attachment, so that the taxpayers who were seized sums of money are not affected if the seizure exceeds the level of the debts the attachment was set. In addition, the OG introduces new rules on the taxation regime of microenterprises, the stock option plan system through which a company could give its employees, administrators and/or directors the right to purchase at a preferential price or to receive free of charge a determined number of shares and eliminates the obligation for the taxpayer to register in the Intra-Community Operators Register if they do business with economic partners from other member states. The Ordinance also includes an extending of documents through which the taxpayers could prove they paid their taxes, fees.
