Page 45 - Mazars Central and Eastern European tax guide 2023

Romania The VAT cash accounting system is optional for entities within Romania (e.g., fruit, vegetables, alcoholic drinks,
with an annual turnover of less than RON 4.5 m (EUR 915K).
clothing, footwear and some minerals and metals).
The VAT legislation applicable to the EU cross Other indirect taxes applicable include excise and
border transactions has been aligned at the EU level environmental tax.
as of 1 January 2020 when “EU VAT quick fixes” entered SAF-T reporting is implemented in Romania based on the
Mazars Consulting S.R.L. into force. Romania has also implemented such provisions timeline below:
4b and 2-4 Ing. George in domestic legislation. • Large taxpayers as of 01.01.2022
Constantinescu Street, E-Invoicing systems are mandatory as of 01.07.2022 • Medium taxpayers and financial entities
Building B, Globalworth Campus for the taxpayers who deliver goods classified as a tax as of 01.01.2023
Pipera, RO-020339, Bucharest risk (such as fruit, vegetables, alcoholic drinks, new • Other taxpayers including non-residents with VAT
Phone: (+40) 21 528 57 57 constructions, mineral products, clothing and footwear). registration in Romania as of 01.01.2025.
Fax: (+40) 21 528 57 50 An E-transport system for real time goods tracking
www.mazars.ro is mandatory as of 01.07.2022 for all the taxpayers who Personal income tax / Social security system
arrange the transport of goods classified as a tax risk
A 10% flat tax rate is applicable to revenues obtained
from dependent activities (e.g., employment or activities
Corporate taxes and other direct taxes with respect to net asset position are met. The incentive VAT options in assimilated to employment) or independent activities
comes with an extended deadline for the annual CIT return Applicable / limits (freelancers).
CIT is 16%. To calculate the taxable profit, the accounting submission (25 June). Romania As of 01.01.2018, the SSC are the following: Social Security
profit is adjusted upwards (with non-deductible expenses) The current tax incentive for profit reinvested in certain Distance selling The OSS system is applicable. Contribution (25% – employee part), Health Insurance
or downwards (with non-taxable revenues). A maximum equipment is extended starting with 2023 with additional Contribution (10% – employee part) and Work Insurance
50% additional deduction can be applied for certain investments (assets used in production and processing Call-off stock ü Contribution (2.25% – employer part).
R&D expenses. activity, Retechnology assets). VAT group registration ü
Capital gains arising from the sale of the participations Treaty network consisting of around 87 DTTs. Cash accounting – yearly EUR 915,000/year Dependent activities are subject to SSC at the employee
held in any state that Romania has concluded a DTT with From 2023, the WHT rate on Dividends increases from 5% amount in EUR (approx.) (35%) and the employer level (2.25%).
are non-taxable. to 8% for resident/non-resident legal entities/individuals. Certificate of payment deferral / AEO / As of 2023, the annual base for calculating Social
Tax consolidation is applicable in the field of CIT at the The WHT for Interest and Royalties is 16%. Import VAT deferment simplified customs procedure / products Security Contributions for some categories of income
subject to VAT r/c.
level of two or more legal entities. Once tax consolidation Capital gains from the sale of shares are tax exempt For sale of: certain types of waste, certain (e.g., independent activities, intellectual property, etc.)
has been opted for, it must be applied for 5 years. (certain conditions apply). In all other relations for WHT, types of cereal, wood, greenhouse is amended. The base can be chosen by the taxpayer, but
A new incentive is in place for the period 2021 - 2025 the general tax rate and double tax treaties are applicable. Local reverse charge gas emission certificates, electricity, it cannot be lower than the level of 12 minimum gross
to stimulate the capitalisation of companies. CIT payers Romania deposited a notification on 06.03.2023 natural gas, green certificates, land and salaries (for a ceiling between 12 and 24 minimum gross
buildings, laptops and mobile phones.
can benefit from annual CIT discounts (2% up to 15%) from confirming the completion of its internal procedures for Option for taxation salaries), or the level of 24 minimum gross salaries for
the annual CIT due for FY 2021-2025, if certain conditions
the entry into effect of the MLI provisions for 55 DTTs. letting of real estate ü income obtained above the threshold of 24 minimum
From 2023, the micro company scheme is optional. gross salaries.
Transfer pricing in Romania The revenue threshold for applying this regime has supply of used real estate ü
Arm’s length principle ü Since 2003 (Law 227/2015) decreased from EUR 1 m to EUR 500k. Companies VAT registration approx. EUR 61,000
threshold
Since 2003 must have at least 1 employee, the revenues from
Documentation ü (Order 222/2008, management/consulting activities need to be capped
liability Order 442/2016) to 20% of total revenues - except for audit, accounting and Average wage
APA ü Since 2007 (Order 3735/2015) tax, shareholders with more than 25% shares that have Wage related taxes in Romania Minimum wage in private sector
Public CbCR rules in line with additional shareholdings in other companies applying
Country-by- Directive (EU) 2021/2101 the same micro scheme must be limited to a maximum Exchange rate RON/EUR 4.92 in EUR in RON in EUR in RON
Country liability ü are applicable in Romania of 3 entities. 610 3,000* 1,380 6,789
with FY 2023.
Master file-local file The regime now has a unique tax of 1%. Total wage cost 623 102.25% 1,411 102.25%
(OECD BEPS 13) ü Only Local File rules are applicable. Legal entities in certain domains are not eligible to apply
applicable the micro tax regime (e.g., insurance and reinsurance, Employer contributions 14 2.25% 31 2.25%
Penalty gambling). Gross salary 610 100.00% 1,380 100.00%
The incentive implemented to stimulate capitalization
For large and medium tax payers – Employees' contributions 213 35.00% 483 35.00%
approx. EUR 2,500-2,900. of CIT payers is also applicable for microenterprise Personal Deduction ** 122 –
lack of documentation ü Other taxpayers – EUR 410-720. taxpayers for the tax due in the fourth quarter of the Personal income tax*** 27 10.00% 90 10.00%
Adjustment of tax base plus late
payment interest and penalties fiscal year.
may be applicable. Net salary 369 60.50% 807 58.50%
VAT and other indirect taxes
tax shortage ü Regular tax regime. * The minimum monthly gross wage guaranteed in payment, without including bonuses or other additions, if of RON 3,000 for FY 2023, for a normal working schedule. In the construction
sector, the minimum monthly gross wage for the period January 1, 2023 – December 31, 2023 is RON 4,000 per month (without including other bonuses and additional payments).
minimum of The general rate is 19%. Reduced rates are 9% ** 1 family member is assumed.
Related parties 25% Direct or indirect control. (e.g., medicines, food, agricultural products, hotel *** Personal income tax base is: gross salary – employee's contribution – personal deduction.
accommodation, restaurant services, etc.) and 5% (e.g.,
Preparation of benchmark studies
is also mandatory for assessing the for books, certain residential sales and photovoltaic
arm's length nature of low value systems, etc.).
Safe harbours No adding services. OECD's simplified Edwin Warmerdam
approach on value adding services VAT-exempt activities include medical services, financial Partner, Head of Tax
is not applicable in Romania. and banking services, insurance and reinsurance, sale Phone: +40 21 528 57 57
and rental of real estate, certain types of educational and
Level of attention paid by Tax E-mail: edwin.warmerdam@mazars.ro
Authority 10/10 training activities, and other activities of public interest.

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