News about tax on profit
May 3, 2017
Tax News (continued)
May 8, 2017
Continuing the presentation of tax news (see the previous article published on the site), we inform you that the Government Decision, approved in the meeting on April 27, 2017, it has been published on May 4, 2017 in the Official Gazette, thus entering into force.
The novelty of the Government Decision on the tax on micro-enterprise income and on income tax is:
Regarding the income tax of microenterprises
– The decision contains provisions on the application by micro-enterprises of Law no. 170/2016 on tax specific to certain activities. It clarifies the system of taxation on the income of microenterprises, in the case of Romanian corporate taxpayers, which at 31 December 2016 realized revenues between 100.001 – 500.000 euro, the equivalent in lei, due to the change in the limit of the revenues realized in the previous year at 500,000 euro;
– There are also clearer provisions on maintaining and after 1 February 2017 the status of the corporate taxpayer for micro-enterprises that have opted to apply the provisions of Title II of the Fiscal Code;
– The rules also contain provisions detailing how taxpayers who become microenterprises are compiling, declaring and paying corporate income tax as of 1 February 2017 and opt to pay corporation tax.
Regarding income tax
– There are introduced explanations of the way of applying in the course of one year the exemption from the payment of the tax on salary income and assimilated to salaries, in the case of natural persons carrying out activities on the basis of an individual labor contract concluded for a period of 12 months, Romanian legal persons carrying out seasonal activities as provided in art. 1 of the Law no. 170/2016 on tax specific to certain activities.
– A non-taxable ceiling of 450,000 lei is set for the revenues generated from the transfer of the ownership right from the personal patrimony.
– The deduction of the medical services provided in the form of a subscription and the voluntary health insurance premiums is provided, within the same annual limit of euro 400 equivalent in lei.
