Romania: Announces tax reforms
Romania is introducing a tax exemption on reinvested profit as part of an emergency ordinance. The tax exemption is to apply from 1 July 2014 and is to continue until the end of 2015. This is intended to encourage more investment in new assets in an
See MoreBulgaria’s Cabinet approves the signing of a new DTA with Romania
Bulgaria’s Cabinet has agreed to a proposal to amend the double taxation agreement (DTA) with Romania, to apply in place of the current DTA that was signed in 1994. The Cabinet has authorized the Finance Minister to negotiate the new DTA. This
See MoreRomania: New tax law to conform to EU rules
Romania has passed Law No 8/2014 to bring the tax low into line with EU provisions. The Law provides for new VAT place of supply rules for broadcasting, telecom and electronically supplied services that are similar to EU rules. The Law also reforms
See MoreRomania will not reduce VAT rate yet
Romania has announced that it cannot lower the current 24% VAT rate unless economic growth of more than 3 percent continues until 2015. Like some other EU countries, Romania raised its VAT rate on a temporary basis to deal with the consequences of
See MoreTreaty between India and Romania enters into force
The treaty between India and Romania which was signed on 8 March 2013 generally applies from 1 January 2014 for Romania and from 1 April 2014 for India. From this date, the new treaty generally replaces the India - Romania Income Tax Treaty in
See MoreRomania: Finance Minister proposes the introduction of a tax exemption
Romania’s Finance Minister plans to introduce an exemption from tax on reinvested profit. This exemption would be intended to encourage foreign direct investment and could increase the GDP growth by as much as 0.5%. Another plan is to reduce
See MoreRomania: Information regarding late penalty payment provisions
After arising from 1st March 2014, the late tax payment penalty relating to liabilities is 0.03% per day of delay in addition to the payment of interest at the applicable
See MoreRomania: no abrupt change in fiscal policies this year
The Romanian Prime Minister has confirmed that there will be no abrupt change in the government’s fiscal policies this year, rejecting speculation that an incremental income tax could be introduced. The 16 per cent flat tax was introduced in
See MoreRomania: Prime Minister considers tax breaks for reinvested profits
Romania's Prime Minister has said that he hopes to have details ready on a planned tax break on reinvested profits in time for the next International Monetary Fund (IMF) visit to the country in April. The Deputy Prime Minister and Finance Minister
See MoreRomania: Foreign energy traders are now permitted to reclaim input VAT
The European Court of Justice has ruled that foreign energy traders in Romania are now permitted to reclaim input VAT incurred through the EU’s 8th Directive. This follows Romania’s withdrawal of the requirement for VAT registrations on
See MoreHong Kong: Negotiations for DTA with Romania
On 29 January 2014, the Romanian government authorized the start of negotiations for the conclusion of a Double Tax Agreement (DTA) between Hong Kong and
See MoreRomania: Modify compulsory VAT cash accounting scheme to voluntary
The Romanian tax office is planning to change its controversial obligatory VAT cash accounting rule to a purely voluntary scheme. The present obligatory scheme was initiated at the early of 2013. This system, progressively common in other EU
See MoreRomania: comprehensive VAT deferment scheme to importers
The import VAT abeyance scheme has been extended in Romania under a Order issued by the Ministry of Finance at the end of last month. At present, persons who are owner of the specialized VAT deferment certificates are offered the opportunity to
See MoreRomania: Amendment of income tax rate for severance payments
Romania now limits the individual income tax rate of 85% with respect to only particular severance payment. Previously it was imposed on employees who were in management position or to the members of a board of directors under an Ordinance
See MoreRomania: Negotiation of Tax Agreement with Bermuda
Recently the Romanian government has announced its intention to commence negotiations for a tax information exchange agreement with Bermuda. This agreement when signed will allow Romania to gain more information about the activities of Romanian
See MoreRomania: Reduced VAT for bakery products
A change in the VAT rate in respect of bakery products is contained in Government Ordinance no. 16/2013 which was published in the official journal (no. 490, 2 August 2013). The reduced value added tax (VAT) rate of 9% will apply to the supply of
See MoreRomania: Late payment penalty provision
Government Emergency Ordinance no. 50/2013 regarding certain fiscal measures has been published in the Official Gazette of Romania (Part I, no. 320/2013). The Fiscal Procedure Code enforces a new regime in relation to penalties imposed for tax debts
See MoreRomania: Corporate tax rate remain unchanged
The Prime Minister of Romania has confirmed that the country’s 16 percent flat rate of corporation tax will be kept until 2016. The rate is being kept the same to provide investors with more stability and certainty in taking investment decisions
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