Vulpoi & Toader Management SRL

Modifications brought to the Tax Code through Law no 168/2013, on the approval of Government
Ordinance no 8/2013 regarding the modification and amendment of the Tax Code , published in the
Official Gazette, part 1, no 310/29.05.2013

Corporate income tax
A. According to the latest modifications, starting July 1st, 2013, the 1.500 ron/month deductibility limit for
the vehicles from M1 category, having at most 9 passenger spaces, including the drivers seat, as they
are defined by the Regulations regarding the type-approval and issuance of identity cards for road
vehicles, is no longer a general one, but there will exceptions, such as: vehicles used for
interventions, security services, courier services, vehicles used by sales and purchase agents,
vehicles used for taxi purposes and the ones rented or leased to third parties. Similar to the VAT
regime, the usage in such activities must be exclusive.

Example
A car has an entry value of 96,000 ron is depreciated over 4 years, resulting in a monthly accounting
depreciation of 96,000/48 = 2,000 ron.
1. If the car is used by the CFO, then the depreciation is allowed for tax deduction only for the amount of
1,500 ron per month
2. If the car is used exclusively by a sales agent, then the depreciation is allowed for tax deduction in full.

B. Art. 21, paragraph 3, letter b) from the Tax Code was abolished. It stipulated that the daily allowance
granted to the employees during business travel outside the city or the country, as well as any other
similar amounts are non-deductible for the part that exceeded 2.5 times the legal level established by
Government decision for the personnel in public institutions.
Taking into consideration that starting February 1
st
, 2013, the excess became taxable as a salary, in order to
avoid double taxation, starting July 1
st
, 2013, it has been allowed for deduction at the calculation of the corporate
income tax.

Example
The level established for personnel in public institutions amounts to 13 ron per day. For companies the tax limit
is 32,50 ron as 13 ron x 2,5.
An employee receives for a one day business trip outside the city 50 ron.
- treatment between February 1st, 2013 and July 1st, 2013: the diff 50-32.50 = 17.50 ron is taxed as
salary and the cost is non-deductible at the calculation of the corporate income tax;
- treatment after July 1st, 2013: the diff 50-32.50 = 17.50 ron is taxed as salary and the cost is deductible
at the calculation of the corporate income tax.

Tax on micro-entitiesincome
The conditions for entering this system have been modified. Thus, the taxpayers that apply this system must not
be registred with the trade registry or with the judicial courts as being in the dissolution and liquidation
process according to the law.
Newly set-up companies will not be considered micro-entities if at incorporation they intend to undertake
consulting and management activities, gambling activities and sport betting. These companies will be set-up as
payers of corporate income tax.
Also, the newly set-up companies that at the date of registation with the trade registry have a subscribed
share capital of at least the ron equivalent of 25.000 euro can choose to ba payers of corporate income tax.


Modification brought to the Tax Procedure Code through Government Decision no 276/2013, on the
establishment of the entry value of fixed assets, published in the Official Gazette, part 1, no
313/30.05.2013.

According to this Decision, starting with July 1st, 2013, the minimum entry value of fixed assets, established
pursuant to art 3(2) from Law no 15/1994 regarding the depreciation and amortization of fixed assets,
republished, with further amendments, amounts to 2.500 ron

Vulpoi & Toader Management SRL
The net carrying amount of the fixed assets with an entry value between 1.800 and 2.500 ron that exist in the
patrimony of the economic agents as at July 1st, 2013, shall be recovered during the remaining useful life.


Modification brought to the Tax Procedure Code through Emergency Ordinance no 50/2013, on the
regulation of some tax measures, published in the Official Gazette, part 1, no 320/03.06.2013.

Thus, the level of the penalties for late payment is established at 0.02% for each day of delay.

These provisions are applicable starting with 01/07/2013 to the payment obligations to the state budget,
overdue after 01/07/2013.

Until July 1st, the level of the penalties remains unchanged, respectively:
- no penalties are charged for payment within 30 days of delay;
- 5% from the principal tax obligations, if these are paid within 60 days of delay;
- 15% from the principal tax obligations, after 60 days of delay.

The penalties for late payment do not abolish the interests applied to the overdue obligations. The interests
remain at 0.04% per day of delay.