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Law No. 12 Of 30 January 1991 Concerning Profits Tax

Original Language Title:  LEGE nr. 12 din 30 ianuarie 1991 privind impozitul pe profit

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LEGE No. 12 of January 30, 1991 on corporate income tax
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR NO. 25 of January 31, 1991



The Romanian Parliament adopts this law + Article 1 Autonomous regions, companies, cooperative organizations, financial and credit institutions, other economic agents organized as legal entities, including those with foreign capital, as well as economic units of other legal entities, Romanian or foreign, who make profits from the activity carried out, referred to in this law as tax-paying units, have the obligation to pay, according to the law, to the budget of the central state administration or to the local budgets, tax on profit. + Article 2 The corporate tax is calculated with progressive rates, differentiated according to the size of the profit of the tax paying unit. The tax rates are those set out in Annex no. 1 to this law and applies to taxable profit. The taxable profit is determined as the difference between the revenue received and the expenditure set out in Annex no. 2 to the present law. + Article 3 The profit tax is calculated and regularized monthly, depending on the profit made, cumulated since the beginning of the year. For this purpose, the profit tax peaks are made monthly, recalculated and regularized with the state central administration budget or local budgets, as the case may be, cumulated since the beginning of the year, based on the creditor balance in the account "profit and loss", up to 15 of the following month for the period expired during the year and until 25 January, on the basis of the annual balance sheet. Where the payment day is non-working, the payment shall be made on the working day immediately following it. The amounts paid in addition to the budget of the central state administration or local budgets compared to those actually due shall be compensated with the amounts due for the next period or shall be returned to the paying units within 5 days of the request to them. + Article 4 In duly justified cases, the Ministry of Finance may grant delays and instalments from payment, as well as the establishment of other payment terms of corporation tax during the year. + Article 5 The tax-paying units, established starting with the date of application of this law, as well as those established previously, but which make taxable profit after the date of application of this law, are exempt from the profit tax, as follows: a) the units of industry, agriculture and construction, for a period of 5 years from the date of establishment; b) units in the field of exploitation and exploration of natural resources, communications and transport, for a period of 3 years from the date of establishment; c) service providers, for a period of one year from the date of establishment; d) units with commercial profile, for a period of six months from the date of establishment. The provisions of lit. a), b), c) and d) of this Article shall not apply to autonomous regions and commercial companies with full state capital. + Article 6 The tax-paying units, with foreign capital, established until the date of application of this law, shall be taxed under the conditions of the legislation in force on December 31, 1990. + Article 7 If the tax paying units provided for in art. 5 of this law ceases its activity within a period of time lower than the one for which they are exempt from the payment of the tax from the expiry date of the period for which the tax exemption is applied, they have the obligation to turn to the budget the central state administration or local budgets, as the case may be, the profit tax calculated for the entire exemption period. The profit tax related to the exemption period is calculated and communicated annually by the tax authorities to the tax-paying unit for making to the attention. + Article 8 Organizations of blind and disabled, associations of handicapped persons and their economic units, as well as benefit associations, exempt themselves from paying corporate tax. The paying units of tax, other than those mentioned in the previous paragraph, which employ persons according to the law are considered handicapped, benefit from the reduction of the corporate tax, in proportion to the share of those persons in total employees. + Article 9 At the tax-paying units, the profit tax used to widen and modernize the technical-material base, manufacturing technologies or the expansion of the activity for the purpose of obtaining additional profits, as well as for investments aimed at protecting the environment, reduce by 50 percent, following that the amounts equivalent to the reduction are used with the same destination. The calculation and regularization with the budget of the central state administration or local budgets of the amounts related to the tax reduction shall be made by January 25 of the following year and shall be reflected in the balance of the base year. + Article 10 The profit due to the foreign party in the commercial company, with partial or full foreign capital, after the payment of the tax, is taxed at a rate of 10 percent if it is transferred abroad. + Article 11 The amounts paid as dividends by companies for the capital portion representing the participation of the state shall be fully paid to the budget of the central state administration or to the local budgets, as the case may be, within 10 days from the date of approval the balance sheet by the general meeting, but not later than 1 March of the following year. The deadlines provided in par. 1 of this Article shall also apply for the payment of net profit resulting from the activity of autonomous regions, established according to the law. + Article 12 The tax paying units have the obligation to submit to the general directions of the county public finances and the city of Bucharest, until May 15 of each year, the declaration of taxation for the following year. The newly established tax paying units have the obligation to submit the declaration of taxation within 30 days from the date of the interest of the legal personality. + Article 13 The obligation of calculation and liability for making the payment within the profit tax, as well as the amounts due according to art. 10 and 11 of this law, return to paying units. The non-payment of the amounts due to the budget of the state central administration or local budgets, at the legal deadlines, entails the payment of a increase of 0.05 percent on the amount due for each day of delay. In justified cases, the Ministry of Finance may approve the reduction or exemption for payment of late-delay increases. + Article 14 The verification of the compliance with the provisions of this law is made by the tax authorities. + Article 15 The following facts are contraventions, if according to the criminal law are not considered crimes: a) refusal to make available to the control bodies the documents on the calculation and payment of the state central administration budget or the local budgets of the corporate tax; b) the increase of some categories of expenses or the preparation of erroneous records, in the obvious purpose of reducing the tax due on profit. The contravention of lit. a) is sanctioned with a fine of 10,000 lei to 30,000 lei, and the contravention from lit. b) with a fine of 30,000 lei per 100,000 lei. The penalty applies to tax-paying units. Challenging the minutes of finding the contravention is done according to the law. + Article 16 In so far as this law does not have otherwise, the contraventions provided in art. 15 the provisions of Law no. 32/1968 on the establishment and sanctioning of contraventions, except art. 25 25 and 26. + Article 17 In case of diminishing the corporate tax as a result of the facts provided in art. 15 lit. b), the paying units will pay to the budget of the central state administration or to the local budgets an amount equal to the amount of tax evaded, which will be paid together with the tax due. + Article 18 Finding deviations and contraventions, as well as the application of sanctions, according to art. 13, 15 and 17, are made by the specialized bodies of the Ministry of Finance and its territorial units. + Article 19 The appeals regarding the establishment, collection, pursuit of the corporate tax, of the delay increases, as well as of other amounts due to the budget of the central state administration or local budgets, according to the provisions of this law, shall be submitted in days from the date of notification of the paying unit and shall be solved by the general directions of the county public finances and the city of Bucharest, as the case may be, no later than 30 days after registration. Against the decision given can be appealed to the Ministry of Finance, which in no more than 40 days after registration is obliged to solve it. The given solution is final. The filing of the appeal does not suspend the obligation of the payer regarding the transfer to the budget of the central state administration or to the local budgets of the amounts due under this + Article 20 The appeals regarding the establishment of the corporate tax, the delay increases, as well as other amounts due to the budget of the state central administration or local budgets, according to the present law, are subject to a stamp duty of 2 to Calculated on the disputed amount. This fee cannot be less than 100 lei. Stamp duty is due regardless of whether another challenge, with the same object, registered and previously resolved has been charged. In order to calculate the stamp duty, the profit-paying units are obliged to specify in writing the amount of the contested amount. In the event of full or partial admission of the appeal, the stamp duty shall be returned in full or in proportion to the reduction of the contested amount. + Article 21 The Ministry of Finance will propose annually, in the draft budget law, depending on the state of the economy and the budget execution, the maximum level of expenses for meeting social-cultural and sports needs at autonomous regions and companies with full state capital. Also until the entry into force of the law, the Ministry of Finance will develop instructions on the calculation technique of the corresponding tax and formulary, which will be published in the Official Gazette. + Article 22 The provisions of this Law shall apply from 1 January 1991. The same date shall be repealed: - art. 11 lit. h), 12 lit. e), 16-18 and 22 of Law no. 29 29 of 22 December 1978 on the training, planning, destination and payment of benefits; - Decree no. 179 179 of 15 March 1962 on the tax on the incomes of cooperatives and other cooperative, consumer and craft organizations, as well as of enterprises and economic organizations of public organizations, republished; - art. 1 1-10 and 21 of Law no. 2 2 of 30 June 1977 on agricultural tax; - Government Decision no. 741 741 of 3 July 1990 on the benefit tax at the state economic units; -the table of tax rates for the imposition of the benefits of small enterprises and profit-making associations, in Annex no. 11 11 to Government Decision no. 201 201 of 3 March 1990 for the approval of the implementing rules of Decree-Law no. 54/1990 on the organization and conduct of economic activities on the basis of free initiative; -any other provisions to the contrary. This law was passed by the Assembly of Deputies at its meeting on 28 January 1991. PRESIDENT OF THE ASSEMBLY MARTIAN DAN This law was passed by the Senate at its meeting on January 28, 1991. SENATE PRESIDENT academician ALEXANDRU BIRLADEANU Pursuant to art. 82 lit. m) of Decree-Law no. 92/1990 for the election of the Romanian Parliament and President, promulgam the Law on Corporate Tax and we have its publication in the Official Gazette of Romania. ROMANIAN PRESIDENT ION ILIESCU + Annex 1 The calculation of the tax for profit located between the limits up to 25,000 leisknife 25.001-50.000 lei2,500 + 5% for the part exceeding 25,000 lei 50.001-75.000 lei2,50- 5 ,661.250 + 12% for the part exceeding 50,000 lei 75.001-100.000 lei5,66- 7 ,504.250 + 13% for the part exceeding 75,000 lei 100.001-125.000 lei7,50- 8 ,807,500 + 14% for the part exceeding 100,000 lei 125.001-150,000 lei8,80- 9 ,8311,000 + 15% for the part exceeding 125.000 lei 150.001-175.000 lei9,83-10 ,7114.750 + 16% for the part exceeding 150,000 lei 175.001-200,000 lei10, 71-11, 5018.750 + 17% for the part exceeding 175,000 lei 200.001-225.000 lei11, 50-12, 2223,000 + 18% for the part exceeding 200,000 lei 225.001-250,000 lei12, 22-12, 9027.500 + 19% for the part exceeding 225,000 lei 250.001-275.000 lei12, 90-13 ,5432.250 + 20% for the part exceeding 250,000 lei 275.001-300,000 lei13, 54-14, 1637.250 + 21% for the part exceeding 275.000 lei 300.001-325.000 lei14, 16-14, 7742.500 + 22% for part exceeding 300,000 lei 325.001-350,000 lei14, 77-15, 3648,000 + 23% for the part exceeding 325,000 lei 350.001-375.000 lei15, 36-15, 9353.750 + 24% for the part exceeding 350,000 lei 375.001-400,000 lei15, 93-16, 5059.750 + 25% for the part exceeding 375,000 lei 400.001-425,000 lei16, 50-17, 0666.000 + 26% for the part exceeding 400,000 lei 425.001-450,000 lei17, 06-17, 6172.500 + 27% for the part exceeding 425,000 lei 450.001-475.000 lei17, 61-18, 1679.250 + 28% for the part exceeding 450,000 lei 475.001-500,000 lei18 ,16-18 ,7086.250 + 29% for the part exceeding 475.000 lei 500.001- 1.000.000 lei18, 70-24 ,3593,500 + 30% for the part exceeding 500,000 lei 1.000.001-1.500.000 lei24, 35-26, 57243,500 + 31% for the part exceeding 1.000.000 lei 1.500.001-2.000.000 lei26, 57-27, 92398.500 + 32% for the part exceeding 1.500.000 lei 2.000.001-2.500.000 lei27, 92-28, 94558.500 + 33% for the part exceeding 2.000.000 lei 2.500.001-3.000.000 lei28, 94-29, 78723.500 + 34% for the part exceeding 2.500.000 lei 3.000.001-3.500.000 lei29, 78-30, 53893,500 + 35% for the part that exceeds 3.000.000 lei 3.500.001-4.000.000 lei30, 53-31, 211.068.500 + 36% for the part exceeding 3.500.000 lei 4.000.001-4.500.000 lei31, 21-31, 851.248.500 + 37% for the part exceeding 4.000.000 lei 4.500.001-5.000.000 lei31, 85-32, 471.433,500 + 38% for the part exceeding 4,500,000 lei 5.000.001-30.000.000 lei32, 47-37, 911.623.500 + 39% for the part exceeding 5,000,000 lei 30.000.001-55.000.000 lei37, 91-38, 8611.373,500 + 40% for the part exceeding 30,000,000 lei 55.000.001-80.000.000 lei38, 86-39, 5321.373,500 + 41% for the part exceeding 55,000,000 lei 80.000.001-105,000,000 lei39 ,53-40 ,1131.623.500 + 42% for the part exceeding 80,000,000 lei 105.000.001-130.000.000 lei40, 11-40, 6742.123,500 + 43% for the part exceeding 105.000.000 lei 130.000.001-155.000.000 lei40, 67-41,2052.873,500 + 44% for the part exceeding 130.000.000 lei 155.000.001-180.000.000 lei41,20-41,7463.873,500 + 45% for the part exceeding 155.000.000 lei 180.000.001-205.000.000 lei41,74-42, 2575.123,500 + 46% for the part exceeding 180,000,000 lei 205.000.001-230.000.000 lei42 ,25-42 ,7786.623.500 + 47% for the part exceeding 205.000.000 lei 230.000.001-255.000.000 lei42, 77-43, 2898.373,500 + 48% for the part exceeding 230,000,000 lei 255.000.001-280.000.000 lei43, 28-43, 79110.373,500 + 49% for the part exceeding 255,000,000 lei 280.000.001-305.000.000 lei43 ,79-44 ,30122.623.500 + 50% for the part exceeding 280,000,000 lei 305.000.001-330.000.000 lei44, 30-44 ,81135.123,500 + 51% for the part exceeding 305.000.000 lei 330.000.001-355.000.000 lei44, 81-45, 31147.873,500 + 52% for the part that exceeds 330,000,000 lei 355.000.001-380.000.000 lei45 ,31-45 ,82160.873,500 + 53% for the part exceeding 355.000.000 lei 380.000.001-405.000.000 lei45, 82-46, 32174.123,500 + 54% for the part exceeding 380,000,000 lei 405.000.001-430.000.000 lei46, 32-46, 83187.623.500 + 55% for the part that exceeds 405,000,000 lei 430.000.001-455.000.000 lei46 ,83-47 ,33201.373,500 + 56% for the part exceeding 430,000,000 lei 455.000.001-480.000.000 lei47 ,33-47 ,83215.373,500 + 57% for the part exceeding 455,000,000 lei 480.000.001-505.000.000 lei47 ,83-48 ,34229.623.500 + 58% for the part exceeding 480.000.000 lei 505.000.001-530.000.000 lei48, 34-48, 84244.123,500 + 59% for the part exceeding 505.000.000 lei 530.000.001-555.000.000 lei48, 84-49, 34258.873,500 + 60% for the part exceeding 530,000,000 lei 555 000.001-580.000.000 lei49 ,34-49 ,85273.873,500 + 61% for the part exceeding 555.000.000 lei 580 000.001-605.000.000 lei49, 85-50, 35289.123,500 + 62% for the part exceeding 580,000,000 lei 605.000.001-630.000.000 lei50, 35-50, 85304.623.500 + 63% for the part that exceeds 605,000,000 lei 630 000.001-655,000,000 lei50 ,85-51 ,35320.373,500 + 64% for the part exceeding 630,000,000 lei 655.000.001-680.000.000 lei51 ,35-51 ,85336.373,500 + 65% for the part exceeding 655.000.000 lei 680 000.001-705.000.000 lei51, 85-52, 35352.623.500 + 66% for the part that exceeds 680,000,000 lei 705.000.001-730.000.000 lei52, 35-52, 85369.123,500 + 67% for the part exceeding 705.000.000 lei 730.000.001-755.000.000 lei52, 85-53, 36385.873,500 + 68% for the part exceeding 730,000,000 lei 755.000.001-780.000.000 lei53 ,36-53 ,86402.873,500 + 69% for the part exceeding 755.000.000 lei 780.000.001-805.000.000 lei53, 86-54, 36420.123,500 + 70% for the part exceeding 780.000.000 lei 805.000.001-830.000.000 lei54, 36-54, 86437.623.500 + 71% for the part exceeding 805.000.000 lei 830.000.001-855.000.000 lei54 ,86-55 ,36455.373,500 + 72% for the part exceeding 830,000,000 lei 855.000.001-880.000.000 lei55, 36-55, 86473.373,500 + 73% for the part exceeding 855.000.000 lei 880.000.001-905.000.000 lei55, 86-56, 37491.623.500 + 74% for the part that exceeds 880,000,000 lei 905.000.001-930.000.000 lei56, 37-56, 86510.123,500 + 75% for the part exceeding 905.000.000 lei 930.000.001-955.000.000 lei56, 86-57, 37528.873,500 + 76% for the part exceeding 930,000,000 lei over 955.000.000 lei57, 37547.873,500 + 77% for the part exceeding 955.000.000 955.000.000 lei + Annex 2 EXPENDITURE which are deducted from the revenue received for the purposes of determining the taxable profit 1. The expenses related to the activity carried out, corresponding to the revenues collected, which according to the legal regulations are highlighted in the costs 2. Fee for the use of state property land. 3. Expenses with professional training and practice in production. 4. Amounts paid for research contracts related to priority programs of national interest, substantiating development strategies, increasing the quality of products and services and developing new, competitive products not included in production costs or circulation costs, as the case may be, of economic operators. 5. Commissions paid to economic agents with foreign trade activity. 6. Protocol expenses, advertising and advertising, within the limits set by the Ministry of Finance. 7. The allowance for children paid by economic agents to which these amounts do not stand out in costs. 8. The amounts used for the purchase of shares for which dividends are collected. 9. The surveys to the reserve fund and other special funds, constituted according to the legal regulations. 10. The losses of previous years, in so far as they could not be recovered until the date of determining the taxable profit. 11. The surveys and donations made for humanitarian purposes, as well as for the support of social, cultural, scientific and sports activities, according to the annual budgetary law. 12. Other expenses provided by the legal norms in force. -------------------------