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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LAW No. 12 of 30 January 1991 concerning profits tax the ISSUER published in PARLIAMENT OFFICIAL GAZETTE NR. 25 of 31 January 1991, the Romanian Parliament adopts this law.

Article 1 of the autonomous Administrations, companies, cooperative organizations, financial institutions and credit, other economic operators organize as legal persons, including those with foreign capital, as well as economic units of other legal entities, Romanian or foreign, which profits from the work done in this law, also known as taxable units are required to pay, according to the law, the Central Administration of the State budget or local budgets , tax on profits.

Article 2 income tax are calculated with odds progressive differentiated depending on the size of profit taxable unit.
Tax rates are those set out in the annex. 1 to this law and apply it over the taxable profit.
Taxable profit is determined as the difference between revenues and expenses set out in the annex. 2 to this law.

Article 3 profit tax shall be calculated and shall be reconciled on a monthly basis, depending on the cumulative profit at the beginning. To this end, payments from the profit tax is carried out monthly, recalculate and shall be reconciled with the Central Administration of the State budget or local budgets, with appropriate, cumulative from the beginning, based on the credit balance on the account of "profit and loss", 15 of the month following the period expired during the year and up to 25 January, on the basis of the annual review. If the payment day is nonworking, vărsămîntul shall be carried out on the working day immediately following it.
Amounts paid in addition to the Central Administration of the State budget or local budgets versus actual ones due shall be offset against the amounts due for the next period, or shall be refunded to taxable units within 5 days of the request.

Article 4 In duly justified cases, the Minister of finance may make delays in payment and phased over, and setting other deadlines for payment of corporation tax during the year.

Article 5 taxable Units, established since the date of application of this law, and those established previously, but who carries out taxable profits after the date of application of this law, are exempt from corporation tax, as follows: a) industry, farming units and construction for a period of 5 years from the date of establishment;

b) establishments in the field of exploitation and exploration of natural resources, communications and transportation, for a period of 3 years from the date of establishment;

c) units providing services for a period of one year from the date of establishment;

d) establishments with commercial profile, for a period of six months from the date of its creation.

The provisions of subparagraph (a). a), b), c) and (d)) of this article shall not apply to public corporations and companies with state capital.

Article 6 taxable Units, with foreign capital, set up until the date of application of this law, shall be taxed under the terms of the legislation in force on 31 December 1990.

Article 7 where a taxable units referred to in article 1. 5 of this act ceases its activities over a period of time less than that for which they are exempted from paying tax at the date of expiry of the period for which tax exemption, they are required to be transferred to the Central Administration of the State budget or local budgets, as appropriate, the corporate tax is calculated for the entire period of exemption.
Profits tax exemption period will be calculated and communicated to the tax authorities annual taxable unit for making known.

Article 8 organizations of blind persons and invalids, handicapped associations and economic units, as well as charitable associations, shall be exempted from payment of tax on the profit.
Taxable units, other than those referred to in the preceding paragraph, which employs people who are considered disabled under the law, benefit from a reduction in corporation tax, in proportion to their respective share of the total employees.

Article 9 The taxable units, the tax which relates to the profit used for the enlargement and modernisation of the technical-material base, manufacturing technology or expansion in order to obtain additional profits, as well as for investment intended to protect the environment, shall be reduced by 50 per cent, as the reduction in amounts equivalent to be used with the same destination.
Calculation and settlement with the Central Administration of the State budget or local budgets of the related tax reduction amounts to make up to 25 January of the following year and is reflected in the totals of the year.

Article 10 foreign Profits due to part company, owned partly or wholly alien, after tax, shall be taxed with a rate of 10 per cent if the transfer abroad.

Article 11 the amounts paid out as dividends from companies for equity participation was part of the State budget is fully disbursed to Central State administration or local budgets, as appropriate, within 10 days from the date of approval of the balance sheet by the general meeting, but no later than 1 March of the following year.
The time limits referred to in paragraph 1. 1 of this article shall also apply to the mouth of the net profit resulting from the work of autonomous public corporations, established according to the law.

Article 12 taxable Establishments are required to submit to the General directions of public finances and of the municipality of Bucharest, before 15 may each year, a statement from tax for the following year.
Taxable establishments newly established are required to submit tax return Declaration within 30 days after the date of awarding legal personality.

Article 13 Obligation of calculating and liability for payment of corporation tax, and amounts due under art. 10 and 11 of this law, the taxable.
Failure to pay the amounts due to the Central Administration of the State budget or local budgets, in due time, shall entail the payment of 0.05 per cent increase over the amount due for each day of delay.
In duly justified cases, the Minister of finance may approve a reduction in or exemption from payment of penalties for late payments.

Article 14 Verifying how the provisions of this law are complied with shall be furnished by the tax authorities.

Article 15 the following acts Constitute offences, whether criminal law is not regarded as offences: a) a refusal to make available to the inspection authorities documents relating to the calculation and bloodshed at the Central Administration of the State budget or local budgets of the corporation tax;

b) increase some categories of expenditure or establishing obvious erroneous, in order to reduce the obvious tax on profit.

That offence; the fine shall be imposed) from 10,000 to 30,000 lei lei, and irregularity; b) with fine of 100,000 30,000 lei lei.
The sanction applies to taxable units.
Disputes over the report of the evaluation is done according to the law.

Article 16, insofar as this act otherwise, offences referred to in articles. 15 apply provisions of law No. 32/68 on the establishment and sanctioning of offences, with the exception of art. 25 and 26.

Article 17 in the event of a reduction in corporation tax as a result of the facts referred to in art. 15 (a). b taxable units) will spill from the Central Administration of the State budget or local budgets to an amount equal to the amount of tax evaded will pay together with tax due.

Article 18 income recognition of deviations and irregularities, and the application of sanctions, according to art. 13, 15 and 17, are carried out by specialized bodies of the Ministry of Finance and of its territorial units.

Article 19 Appeals concerning the establishment, collection, tracing the corporation tax, increases penalties and other amounts owed to the Central Administration of the State budget or local budgets, according to the provisions of this law, shall be submitted within 30 days of the notification of the unity and resolve of the General departments of County and public finances Bucharest where appropriate, no later than 30 days after registration.
Against the decision of the data can be made opposition to the Finance Ministry, that not later than 40 days after the registration is obliged to settle. The solution is final.
The filing of the appeal does not suspend the debtor's obligation with respect to the transfer of the Central Administration of the State budget or local budgets the amounts due under this law.

Article 20 Appeals concerning the assessment of the tax on profit, increases penalties and other amounts owed to the Central Administration of the State budget or local budgets, according to this law, are subject to a stamp duty of 2 per cent calculated on the amount in dispute. This fee cannot be less than 100 lei.
Stamp duty is due regardless of whether another opposition, the same object, registered and resolved was previously charged.
In order to calculate stamp duty, the taxable profit are obliged to specify in writing the amount of the disputed amount.

In the event of acceptance of all or part of the opposition, stamp duty shall be refunded in full or proportional reduction of the amount contested.

Article 21 the Ministry of finance will propose in the draft budget, depending on the State of the economy and the implementation of the budget, the maximum amount of expenditure to satisfy necessities of social-cultural and sporting the autonomous administrations and the companies with state capital.
Also before the entry into force of this law, the Ministry of finance will develop technical guidelines for calculating the appropriate tax forms used, and which will be published in the Official Gazette.

Article 22 provisions of this law shall apply with effect from 1 January 1991.
On the same date shall be repealed:-art. 11 lit. 12 h), lit. (e)), 16-18 and 22 of law No. 29 of 22 December 1978 on training, planning, destination and paying benefits;
-Decree No. 179 of 15 March 1962 concerning income tax cooperatives and other cooperative organizations, consumer and craft, as well as of economic enterprises and organisations of public organisations, republished;
-art. 1-10 and 21 of law No. 2 of 30 June 1977 on agricultural tax;
-Government decision No. 741 of 3 July 1990 concerning the tax benefit to economic units;
-tax rates table for imposing benefits small businesses and associations operating for profit, of the annex. 11 the Government decision No. 201 of 3 March 1990 approving the rules for the application of Decree-Law No. 54/1990 on the Organization and conduct of economic activities on the basis of free enterprise;
-any other contrary.
This law was adopted by the Assembly of deputies at its meeting on 28 January 1991.
The PRESIDENT of the ASSEMBLY of DEPUTIES this MARTIAN D was adopted by the Senate at its meeting on 28 January 1991.
Academic SENATE PRESIDENT ALEXANDRU BÂRLĂDEANU pursuant to art. 82 lit. m) of Decree-Law No. 92/1990 to elect the Parliament and President, promulgăm Corporation Tax Act and we have its publication in the Official Gazette of Romania.
ROMANIAN PRESIDENT ION ILIESCU Annex 1 the odds of tax annual profit tax% average rate method of calculating income tax for profits between limits up to 25,000-50,000 lei lei spared 25,001 2.50 0 + 5% for the portion exceeding 25,000 lei 50,001-2.50 lei-75,000 5.66 1.250 + 12% for the portion in excess of 50,000-100,000 lei lei 75,001 5.66-7.50 4.250 + 13% for the portion in excess of 75,000 100,001-125,000 lei lei 7.50-8.80 7,500 + 14% for the exceeds 100,000 lei 125,001-150,000 lei 8.80-9.83 11,000 + 15% for more than 125,000 lei-lei 150,001 175,000 9,83-10,71 14.750 + 16% for the portion exceeding 150,000 lei 175,001-10,71 200,000 lei-11.50 18.750 + 17% for the portion exceeding 175,000 200,001 225,000 lei lei-11.50-12.22 23,000 + 18% on the portion that exceeds 200,000 lei 225,001-250,000 lei 12.22-12,90 27,500 + 19% for the portion exceeding 225,000 275,000 250,001 lei-lei-12,90 13,54 32.250 + 20% on the portion that exceeds 250,000 lei 275,001-300,000 lei 13,54-14,16
37.250 + 21% for the portion exceeding 275,000 300,001 325,000 lei lei-14,16-14,77 42.500 + 22% for the portion exceeding 300,000 lei-lei 325,001 350,000 15,36 14,77-48,000 + 23% for the portion exceeding 325,000 350,001 375,000 lei lei-15,36-15,93 53.750 + 24% for the portion exceeding 400,000 375,001-350,000 lei lei 15,93-16.50 59.750 + 25% for more than 375,000 400,001 425,000 lei lei-16.50-17.06 inch 66,000 + 26% for the portion exceeding 400,000 lei-lei 425,001 450,000 17,61 72.500 + 17.06 inch-27% for the portion exceeding 425,000 lei


450,001-17,61 475,000 lei-18,16 79.250 + 28% for the portion that exceeds 500,000 450,000 lei-lei 475,001 18,16-18,70 86.250 + 29% for the portion exceeding 500,001-1,000,000 475,000 lei lei 18,70-24,35 93.500 + 30% for the portion that exceeds 500,000 lei lei 1,000,001-24,35-1,500,000 26,57 243.500 + 31% for the portion exceeding 1,000,000 1,500,001 lei-lei-2,000,000 26,57 27,92 398.500 + 32% for the portion in excess of 1,500,000 2,000,001-2,500,000 lei lei 27,92-28,94 558.500 + 33% for the portion in excess of 2,000,000 2,500,001-3,000,000 lei lei 29,78 28,94-723.500 + 34% for the more than 2,500,000 lei-lei 3,000,001 3,500,000 29,78-30,53 893.500 + 35% of the excess of 3,000,000 lei-lei 3,500,001-4,000,000 30,53 31,21 1.068.500 + 36% for the portion in excess of 4,500,000 4,000,001 3,500,000 lei-lei-1.248.500 31,21 31,85 + 37% for the portion exceeding MDL 4,500,001-4,000,000 5,000,000 lei 32,47 31,85-1.433.500 + 38% for the portion exceeding 4,500,000 5,000,001-30,000,000 lei lei 32,47 37,91 + 39-1.623.500% for the portion that exceeds 30,000,001-5,000,000 lei lei 55,000,000 37,91-38,86 11.373.500 + 40% for the portion that exceeds 30,000,000 80,000,000 lei lei 38,86 55,000,001-39,53-
21.373.500 + 41% for the portion exceeding 55,000,000 lei lei 80.000.001-39,53-40,11 105,000,000 31.623.500 + 42% on the portion that exceeds 80,000,000 lei lei 40,11 105.000.001-130.000.000 40,67-42.123.500 + 43% for the portion that exceeds 130.000.001-155.000.000 105,000,000 lei lei 52.873.500 41,20 40,67-+ 44% for the portion that exceeds 155.000.001-180.000.000 130,000,000 lei lei 63.873.500 41,20 41,74-+ 45% for the portion in excess of 155,000,000 lei 180.000.001 205.000.000 lei-41,74-42,25 75.123.500 + 46% for the portion in excess of 180,000,000 lei 205.000.001-230.000.000-86.623.500 lei 42,25 42,77 + 47% for the portion in excess of 205,000,000 lei 230.000.001-255.000.000-98.373.500 lei 42,77 43,28 + 48% part which exceeds 255.000.001 280.000.000 230,000,000 lei-lei 43,79 110.373.500 + 43,28-49% for the portion in excess of 255,000,000 lei 280.000.001-305.000.000 43,79-122.623.500 lei 44,30 + 50% for the portion in excess of 280,000,000 lei 305.000.001-330.000.000-135.123.500 lei 44,30 44,81 + 51% for the portion in excess of 305,000,000 lei 330.000.001-355.000.000-147.873.500 lei 44,81 45,31 + 52% for the portion in excess of 330,000,000 lei 355.000.001-380.000.000 160.873.500-45,82 lei 45,31 + 53% for the portion in excess of 355,000,000 lei 380.000.001-405.000.000 45,82-46,32 174.123.500 leis + 54% for the portion in excess of 380,000,000 lei 405.000.001-430.000.000 46,32-46,83 187.623.500 leis + 55% on the portion that exceeds the 430.000.001-455.000.000 405,000,000 lei lei 46,83-47,33 201.373.500 + 56% for the portion in excess of 430,000,000 lei 455.000.001-480.000.000-215.373.500 lei 47,33 47,83 + 57% on the portion that exceeds the 455,000,000 lei 480.000.001-505.000.000 229.623.500-48,34 lei 47,83 + 58% for the portion in excess of 480,000,000 lei 505.000.001-530.000.000 48,34-244.123.500 lei 48,84 + 59% for the portion in excess of 505,000,000 lei 530.000.001-555.000.000 lei 49,34 258.873.500 + 48,84-60% for the portion in excess of 530,000,000 lei 580.000.000 000.001-555 MDL 49,34-273.873.500 + 61 49,85% for the portion that exceeds 580 000.001-555,000,000 lei 605.000.000 lei 289.123.500-50,35 49,85 + 62% for the portion in excess of 580,000,000 Lei-lei 605.000.001 630.000.000 304.623.500-50,35 50,85 + 63% for the portion exceeding 630 000.001-605,000,000 lei 655.000.000 51,35 320.373.500 lei-50,85 + 64% for the portion in excess of 630,000,000 lei 655.000.001-680.000.000 51,35-336.373.500 lei 51,85 + 65% for the portion in excess of 655,000,000 lei-lei 705.000.000 680 51,85 000.001-52,35 352.623.500 + 66% for the portion in excess of 680,000,000 lei 705.000.001-730.000.000 369.123.500-52,85 lei 52,35 + 67% for the portion in excess of 705,000,000 lei 755.000.000 52,85 730.000.001-lei-53,36 385.873.500 + 68% for the portion in excess of 730,000,000 lei lei 780.000.000 755.000.001-53,86 402.873.500-53,36 + 69% for the portion in excess of 755,000,000 lei


780.000.001-805.000.000 53,86-420.123.500 lei 54,36 + 70% of the excess of 780,000,000 lei 805.000.001-830.000.000 lei-54,36 54,86 437.623.500 + 71% for the portion in excess of 805,000,000 lei 830.000.001-855.000.000-455.373.500 lei 54,86 55,36 + 72% for the portion in excess of 830,000,000 lei 855.000.001-880.000.000 lei 473.373.500 + 55,86 55,36-73% for the portion in excess of 855,000,000 lei 880.000.001-905.000.000 lei 56,37 491.623.500 + 55,86-74% for the portion in excess of 880,000,000 lei 905.000.001-930.000.000 56,37-510.123.500 lei 56,86 + 75% to in excess of 905,000,000 lei 930.000.001-955.000.000 528.873.500-57,37 lei 56,86 + 76% for the portion in excess of 930,000,000 lei 955,000,000 over Lions
57.37 547.873.500 + 77% for the portion in excess of 955,000,000 lei annex 2 expenses are subtracted from revenue collected for the purpose of determining the taxable profit

1. the costs of the activity carried out, revenue collected, which according to the legal regulations are highlighted in the costs to businesses.
2. the fee for the use of State-run land.
3. Expenditure on vocational training and practice in production.
4. The sums paid for research contracts that have as their object the priority programs of national interest, justification of the development strategies, increasing quality of products and services and developing new products, competitive, not included in the production costs or expenses, as appropriate, to the economic operators.
5. Commissions paid to businesses with foreign trade activity.
6. The costs of advertising and publicity, protocol, within the limits set by the Finance Ministry.
7. children's Allowance paid by economic entities to which these amounts does not highlight the costs.
8. The amounts used to purchase shares in respect of which it receives dividends.
9. reserve fund levies and other special funds, constituted according to the rules of law.
10. Loss from previous years, to the extent that they could not be recovered until the date of determination of the taxable profit.
11. the Levies and donations made for humanitarian purposes as well as for supporting the activities of social, cultural, scientific and sports, according to the annual budget law.
12. Other expenses provided for by the laws in force.

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