Law No. 73 Of 12 July 1996 Approving Ordinance No. 70/1994 Income Tax

Original Language Title:  LEGE nr. 73 din 12 iulie 1996 pentru aprobarea Ordonanţei Guvernului nr. 70/1994 privind impozitul pe profit

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Law No. 73 of 12 July 1996 approving Ordinance No. 70/1994 income tax published in PARLIAMENT ISSUING the OFFICIAL GAZETTE NR. 174 of 2 august 1996, the Romanian Parliament adopts this law.


Article 1 shall be subject to approval of the Government Ordinance No. 70/1994 income tax issued pursuant to art. and (b). the Act No.) 72/1994 on empowering the Government to issue decrees and published in the Official Gazette of Romania, part I, no. 246 of 31 august 1994, with the following amendments: 1. In article 1 (1) (d)) shall read as follows: "(d)) of the associations and natural persons legal entities which do not have Romanian birth of a legal person, income made both in Romania and abroad. In this case, the amount of tax due is calculated, it retains and spill by legal person. "
2. Article 1 (2) shall read as follows: "(2) Are exempted from payment of income tax: the State Treasury) for operations of public works carried out by the general treasury account;
  

b) public institutions, public funds pledged, including off-budget revenues and availability made and used according to the law on public finances, if the law does not stipulate otherwise;
  

c) blind and organisations of disabled people, associations of disabled persons and of their economic units, are in compliance with the law. 21/1924 for legal entities;
  

d) charitable associations;
  

e) functioning as cooperatives, special units organized according to law;
  

f) units belonging to religious denominations for the proceeds from the production and use of objects and products necessary for religious activity, referred to in art. 1 of law No. 103/1992 concerning the exclusive right of religious cult objects for production. "
  

3. In article 2 (2) shall read as follows: "(2) authorised by savvy Taxpayers and the Ministry of finance in accordance with the law, which obtain income and in the field of gambling, as well as those which obtain income from work of night bars and night clubs, pay a share of the additional income tax of 22% on the part of the taxable profits corresponding to the share of income since these activities in the total volume of revenue."
4. Article 2 (5) shall read as follows: "(5) the share of tax in the case of taxpayers carrying out annually at least 80% of their income from farming is 25%. For the purposes of this Ordinance, by farming means work done in the field of culture, livestock for breeding stock, production, breeding, selection and in fish farming, of which raw materials are obtained with or without further processing of their own abilities, except the culture of flowers, Ornamentals and tobacco. "
5. Article 3 shall be removed.
6. Article 4 becomes article 3.
7. Chapter 2 shall read as follows: "CAP. 2 the determination of taxable profit article 3. 4. (1) the taxable profits are calculated as the difference between revenues from the delivery of movable, immovable property for which property is transferred, services rendered and executed, including earnings from any source, and costs incurred to achieve them, from a fiscal year, plus non-deductible expenses.
  

(2) for the purposes of determining taxable profit, expenses are deductible only if they are incurred in achieving revenue and those considered to be deductible in accordance with the legal provisions in force. When an expense is in respect of more than one activity, it is divided on those activities.
  

(3) in determining the taxable profit, costs for which no deduction is permitted are: a) the profit tax, payable in accordance with this law, as well as tax on income received from abroad;
  

b) fines or penalties due to Romanian or foreign authority;
  

c) expenditures for advertising, advertising and the protocol that exceeds the limits of the annual budget law;
  

d) amounts used for setting up or increasing reserves and provisions over the legal limit, except those created by banks to a maximum of 2% of the outstanding balance of loans and Reserve Fund according to law No. 33/1991 concerning banking activity, the technical reserves of insurance and reinsurance companies created in accordance with the legal provisions in this area, as well as reserve fund, to a maximum of 5% of the annual accounting profit, until it will reach the fifth part of the share capital;
  

e) amounts are deductible expenses deemed, under the law of annual budgeting.
  

(4) the costs of sponsorship are deductible within the limits of the quota provided for in law No. 32/1994 concerning sponsorship.
  

(5) expenses deductible Limits apply monthly so that at the end of the fiscal year to fall within the provisions of the laws in force.
  

(6) the taxpayers who in the unincorporated units determine the deductible expenses limits at the level of the unit with a legal personality.
  

Art. 5. Depreciation of tangible and intangible assets shall be made in accordance with the legal provisions in force.
Art. 6 taxable profits determined under art. 4 and the profit tax shall be calculated and highlights the cumulative monthly, at the beginning of the fiscal year.
Art. 7 (1) income tax shall be reduced as follows: a) in proportion to the share of people considered disabled under the law in terms of their physical and intellectual capacity, for a taxpayer with a number over 250 employees, which created jobs, specially organised, and has employed at least 3% disabled;
  

b) by 50% in the case of taxpayers who receives income in hard currency from the export of goods made from its own activity, from international services on the portion of taxable profit which corresponds to the share of such income in the total amount of income;
  

c) with 50% profit in the current fiscal year used to modernize manufacturing technologies or the expansion in order to obtain additional profits, as well as for investment intended to protect the environment, which is reflected in tangible and intangible fixed assets depreciation, after other sources of investment financing, including loans for investment. Equivalent amounts of reduction are used with the same destination.
  

(2) the reduction referred to in article 1. 50 of law No. 77/1994 concerning the associations of employees and members of management companies that are privatising takes precedence over all the above mentioned discounts, they aplicindu in the order shown in this article.
  

(3) the reductions referred to in this article shall be calculated monthly, cumulatively since the beginning, with the exception of that referred to in paragraph 1. (1) (a). the), which is calculated monthly.
  

(4) the total amount of the reductions referred to in this article may not exceed 50% of the profit tax determined before discounts.
  

Art. 8 a) attributable to a permanent establishment from Romania of a non-resident legal persons;
  

b) legal or natural persons paid the non-resident for services rendered in Romania;
  

c) obtained from or in connection with real estate located in Romania, including rental for use of such properties and the gain obtained through disposal of a right in respect of such property;
  

d) paid as a result of the exploitation of natural resources located in Romania, including the gain from the sale of a law related to such natural resources;
  

e) obtained from the alienation of any property;
  

f) obtained from the alienation by a resident legal person, of a property located abroad, other than the assets of a related activities apart the Romanian territory;
  

g) obtained from Carolina, where: debt is secured with real estate located in Romania; the debtor is a legal person or a person resident in Romania physics; credit relates to a business in Romania ".
  

(1) payment of corporation tax is performed on a quarterly basis not later than the 25th of the first month of the following quarter, with the exception of Banca Naţională a României and banking firms carrying out monthly payments, up to and including 25 of the month following the month for which the tax is calculated.
  

(2) the National Bank of Romania and banking companies are required to pay on behalf of corporation tax, for the month of December of each fiscal year, an amount equal to the amount of tax due on November of the same year until January 25 next year, including indemnifying settlement on the basis of the data of the balance sheet is to be effected within the time limit laid down for submission of balance sheet.
  

(3) other than those Taxpayers referred to in the preceding paragraph, the obligation to pay on behalf of corporation tax for IV quarter, until January 25 next year, including an amount equal to the tax calculated and highlighted on the months of October and November, while for the month of December, an amount equivalent to the add tax calculated for the month of November, as a settlement on the basis of the data of the balance sheet is to be effected within the time limit laid down for submission of balance sheet. "
  


(1) during the tax year, taxpayers are required to file the Declaration of tax payment by the deadline of tax including indemnifying after completion of corporation tax on the basis of the data of the balance sheet to file annual tax statement for the fiscal year expired until the time limit laid down for submission of balance sheet. "
  

(1) where tax authorities consider that the establishment of corporation tax was not made in accordance with this Ordinance, they will make a new calculation of the tax and the taxpayer will notify in writing the method of calculating it.
  

(2) establishment of corporation tax will be made by the tax, and where the taxpayer has not completed tax declaration or has not supplied the necessary information to determine tax obligation.
  

(3) the onus of proving that the assessment of the tax on profits by fiscal bodies is not the real taxpayer returns, it having the obligation to file tax declarations.
  

(4) the taxpayer must pay tax on the profits which was established pursuant to paragraph 4. (1) and (2) on the basis of the notification of payment, the date and place fixed in the notice.
  

(5) the tax body may conclude a written agreement with the taxpayer, under which the latter is allowed to pay the corporate income tax rate and net profits of the companies, if the agreement will facilitate the receipt of full payment, the obligation in that sense, the Ministry of finance will establish the competences of territorial tax units. "
  

(1) payment of the taxes covered by this Ordinance shall be made in Moldovan lei.
  

(2) in situations where the income payment of income is made in foreign currency, payment of taxes, duties or any delay increases and fines shall be paid in lei from currency exchange rate in effect on the date of payment. Their payment is made with a payment document to externally by a taxpayer who is required to calculate, to retain and to pay the corresponding tax revenue in foreign currency to the Bank on which it is open Forex account, accompanied by documents exchange. "
  

(1) where any amount representing a tax liability is not paid on the date established by this Ordinance, the taxpayer is required to pay surcharges for delay to that amount for the period between the deadline for payment laid down in the Ordinance and the date on which the obligation is carried out, including tax. The increase will also be paid and the tax for payments in addition as tax and payments within the time limit referred to in paragraph 1. (2)."
  

(1) where an application for refund of a payment of taxes over the amount due, filed within the period prescribed by this Ordinance, the tax body shall be able to compensate for the amount of that payment, as determined by him, including the increase in the relevant delay provided by this Ordinance, with other tax obligations of the taxpayer who made the above payment of tax due.
  

(2) the tax authorities will receive a refund based on demand, in the absence of other debts due the taxpayer sums overpaid.
  

(3) the compensation or refund will be made and ex officio by the tax authorities without a prior application for refund. About the action taken will be notified and the taxpayer.
  

(4) No compensation shall be allowed to any tax receivables held by taxpayers over the State, other than those of a fiscal nature. '
  

(1) losses incurred up to the date of 1 January 1995 can be recovered from the taxable profits in 1995 and in subsequent years, according to the existing legal provisions no later than 1 January 1995.
  

(2) net loss recorded in the period of exemption may be recovered from future taxable profits in accordance with the provisions of this Ordinance. Net loss is calculated as the difference between the taxable profits which relates to the period of exemption and losses recorded during the same period. "
  

(1) pending the implementation of the provisions of this Ordinance, the Government will approve, on the proposal of the Ministry of finance, the instructions concerning the methodology and appropriate tax forms used.
  

(2) For the uniform implementation of the provisions of this Ordinance shall constitute Central Committee of direct taxes, coordinated by the Secretary of State responsible for State revenue activity. Comission is approved by order of the Minister of finance.
  

(3) Orders the models of forms and rules supplementing relating to profits tax, and Commission decisions referred to in paragraph 1. (2) shall be published in the Official Gazette of Romania.
  

The annual loss is declared by taxpayers recover from the taxable profits earned in the monthly fiscal exercises next, without exceeding 36 months. "
8. In Chapter 3, "determining the taxable profit for taxpayers" is removed.
9. Chapter 3 Chapter 4 gets and will have the following title: "CAP. 3 determination of residents ' income 10. Article 12 (1) becomes article 9, which shall read as follows: ART. 9 the taxpayers as defined in art. 1 (1). (1) (a). b) and (c)) due to income tax for activities undertaken in Romania. "
11. Article 12 (2) becomes article 10, which shall read as follows: ART. 10 Income is related to an activity carried out in Romania if it is: 12. Article 12 (3) becomes article 11, which shall read as follows: ART. 11 any other income that is not mentioned in article 7. 10 is the revenue made in Romania if it is paid by a resident, or through a permanent establishment in Romania. "
13. Article 12, paragraph 4 becomes article 12 (1).
14. In article 12 (5) becomes article 12 (2).
15. paragraphs (6) and (7) of article 12 shall become paragraph 3 of article 12, which shall read as follows: "(3) reflecting the actual taxable profit of the permanent headquarters are deducted only the expenses related to the achievement of the Centre's revenue shall, having regard to the provisions of art. 4. ' 16. Article 12 (8) becomes article 12 (4).
17. Chapter 5 Chapter 4 gets with the same title.
18. Article 15 shall read as follows: ART. 15 19. Article 16 (1) shall be removed.
20. Paragraph 2 of article 16 shall become paragraph 1 of article 16 and shall read as follows: ART. 16 21. Paragraphs (3) and (4) of article 16 shall become paragraphs (2) and (3) of article 16.
22. Article 17 shall be removed.
23. Article 18 becomes article 17, which shall read as follows: ART. 17 24. Article 19 becomes article 18, which shall read as follows: ART. 18 25. Article 20 (1) becomes article 19 paragraph 1, which shall read as follows: ART. 19 26. Paragraphs (2) and (3) of article 20 shall be removed.
27. Article 20, paragraph 4 becomes article 19, paragraph 2, which shall read as follows: "(2) in the case of pay over the amount of tax due, the increase for delay shall be calculated after 30 days from the date of the application for the refund of the difference of the taxpayer in accordance with art. 25. where the time limit set out above is mandatory prior to the date of payment of the tax, the increase shall be calculated from the date the obligation to pay tax. "
28. Article 20 (5) becomes article 19 (3).
29. Article 20 (6).
30. Article 21 becomes article 20.
31. Article 22 becomes article 21(3).
32. Article 23 shall become article 22.
33. Article 24 becomes article 23.
34. Article 25 becomes article 24.
35. Article 26 becomes article 25, which shall read as follows: ART. 25 36. Article 27, paragraph 3, shall be removed.
37. Article 27 becomes article 26.
38. Article 28 becomes article 27.
39. Article 29, paragraph 4 becomes article 28 (5).
40. Article 29 (5) becomes article 28, paragraph 4, which shall read as follows: "(4) the period of settlement of the application for review made by the imposition of the tax body, registered with the Directorate General of public finance and financial control of the county or State of the municipality of Bucharest, as well as the complaints registered with the Ministry of finance, shall run from the date on which the taxpayer filed documentation According to the rules laid down by the Minister of finance to address the root causes, according to the law. "
41. Article 29 (6), (7) and (8) shall be removed.
42. Article 29 (9) becomes article 28 (6).
43. Chapter 6 Chapter 5, gets the same title.
44. Article 30 (1) shall be supplemented with the letter "e"), which shall read as follows: "(e) failure to apply within the prescribed period) this Declaration Ordinance requiring, in the case of taxpayers who have not registered a profit, is sanctioned with the fine 0.1% of the turnover in respect of the period for which no declaration has been made."
45. Article 30, paragraph 4 shall be supplemented by the following text: ", with the exception of art. 25 and 26th. "
46. Article 29 becomes article 30.
47. Chapter 6 Chapter 7 gets, with the following title: "CAP. 6 transitional and final provisions ' 48. Article 31 becomes article 30.
49. Article 31 becomes article 32.
50. Article 33 becomes article 32, which shall read as follows: ART. 32 and Methodology of reflection in related operations profit distribution of assets, in case of partial or total agreeing settlement totals of taxpayers, as well as of their reorganization will be mentioned in the instructions. 36.51 ". Article 34 becomes article 33, which shall read as follows: ART. 33 52. Article 35 (2) shall read as follows:

"(2) the term of the net profit is the legal term for the submission of balance sheet. In this case, the provisions of cap. 4 shall apply accordingly. "
53. Article 35 becomes article 34.
54. Article 36 shall be removed.
55. Article 37 becomes article 35.
56. Article 38 becomes article 36, which shall read as follows: ART. 36 57. Article 39 shall be removed.
58. Article 40 becomes article 37.
59. Article 41 becomes article 38, add: "Decree nr. 425/1972 income tax benefits to companies formed in mixed Socialist Republic of Romania and the Government decision nr. 759/1995 for the implementation of the Government Ordinance. 70/1994 income tax "and remove the texts:" art. 68 of the law nr. 64/1991 on patents of invention; art. 5 of law No. 103/1992 concerning the exclusive right of religious cult objects for production; art. 13 lit. the Act No.) 53/1992 on the protection of disabled persons; art. 5 para. (4) of law No. 80/1992 relating to pensions and other social insurance rights of farmers, as amended by law No. 1/1994. "


Article 2 of the Government Ordinance No. 70/1994 income tax, with the changes and additions brought about by this law, shall be in the Official Gazette of the Republic of Romania, with the corresponding texts and renumbering.


Article 3 this Act comes into force on 1 January 1997.
This law was passed in the Chamber of Deputies sitting on the commune and Senate of 26 June 1996, in compliance with the provisions of art. 74 para. (2) and of article 23. 76 para. (2) of the Constitution of Romania.
PRESIDENT of the CHAMBER of DEPUTIES ADRIAN NASTASE SENATE PRESIDENT Prof. Dr. O'LEARY GHERMAN — — — — — — — — — — — —-

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