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Law No. 189 Of 17 April 2001 Approving Government Emergency Ordinance Nr. 217/1999 Modification And Completion Of The Government Ordinance. 70/1994 Income Tax

Original Language Title:  LEGE nr. 189 din 17 aprilie 2001 privind aprobarea Ordonanţei de urgenţă a Guvernului nr. 217/1999 pentru modificarea şi completarea Ordonanţei Guvernului nr. 70/1994 privind impozitul pe profit

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LEGE no. 189 189 of 17 April 2001 on approval Government Emergency Ordinance no. 217/1999 to amend and supplement Government Ordinance no. 70/1994 on corporate income tax
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 196 196 of 19 April 2001



The Romanian Parliament adopts this law + Article UNIC Approval Government Emergency Ordinance no. 217 217 of 29 December 1999 to amend and supplement Government Ordinance no. 70/1994 on profit tax, published in the Official Gazette of Romania, Part I, no. 650 of 30 December 1999, with the following amendments: 1. In Article I, point 3, paragraph 4 of Article 1 shall read as follows: " (4) The foreign exchange rate differences resulting from the assessment, in accordance with the normative acts in force, of the availability in estimates are non-taxable income or non-deductible expenses when calculating the taxable profit. Those amounts shall be assigned to the account Other separate analytical reserves. '; 2. In Article I, point 4, paragraph 4 of Article 2 shall read as follows: "" (4) Any increase in the share capital effected by the incorporation of reserves, as well as profits, with the exception of legal reserves and favourable differences in the revaluation of assets, shall be taxed at a rate of 5%. " 3. In Article I, paragraph 5, the indents of paragraph 4 of Article 4 shall become the letters a), b), c), d), e) and f), and the letters a) and b) shall read as follows: " a) the expenses incurred for the realization of the goods delivered and of movable or immovable property sold on the basis of a contract for sale with payment in instalments, and in the case of leases are deductible at the time of their b) in the case of leases, the user will deduct the rent for operating leases or depreciation and interest on financial leases; " 4. in Article I, point 5, after letter f) of paragraph 4 of Article 4, points g) and h) shall be inserted as follows: " g) expenses for the establishment of special purpose funds, according to the law; h) insurance expenses that concern fixed and intangible tangible assets of the taxpayer and insurance expenses for persons against accidents at work. " 5. In Article I, point 5, point c) of paragraph 6 of Article 4 shall read as follows: " c) the protocol expenses exceeding the limit of 2% applied on the difference between the total income and related expenditure, including excise duties, less the corporate income tax expense and the protocol expenses recorded in the the year; ' 6. Article I (5) (i) of paragraph 6 of Article 4 shall be repealed. 7. In Article I, point 5, letter p) of paragraph 6 of Article 4 shall read as follows: "p) interest expenses related to loans, other than those granted by banks and other legal entities authorized according to the law, which exceed the average active interest rates of banks, communicated by the National Bank of Romania;" 8. Article I (6) shall be repealed. 9. In Article I, point 7, Article 7 shall read as follows: "" Art. 7. -(1) The taxpayers who received through a bank account from Romania income in foreign currency from the export of goods made from their own activity, directly or by commission contract, as well as from the provision of services pay a tax rate of 5% for the part of the taxable profit that corresponds to the share of these revenues in the total revenue volume. (2) Income tax is reduced by 50% for the profit used in the current fiscal year for investments in tangible and intangible assets, defined according to Law no. 15/1994 on the depreciation of capital immobilized in tangible and intangible assets, as amended, for activities for which the taxpayer is authorised. The reduction is calculated from the profit made after 1 January 2001. The discounts provided in par. ((1) and (2) shall be calculated on a monthly basis and the amounts related to the reduction shall be allocated as own sources of financing. 10. In Article I, point 9, paragraph 2 of Article 12 shall read as follows: " (2) For taxpayers referred to in art. 1 1 para. ((1) lit. c) the tax due shall be calculated, withheld and paid by the legal person. " 11. In Article I, paragraph 10, paragraph 3 of Article 13 shall read as follows: " (3) The deduction of the corporate tax paid abroad is carried out at the exchange rate, communicated by the National Bank of Romania at the close of the financial year, and the course differences until the effective payment date are deductible expenses. For taxes paid, representing deductions at source on income of the nature of dividends, royalties, interest or other similar income, the deduction shall be made at the exchange rate communicated by the National Bank of Romania on the day previous payment. " 12. Article I, after point 11, insert point 11 ^ 1 with the following contents: "" 11 ^ 1. In Article 21, paragraph 1 shall read as follows: "" Art. 21. -(1) A tax inspector or other employee of a tax unit, authorized to do so, has the right to enter any business premises of the taxpayer or other premises open to the public, according to Government Ordinance no. 70/1997 on tax control, as approved and amended by Law no. 64/1999 , for the purpose of determining its tax obligations or collection of taxes due and unpaid on time. Access is allowed during normal hours of service, and outside them, only with the written authorization of the management of the tax unit, justified by the need for control. "" 13. Article II shall read as follows: "" Art. II. -On the date of entry into force of this emergency ordinance, the provisions on profit tax from the following normative acts are repealed: a) art. 68 68 of Law no. 64/1991 on patents, published in the Official Gazette of Romania, Part I, no. 212 of 21 October 1991, as amended, regarding the exemption from the payment of the tax for the profit obtained as a result of the application of an invention; b) art. 34 34 para. 2 lit. a) and b) of the Oil Law no. 134/1995 , published in the Official Gazette of Romania, Part I, no. 301 301 of 29 December 1995, relating to the exemption from corporation tax; c) art. 2 lit. f) of Government Ordinance no. 63/1997 on the establishment of facilities for the development of rural tourism, published in the Official Gazette of Romania, Part I, no. 226 226 of 30 August 1997, approved and amended by Law no. 187/1998 , published in the Official Gazette of Romania, Part I, no. 394 of October 16, 1998, regarding the exemption from the payment of the corporate tax of legal entities holding tourist hostels and agritourism; d) art. 36 of Government Emergency Ordinance no. 98/1999 on the social protection of persons whose individual employment contracts will be opened as a result of collective redundancies, published in the Official Gazette of Romania, Part I, no. 303 303 of 29 June 1999, relating to the exemption from corporation tax for companies established by staff made redundant; e) art. 6 lit. a) of Government Ordinance no. 116/1998 on the establishment of the special regime for international maritime transport activity, published in the Official Gazette of Romania, Part I, no. 326 326 of 29 August 1998, as amended, regarding the exemption from the payment of corporation tax for the activity in particular maritime; f) art. 1 1 of Law no. 30/1999 to support exports, published in the Official Gazette of Romania, Part I, no. 35 of 28 January 1999, relating to the reduction of corporation tax; g) Government Decision no. 304/1999 for the approval of the Rules on the legal limits of perishable to goods in the marketing process, published in the Official Gazette of Romania, Part I, no. 180 180 of 28 April 1999; h) art. 23 23, 24, 26 and 27 of Law no. 133/1999 on the stimulation of private entrepreneurs for the establishment and development of small and medium-sized enterprises, published in the Official Gazette of Romania, Part I, no. 349 349 of 23 July 1999, relating to the tax exemption of reinvested profits, to the reduction of the corporate tax in the case of the creation of new jobs, and to the profit obtained from the production delivered on export, to the flat-rate system of Taxation i) art. 13 lit. c), d), e), f) and art. 13 ^ 1 of Government Emergency Ordinance no. 92/1997 on the stimulation of direct investments, published in the Official Gazette of Romania, Part I, no. 386 386 of 30 December 1997, approved and amended by Law no. 241/1998 , published in the Official Gazette of Romania, Part I, no. 483 of December 16, 1998, relating to the deduction of expenses with accelerated depreciation, advertising and advertising, recovery of annual losses, exemption from tax on reinvested profit, reduction of the profit tax rate corresponding to the investment j) art. 15 and 15 ^ 1 of Government Emergency Ordinance no. 92/1997 on the stimulation of direct investments, published in the Official Gazette of Romania, Part I, no. 386 386 of 30 December 1997, approved and amended by Law no. 241/1998 , published in the Official Gazette of Romania, Part I, no. 483 483 of 16 December 1998, relating to the ongoing facilities provided for by Law no. 35/1991 on the foreign investment regime in Romania, republished, Law no. 71/1994 on the granting of additional facilities to Law no. 35/1991 on the regime of foreign investments in Romania, republished, Government Emergency Ordinance no. 31/1997 on the regime of foreign investments in Romania, regarding the exemption, reduction and reduced rate of corporate tax; k) art. 178 178 of Law no. 109/1996 on the organization and functioning of the consumer cooperation and credit cooperation, published in the Official Gazette of Romania, Part I, no. 252 252 of 18 October 1996, as amended, relating to the reduced rate of corporation tax. ' 14. Article III shall be repealed. 15. Article V shall be repealed. This law was adopted by the Senate at the meeting of September 14, 2000, in compliance with the provisions of art 74 74 para. (2) of the Romanian Constitution. SENATE PRESIDENT NICOLAE VACAROIU This law was adopted by the Chamber of Deputies at the meeting of March 13, 2001, in compliance with the provisions of 74 74 para. (2) of the Romanian Constitution. PRESIDENT CHAMBER OF DEPUTIES VALER DORNEANU -----