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

Read the untranslated law here: https://www.global-regulation.com/law/romania/3072181/-lege-nr.-189-din-17-aprilie-2001-privind-aprobarea-ordonanei-de-urgen-a-guvernului-nr.-217-1999-pentru-modificarea-i-completarea-ordonanei-guvernului.html

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Law No. 189 of 17 April 2001 approving emergency Government Ordinance No. 217/1999 modification and completion of the Government Ordinance. 70/1994 income tax published in PARLIAMENT ISSUING the OFFICIAL GAZETTE nr. 196 of 19 April 2001, the Romanian Parliament adopts this law.


The sole article approving Government Emergency Ordinance nr. 217 of 29 December 1999 concerning the modification and completion of the Government Ordinance. 70/1994 income tax, published in the Official Gazette of Romania, part I, no. 650 of 30 December 1999, with the following modifications: 1. In article I, section 3, paragraph 4 of article 1 shall read as follows: "(4) exchange rate Differences resulting from the evaluation, in accordance with the normative acts in force, availability of foreign exchange are non-taxable income or expenses not deductible in calculating taxable profit. These amounts shall be distributed on behalf of Other distinct analytical reserves. "
2. In article I, section 4, paragraph 4 of article 2 shall read as follows: "(4) any increase in the capital by incorporation of reserves, profits and, with the exception of legal reserves and favorable differences revaluation of property shall be taxed with a rate of 5%."
3. In article I, section 5, beauty therapist to paragraph 4 of article 4 shall become points (a)), b), c), (d)), e) and (f)) and the letters a and b)) shall read as follows: ' a) expenses incurred for the realisation of assets and goods delivered movable or immovable property sold under a contract of sale with payment in instalments, as well as in the case of contracts of lease are deductible at the time;

b) in the case of leasing, the user shall deduct the rent from leases operational leasing or depreciation and interest for financial leasing contracts; "
  

4. In article I, paragraph 5, after the letter f) of paragraph 4 of article 4 shall be inserted in points g and h)) with the following contents: ") expenses for the establishment of special purpose funds, as required by law;

h) insurance relating to tangible and intangible fixed assets the taxpayer and insurance costs for accidents at work. "
  

5. In article I, paragraph 5, letter c) of paragraph 6 of article 4 shall read as follows: "(c)) protocol expenses that exceed the limit of 2% on the difference between the overall results of incomes and expenditures, including excise taxes, less expenses with income taxes and expenses registered protocol during the year;"
6. In article I, paragraph 5, subparagraph i) of paragraph 6 of article 4 is repealed.
7. In article I, paragraph 5, letter p) of paragraph 6 of article 4 shall read as follows: "p) interest charges on loans other than those granted by banks and other legal entities authorized by law, that exceed the average interest on banks ' assets, National Bank of Romania;"
8. In article I, section 6 is repealed.
9. In article I, section 7, article 7 shall read as follows: Art. 7. — (1) the taxpayers who cashed through a bank account in foreign currency income in Romania from the export of goods made from their own activities, either directly or through contract fee and the provision of services shall pay a rate of tax of 5% on the portion of taxable profit which corresponds to the share of such income in the total amount of the income.

(2) income tax shall be reduced by 50% for profit used in the current fiscal year for investments in tangible and intangible fixed assets, defined according to law No. 15/1994 concerning the depreciation of capital restrained in tangible and intangible fixed assets, as amended, which are intended for activities in respect of which the taxpayer is authorized. The reduction shall be calculated from the profits realized after 1 January 2001. The reductions referred to in paragraph 1. (1) and (2) shall be calculated on a monthly basis, and amounts relating to the reduction of allocated funding as their own sources. "
  

10. In article I, section 9, paragraph 2 of article 12 shall read as follows: "(2) For taxable persons referred to in art. 1 (1). (1) (a). c) tax due is calculated, it retains and spill by legal person. "
11. In article I, section 10, paragraph 3 of article 13 shall read as follows: "(3) the deduction of corporation tax paid abroad shall be made at the exchange rate communicated by the National Bank of Romania, at the close of the financial year, and the rate differences until the date of actual payment deductable expenses are. For taxes paid at source withholding tax, representing revenue of 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 in the previous day's payment. "
12. In article I, after item 11 shall be inserted in point 11 ^ 1 with the following content: "11 ^ 1. In article 21, paragraph (1) shall read as follows: «Art. 21. — (1) A tax inspector or other employee of a tax authorized in this respect, has the right to enter into any business premises of the taxpayer or in other premises open to the public, in accordance with Government Ordinance No. 70/1997 concerning tax control, as it has been approved and amended by law No. 64/1999, in order to determine its tax liabilities or of collecting unpaid taxes owed and on time. Access is allowed during normal business hours, and besides them, only with the written authorization of the establishment of substantiated the need for fiscal control. ' "
13. Article II shall read as follows: Art. II.-the date of entry into force of this emergency Ordinance shall repeal the provisions relating to profits tax for the following regulations: a) art. 68 of the law nr. 64/1991 on patents of invention, published in the Official Gazette of Romania, part I, no. 212 of 21 October 1991, as amended, relating to the exemption from income tax for the profit obtained as a result of the application of an invention;
  

b) art. 34 para. 2(a) the b)) and the oil Law nr. 134/1995, published in the Official Gazette of Romania, part I, no. 301 of 29 December 1995, concerning the exemption from income tax on profits;
  

c) art. 2(a) f) of Order No. 63/1997 on the establishment of facilities for rural tourism development, published in the Official Gazette of Romania, part I, no. 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 16 October 1998, concerning the exemption from income tax on profits of legal persons holding tourist and agrotourist pensions of pensions;
  

d) art. 36 from the Government Emergency Ordinance nr. 98/1999 on the social protection of persons whose individual labour contracts shall be disposed of as a result of collective redundancies, as published in the Official Gazette of Romania, part I, no. 303 of 29 June 1999, concerning the exemption from the payment of income tax for companies set up by staff redundancy;
  

e) art. 6 lit. the Government) of the Ordinance. 116/1998 on the establishment of the special regime for international maritime transport operations, as published in the Official Gazette of Romania, part I, no. 326 of 29 august 1998, as amended, relating to the exemption from payment of tax on the profit for the activity of the special arrangements;
  

f) art. 1 of law No. 30/1999 for supporting exports, published in the Official Gazette of Romania, part I, no. 35 of 28 January 1999, concerning the reduction of corporation tax;
  

g) Government decision No. 304/1999 approving the rules governing the legal limits to perish in the process of trading goods, as published in the Official Gazette of Romania, part I, no. 180 of 28 April 1999;
  

h) art. 23, 24, 26 and 27 of law No. 133/1999 on stimulating private entrepreneurs for the creation and development of small and medium-sized enterprises, as published in the Official Gazette of Romania, part I, no. 349 of 23 July 1999 concerning the exemption from taxation of reinvested profits, reduce corporation tax in the case of the creation of new jobs and for the profit of the production delivered for export, the flat-rate taxation scheme;
  

I) art. 13 lit. c), d), (e)), f) and art. 13 ^ 1 of the Emergency Ordinance of Government No. 92/1997 concerning the direct stimulation of investments, as published in the Official Gazette of Romania, part I, no. 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 16 December 1998 concerning accelerated depreciation deduction for expenses, advertising and publicity, recovering losses, tax exemption for reinvested profit, reducing the share of income tax corresponding to the value of the investment;
  


j) art. 15 and 15 ^ 1 of the Emergency Ordinance of Government No. 92/1997 concerning the direct stimulation of investments, as published in the Official Gazette of Romania, part I, no. 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 16 December 1998 concerning the facilities provided for in law No. 35/1991 on the regime of foreign investments in Romania, republished, law No. 71/1994 concerning the granting of additional facilities against the law. 35/1991 on the regime of foreign investments in Romania, republished, Government Emergency Ordinance nr. 31/1997 concerning the regime of foreign investments in Romania, concerning the exemption, reduction and reduced share of corporation tax;
  

k) art. 178 of law nr. 109/1996 concerning the Organization and functioning of cooperative consumer and credit cooperative, which was published in the Official Gazette of Romania, part I, no. 252 of 18 October 1996, as amended, relating to the low share of tax on profits. "
  

14. In article III shall be repealed.
15. Article V shall be repealed.
This law was adopted by the Senate at its meeting on 14 September 2000, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
SENATE PRESIDENT NICOLAE V this law was adopted by the Chamber of deputies at its meeting on 13 March 2001, in compliance with the provisions of art. 74 para. (2) of the Constitution of Romania.
PRESIDENT Of The CHAMBER Of DEPUTIES VALER DANNER--