In the Official Gazette no. 291/30 March 2018 was published Government Emergency Ordinance no. 25/2018 to stimulate investments, to support nonprofit entities and other efficiency measures.

The Ordinance includes amendments to the Fiscal Code and the Fiscal Procedure Code.

 

The Ordinance entered into force on March 30, 2018, with some exceptions.

 

Highlights

 

• Micro-enterprises may choose to pay the profit tax tax if they meet two conditions: they have a minimum social capital of 45,000 lei and have at least 2 employees.

 

• Micro-enterprises may sponsor non-profit entities and cult units, who are social service providers accredited with at least one licensed social service. Thus, they may deduct related expenses from micro-enterprises income tax up to the value of 20% of the income tax due for the quarter in which they incurred those expenses.

 

• Withholding tax on income from sports contracts was introduced.

 

• A different quota was set for the destination of an amount representing 3.5%
  (versus 2%) to support nonprofit entities and cult units that are social service providers accredited with at least one licensed social service.

 

• The VAT regime applicable to the operations carried out within the research and development projects has been clarified.

 

• The administrative procedure for the refund of the special tax for cars and motor vehicles, the pollution tax for motor vehicles, the tax on emissions from motor vehicles and the environmental stamp for motor vehicles was simplified.

 

• Payment by installment of the tax liabilities has been simplified.