- Amendments to the Fiscal Code Norms - March 2011
- Main anti-crisis tax measures in Romania during 2009
- Domestic transfer pricing legislative framework
- Tax exemption for reinvested profit
- Changes to the Fiscal code
- Deductibility threshold for interest expenses for foreign currency loans increases from 7% to 8%
Amendments to the Fiscal Code Norms - March 2011
Changes or additions brought by Government Decision no. 150/2011 regarding the Methodology Norms of the Fiscal Code in relation to the profit tax and the taxation of micro-companies.
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Main anti-crisis tax measures in Romania during 2009
Anti-crisis tax measures taken initially, at the end of 2008, were entirely favourable to the business environment, so that many tax incentives were enacted. Subsequent shortfalls in budget income collection (starting with November-December 2008) has led the newly installed Government to introduce tax measures unfavourable to the business environment, including a minimum tax. By year-end, however, the government has passed Law 329/2009 on the reorganisation of public authorities and institutions, streamlining public expenses, supporting the business environment and complying with the framework agreements concluded with the European Commission and the International Monetary Fund. The Law adds a new article to the Fiscal Code providing a tax exemption for certain reinvested profits, introduced as a measure to support business in a time of financial difficulties and to promote commercial activities.
Domestic transfer pricing legislative framework
General concepts and principles (i.e. definition of related party, arm's length principle, transfer pricing methods and comments on their application, reference to OECD Transfer Pricing Guidelines) in Fiscal Code and Norms to the Fiscal Code.
Transfer pricing documentation requirements and consequences for non-compliance in Fiscal Procedural Code and Order 222/2008 on the content of the transfer pricing documentation file.
Procedure to apply to Advance Pricing Agreements in Fiscal Procedural Code and Government Decision 529/2007 on procedure for issuance of individual advance tax rulings and of advance pricing agreements.
Tax exemption for reinvested profit
The Law adds a new article to the Fiscal Code providing a tax exemption for certain reinvested profits.
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Changes to the Fiscal code
Deductibility threshold for interest expenses for foreign currency loans increases from 7% to 8%
As from 1 January 2009 the deductibility threshold for the interest rate on foreign currency loans for profit tax purposes increases from 7% (applicable since 2007) to 8%.
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