We would like to inform you that recently a series of normative acts have been published in the Official Gazette which have brought amendments / additions to the Romanian tax legislation, as follows:

  • Law 29/2018 on the annulment of certain fiscal obligations, regarding the fiscal amnesty for real estate developers, natural persons;
  • Order of the Minister of Finance no. 1.168 / 2017 regarding the framing in the activity of creation of computer software, regarding the tax exemption for IT workers;
  • Order of the Minister of Finance no. 3.132 / 2017 for the amendment of the Order of the Minister of Public Finance no. 1.155 / 2016 on the application of the reduced VAT rate of 9% in the agricultural sector, which concerns a new category of services and goods to which the reduced VAT rate applies.

Here’s the summary of the amendments:

  1. Law 29/2018 on the annulment of tax obligations
    • In the case of transactions for which the income tax on the transfer of real estate property from the personal property of natural persons has been applied, the differences between the main tax obligations, namely the income tax and the social contributions, as well as the ancillay related fiscal obligations, established by the tax body by notice of assessment issued as a result of the re-framing of such income as income from an independent activity, acquired during tax periods until June 1, 2017 and not paid until the date of the entry into force of the law are annulled;
    • VAT tax liabilities related to agricultural activities rried out by natural persons, registered sole traders, individual and family enterprises, established as a result of exceeding the VAT exemption ceiling prior to 31.12.2016 are annulled;
    • the persons who have paid the tax obligations for which cancellation is provided are entitled to the refund of the amounts paid;
  2. Order no. 1.168 / 2017 regarding the framing in the activity of creation of computer software
    • will replace from February 1, the Common Order no. 409/4.020/737/703/2017;
    • starting from February 1, 2018 the income tax exemption will also include employees who hold a diploma awarded on completion of a short-term higher education form and those dwho hold a baccalaureate diploma and attend the courses of an accredited higher education institution with the essential condition to provide one of the computer software creation activities listed in the order annex;
    • list of occupations specific to computer software creation activities was supplemented with 2 new positions, namely help programmer and help analyst;
  3. Order 3.132 / 2017 on the application of the reduced VAT rate of 9%
    • according to this order, the range of services and goods for which the reduced VAT rate of 9% is applied is extended with 42 agricultural services (eg fertilized, plowed, dredged, sown, raked, etc.) and with the supply of pesticides, seeds and other agricultural products intended for sowing or planting falling within certain categories of quality.