Fiscal Code Amendments

UniCredit Bank S.A.
Summary: 
Fiscal Code Amendments were introduced
Thu, 06/06/2013

As provided under GO 8/2013 a tax is applicable from 1 February 2013 for income paid in a country with which Romania has not concluded a treaty for the exchange of information. A tax rate of 50% will be applicable only if the income is paid in relation to transactions that are classified as artificial under the provisions of Article 11 (1) of the Fiscal Code.

According to Article 11 (1) the definition of the artificial transactions is: “arrangements or a series of arrangements that do not have economic substance and would not ordinarily be employed in what is expected to be reasonable business conduct, their primary purpose being the avoidance of taxation or to benefit from fiscal advantages that would not be derived otherwise.”

Amendments and completions to Law no. 571/2013 regarding the Fiscal Code were introduced by Law no. 168/2013 which approves the Government Ordinance no. 8/2013 that was published in the Official Gazette no. 310 issued on 29.05.2013

Impact on investors: Clarification of tax application