Legal & Tax Alerts

Important amendments to the Fiscal Code

On February 26th, 2021, Government Emergency Ordinance no. 13/2021 for the amendment and completion of Law no. 227/2015 on the Fiscal Code and Accounting Law no. 82/1991[1] entered into force.  Such deed brings a series of amendments, of which the most important are the following:

Starting January 1st, 2021, expenses related to transactions with a person located in a State which, at the date of recording the expense, is included in Annex I of the EU List of non-cooperating jurisdictions for tax purposes, are excluded from the category of non-deductible expenses as regards the corporate income tax computation, in case the transaction has an economic purpose.

Funeral allowances, allowances for serious and incurable diseases, allowances for medical devices, allowances for childbirth/adoption, allowances for losses incurred in one’s own household as a result of natural disasters, income in cash and/or in-kind, including gift vouchers, offered to employees, as well as those offered to their minor children, the value of the transport to and from the employee’s workplace, the value of tourist and/or treatment services, including transport, during the annual leave for employees and their family members, granted by the employer for its own employees or other persons may be provided in the internal regulations and not only in the employment contract in order not to be taxable for the purposes of income tax from salaries and not to be included in the computation base of social security contributions.

Regarding VAT, the annual threshold for the application of the VAT system upon collection has been amended from lei 2,250,000 to lei 4,500,000 lei.


[1] Published within the Official Gazette, Part I, no. 197 dated February 26, 2021

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