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Tax exemption on reinvested profit, valid indefinitely as of January 1, 2017

The tax exemption on reinvested profit becomes valid on indefinite term as of January 1, 2017, according to the Government Ordinance no.84 which brings amendments to the Tax Code and to the Tax procedure Code, published by the Official Gazette.

Tax exemption on reinvested profit was introduced at mid 2014 on limited periods and was to be terminated at the end of this year, capital.ro reports. This time, the decision regarding the tax exemption of profit has been extended on indefinite term.

The decision also introduced a facility for VAT paying companies for the interval when they have the VAT code suspended.

The ordinance further introduces a special scheme for VAT for farmers. They will be tax-exempted but will pay a compensatory flat tax. The ordinance reads that the compensation share by flat tax is 1% for 2017, then 4% for 2018 and 8% as of 2019.

The ordinance introduces also the meaning of electronic account deduction to avoid multiple deductions, new regulations regarding the microenterprises taxation by the stock option plan and the extension of documents by which the tax-payer can prove the payment of taxes.

 

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