The grace period for the late submission of invoices through RO e-Factura system is extended by 2 months, until May 31, 2024, inclusive.

This extension was published in the Official Gazette no. 272 of March 29, 2024, through the Emergency Ordinance no. 30/2024, which amends and completes Law no. 227/2015 regarding the Tax Code and art. LIX of Law no. 296/2023 regarding some fiscal-budgetary measures for ensuring Romania's long-term financial sustainability.

Clarifications regarding the definition of "related enterprises" for the application of the taxation system of micro-enterprise incomes are provided, and the reference to the definition provided by Law no. 346/2004 is repealed. According to the new provisions, the Romanian legal entity (verified) is considered related to another entity if any of the following relations exist:

• It holds, directly and/ or indirectly, over 25% of shares or voting rights in another Romanian legal entity, or has the right to appoint or revoke the administrator/ the majority of the members of administrative, management or supervisory board;

• It is held by other Romanian legal entity, directly and/ or indirectly, with over 25% of the shares or voting rights, or has the right to appoint or revoke the administrator/ majority of the members of administrative, management or supervisory board;

• A person holds, directly and/ or indirectly, over 25% of shares or voting rights, or has the right to appoint or revoke the administrator/ majority of the members of administrative management or supervisory board, both in the first and in the second legal entities.

In the case where the person holding the shares is a Romanian legal entity, it will cumulate the incomes of the held person in the calculation of micro-enterprise threshold.

• It has one or more shareholders/ partners who perform(s) economic activity through authorized physical persons (PFA), individual enterprises (II), family enterprises (IF), or other forms of business organization without legal personality, which hold, directly and/ or indirectly, over 25% of the shares or voting rights of the verified Romanian legal entity.

The presented provisions apply for the assessment of the conditions for classification under the definition of micro-enterprise in tax year 2024.

As a result of these new provisions, the deadline for notification of application/ withdrawal from the taxation system for micro-enterprise incomes is postponed. The new deadline is April 15, 2024, inclusive.

If the taxpayers have notified the tax authorities about the application/ withdrawal from the taxation system for micro-enterprise incomes before the entry into force of the said Ordinance provisions, the taxpayers will submit a new statement for qualifying the conditions of the micro-enterprise definition.

These clarifications were published in the Official Gazette No. 274 of March 29, 2024, through the Emergency Ordinance No. 31/2024 regarding the regulation of certain fiscal-budgetary measures and the amendment and completion of certain normative acts.

Changes regarding the revenue threshold for economic operators regulated/ licensed by the National Energy Regulatory Authority (ANRE) have been introduced, for the application of the minimum tax on turnover (art. 18¹ from the Tax Code) or the additional tax (art. 18³ from the Tax Code).

The said economic operators that obtained, in the previous year, revenues from electricity and natural gas distribution/ supply/ transport activities in a proportion of over 95% of their total revenues, will not owe minimum tax on turnover or additional tax.

This amendment was published in the Official Gazette No. 274 of March 29, 2024, through the Emergency Ordinance No. 31/2024, regarding the regulation of certain fiscal-budgetary measures and the amendment and completion of certain normative acts.

The consumer price index used for adjusting advance payments on annual corporate income tax for the fiscal year 2024 has been set at 106%.

The index was established by publishing in the Official Gazette No. 248 of March 22, 2024, of Order No. 475/2024 regarding the consumer price index used for adjusting advance payments on annual corporate income tax

Given the changes brought to the Tax Code by Ordinance No. 115/2023 regarding:

• the elimination of the possibility to deduct from the microenterprise income tax due sponsorships and private scholarships;

• the change in the tax treatment of private scholarships grants at the corporate income tax calculation,

it was necessary to update the informative form D107, in order to allow the corporate income taxpayers to fulfil the reporting obligations established by law.

The updated form is used for reporting goods/ services/ sponsorships/ patronages granted to beneficiaries starting from January 1, 2024/ the modified fiscal year which starts in 2024, by corporate income taxpayers, including cases where the taxpayers owe corporate income tax at the level of minimum tax on turnover.

The update was published in the Official Gazette No. 205 of March 12, 2024, through Order No. 355/2024 of the National Agency for Fiscal Administration (ANAF) approving the format and content of Form 107 "Informative Statement Regarding Beneficiaries of goods/ services/ sponsorships/ patronages".

Changes regarding the adjustment of the VAT taxable base for discounts have been made, respectively the adjustment now applies to discounts granted after the supply of goods/ services was performed, regardless of whether the discounts were granted directly to customers or not. With this change, the Tax Code aligns with the provisions of art. 90, para. (1) of Directive 2006/112/EC regarding the common system of VAT.

In cases where discounts are not granted directly to customers, suppliers are now required to issue a centralized document to reduce the VAT collected at the level of each period.

Clarifications regarding the deadline for submitting special VAT declarations

Clarifications regarding the deadline for submitting specific declarations for special VAT regimes have been provided. Thus, the deadline will be the last day of the said calendar period, even if that day is not a working day.

The provisions were published in the Official Gazette No. 179 of March 5, 2024, through Law No. 33/2024 amending and completing Law No. 227/2015 on the Tax Code.

In the case of individual taxpayers, it is regulated that the tax registration form can be submitted through the "Private Virtual Space" (PVS) service, if the taxpayer requesting registration is a user of this service, identified by NPOTP (i.e., name, password, and single use authentication code), or the tax registration form can be submitted with a qualified electronic signature, using the ANAF website.

Prior to this regulation, individual taxpayers involved in independent economic activities or practicing liberal professions which were not required to register in the trade registry, did not have the option to request tax registration through electronic submission of the tax registration form.

This regulation was published in the Official Gazette No. 242 of March 21, 2024, through ANAF Order No. 371/2024 amending and completing the annex to the Order of the ANAF President No. 2.021/2021 regarding the competence to administer tax obligations owed by individuals conducting independent economic activities or practicing liberal professions.

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