TAX ALERT – Law no. 153/2020

 In Fiscal news

Law no. 153/2020 for the amendment and completion of Law no. 227/2015 on the Fiscal Code, as well as for the completion of Law no. 170/2016 regarding the tax specific to certain activities

Law 153/2020 entered into force starting with 27th of July 2020 except for certain provisions that will apply starting with August 2020.

Profit tax

Taxpayers who purchase electronic fiscal cash registers deduct their acquisition cost from the profit tax due for the quarter in which they were put into operation, if they owe quarterly profit tax, or from the annual profit tax, in the case of taxpayers who are applying the annual system of declaration and payment of the profit tax (applies from August 2020).

The amounts that are not deducted from the profit tax are carried forward for the next 7 consecutive years. The recovery of these amounts will be made in the order of their registration, under the same conditions, at each term of payment of the profit tax (applies from August 2020).
Expenses representing the acquisition cost of electronic fiscal cash registers are non-deductible when calculating the profit tax (applies from August 2020).

In order to calculate the profit tax for 2020, taxpayers deduct from the profit tax and the acquisition cost of electronic fiscal cash registers with electronic diary, purchased and put into operation in 2018, in 2019, as well as those put into operation in 2020 before July 27, 2020, provided that at the date of acquisition of the respective electronic fiscal cash registers the taxpayers have been payers of profit tax, regardless of the declaration and payment system. The amounts that are not deducted from the profit tax, according to the provisions of this paragraph, are carried forward for the next 7 consecutive years. The recovery of these amounts will be carried out under the same conditions, at each term of payment of the profit tax.

The acquisition cost of the electronic fiscal cash registers purchased and put into operation in 2018, in 2019, as well as those put into operation in 2020 before July 27, 2020 will represent amounts assimilated to non-deductible expenses when calculating the profit tax, but which are deducted from the 2020 profit tax.

Micro-enterprise income tax

The purchase value of the cash registers is no longer deducted from the taxable base (applies from August 2020).

Micro-enterprises that purchase electronic fiscal cash registers with electronic journal, deduct the acquisition cost related to them from the micro-enterprise income tax in the quarter in which they were put into operation, within the limit of the micro-enterprise income tax due for that quarter (applies from August 2020).

The amounts that are not deducted from the tax due on the income of micro-enterprises are carried forward in the following quarters, for a period of 28 consecutive quarters. The deduction of these amounts from the due tax on the incomes of the micro-enterprises is made in the order of their registration, in the same conditions, at each term of payment of the tax on the incomes of the micro-enterprises.

In order to determine the tax for the 4th quarter of 2020, the taxpayers who owe the tax for the income of the micro-enterprises deduct from the income tax of micro-enterprises also the acquisition cost of electronic fiscal cash registers with electronic diary, purchased and put into operation in 2018, in 2019, as well as those put into operation in 2020 before July 27, 2020, provided that at the date of acquisition of the respective electronic fiscal cash registers the taxpayers were payers of income tax on micro-enterprises. The amounts that are not deducted from the income tax of micro-enterprises, according to the provisions of this paragraph, are carried forward to the next 28 consecutive quarters. The recovery of these amounts will be made at each term of payment of the income tax on micro-enterprises.

The acquisition cost of the electronic fiscal cash registers purchased and put into operation in 2018, in 2019, as well as those put into operation in 2020 before July 27, 2020 will be added to the taxable base for the 4th quarter of 2020, but it is deducted from the income tax of micro-enterprises determined in the respective quarter.

Income tax – individuals who obtain income from independent activities and intellectual property rights

The annual net taxable income is determined by summing up all the annual net income, recalculated (by deducting the tax losses carried forward), from which the social insurance contribution due according to the provisions of Title V is deducted – Mandatory social contributions and to which is added the acquisition cost of the electronic fiscal cash registers with electronic diary, put into operation in the respective year (applies from August 2020).

In order to establish the annual tax due, from the amount determined by applying the rate of 10% on the net income / annual taxable net gain, the acquisition cost of the fiscal electronic cash registers is deducted (applies from August 2020).

Specific tax

Taxpayers obliged to pay the specific tax who purchase electronic fiscal cash registers with electronic journal, deduct the acquisition cost related to them from the specific tax in the year in which they were put into operation, within the specific tax due for that year. The amounts that are not deducted from the specific tax are carried forward to the following year, for a period of 7 consecutive years.

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