Main legislative changes of January 2024

1. Amendments to Form 100 for the declaration of tax on income from the disposal of the use of goods
2. Publication of the Order for determining the assets that are included in indicators I and A
3. Update of declaration 212 "Declaration on income tax and social contributions due by individuals"
4. Social Security Agreement between Romania and the United States of America
5. Double Tax Treaty between Romania and the Principality of Liechtenstein
6. The global minimum tax has been introduced into national legislation

1. Amendments to Form 100 for the declaration of tax on income from the disposal of the use of goods

Starting with the obligations related to January 2024, form 100 "Declaration on payment obligations to the state budget" is amended, by introducing a new position for declaring the tax on income from the disposal of the use of goods, other than those from the lease of agricultural goods and from the rental for tourism purposes of rooms located in personal property dwellings, withheld at source by legal entities or other entities that have obligation to keep accounts. 

In addition, inter alia, two new positions are introduced for the declaration of:

• turnover tax due by credit institutions - Romanian legal entities and branches in Romania of credit institutions - foreign legal entities; and
  

• specific turnover tax due by legal entities carrying out activities in the oil and gas sectors.
  

Order NAFA no. 172/2024 amending form 100 was published in the Official Gazette no. 100 of 02 February 2024.

2. Publication of the Order for determining the assets that are included in indicators I and A

The Order for establishing assets that are included in indicators I and A used to determine the following taxes (introduced by Law 296/2023) has been published:

• the minimum turnover tax (IMCA), due by taxpayers who registered a turnover of over EUR 50,000,000 in the previous year and which in the calculation year determines a profit tax lower than IMCA. 
  

• specific turnover tax (ICAS), due by legal entities carrying out activities in the oil and gas sectors and registering in the previous year a turnover of over EUR 50,000,000. 
  

Order MF no. 10/2024 for establishing the assets that are included in indicators I and A was published in the Official Gazette no. 6 of 04 January 2024.

3. Update of declaration 212 "Declaration on income tax and social contributions due by individuals"

A new version of declaration 212 was approved, updated with the latest legislative changes, which will be used by individuals to finalize taxes on income earned in 2023, but also to estimate taxes on estimated income in 2024.

Order NAFA nr. 6/2024 amending declaration 212 was published in the Official Gazette no. 14 of 09 January 2024.

4. Social Security Agreement between Romania and the United States of America

In the Official Gazette no. 7 of 04 January 2024, Law no. 3/2024 was published, ratifying the Social Security Agreement between Romania and the United States of America, signed in Bucharest on 23 March 2023.

This agreement aims to protect the pension rights of Romanian and American workers working in each other's territory, respecting equal treatment and in a spirit of reciprocity.

5. Double Tax Treaty between Romania and the Principality of Liechtenstein

In the Official Gazette no. 31 of 15 January 2024, Law no. 16/2024 was published, ratifying the Convention between Romania and the Principality of Liechtenstein for the elimination of double taxation with regard to taxes on income and on capital and for the prevention of tax evasion and avoidance and the Protocol to the Convention, signed in Bern on 10 November 2022.

6. The global minimum tax has been introduced into national legislation

The global minimum tax was introduced into national legislation by Law no. 431/2023, published in the Official Gazette no. 8 of 05 January 2024.

The Law applies to entities headquartered in Romania, that are members of a multinational or national group with an annual revenue of at least EUR 750,000,000 recorded in the consolidated financial statements of the ultimate parent company, in at least 2 of the 4 financial years immediately preceding the reference financial year. 

More details on the global minimum tax can be found in the Flash alert from 16.01.2024 here.

Disclaimer

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