Amendments to the fiscal and accounting legislation

Government Emergency Ordinance No. 13/2021 for the amendment and completion of Law No. 227/2015 regarding the Fiscal Code and the Accounting Law No. 82/1991 was published in the Official Gazette No. 197/26.02.2021, in force as of 26 February 2021, with a few exceptions mentioned in the attached tax bulletin.

Relevant highlights:

1. Amendments to the Fiscal Code

• It clarifies the situation regarding the deductibility of expenses incurred as a result of transactions with a person located in a State included in the EU List of non-cooperative jurisdictions for tax purposes.
• It clarifies the tax treatment applicable to salary income for cash and/or benefits in kind granted by both the employer and third parties.
• It standardizes the provisions regarding the new threshold of RON 4.5 million turnover for the application of the VAT cash accounting system.

2. Amendments to the Accounting Law

• It introduces the obligation to organize and manage the accounting process, according to the accounting provisions for foreign legal entities operating in Romania.
• It brings clarifications regarding the entities for which the accounting norms and regulations are issued by the National Bank of Romania.
• It is established that the public information contained in the financial statements / annual accounting reports are those published on the website of the Ministry of Finance.
• The list of contraventions and related fines is updated.