I. Profits tax

Declaration and payment of profits tax for the year 2013

Taxpayers (with certain exceptions) may opt by 31 January 2013 for the declaration and payment of the annual profits tax with advance payments performed on quarterly basis.

Such option may represent a cash flow advantage for taxpayers forecasting business growth in 2013 as they could pay their profits tax at the level of profits reported in 2012.

The recuperation of the tax loss deduction of 2008

Due to the fact that 2013 is the last year in which the tax loss incurred in 2008 could be carried forward and recovered, we recommend to consider possible loss representing strategies during 2013 for the amount related to 2008.

II. VAT

VAT cash accounting system – optimising, monitoring

Taxable persons applying the VAT cash accounting system (as well as those who perform acquisitions from such taxpayers) should consider changing the VAT ledgers, as well as their internal IT system used for accounting and tax records, for better monitoring the transactions falling within the scope of this system.

Submission of the statement regarding the change of tax period

Taxable persons that during 2012 had a turnover not exceeding the threshold of EUR 100,000 and performed no intra-community acquisition of goods should submit by 25 January 2013 a specific statement (i.e. Form 094).

Notification of the applicable temporary pro-rata for 2013 and the computation method

Taxable persons deducting the VAT related to the acquisitions performed based on the pro-rata method, should submit a notification to the relevant authority in respect of the temporary pro-rata applicable for 2013 (including the computation method) by 25 January 2013.

III. Local taxes

In order to benefit from a standard local tax rate, taxpayers should ensure that a revaluation of buildings was performed during the last 3 years. Otherwise, the building tax rate may increase up to 40 % of the inventory value recorded in the company’s books, depending on the time elapsed from that last revaluation.

By Venkatesh Srinivasan, Partner – Head of Tax and Legal, Ernst & Young Romania 

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