Changes introduced by two organic laws amending the Fiscal Code and the Code of Fiscal Procedure
Both the Fiscal Code and the Code of Fiscal Procedure have been substantially amended on the entry into force of two organic laws. Most of these amendments take effect from 1 January 2021. Examples of the new regulations are listed below:
■ The deadline for individuals to submit their declaration on income tax and social contributions is now May 25. Before the amendment, the deadline was March 15.
■ Employers will no longer be liable for income tax and social contributions on money granted to employees working from home and the cost of epidemiological testing and vaccination of employees. These have been classified as non-taxable income.
■ A fiscal consolidation measure has been implemented in the field of profit tax. From a fiscal standpoint, companies can now group in order to compensate profit with loss, with tax payable only on the resulting margin.
■ The conditions for deducting loss from uncollected claims have been improved. This concerns adjustment for loss in the value of claims which have become entirely deductible. Before the amendment a threshold of 30% had to be exceeded for them to be deducted.
■ Gift vouchers from companies to beneficiaries other than employees have been classified as income from other sources. For these, only the 10% profit tax will be paid, without any other social contributions.
■ Tax exemption of reinvested profit becomes incompatible with deduction from profit tax of the value of the electronic journal cash register. The new regulation expressly prohibits cumulation of these two fiscal benefits.
■ New grounds for nullity of acts of tax control authorities have been introduced. For example, failure to take into account court decisions in situations similar to that of a sanctioned taxpayer and failure to comply with instructions of the tax authority that resolved the Complaint during repetition of tax control will be sanctioned.
For the most part, the amendments are favourable to taxpayers and aim to ease the rigidity of national fiscal legal provisions.
Law 227/2015 – Fiscal Code
Law 207/2015 – Fiscal Procedure Code