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Regulations on small and medium sized enterprises Taxation

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					Réglementations sur les petites et moyennes entreprises — Fiscalité
                                                                                 Regulations on small and medium-sized enterprises
                                                                                                                 Taxation system
de la défense nationale, qui sera porté à la connaissance
publique.
   Art. 9. — La délivrance des licences d’exportation et
d’importation prévues par le présent arrêté relève de la
compétence du Ministère du Commerce et du Tourisme,
par l’intermédiaire du Département du Commerce
extérieur.
   Art. 10. — Les licences d’exportation et d’importation
                                                                                 ORDINANCE
seront délivrées dans un délai maximum de dix jours à                 on the taxation of microenterprises
compter de la date d’enregistrement des demandes au                                    *
Ministère du Commerce et du Tourisme — Département du
Commerce extérieur, étant, de règle, valables jusqu’à la fin                         LAW
de l’année calendaire pour laquelle elles ont été émises.                       on accountancy
   Art. 11.— Les licences d’exportation ou d’importation
pour les marchandises soumises aux restrictions
                                                                                       *
quantitatives, conformément aux dispositions du présent                              LAW
arrêté, seront délivrées pour une période qui évite le                      on the value added tax
blocage de l’utilisation des contingents respectifs.
   A r t . 1 2 . — Le rejet des demandes de licences                                   *
d’exportation ou d’importation sera fait de manière motivée                        DECISION
et sera communiqué à l’agent économique en question.                  for the approval of the Application
   Art. 13. — Le Ministère du Commerce et du Tourisme
établira la méthodologie d’application des dispositions du
                                                                        Norms of the Law No. 345/2002
présent arrêté.                                                             on the value added tax
   Le Ministère de l’Economie et des Finances établira les                             *
procédures spécifiques pour le dépôt des documents de
dédouanement en application du présent arrêté.                                       LAW
   Art. 14. — Le présent arrêté entre en vigueur le 1er mai                    on the profit tax
1992.
   A la date d’entrée en vigueur du présent arrêté sont
                                                                                       *
abrogés l’Arrêté du Gouvernement n˚ 726 du 14 octobre                              DECISION
1991, ainsi que toutes autres dispositions contraires.                on the procedure of the export and
                                                                          import licenses of Romania




306                                                                                                                          307
                                                             ORDINANCE
                                                            on the taxation
                                                         of microenterprises*
                                              Art. 1. — (1) The legal persons, hereinafter called micro-
                                           enterprises, shall be obliged to pay a tax levied on the
                                           income from any source, if they meet, cumulatively, on
                                           the date of 31 December of the preceding year, the
                                           following conditions:
                                              a) they are producers of physical goods, services and/or
                                           carry on trading activities;
                                              b) they have up to 9 employees;
                                              c) they have achieved an income representing the
                                           equivalent in lei of up to EUR 100 000 included;
                                              d) they have integral private capital.
                                              (2) The legal persons set up during one fiscal year shall
                                           benefit from the provisions of the present ordinance if
                                           they meet the conditions stipulated in paragraph (1) at
                                           the end of the respective year.
                                              (3) The banks, the insurance and reinsurance
                                           companies, the investment companies, the investment
                                           administration companies and the depositary companies,
                                           the intermediation companies of transferable securities
                                           and the companies with exclusive foreign trade activity do
                                           not fall under the provisions of the present ordinance.
                                              (4) The certificate of meeting the condition regarding
              LIST OF ABBREVIATIONS        the number of employees shall be issued by the
                                           directorates for labour and social solidarity of the county,
GD    —   Government Decision
                                           of Bucharest Municipality, respectively.
GEO   —   Government Emergency Ordinance
GO    —   Government Ordinance
                                              * GO No. 24/2001 was published in OG No. 472 of 17 August 2001,
OG    —   Official Gazette                 and was modified by Law No. 414/2002, published in OG No. 456 of
                                           27 June 2002.


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Regulations on small and medium-sized enterprises — Taxation system                                                            GO No. 24/2001


   (5) In order to tally with the requirement regarding the              profit and loss account for the microenterprises,
level of the income, there shall be taken into account the               respectively.
financial-accounting data in the trial balance for the                       (2) In case cash registers are purchased, the tax quota
month of December of the previous year or the financial                  shall be applied on the total income from which their
data in the profit and loss account for the micro-                       value is deducted, in accordance with the document in
enterprises.                                                             support, in the month of the purchase registration.
   (6) In case during the fiscal year one of the conditions                  Art. 6.* — Abrogated.
imposed is no longer fulfilled, the taxpayer shall be under                  Art. 7.* — Abrogated.
the obligation to keep for the respective fiscal year the                    Art. 8. — (1) The payment of the tax shall be made in
taxation system established by the present ordinance,                    lei, quarterly, until the date of 25 included, of the first
without the possibility of reverting from the following                  month of the next quarter.
year to this mode of taxation, even if subsequently it                       (2) The tax calculated according to the provisions of
meets the conditions mentioned in paragraph 2 of
                                                                         Article 5 shall be recorded in the form M.F. code
Article 1.
                                                                         14.13.01.01 “Declaration regarding payment obligations to
   Art. 2. — The legal persons that are subjected to this
                                                                         the state budget”, line 19 — “Tax on the income of micro-
taxation system shall no longer calculate and shall no
longer pay profit tax according to Government Ordinance                  enterprises”.
No. 70/1994 on the profit tax, republished, with the                         A r t . 9 . — For non-payment on time of the tax
subsequent modifications and completions.                                established according to the provisions of Article 5,
   Art. 3. — (1) The microenterprises shall organize and                 increases for delay shall be due, established according to
shall manage the financial accounting records in                         Government Ordinance No. 11/1996 on the execution of
                                    *
accordance with the methodology* approved by an order                    budgetary debts, approved and modified by Law No.
of the minister of public finance.                                       108/1996, with the subsequent modifications and
   (2) The microenterprises that carry on deliveries of                  completions.
goods or services directly to the population, for which no                   Art. 10. — (1) The finding, the control, the following
invoices are issued, shall be under the obligation to utilize            and the cashing in of the tax, as well as of the related
fiscal electronic marking devices, according to law.                     increases for delay, regulated by the present ordinance,
   Art. 4. — (1) The taxable period is the financial year,               shall be carried out by the revenue authorities in the
which corresponds to the calendar year.                                  subordination of the general directorates of the county
   (2) In case a taxpayer is being set up, is reorganized by             public finance, of Bucharest Municipality respectively.
division and merging during the fiscal year, the taxable                     The fiscal control shall be carried out in accordance
period shall be the period in the fiscal year for which the              with the procedure stipulated in Government Ordinance
taxpayer existed.                                                        No. 70/1997 on fiscal control, approved and modified by
   Art. 5. — (1) The tax shall be calculated by applying the             Law No. 64/1999, with the subsequent modifications and
quota of 1.5% on the total amount of the quarterly income                completions, not before 2 years from the date of the
obtained from any source, on the income registered in the                previous fiscal control or from the date of coming into
    *The Methodological Norms on the organization and management of      force of the ordinance except for the cases of tax
the bookkeping with the microenterprises were approved by Order of       evasion.
the minister of public finance No. 1 180/2001, published in OG No. 651
of 17 October 2001.                                                        *Articles 6 and 7 were abrogated by Law No. 414/2002.


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Regulations on small and medium-sized enterprises — Taxation system


   Art. 11. — The amounts established as fiscal obligations
regulated by the present ordinance shall constitute
income to the state budget.
   Art. 12. — The contestations formulated to the control
or taxation documents of the revenue authorities shall be
solved in accordance with the provisions of Government                                        LAW
Emergency Ordinance No. 13/2001 on the solving of
contestations against the measures ordered by the control
                                                                                        on accountancy*
or taxation documents drawn up by the bodies of the
Ministry of Public Finance.
                                                                                                CHAPTER I
   Art. 13. — The provisions of the present ordinance shall
come into force beginning with the 1st of the month                                         General provisions
following the publication in the Official Gazette of                     A r t . 1 . — (1) The trading companies, the national
Romania, Part I.                                                      societies/companies, the autonomous régies, the national
   Art. 14. — The provisions of the present ordinance shall           research and development institutes, the co-operative
be completed with those of Law No. 133/1999 on the                    societies and the other legal persons with profit-making
stimulation of private entrepreneurs for the setting up               activities shall have the obligation to organize and
and development of small and medium-sized enterprises,                manage their own accounting system and the financial
with the subsequent modifications and completions.                    accounting, respectively, according to the present law, and
                                                                      the management accounting adapted to the particular
                                                                      aspect of the activity.
                                                                         (2) The provisions of paragraph (1) shall also apply to
                                                                      the public institutions, associations and other legal
                                                                      persons profit- or non-profit-making as well as to the
                                                                      natural persons authorized to carry out independent
                                                                      activities.
                                                                         Art. 2. — (1) Accountancy, as a specialized activity in
                                                                      measuring, assessment, knowledge, administration and
                                                                      control of the assets, debts and own capital, as well as of
                                                                      the results obtained from the activity of the legal and
                                                                      natural persons stipulated in article 1, has to ensure the
                                                                      chronological and systematic registration, the processing,
                                                                      publishing and preserving of the information regarding
                                                                      the financial position, the financial performance, and the
                                                                      treasury flows, both for their internal requirements and
                                                                      in the relations with present and potential investors,
                                                                      financial and commercial creditors, clients, public
                                                                      institutions and other users.
                                                                         * Law No 82/1991 was published in OG No. 265 of 27 December 1991
                                                                      and was republished in OG No. 20 of 20 January 2000 and in
                                                                      OG No. 629 of 26 August 2002.


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   (2) The accounting system of the public institutions               carrying out in a document that shall be at the basis of
shall ensure information to the loan managers with                    the entry in the accounts, acquiring, thus, the quality of
regard to the incomes and expenditure budget execution,               supporting document.
the patrimony under administration, as well as for the                   (2) The supporting documents that are at the basis of
drawing up of the general annual accounts of state budget             entry in the accounts shall commit the responsibility of
execution, of the annual account of the state social                  the persons that drew them up, signed and approved
insurance budget execution, of the special funds, as well             them, as well as of those that registered them in the
as of the annual accounts of the local budget execution.              accounts, as the case may be.
   A r t . 3 . — (1) The accounting shall be kept in the
                                                                         Art. 7. — (1) The registration in the accounts of the
Romanian language and in the national currency.
   (2) The accounting of the operations carried out in                elements of assets shall be made at the purchase cost,
foreign exchange shall be kept both in the national and               production cost or at the correct value for other entries
foreign currency, in accordance with the settlements                  than those by purchase or production, as the case may be.
drawn up in this regard.                                                 (2) The debts and the dues shall be registered in the
   (3) For their own information needs, the persons                   accounts at their nominal value.
mentioned in article 1, excepting the public institutions,               Art. 8. — (1) The persons mentioned in article 1 shall be
may opt for the drawing up of the financial statements in             obliged to carry out the general inventory of the elements
a stable currency, too.                                               of assets and liabilities held at the beginning of the
   Art. 4. — (1) The Ministry of Public Finance shall draw            activity, at least once a year during their functioning, in
up and issue norms and settlements in the field of                    case of merging or cessation of the activity, as well as in
accounting, the general accounts scheme, the specimens of             other cases provided for by the law.
financial statements, of common books and forms                          (2) The Ministry of Public Finance may approve
regarding the financial and accounting activity, the
methological norms regarding their drawing up and                     exceptions from the annual inventory rule for certain goods
utilization.                                                          of special character found in the administration of public
   (2) The accounting norms and settlements for the                   institutions, on the proposal of the main loan managers.
credit institutions, the insurance-reinsurance units, as well            (3) The result of the inventory shall be registered in the
as for the units operating on the capital market shall be             accounts in accordance with the accounting settlements
drawn up and issued by the National Bank of Romania,                  drawn up in this regard by the Ministry of Public Finance.
the Commission for the Supervision of the Insurance and                  Art. 9. — (1) The evaluation of the elements held on the
the National Commission of Securities, with the opinion               occasion of the inventory and their presentation in the
of the Ministry of Public Finance.                                    annual financial statements shall be made according to
   (3) The drawing up of the settlements stipulated in                the accounting norms and settlements.
paragraphs (1) and (2) shall be made by consulting the                   (2) The re-evaluation of the fixed assets shall be made,
specialized professional bodies.                                      with the exceptions stipulated by the legal settlements, at
   Art. 5. — (1) The persons mentioned in article 1 shall be
                                                                      their correct value. The correct value shall be determined
obliged to carry out the double-entry accounting and to
draw up annual financial statements.                                  on the basis of certain evaluations carried out, as a rule,
   (2) The categories of natural and legal persons that               by authorized evaluators.
may keep the simple-entry accounting, as well as the                     (3) The plus or minus resulting form re-evalution shall
system of their reporting shall be established by order of            be acknowledged in the accounts according to the
the minister of public finance.                                       accounting settlements drawn up in this regard.
   Art. 6. — (1) Any economic and financial operation                    Art. 10. — (1) The official documents of presentation of the
carried out shall be registered at the moment of its                  economic and financial position of the persons mentioned in

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Regulations on small and medium-sized enterprises — Taxation system                                                  Law No. 82/1991


article 1 shall be the annual financial statements that shall         development of inflation and of professional development,
have to offer a true image of the financial position, of the          value limits regarding the level of business turnover from
financial performance, of the treasury flows and of all the           which there is the obligation to conclude contracts for the
other information referring to the performed activity.                drawing up of annual financial statements, only by
   (2) For the public institutions, the official presentation         authorized, qualified natural or legal persons.
document of the situation of the patrimony found in the                   (5) The public institutions whose accounting is not
administration of the State and of the territorial-administrative     organized in separate departments or do not have
units and of the income and expenditure budget execution              employed personnel with individual labour contract,
shall be the quarterly and annual financial statement.                according to law, may conclude contracts of carrying out
   (3) The trading companies with holdings in other                   services, for the management of the accounting system and
trading companies, hereinafter called group trading                   the drawing up of quarterly and annual financial
companies, shall aslo draw up and present consolidated                statements, with trading companies of accounting expertise
annual financial statements, in accordance with the                   or with authorized natural persons, according to law. The
specific settlements drawn up for this purpose by the                 conclusion of the contracts shall be made by observing the
Ministry of Public Finance.                                           settlements regarding public acquisitions of goods and
                                                                      services. The payment for the respective services shall be
                         CHAPTER II                                   made from public funds with that destination.
Organization and management of the accounting system                      Art. 12. — The holding, with any title, of physical goods,
   Art. 11. — (1) The responsibility for the organization             securities, cash and other rights and obligations, as well as
and management of accounting for the persons                          the carrying out of economic operations, without being
mentioned in article 1 shall revert to the administrator,             registered in accounting records are prohibited.
the loan manager or to another person that has the                        Art. 13. — (1) The accounting of fixed assets shall be
obligation of administering the respective unit.                      kept on categories and per each object of record.
   (2) The persons mentioned in article 1 shall organize and              (2) The accounting of the stocks shall be kept quantity
manage the accounting system, as a rule, in separate                  and value wise or only value wise, under the terms
departments managed by the economic manager, the chief                established by the legal settlements.
accountant or by another person authorized to carry out that              Art. 14. — The value of the issued shares or of other
position. These persons must have higher economic education           titles, as well as the payments made on account of the
and shall be responsible together with the subordinated               subscribed capital shall be reflected separately in the
personnel for the organization and management of the                  books of account.
accounting system under the terms of the law.                             Art. 15. — The accounting of the clients and suppliers,
   (3) The accounting system may be organized and                     of the other debts and obligations shall be kept per
managed on the basis of contracts of service provision and            categories, as well as per every natural or legal person.
by authorized legal persons or by natural persons having                  Art. 16. — (1) The accounting for the expenditures shall
the capacity of chartered accountant, authorized accountant,          be kept per kind of expenditure, depending on their
respectively, who shall be responsible, according to law.             nature or destination, as the case may be.
   (4) For the legal persons whose accounting system is                   (2) The accounting of the income shall be kept per
not organized in separate departments and who do not                  types of income, depending on their nature or source, as
have employed qualified personnel, according to law, or               the case may be.
contracts for service provision in the field of accounting,               (3) The accounting of the budgetary income, of the
concluded with authorized natural or legal persons, the               special funds and of the extrabudgetary income shall be
Ministry of Public Finance shall establish, subject to the            kept per the subdivisions of the budgetary classification.

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Regulations on small and medium-sized enterprises — Taxation system                                                  Law No. 82/1991


   Art. 17. — (1) The accounting of the public institutions              Art. 22. — The persons mentioned in article 1 that use
financed from budgetary credits, special funds and extra-             computerized information systems shall have the
budgetary income shall ensure the registration of the pay             obligation to ensure the observance of the accounting
desk and of the actual expenditure, on the subdivisions of            norms and the control of the data entered into the
the budgetary classification, according to the approved               accounts as well as their technical retrieval.
budget.                                                                  A r t . 2 3 . — The entering into the accounts of the
   (2) For the financing of the expenditures within the               operations caused by the merging, split or cessation,
limits of the provisions from the approved budgets, the               according to law, of the activities of the persons mentioned
public institutions are obliged to organize and manage                in article 1 shall be made on the basis of the proper
the record of budgetary commitments in accordance with                documents drawn up in such cases.
the methodological norms drawn up by the Ministry of                     A r t . 2 4 . — The day book, the stock book and the
Public Finance for this purpose.                                      nominal ledger as well as the supporting documents that
   Art. 18. — (1) In accounting, the profit and the loss              are at the basis of the entries in the accounts shall be kept
shall be established monthly, cumulated from the                      in the archive of the persons mentioned in article 1 for 10
beginning of the year.                                                years, starting from the date of the accounting period’s
   (2) The final result of the accounting period shall be             closing, during which they had been performed, except for
                                                                      the payrolls, which shall be kept for 50 years.
established on its closing.
                                                                         Art. 25. — In case of loss, purloining or destruction of
   (3) The distribution of the profit shall be registered in          certain accounting documents measures shall be taken to
accounting pursuant to the destinations stipulated by the law.        reconstitute them within maximum 30 days from the
   (4) The accounting loss shall be covered from the profit in        finding, according to the settlements issued in this regard.
the accounting period and the one carried over, from reserve,
social capital and from other own financial resources,
according to the decision of the general assembly of the                                       CHAPTER IV
shareholders or of the associates and in accordance with the                         Annual financial statements
methodology issued by the Ministry of Public Finance.                    Art. 26. — (1) The persons mentioned in article 1 shall
   (5) With public institutions, the result of the budgetary          have the obligation to draw up annual financial
execution shall be established annually by closing the                statements, including the case of merging, split or
actual expenditure accounts and the accounts of the                   cessation of their activity, under the terms of the law.
sources from which they have been made.                                  (2) For the autonomous régies, trading companies and
                                                                      national societies/companies in which State holds at least
                                                                      20% of the social capital, as well as for the other legal
                       CHAPTER III                                    persons, the Ministry of Public Finance may establish the
                   The books of account                               drawing up and submiting of the financial statements also
   Art. 19. — The compulsory books of account shall be:               in other periods than annually, within the accounting
the day book, the stock book and the nominal ledger.                  period.
   Art. 20. — The books of account shall be used in strict               (3) For the legal persons that apply the accounting
conformity with their destination and shall be presented              regulations harmonized with the directives of the European
in such order and filled in as to allow, at any moment,               Economic Community and with the International
the identification and control of the accounting operations           Accounting Standars, approved by order of the minister of
carried out.                                                          public finance, the annual financial statements shall consist
   Art. 21. — To verify the correct entry of the operations           of balance sheet, profit and loss account, the standing of the
carried out in the accounts, a trial balance shall be drawn           own capital modification, the treasury flows statement,
up monthly.                                                           accounting policies and explanatory notes.

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   (4) The legal persons that do not meet the criteria                submitted to financial auditing, which shall be carried out
established for implementing the harmonized settlements               by financial auditors, authorized natural or legal persons,
stipulated in paragraph (3) shall draw up simplified                  according to law.
annual financial statements, harmonized with the                         (2) The financial statements drawn up on the occasion
European directives, which consist of balance sheet, profit           of the merging, split or cessation of the activity of the
and loss account, accounting policies and explanatory                 persons mentioned in article 26 (3) shall also be
notes.                                                                submitted to financial audit.
   (5) The annual financial statements, for all the other                (3) The legal persons mentioned in article 26 (3) shall
persons mentioned in article 1, except for those                      have the obligation of auditing the annual financial
mentioned in paragraphs (3) and (4), shall consist of                 statements for the period preceding the implementing of
balance sheet and profit and loss account.                            the harmonized settlements, under the terms established
   (6) The trading companies included by special                      by the Ministry of Public Finance and the institutions
settlements in the category of microenterprises shall apply           stipulated in article 4 (2), as the case may be.
specific accounting rules, approved by order of the
                                                                         (4) The legal persons mentioned in article 26 (4), (5)
minister of public finance. The annual financial
statements for microenterprises shall consist of balance              and (6) shall not have legal obligations regarding the
sheet and profit and loss account.                                    auditing of the annual financial statements.
   (7) The annual financial statements shall be                          Art. 28. — (1) The annual financial statements, after
accompanied by the report of the administrators.                      approval, shall be published under the terms stipulated
   (8) The public institutions shall draw up quarterly and            by the legal settlements.
annual financial statements, which consist of balance                    (2) The annual financial statements shall be kept for 50
sheet, budgetary execution account and schedules .                    years.
   (9) The accounting period shall start on 1 January and                (3) In case of cessation of the activity of the persons
shall close on 31 December, except for the first year of              mentioned in article 1, the annual financial statements, as
activity, when it starts on the day of establishing and               well as the books and the other documents referred to in
matriculation respectively, according to law, of the                  article 24 shall be handed over to the state archives, in
persons mentioned in article 1.                                       accordance with the legal provisions in the matter.
   (10) The Government, upon the proposal of the                         Art. 29. — (1) To ensure the information meant for the
Ministry of Public Finance, may approve for the                       State’s institutional system, a copy of the annual financial
accounting period to begin and close also at other dates              statements shall be submitted to the general directorate of
than those stipulated in paragraph (9).                               the county public finance, and of Bucharest Municipality,
   (11) The drawing up of the annual financial situations             respectively, as follows:
shall have to be compulsorily preceded by the general                    a) the persons stipulated in article 26 (3), within 120
inventory of the elements of assets and liabilities and of            days from the ending of the accounting period;
the other goods and values found in the administration
and management, according to the norms issued by the                     b) the persons stipulated in article 26 (4) within 90
Ministry of Public Finance in this regard.                            deys from the ending of the accounting period;
   (12) The possible errors found in the accounts, after the             c) the persons stipulated in article 26 (5) and (6), within
approval and submitting of the annual financial                       60 days from the ending of the accounting period;
statements, shall be corrected the year when they are                    d) the persons that, from the setting up, have not carried
found, according to the accounting settlements given in               out any activity shall submit a statement in this regard,
enforcing the law.                                                    within 60 days from the ending of the accounting period.
   Art. 27. — (1) The annual financial statements of the                 (2) The public institutions and the other legal persons,
legal persons mentioned in article 26 (3) shall be                    whose managers have the capacity of loan managers, shall

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Regulations on small and medium-sized enterprises — Taxation system                                                     Law No. 82/1991


submit a copy of the quarterly and annual financial                   subordinated units and shall include the operations
statements to the hierarchically superior body, at the                regarding the pay desk execution of the state budget, the
terms established by it.                                              state social insurance budget, the local budgets; the
   (3) The ministries, the other bodies of the central                formation and utilization of the extra-budgetary income and
public administration, the public authorities and the                 of the special funds; the administration of the internal and
territorial-administrative units, whose managers have the             external public debt, as well as other financial operations
capacity of loan managers, shall submit to the Ministry of            carried out on the account of the central and local public
Public Finance a copy of the quarterly and annual                     administration bodies.
                                                                         (6) The organizing and management of the state
financial statement, in accordance with the norms and at
                                                                      treasury accounting shall be carried out in accordance
the terms established by it.                                          with the norms issued by the Ministry of Public Finance.
                                                                         (7) The ministries and the other bodies of the central
                          CHAPTER V                                   public administration, the public authorities, as well as
     State treasury and public institutions accounting                the public institutions having legal personality in their
   Art. 30. — (1) The accounting of the state treasury shall          subordination, whose managers have the capacity of loan
be organized and function on the principle of desk                    managers, shall organize and manage the accounting of
                                                                      the cashed income and of the expenditure effected, of the
execution and shall ensure the registration of the cashing
                                                                      extra-budgetary income and of the special funds,
and payment operations in income and expenditure                      according to the approved budget.
accounts opened per budgets, loan managers and                           Art. 31. — (1) The accounting of the local budgets execution
subdivisions of the budgetary classification established by           shall be organized and shall be managed at the level of the
the Ministry of Public Finance.                                       territorial administrative units, according to the methodological
   (2) In the accounting of the state treasury, on the                norms issued by the Ministry of Public Finance and shall
account of loan managers, separate accounts shall be                  ensure the registration of the operations regarding: the noted
opened and distributed also for the expenditure made from             rights, the cashed income, the expenditure made in the
the state budget, the state social insurance budget and the           execution of the local budgets, as well as the obligations of
local budgets, as well as accounts of disposable funds from           legal terms of payment until the date of 31 December; the
which payments may be undertaken and made.                            record of the subsidies received from the state budget and
   (3) The state treasury accounting shall ensure information         from the other budgets, as well as of the other amounts
with regard to the carrying on of the budgetary execution             distributed from the state budget, according to law; the
under conditions of financial stability, yearly approved by           administration of the local internal and external public debt;
                                                                      the establishing of the result of the local budgets execution by
the law for each budget, as well as within the limits of the
                                                                      closing the income and expenditure accounts.
disposable funds in the accounts.                                        (2) The territorial-administrative units, the public
   (4) The state treasury accounting shall reflect, in                institutions and services of local subordination, that have
separate accounts, the internal and external state loans              legal personality and whose managers have the capacity of
received for the financing of the budgetary deficits, as              loan managers, shall organize and manage the accounting
well as for other activities stipulated by law, the financial         of cashed income, of expenditure made and of extra-
investments made in the general current account of the                budgetary income, according to the approved budget.
state treasury, as well as the deposits drawn from the                   Art. 32. — (1) The accounting of the state social insurance
financial institutions and from natural persons.                      budget execution shall be organized and managed within the
   (5) The state treasury accounting shall be organized               Ministry of Labour and Social Solidarity and the
within the Ministry of Public Finance and within its                  subordinated units, in accordance with the norms issued by

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the Ministry of Public Finance and shall ensure the                   state treasury, in the structure established by it, which
registration of the operations regarding: the noted rights, the       shall be approved under the terms of the law.
cashed income, the expenditure made in the execution of the              A r t . 3 4 . — The annual balance sheet of the public
state social insurance budget, as well as the obligations with        institutions, in the structure established by the Ministry of
legal terms of payment until 31 December; the record of the           Public Finance, shall be submitted to the Government
received subsidies from the state budget; the establishing of         together with the annual general account of execution of
the result of the state social insurance budget execution by          the state budget.
closing the income and expenditure accounts.
   (2) The public institutions with legal personality,                                           CHAPTER VI
financed from the state social insurance budget whose                                     Contravention and offences
managers have the capacity of loan managers shall                         A r t . 3 5 . — Contravention to the provisions of the
organize and manage the accounting of the cashed income               present law are the following deeds, if not committed
and of the expenditure made, as well as of the extra-                 under such conditions as to be considered offences:
budgetary income, according to the approved budget.                       1. holding, with any title, of physical goods, securities,
   Art. 33. — (1) The Ministry of Public Finance shall annually       cash and other rights and obligations, as well as the
draw up the balance sheet of the public institutions.                 carrying out of economic operations, without being
   (2) The main object of the public institutions balance             entered in the accounts;
sheet shall be the state patrimony and that of the                        2. non-observance of the settlements issued by the
territorial administrative units, including the public                Ministry of Public Finance with regard to:
domain and the private one, with soil, natural riches,                    a) the utilization and keeping of the books of account;
deposits and other goods of economic potential, evaluated                 b) the carrying out and utilization of supporting and
in money expression, following the methodology                        accounting documents, for all the operations carried out,
established by each ministry, central or local public                 their entering in the accounts during the period they refer
administration authority, as the case may be.                         to, their keeping and recording, as well as the reconstitution
   (3) The record in physical or value units, as the case may         of the lost, purloined or destroyed documents;
be, of the landed reserve, forestry reserve, reserves of useful           c) the carrying out of inventory;
mineral substances and of the other natural resources of                  d) the carrying out and auditing of annual financial
                                                                      statements;
the soil and subsoil shall be carried out by the units                    e) the carrying out and submitting of periodical financial
administering, exploiting and using the respective goods.             statements established by the Ministry of Public Finance;
   (4) Upon the end of the accounting period, in the state                f) the non-submitting of the declaration according to
treasury accounting the closing of the budgetary execution            which the persons mentioned in article 1 did not carry
shall proceed, in accordance with the methodological                  out any activity;
norms issued by the Ministry of Public Finance, as follows:               3. presentation of financial statements containing
   a) the closing of the state budget execution shall be              wrong or uncorrelated data, including those with regard
carried out by the territorial units of the state treasury;           to the identification of the reporting person.
   b) the closing of the state social insurance budget                    Art. 36. — (1) The contravention stipulated in article 35
execution shall be carried out by the units of the Ministry           point 1 shall be punished with fine from 10 000 000 lei to
of Labour and Social Solidarity;                                      100 000 000 lei, those stipulated in point 2 c) and d) shall
   c) the closing of the local budgets execution shall be             be punished with fine from 4 000 000 lei to 50 000 000
carried out by the loan managers of the local budgets;                lei, those stipulated in point 2 a) and b) with fine from
   (5) The Ministry of Public Finance shall draw up                   3 000 000 lei to 40 000 000 lei, that stipulated in point
quarterly and annually the general balance sheet of the               2 e) with fine from 5 000 000 lei to 15 000 000 lei, that

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stipulated in point 3 with fine from 2 000 000 lei to                       Art. 39. — The Ministry of Public Finance shall exercise
10 000 000 lei, and that stipulated in point 2 f) with fine              control on the way in which the provisions of the present
from 1 000 000 lei to 2 000 000 lei.                                     law are applied.
   (2) The Government, upon the proposal of the Ministry                    Art. 40. — The present law shall come into force on 1
of Public Finance, may modify the level of the fines                     January 1992.**
stipulated in paragraph (1) subject to the inflation rate.                  Art. 41. — The provisions of the present law shall also
   (3) The finding of the contravention and the applying                 apply to the sub-units without legal personality, with their
of the sanctions shall be made by the persons with                       head office abroad, that belong to the persons mentioned
attributions of financial control and by other persons                   in article 1, with their head office or domicile in
especially authorized by the Ministry of Public Finance.                 Romania, as well as to the sub-units with their head office
   (4) The guilty persons shall pay the contravention fines              in Romania, belonging to legal or natural persons with
stipulated in paragraph (1).                                             their head office or domicile abroad.
   (5) To the contravention stipulated in article 35 the                    Art. 42. — (1) To ensure the organization framework of
provisions of Government Ordinance No. 2/2001 on the                     consultation and analysis in the process of drawing up of
legal regime of contraventions shall be applicable.* *                   the norms and settlements in the field of accounting, the
   A r t . 3 7 . — The carrying out on purpose of wrong                  Accounting Consultative College functioning by the
entries, as well as the omission on purpose of the entries               Ministry of Public Finance shall be reorganized.
                                                                            (2) The mode of organization, the attributions and the
in the accounts, having as a result the misrepresentation
                                                                         sources of financing the expenditure shall be established
of the income, expenditure, financial results, as well as of
                                                                         in the Regulations of organization and functioning of the
the assets and liabilities elements that are reflected in the
                                                                         Accounting Consultative College, to be approved by
balance sheet, shall constitute the crime of intellectual                Government Decision.
false and shall be punished according to law.                               Art. 43. — On the date of the present law coming into
                                                                         force, there shall be abrogated:
                        CHAPTER VII                                         — Decree No. 375/1956 on the reconstitution of deeds,
              Transitory and final provisions                            documents and records with financial contents lost,
   Art. 38. — (1) The Ministry of Public Finance shall draw              purloined or destroyed, published in the Official Bulletin
up the norms and simplified accounting settlements,                      No. 22 of 4 August 1956;
harmonized with the European directives, within 6                           — Decision No. 1885 of 28 December 1970 on the
months from the coming into force of the present law.**  *               accounting organization and management the attributions
   (2) The Ministry of Public Finance and the institutions               and liabilities of the financial-accounting department
stipulated in article 4 (2) in the present law shall draw up             manager, published in the Official Bulletin No. 156 of 29
and permanently update the accounting settlements                        December 1970;
applicable to the persons mentioned in article 1.                           — Decision No. 1533/1973 on the special régime forms,
                                                                         published in the Official Bulletin No. 189 of 2 December
                                                                         1973;
   * GO No. 2/2001 was approved and modified by Law No. 180/2002,           — Decision No. 1116/1975 on the improvement of the
published in OG No. 268 of 22 April 2002.
   ** See Order of the minister of public finance No. 306/2002 for the   analysis on the basis of balance sheet, the increase in the
approval of the Simplified Accounting Settlements, harmonized with the
European directives, published in OG No. 279 and No. 279 A of 25 April       * See also the dates of coming into force of the modifying statutory
2002, settlements that shall apply starting from 1 January 2003.         instruments.


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Regulations on small and medium-sized enterprises — Taxation system


efficiency and quality of the information with regard to
the economic and financial results of the state socialist
units, published in the Official Bulletin No. 127 of 5
December 1975;
   — Government Decision No. 252/1996 on the regime of
foreign exchange rate differences related to the registered                                 LAW
capital in foreign exchange and other operations                                   on the value added tax*
applicable starting with the accounting balance sheet with
submitting term until 15 April 1996, published in the
Official Gazette of Romania, Part I, No. 75 of 11 April                                            CHAPTER I
1996, with the subsequent modifications;
                                                                                                     Scope
   — Government Decision No. 483/1996 on the service
provision in the field of accounting, the verification and                                           Section 1
certification of the accounting balance sheet on the basis                                       Taxable operations
of the Law No. 82/1991 on accountancy, published in the
Official Gazette of Romania, Part I, No. 137 of 2 July 1996,                Art. 1. — (1) The value added tax is an indirect tax
with the subsequent modifications;                                       which is due to the state budget. The present law sets up
   — Government Decision No. 22/1998 on certain                          the rules concerning the value added tax.
measures for the reflecting in the accounting system of                     (2) The value added tax shall be applied to the operations
the economic operators of certain economic and financial                 which meet, in a cumulative manner, the following terms:
operations, published in the Official Gazette of Romania,                   a) they should represent a delivery of goods, a paid
Part I, No. 34 of 29 January 1998;                                       services provision, or a similar operation;
   — any other provisions contrary to the provisions of the                 b) they should be carried out by taxable entities, as
present law*.*                                                           defined under article 2 (1);
                                                                            c) they should result from one of the economic
                                                                         activities stipulated under article 2 (2).
                                                                            (3) By paid operations one shall understand the
                                                                         obligation of the existence of a direct connection between
                                                                         the operation carried out and the compensation obtained.
                                                                            (4) The scope of the value added tax also includes
                                                                         imports of goods.
                                                                            Art. 2. — (1) Within the meaning of the present law,
                                                                         taxable entity means any entity, irrespective of its legal
                                                                         status, which carries out independent economic activities of
                                                                         the kind of those stipulated under paragraph (2), whatever
                                                                         the purpose and result of such activities might be.
                                                                            (2) The economic activities referred to under paragraph
                                                                         (1) are the activities of manufacturers, traders, and
    * Indents 5—7 of article 43 have been introduced by GO No. 61/2001
for the modification and completion of Law on accountancy No. 82/1991,
approved with modifications and completions by Law No. 310/2002.           * Law No. 345/2002 was published in OG No. 371 of 1 June 2002.


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services providers, including extractive and farming                  buildings, or which become real estate by their
activities, and those of freelance or similar professions.            destination;
Also, the operation of tangible or intangible goods with a               d) electrical and heating power, gas, freezing agent.
view to obtaining revenues constitutes an economic                       (3) Within the meaning of paragraf (1) the following
activity.                                                             shall be considered deliveries of goods:
   (3) Within the meaning of the present law, the                        a) instalment sales of goods;
employees or any other persons bound to an employer by                   b) transfer to the public domain of goods from the
an individual labour contract or by any other legal                   patrimony of taxable entities, under the terms stipulated
instruments, which establish the employer-employee                    in the legislation concerning the public property and its
relationship as regards work conditions, payment, and                 legal status, in exchange for compensation;
employer’s liabilities, do not act independently.                        c) transfer of ownership right over goods following a
   (4) The public institutions shall not be deemed to be              forced execution.
taxable entities for their administrative, social,                       (4) Similar to deliveries of goods shall be the take-over
educational, cultural, sporting, public-order, defense and            by taxable entities of the goods purchased or
state security activities, which they carry out as public             manufactured by them with a view to using them for
authorities, even though dues, royalties, subscriptions, or           purposes which are not related to the economic activity
fees are charged for such activities.                                 carried out or being placed at the disposal of other
   (5) The public institutions shall be seen as taxable               natural or legal entities free of charge, if the value added
entities for the operations carried out, including those              tax for such goods or their components has been
stipulated under paragraph (4), when treating them as                 deducted in full or in part. Goods granted free of charge,
non-taxable entities for such operations leads to                     within the limits and for the destinations provided for by
competition distortions. The public institutions shall be             the law, shall be exempted from these provisions.
deemed to be taxable entities for the activities mentioned               (5) The operations involving exchange of goods shall
in the annex which is an integral part of the present law.            take the effect of two separate deliveries. In the case of a
   Art. 3. — (1) By delivery of goods one shall understand            transfer of the ownership right over one good by two or
the transfer of the ownership right over the goods held by            several taxable entities, by means of several transactions,
the owner to the beneficiary, directly or by means of the             each transaction shall be seen as a separate delivery,
persons acting on their behalf.                                       being taxed distinctively, even if such good is transferred
   (2) Within the meaning of the present law, by goods,               directly to the final beneficiary. The same procedure shall
referred to under paragraph (1), one understands:                     also apply in the case of the exchange of services for
   a) tangible movable assets such as: raw materials,                 goods.
materials, inventory items, fixed assets which can be                    (6) One shall not consider a delivery of goods the full
detached;                                                             or partial transfer of the assets and liabilities of a taxable
   b) real estate such as: dwelling buildings, industrial,            entity, against payment or free of charge, performed on
commercial, and farming constructions, or those designed              the occasion of trading companies’ merger or division
for other activities, farming land, building sites and those          operations.
adjacent to constructions, including those related to urban              (7) One shall not consider a delivery of goods the
or rural localities where constructions or other                      contribution in kind to the registered capital of a trading
infrastructures are located;                                          company, in case the beneficiary is a taxable entity which
   c) movable assets which cannot be detached without                 has the right to deduct the value added tax entirely, if the
being damaged or without causing damages to the actual                tax would be applicable to that transfer. In this instance,

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the beneficiary is considered to be the successor of the                  (2) The provision of certain services, based on an order
entity making the transfer. If the beneficiary is a taxable           issued by/on behalf of a public authority or in compliance
entity which does not have the right to deduct the value              with the law, shall be considered a service provision
added tax or has the right to a partial deduction,                    within the meaning of paragraph (1).
according to article 23, the operation shall be considered                (3) The following operations shall be classed as service
a delivery of goods, if the value added tax for such goods            provision:
or their components is deducted entirely or in part.                      a) the use of goods which are part of the assets of the
   Art. 4. — (1) One shall consider a service provision any           taxable entity for other purposes than those related to its
activity which does not constitute a delivery of goods for            economic activity of for being made available, for free
the purpose of article 3. Such operations can be:                     use, to other natural or legal entities, if the value added
   a) any physical or intellectual work;                              tax for such goods has been deducted entirely or in part;
   b) construction and assembly works;                                    b) the service provision, free of charge, carried out by
   c) transport of passengers and commodities;                        the taxable entity for other purposes than those related to
   d) services of post and telecommunications, radio and              its economic activity, for the personal use of its employees
television transmissions;                                             or other persons, if the value added tax for such
   e) rental, lease and granting of movable assets or real            provisions has been deducted entirely or in part.
estate;                                                                   (4) The use of goods and the service provision
   f) agent or commission operations;                                 mentioned under paragraph (3), carried out within the
                                                                      limits and for the destinations stipulated in the law, shall
   g) repairs of any kind;
                                                                      not be considered similar to service provision.
   h) transfers and granting of royalties, patents, licenses,
                                                                          (5) The exchange of services takes the effect of two
factory and trade marks, participation titles and other
                                                                      separate provisions, each of them being subject to taxation.
similar rights;                                                       In case of provision of a service by several taxable entities,
   i) advertising services;                                           by means of successive transactions, each transaction shall
   j) banking, financial, insurance and/or re-insurance               be seen as a separate provision and taxed distinctively, even
operations;                                                           if such service is provided directly to the final beneficiary.
   k) making personnel available;                                         (6) The taxable entity which acts in its own name, but
   l) giving mandate;                                                 on behalf of another entity, taking part in service
   m) providing or yielding a clientele, exclusiveness over           provision, shall be deemed to have received and provided
a sale or purchase;                                                   those services itself.
   n) commitment not to exercise an economic activity or                  Art. 5. — By import of goods one shall understand the
a right such as those mentioned under point h);                       introduction in the country of goods coming from abroad
   o) arrangement of parking, storage and camping                     by any entity, irrespective of its legal status, directly or by
spaces;                                                               means of agents, placed in import customs procedure or
   p) hotel and catering activities;                                  in suspension customs procedures.
   r) providing access to communication networks and
opportunities for using them;                                                                      Section 2
   s) services provided by consultants, engineers, lawyers,                              Place of taxable operations
notaries public, legal executors, auditors, certified                   Art. 6. — (1) The place of a delivery of goods shall be
accountants, study offices and other similar services, as             considered to be in Romania when, according to the
well as data processing and supply;                                   provisions of paragraphs (2) and (3), it is located on the
   t) leasing operations.                                             Romanian territory.

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   (2) The place of delivery shall be considered to be:               matter whether the place of transport arrival is in
   a) the place where goods dispatch or transport to the              Romania or abroad;
beneficiary originated, whether the goods are dispatched                 2. for the transport of goods originating abroad, the
or shipped by the supplier, the beneficiary, or third                 provision place is considered to be in Romania if the
parties;                                                              place of transport arrival is in Romania;
   b) the place where the goods are when the delivery                    c) the place where the beneficiary has its head office
takes place, if the goods are not dispatched or shipped.              settled or, in its absence, its domicile. This category
   (3) Notwithstanding the provisions of paragraph (2) a),            includes:
the place of goods delivery for the importer defined                     1. the rental of tangible movable assets;
under article 13 (1) shall be considered to be located in
                                                                         2. leasing operations the object of which is the use of
Romania if the place where the dispatch or shipment
                                                                      movable assets;
originated is outside Romania, but the final destination is
in Romania.                                                              3. transfers and/or grants of the royalty, patent,
   (4) The deliveries and imports of goods for which the              licenses, factory and trade marks, and other similar
place of operation is considered to be in Romania shall be            rights;
subject to the taxation procedure stipulated in the present              4. advertising services;
law.                                                                     5. services by consultants, engineers, lawyers, notaries
   Art. 7. — (1) The place of service provision shall be              public, legal executors, auditors, certified accountants and
considered to be in Romania when the provider has the                 other similar services;
head office of its economic activities or a stable office from           6. data processing and supply, making and/or
where services are provided or, in the absence of such an             supplying computer programs and/or computer program
office, its domicile or regular residence in Romania, with            licenses;
the following exceptions for which the place of provision is:            7. banking, financial, insurance and/or re-insurance
   a) the place where the real estate assets are located, for         operations;
the construction and assembly works done for making,                     8. provision of personnel;
repairing and maintaining real estate, irrespective of the               9. provision by agents who intervene in the supply of
location of the provider’s office — in Romania or abroad.             the services stipulated under points 1—8;
The same also shall apply to the rental of real estate,                  d) the place where the services are actually provided;
leasing operations having as their object the use of real                this category includes the following activities:
estate, services of architecture, design, and construction
                                                                         1. cultural, artistic, sporting, scientific, educational,
work coordination, as well as the services provided by
                                                                      entertaining or similar ones, including side services and
other taxable entities registered as value added tax payers
operating in the field of real estate — studies, expert’s             those provided by the organizers of such activities;
investigations, repairs and other services provided by real              2. provisions related to transport, such as:
estate agents;                                                        loading/unloading means of transport, handling, security
   b) the place of departure of the transport of goods or             and/or storage of commodities and other similar services;
passengers, and the place of arrival of the imported goods               3. expert’s examinations of tangible movable assets;
transport, respectively:                                                 4. works performed on tangible movable assets.
   1. for the transport of goods or passengers, the                      (2) The service provision for which the provision place
provision place shall be considered to be in Romania, if              is considered to be in Romania shall be subject to the
the place of departure of the transport is in Romania, no             taxation procedures stipulated in the present law.

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                              Section 3                                  (6) It is prohibited to use the notion “zero level” in
                        Taxation procedures                           statutory instruments to be drawn up after the present
   Art. 8. — (1) The taxable operations within the scope of           law comes into force.
the value added tax shall be classified, as regards the                                         Section 4
taxation procedures, as follows:                                                            Exempt operations
   a) taxable operations, to which the standard value
added tax level is applied; the amount of the standard                                         Subsection 1
level is set up by the present law;                                                     Exemptions inside Romania
   b) operations exempted from the value added tax with
                                                                          Art. 9. — (1) The following general-interest activities
deduction right, for which the suppliers and/or providers
                                                                      shall be exempted from the value added tax:
have the right to deduct the value added tax for the
                                                                          a) hospitalisation, medical (including veterinary) care,
acquired goods and/or services, designed for the
                                                                      and operations closely related to these, carried out by
accomplishment of those operations; in the present law,
                                                                      units authorized for such activities, irrespective of the
such operations are stipulated under article 11 (1) and               organisation form and the holder of the ownership right,
article 12;                                                           i.e.: hospitals, sanatoriums, rural or urban health centers,
   c) operations exempted from the value added tax                    outpatient clinics, medical offices and laboratories,
without deduction right, for which the suppliers/providers            medical care and diagnostic centers, ambulance stations
do not have the right to the deduction of the value added             and other units authorized to carry out such activities, as
tax for the purchased goods and/or services, designed for             well as canteens attached to such units. Exemption shall
the accomplishment of such operations; in the present                 also be applied to boarding and treatment services
law, such operations are stipulated under article 9;                  provided on a cumulative basis by authorized taxable
   d) import operations exempted from the value added                 entities carrying out their activities in balneary and
tax; in the present law, such operations are stipulated               climatic resorts, and the value of which is discounted
under article 10.                                                     based on treatment tickets, as well as funeral services
   (2) The operations exempted from the value added tax               provided by hospitals;
shall be regulated by the law and their extension by                      b) provision of professional services by dental
analogy shall not be admissible.                                      technicians, as well as delivery of dental prostheses by
   (3) The operations exempted from the value added tax               dentists and dental technicians, irrespective of the
payment by other laws than the present law shall be                   organisation form and the holder of the ownership right;
deemed exempted operations without the right to                           c) services of patient care and monitoring at their
deduction unless the respective statutory instruments                 homes, provided by personnel specialised in medical and
expressly stipulate the suppliers’ /providers’ possibility to         paramedical professions;
exercise the right to deduction.                                          d) deliveries of organs, blood, and human milk;
   (4) The operations taking place in free zones shall be                 e) education activity stipulated under article 15 (5) in
subject to the taxation procedures and rules stipulated in            Law on education No. 84/1885, republished, with
the present law.                                                      subsequent modifications, carried out by units authorized
   (5) From the date of the present law coming into force             by the Ministry of Education and Research and which are
the operations to which the application of zero level value           included in the national education system, as well as the
added tax is stipulated by other laws in force shall be               purchase by these of technical documentation and
deemed exempt operations with the right to deduction.                 construction materials designed for the state and private

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Regulations on small and medium-sized enterprises — Taxation system                                                Law No. 345/2002


education, as well as instruments, equipment,                            a) research and development, and innovation activities
publications and other materials for the teaching process.            for the accomplishment of the component programs,
The canteens attached to the units included in the                    subprograms, projects, and topics of the National program
national education system, authorized by the Ministry of              of scientific research and technological development, as
Education and Research, shall also be exempted;                       well as the actions listed in them, based on Government
   f) service provision and deliveries of goods closely               Ordinance No. 25/1995 on the regulation of the
related to social work and protection, carried out by                 organization and financing of the research and
public institutions, public-interest institutions, or other           development activity, approved and modified by Law No.
bodies acknowledged as having a social character;                     51/1996, with subsequent modifications and completions,
   g) service provision and deliveries of goods closely               or of the National research and innovation plan stipulated
related to child and youth protection, carried out by                 by Government Ordinance No. 8/1997 on stimulating
public institutions, public-interest institutions or other            scientific research, technological development and
bodies acknowledged as having a social character;                     innovation, approved and amended by Law No. 95/1998,
   h) service provision and deliveries of goods supplied to           with subsequent modifications and completions. The
the members in their collective interest, in exchange for a           research and development, and innovation activities,
subscription set up according to the by-laws, by                      financed in international, regional, and bilateral
organizations without a patrimony purpose having                      partnership, shall also be exempted;
political, trade-union, religious, patriotic, philosophical,             b) deliveries of goods and/or service provision carried
charitable, or civic objectives, provided this exemption              out by individual farmers;
does not cause competition distortions;                                  c) the following banking and financial operations:
   i) services closely related to the practice of sports or              1. granting of credits, including granting of loans, by
physical education provided by organisations without a                the partners/stockholders of trading companies, with a
patrimony purpose for the benefit of the persons who                  view to ensuring the financial resources of the company,
practise sports or physical education;                                as well as granting of loans by any natural or legal entity,
   j) provision of cultural services and deliveries of goods          under the terms stipulated by article 100 of title VI —
directly related to these, carried out by public institutions;        Legal status of actual stock securities — of Law
   k) service provision and deliveries of goods carried out           No. 99/1999 on some measures for accelerating the
by units the operations of which are exempted, according              economic reform, with subsequent modifications;
to points a) and e)—j), on the occasion of events meant to               2. the operations stipulated under article 8 of the
bring them financial support and organized for their sole             Banking Law No. 58/1998, with subsequent modifications
profit, provided such exemptions do not cause                         and completions, performed by Romanian banks which
competition distortions;                                              are legal entities, Romanian branches of foreign banks
   l) making and broadcasting of radio and television                 which are legal entities, international financial-banking
programs, except for advertising;                                     institutions, savings houses, mutual aid funds, credit
   m) sale of films or licenses for films meant to be                 cooperatives and other credit companies, currency
broadcast on television, except for advertising;                      exchange offices, as well as other legal entities authorized
   n) transport of sick or injured persons in vehicles                to carry out banking activities, except for the following
specially designed and authorized for that purpose.                   operations: financial leasing operations, rental of safety
   (2) Other operations exempted from the value added                 deposit boxes, transactions on one’s own account or on
tax:                                                                  customers’ account, with precious metals, objects made of

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them and/or gems, expert’s reports in feasibility studies,               i) profits from entry fees to castles, museums, fairs and
consulting, patrimony assessment;                                     exhibitions, zoos and botanical gardens, libraries, as well
   3. specific operations carried out by the National Bank            as operations within the scope of the show tax;
of Romania, expressly regulated by Law No. 101/1998 on                   j) editing, printing and/or sale of school manuals
the Statute of the National Bank of Romania, with                     and/or books, except for advertising;
subsequent modifications and completions. The purchases                  k) deliveries of any kind of prosthetic devices, their
of gold, silver, other precious metals and gems, made by              accessories, as well as orthopedic products;
the National Bank of Romania from taxable entities                       l) river transport of the inhabitants of the Danube
registered as value added tax payers, shall not be                    Delta and for the routes Or∫ova—Moldova Nou„, Br„ila—
                                                                      H‚r∫ova, Gala˛i—Grindu;
exempted from the value added tax;
                                                                         m) sales of religious objects and clothing, printing of
   4. operations of financial investments, financial agent
                                                                      religious, theological or ecclesiastical books, necessary for
services, stocks and related financial instruments, as well           the practice of religion, as well as those similar to
as other financial instruments;                                       religious objects, according to article 1 of Law
   5. agent services in the investment of exchange                    No. 103/1992 on the exclusive right of religious cults to
securities and offering services related to this;                     produce religious objects, with subsequent modifications;
   d) administration of the joint investment funds and                   n) transfer of the ownership right over goods to the
joint debenture funds created by the Fund for                         Agency for the Revaluation of Bank Assets as a result of
guaranteeing deposits in the banking system, the                      the start of the payment for extinguishing the debtor’s
Romanian Fund for Guaranteeing Credits for Private                    payment obligation, be it total or partial, according to the
Entrepreneurs — Joint-Stock Company, the Fund for                     provisions of article 26 (2) in Government Emergency
Guaranteeing the Rural Credit — Joint-Stock Company, the              Ordinance No. 51/1998 on the revaluation of some bank
National Fund for Guaranteeing Credits for Small and                  assets, approved and modified by Law No. 409/2001, with
Medium-Sized Enterprises — Joint-Stock Company, as well               subsequent modifications and completions.
as other bodies established for this purpose;                            (3) The activities of the taxable entities with revenues
   e) insurance and re-insurance operations, as well as               from declared taxable operations or, as applicable,
provision of services related to such operations carried              obtained annually, of up to 1.5 billion lei inclusive, shall
out by agents in insurance operations;                                be exempted from the value added tax. If revenues
   f) activities of gambling organization and operation,              exceeding the limit of 1.5 billion lei during one fiscal year
                                                                      are obtained, the taxable entities must apply for their
carried out by National Company “Loteria Rom‚n„” —
                                                                      registration as value added tax payers, in accordance with
Joint-Stock Company, and the tax payers authorized by
                                                                      the provisions of the laws in force. After their registration
the Gambling Coordination, Endorsement, and                           as value added tax payers, the taxable entities in question
Certification Commission;                                             shall not benefit from the exemption even if,
   g) deliveries of goods and/or provision of services                subsequently, they obtain revenues below the limit of 1.5
carried out with inmates from the penitentiary system;                billion lei. The taxable entities registered as value-added
   h) construction, refurbishing, repair, and maintenance             tax payers, which in the year 2001 obtained revenues
works carried out for monuments commemorating the                     from taxable operations below the limit of 1.5 billion lei
service men, heroes, victims of war and of the December               can apply for their removal from the records of the value
1989 Revolution, as well as for museums, memorial                     added tax payers, under the terms set up by the norms
homes, historical and architectural monuments;                        for implementing the present law.

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   (4) The taxation level of 1.5 billion lei set up in                preservation of historical and architectural monuments,
paragraph (3) is valid for the fiscal year 2002. From 1               and imports of goods directly financed from
January to 31 December 2003, the taxation level shall be              unredeemable loans, granted to Romania by international
the amount of 1.7 billion lei and from 1 January 2004 on,             institutions, foreign governments, and/or non-profit-
the taxation level shall be 2 billion lei.                            making and charitable organizations, under the terms set
   (5) The deliveries of goods which were exclusively                 up by the norms for implementing the present law;
designed for the accomplishment of operations exempted                   g) import of the following goods: samples without
based on the present article, shall be exempted from the              commercial value, advertising and documentary materials,
value added tax, provided the value added tax for such                goods of Romanian origin, foreign goods which, according
goods has not been deducted.                                          to the law, become property of the Romanian state, goods
   (6) The taxable entities can choose to pay the value added         repaired abroad or goods replacing those which were
tax for the operations stipulated under paragraph (3).                found inadequate from the quality point of view, returned
                                                                      to foreign partners within the warranty period, goods
                          Subsection 2
                                                                      returning to Romania as a result of a mistaken dispatch,
                     Exempt import operations
                                                                      and environment protection equipment established by
   Art. 10. — The following shall be exempted from the                means of a Government Decision.
value added tax:
                                                                                                Subsection 3
   a) imported goods meant for duty free sales, as well as
                                                                              Exemptions for exports or other similar operations
through the exclusive shops for the diplomatic representation
                                                                                       and for international transport
offices and their personnel;
   b) goods brought into the country by passengers or                    Art. 11. — The exemption from the value added tax
other natural entities residing in Romania or abroad,                 shall apply to:
within the terms and limits established by Government                    a) export of goods, transport and service provision
Decision, according to the customs procedure applicable               directly related to the export of goods, as well as the
to natural entities;                                                  goods sold in duty free shops;
   c) repairs and changes to Romanian ships and aircraft                 b) international transport of passengers abroad and from
performed abroad, as well as fuels and other goods, supplied          abroad as well as the service provision directly related to it;
abroad, designed for the use on ships and/or aircraft;                   c) transport of commodities and passengers, within and
   d) import of goods whose delivery is exempted from the             from the Romanian harbours and airports, with ships and
value added tax inside Romania. The same procedure shall              aircraft under the Romanian flag, ordered by foreign
apply to services by providers having their head office or            beneficiaries;
domicile abroad, for which the provision place is deemed                 d) passage of the means of transport for commodities
to be in Romania, according to the provisions of article 7;           and passengers, using specialized river means of transport,
   e) film and program licenses, broadcasting rights,                 between Romania and the neighbouring countries;
subscriptions to foreign news agencies and the like,                     e) transport, service provision related to transport, as
meant for the radio and television activity;                          well as other service provision related to import
   f) import of goods received free of charge as aids or              commodities whose value is included in the taxation pool
donations designed for purposes such as humanitarian,                 according to article 19 (1) and (2);
social, charitable, religious, health protecting, cultural,              f) deliveries of goods meant to be used on ships and
artistic, educational, scientific, sporting, for environment          aircraft or included in ships and aircraft which perform
protection and improvement, for protection and                        international transport of passengers and commodities;

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   g) service provision in airports related to aircraft in               (2) For the operations stipulated under paragraph (1)
international traffic, as well as service provision in                a)—c), e)—g), i) and r), the exemption must be justified on
harbours related to international rivers and sea-going                the basis of the documents shown in the norms for
trading ships;                                                        implementing the present law.
   h) repairs to transport means contracted with foreign                 (3) For the operations stipulated under paragraph (1)
beneficiaries;                                                        k)—p), the implementation of the exemption is achieved
   i) other service provision performed by taxable entities           under the terms set up by order of the minister of public
having their head office in Romania, contracted with                  finance.
foreign beneficiaries, under the terms stipulated by the                 (4) For dwelling construction works, expansion,
norms for implementing the present law;                               consolidation and rehabilitation of existing dwelling
   j) service provision for ships owned by navigation                 buildings, unfinished on the date of the present law
companies carrying out their activity with the special                coming into force, the reimbursement of the value added
marine status, or operated by them, as well as deliveries             tax for the period during which they benefited from the
of ships as a whole to such companies;                                application of zero level, according to the provisions of
   k) deliveries of goods and service provision for the               article 17 B.n) of Government Emergency Ordinance No.
direct benefit of diplomatic missions and consular offices,           17/2000 on the value added tax, with subsequent
as well as their personnel, on a mutual basis; deliveries of          modifications, shall take place according to the procedure
goods and service provision for the direct benefit of inter-          set up by order of the minister of public finance.
government international representation offices accredited
                                                                                                Subsection 4
to Romania, as well as their personnel;
                                                                           Special exemptions related to international goods traffic
   l) goods purchased from exhibitions organized in
Romania, as well as from the commercial network,                         Art. 12. — The following operations shall be exempted
dispatched or shipped abroad by the buyer who does not                from the value added tax, provided they do not lead to
have his domicile or residence in Romania;                            final usage and/or consumption:
   m) deliveries of goods and service provision financed                 a) the active improvement operations stipulated under
from unredeemable aids or loans granted by foreign                    chapter VII, section IV of Law No. 141/1997 on the
governments, international institutions, and foreign and              Customs Code of Romania;
Romanian non-profit-making and charitable organizations,                 b) the goods made in active improvement procedure
including from donations by natural entities;                         according to the provisions of chapter VII, section IV,
   n) construction, expansion, rehabilitation, and                    article 111 (1) a) of Law No. 141/1997, by taxable entities
consolidation of religious buildings;                                 with head office in Romania, contracted with foreign
   o) deliveries of plants, equipment, and service provision          beneficiaries and which, by the order of the latter, are
directly related to petroleum operations, carried out by the          delivered to customs warehouses on the Romanian
holders of petroleum agreements, who are foreign legal                territory;
entities, based on the Law on petroleum No. 134/1995;                    c) introduction into the country of goods placed in a
   p) deliveries of plants, equipment, and service provision          suspension customs procedure with full exemption from
related to the investment project “Development and                    the payment of import rights, according to the provisions
Upgrading of Bucharest-Otopeni International Airport”;                of the Customs Code of Romania;
   r) service provision by agents operating in the name or               d) introduction of goods into the free zones directly
for the account of someone else, when they intervene in               from abroad, for their mere storage, without preparing
the operations stipulated in the present article.                     customs formalities;

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   e) introduction of goods into the free zones directly              tax if the foreign providers have not complied with the
from abroad, as well as their selling/purchasing trade                obligation to designate a tax representative residing in
operations between various operators within the                       Romania.
perimeter of the free zones and which, subsequent to
such operations, leave the territory of the free zones with                                    CHAPTER III
a foreign destination, in the same condition, without                      Generating fact and payability of value added tax
customs declarations being prepared;
   f) service provision directly related to the operations               Art. 14. — The fact generating the value added tax
stipulated under points a)—e).                                        starts at the time of the delivery of goods and/or service
                                                                      provision, except for the cases stipulated in the present
                         CHAPTER II                                   law.
         Entities bound to pay the value added tax                       Art. 15. — For the operations stipulated below, the fact
                                                                      generating the value added tax starts on:
   Art. 13. — (1) The value added tax due to the state
budget shall be paid by:                                                 a) the date of customs declaration registration, for
   a) taxable entities registered as value added tax payers,          imported goods;
for taxable operations;                                                  b) the date of receiving the foreign invoice for services
   b) holders of goods import operations carried out                  contracted by taxable entities from Romania with service
directly, by means of commission agents, or third legal               providers having their head office or domicile abroad, for
entities who act in the name and by order of the holder               which the place of provision is deemed to be in Romania;
of the import operation, whether they are or are not                     c) the date of foreign provider’s payment, in the case of
registered with the tax authorities as value added tax                payments made without invoice for services contracted by
payers, except for the imports exempted according to                  taxable entities from Romania with service providers
article 10;                                                           having their head office or domicile abroad, for whom the
   c) natural entities, for the goods brought into Romania            place of provision is deemed to be in Romania;
according to the customs regulations applicable to them;                 d) the date on which the goods placed in a suspension
   d) legal or natural entities with head office or domicile          customs procedure are placed in an import procedure;
in Romania, beneficiaries of the service provision                       e) the date of establishing the debt based on invoice for
stipulated under article 7 (1) c), carried out by providers           service provision which give way to successive discounts
with head office or domicile abroad, except for those                 or payments, which are deemed to have been completed
exempted from the value added tax, whether they are or                at the time of expiry of the periods related to such
are not registered with the tax authorities as value added
                                                                      discounts or payments;
tax payers.
   (2) If the entity carrying out taxable operations does                f) the date of goods sale to the beneficiaries, in the case
not have its head office or domicile in Romania, this                 of operations carried out by means of agents or on
must designate a tax representative residing in Romania,              consignment;
who undertakes to fulfill his obligations according to the               g) the date of issuing the documents recording the
provisions of the present law.                                        take-over by taxable entities of goods purchased or
   (3) The beneficiaries of service provision for whom the            manufactured by the latter in order to be used for
place of the service provision is deemed to be in                     purposes which are not connected with the economic
Romania, according to the territorial application criteria            activity carried out by them or to be placed at the
set up under article 7 are bound to pay the value added               disposal of other natural or legal entities free of charge;

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   h) the date of the documents acknowledging the                        (6) The payability of the value added tax related to the
provision of services by taxable entities for purposes                advance payments cashed in by taxable entities registered
which are not connected with the economic activity                    as value added tax payers, which have won bids for
carried out by them or for other natural or legal entities            completing projects financed from credits granted by the
free of charge;                                                       international financial institutions to the Romanian state
   i) the date of collecting the coins for the commodities            or guaranteed by it, shall start on the date of invoicing
sold by means of automatic vending machines;                          the work reports.
   j) the deadlines for the payment of the instalments                   (7) The payability of the value added tax related to the
stipulated in contracts for leasing operations.                       amounts established as security for covering possible
   A r t . 1 6 . — (1) Payability is the right of the tax             complaints about the quality of construction and assembly
authority to require from the value added tax payer, on               works shall start on the date of conclusion of the final
a given date, the payment of the tax due to the state                 reception report or, as applicable, on the date the
budget.                                                               amounts are cashed in, if the cashing takes place before
   (2) Payability shall start at the same time with the               the report.
generating fact, except for the cases stipulated by the                  (8) The payability of the value added fax for real estate
present law.                                                          works shall start on the date of cashing in the advance
   (3) For deliveries of goods with instalment payment,               payments based on work reports, but the contractors can
the payability of the value added tax shall start on the              choose to pay the value added tax on the date of delivery,
                                                                      under the terms set up by the norms for implementing
date stipulated for the payment of instalments.
                                                                      the present law.
   (4) The payability of the value added tax shall be
                                                                         A r t . 1 7 . — For deliveries of industrial machines,
anticipated by the generating fact when:
                                                                      transport means for productive activities, technological
   a) the fiscal invoice is issued before the delivery of
                                                                      units, plants, equipment, measuring and control
goods or service provision;                                           instruments, automations and software products, which
   b) the value of the goods or services is cashed in before          were manufactured one year at most before sale and have
the delivery of goods or service provision;                           never been used, the payability of the value added tax
   c) advance payments are cashed in, except for advance              shall be postponed under the following conditions:
payments granted for:                                                    a) for the period of investment completion, until it is
   1. the payment of the imports and the customs debt                 commissioned, i.e. by the date of 25th of the month
established in compliance with the law;                               following the date of investment commissioning, but no
   2. the accomplishment of the production to be                      later than 12 months after the date of investment
exported;                                                             beginning, when such deliveries are made to small and
   3. making payments on behalf of the customer;                      medium-sized enterprises, as defined in Law No. 133/1999
   4. deliveries of goods and services provisions exempted            on stimulating private entrepreneurs to establish and
from the value added tax.                                             develop small and medium-sized enterprises, with
   (5) For the deliveries of goods and/or service provision           subsequent modifications, as well as to trading companies
taking place continually — electrical power, heating                  with majority private capital, Romanian legal entities, to
power, natural gas, water, telephone services, and the like           natural entities and family firms authorized according to
— the payability of the value added tax shall start on the            Decree-law No. 54/1990 on the organization and operation
date of establishment of the beneficiary’s debt based on a            of economic activities based on free enterprise, with
fiscal invoice or some other legal document.                          subsequent modifications, which have their head office and

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carry out their activity in the depressed area, with a view to          (4) The provisions of the present article shall only
making investments in depressed areas;                                apply if the beneficiaries of the deliveries stipulated
   b) for the period of investment completion, until its              under paragraph (1) are registered as value added tax
commissioning, i.e. by the 25th of the month following                payers with the tax authorities.
the date of investment commissioning, but no later than
30 months after the date of statistical registration with
the Ministry of Development and Prognosis, when such                                         CHAPTER IV
deliveries take place to taxable entities which make                                          Tax base
investments complying with the provisions of Law No.
332/2001 on the promotion of direct investments of                                               Section 1
significant impact in the economy.                                                           Inside Romania
   (2) The postponement of the payability of the value                   Art. 18. — (1) The tax base of the value added tax shall
added tax, stipulated under paragraph (1), shall be done              consist of:
as follows:
                                                                         a) for deliveries of goods and/or service provision,
   a) the beneficiaries stipulated under paragraph (1) must
pay, on behalf of the supplier, the value added tax directly          other than those stipulated under points b) and c), of
to the state budget, within the time limits stipulated. The           everything that makes up the compensation obtained or
tax paid up shall become deductible and enters in the                 which is to be obtained by the supplier or service
value added tax expense account of that month. The debt               provider from the buyer, beneficiary, or a third party,
to the supplier shall be diminished accordingly with the              including subsidies directly related to the price of such
amount paid to the state budget. If the beneficiaries do not          operations, except for the value added tax;
pay the value added tax to the state budget within the time              b) the purchase prices or, in their absence, the cost,
limits stipulated under paragraph (1), they shall be obliged          established at the time of delivery/provision, for the
to pay delay fines in the amount established for the failure          operations stipulated under article 3 (4) and article 4 (3);
to pay their dues to the state budget;
   b) the suppliers shall record as non-exigible tax the value           c) the compensation for the operations stipulated under
added tax related to the deliveries stipulated under                  article 3 (3) and article 4 (2).
paragraph (1), for which they shall have no other payment                (2) The following shall be included in the tax base:
obligation to the state budget. The tax shall become exigible            a) taxes, dues, unless the law stipulates otherwise,
in the month when the beneficiaries pay the respective                except for the value added tax;
value added tax to the state budget, but the suppliers shall             b) side expenses such as: commissions, packing,
lower accordingly the amount of the tax collected to the              transport, and insurance expenses, discounted to the
state budget and, at the same time, the beneficiaries’ debt           buyer or customer.
recorded in the customers’ accounts. The suppliers shall not             (3) The following shall not be included in the tax base:
be obliged to pay delay fines for the beneficiaries’ failure to
                                                                         a) sales allowances and other price reductions granted
pay in time the amounts representing the value added tax
whose payability has been postponed.                                  by suppliers directly to customers with a view to
   (3) The certification of the right to postpone the                 stimulating sales, under the terms stipulated in the
payability of the value-added tax shall be done under the             contracts concluded;
terms established by order of the minister of public                     b) penalties, as well as sums representing damages
finance.                                                              ordered by a final court decision, requested for the

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complete failure to comply with or the partial compliance             exchange rate at which the evaluation takes place shall be
with contract obligations;                                            the one set for the calculation of the customs value.
   c) interests charged for: late payments, instalment sales,
leasing operations;                                                                            CHAPTER V
   d) amounts paid by the supplier or service provider on                Tax brackets and calculation of the value added tax
the customer’s account and then charged to the latter;                   Art. 20. — (1) In Romania, the standard level of the value
   e) packing articles which circulate between the                    added tax is 19% and shall apply to taxable operations,
commodity suppliers and customers, in exchange, without               except for those exempted from the value added tax.
invoicing.                                                               (2) The applicable value added tax brackets shall be the
   (4) The tax base shall be reduced adequately:                      one in force on the date the fact generating the value
   a) in the event of full or partial refusals concerning the         added tax starts.
quantity, prices, or other elements included in invoices or              (3) For those cases where the payability of the value
in other legally approved documents, as well as in the                added tax does not coincide with the generating fact,
event of returns of up to 15% of the written press;                   stipulated under article 16 (3)—(6), the brackets in force
   b) when the price reductions stipulated under                      on the date the tax becomes exigible shall apply. For the
paragraph (3) a) are granted according to the contracts               operations stipulated under article 16 (4), if brackets
concluded after the delivery of goods or service provision;           should be changed, one shall proceed to an adjustment so
   c) when the buyers return the packing articles in which            that the brackets in force on the date the fact generating
the commodity was dispatched, for packing articles which              the value added tax starts are applied. The adjustment
circulate by invoicing.                                               shall be done by fully re-invoicing the value of the
                              Section 2                               deliveries of goods and/or service provision with the
                        For imported goods                            brackets in force on the date the generating fact starts,
                                                                      and by deducting the previously invoiced sums within the
   Art. 19. — (1) For the goods imported, the tax base shall          same invoice.
comprise the customs value, established according to the                 Art. 21. — (1) The value added tax shall be calculated by
law, adding to customs duties, customs commission,                    applying the standard level to the tax base established
excises, and other dues according to the law.                         under the terms stipulated in chapter IV.
   (2) As long as they have not been included in the tax                 (2) Notwithstanding the provisions of paragraph (1), the
base established according to paragraph (1), the tax base             value added tax shall be calculated by applying the
shall include side expenses such as: commissions, packing,            recalculated brackets, established according to the
transport, and insurance expenses which become                        methodology set up by the norms for implementing the
applicable after the good enters the country and up to the            present law, to:
first place of goods destination.                                        a) the amounts obtained from the sale of goods sold by
   (3) By first place of destination one shall understand             retail trade — shops, consignment shops, restaurants,
the place stated in the shipment document accompanying                canteens, or other units having direct contact with the
the goods when entering the country.                                  population, the prices of which also comprise the value
   (4) The tax base shall not include the elements                    added tax;
stipulated under article 18 (3) a)—c) and e).                            b) the amounts obtained from some services provision
   (5) If the elements which serve for establishing the tax           — transport, post, telephone, telegraph, and the like — the
base on import are expressed in a foreign currency, the               tariffs of which also comprise the value added tax;

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   c) the amounts obtained from selling goods by auction,                d) operations resulting from economic activities
by assessment or by expert valuation, as well as for other            stipulated under article 2 (2), carried out abroad, which
similar situations;                                                   would give the right to deduction if such operations were
   d) the compensation for the transfer of the ownership              carried out inside Romania;
right over some goods from the patrimony of taxable entities             e) operations stipulated under article 3 (6) and (7), if
to the public domain, under the terms stipulated by the               the value added tax were applicable to that transfer.
legislation concerning public property and its legal status.             (5) The value added tax stipulated under paragraph (4)
                                                                      that an entity has the right to deduct shall be:
                         CHAPTER VI                                      a) the value added tax due or paid, related to the goods
                     Deductions system                                which have been or are to be delivered to it, and for
   Art. 22. — (1) The deduction right shall start when the            services which have been or are to be provided to it by
deductible value added tax becomes exigible.                          another taxable entity as a value added tax payer;
   (2) Notwithstanding the provisions of paragraph (1), for              b) the value added tax paid, for the imported goods
the operations stipulated below the deduction right shall             stipulated under article 29 D.b);
start:                                                                   c) the value added tax paid or compensated with the
   a) on the date of the actual payment or, as applicable,            tax to be reimbursed from the previous month’s discount,
on the date of the compensation with the value added tax              for import goods which benefit from the suspension of
to be reimbursed from the previous month’s discount, for              the tax payment in customs stipulated under art. 29 D.c);
imported goods which benefit from the suspension of the                  d) the value added tax paid or compensated with the tax
value added tax payment in customs, stipulated under                  to be reimbursed from the previous month’s discount, for
article 29 D.c);                                                      the service provision stipulated under article 29 D.d)—f);
   b) on the date of the actual payment or, as applicable,               e) the value added tax paid by the beneficiary on behalf
on the date of the compensation with the value added tax              of the supplier, for the operations stipulated under
to be reimbursed from the previous month’s discount, for              article 17.
service provision stipulated under article 29 D.d)—f);                   (6) The goods and services purchased with a view to
   c) on the date of the actual payment to the state budget           carrying out the operations stipulated under paragraph (4)
for the operations stipulated under article 17.                       shall comprise the raw materials and materials, fuel and
   (3) The right to deduct the value added tax shall only             energy, spare parts, inventory objects and the ones similar
be granted to taxable entities registered with the                    to fixed assets, as well as other goods and services to be
territorial tax authorities as value added tax payers.                reflected in production, investment, or circulation
   (4) The taxable entities registered as value added tax             expenses, as applicable.
payers shall have the right to deduct the value added tax                Art. 23. — (1) The right to deduct the value added tax
related to the goods and services designed for carrying out:          related to the goods and/or services which are used by a
   a) taxable operations;                                             taxable entity for carrying out both the operations which
   b) deliveries of goods and/or service provision                    give the right to deduction and the operations which do not
exempted from the value added tax stipulated under                    give the right to deduction shall be determined based on the
article 11 (1) and article 12;                                        degree of use of such goods and/or services in completing
   c) sponsoring, advertising, and protocol activities, as            the operations which give the right to deduction.
well as for other actions stipulated in the laws, observing              (2) The manner in which the degree of use of the
the limits and destinations stipulated in them;                       goods and/or services in completing the operations which

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give the right to deduction is determined shall be set up                d) spirits and tobacco products meant for protocol
by the norms for implementing the present law.                        activities;
   Art. 24. — (1) In order to exercise the right to deduct               e) goods which are found missing or qualitatively
the value added tax, any taxable entity must justify the              depreciated during transport, and which cannot be
tax amount with the following documents:                              ascribed to someone, based on the documents prepared
   a) for the deduction stipulated under article 22 (5) a),           for the handover/receipt of the goods from the
with fiscal invoices or other legally approved documents,             transporter and for their recording in the administration
issued to its name, by other taxable entities registered as           of the taxable entity.
value added tax payers;                                                  (3) The value added tax for the purchased goods and
   b) for the deduction stipulated under article 22 (5) b),           services, designed to achieve one’s own investment
with the import customs declaration or the document                   projects and for special-destination stocks of products
drawn up by the customs authorities;                                  financed from the amounts cashed in from the state
   c) for the deduction stipulated under article 22 (5) c),           budget or the local budgets by taxable entities registered
with the customs declaration issued to its name and the               with the tax authorities as value added tax payers, shall
document which confirms the payment of the value                      be deducted according to the provisions of article 22. The
added tax or, in the event of a compensation, the value               value added tax deducted for the achievement of one’s
added tax discount for the previous month, which shows                own investment projects shall be used for restoring the
the tax to be reimbursed, and the accounting note based               available investment funds in a compulsory manner. The
                                                                      amounts deducted during the fiscal year for one’ own
on which the compensation was made;
                                                                      investment projects can only be used for payments related
   d) for the deduction stipulated under article 22 (5) d),
                                                                      to the same investment project for which the allowances
with the document which confirms the payment of the
                                                                      from the state budget or local budgets were received. At
value added tax or, in the event of a compensation, the
                                                                      the end of the financial year, the amounts deducted and
value added tax discount for the previous month, which                unused shall be transferred to the state budget or to the
shows the tax to be reimbursed, and the accounting note               local budgets, to the accounts and within the time limits
based on which the compensation was made;                             set up by the annual methodological norms on the closure
   e) for the deduction stipulated under article 22 (5) e),           of the financial-budgetary and financial-accounting year,
with fiscal invoices or other legally approved documents,             issued by the Ministry of Public Finance. The units which,
issued to its name, by other taxable entities registered as           at the end of the year, have a reimbursable tax, resulting
value added tax payers and the document which confirms                from the value added tax discount, can compensate that
the payment of the value added tax.                                   tax with the amounts deducted and unused due to the
   (2) The value added tax cannot be deducted for entries             state budget or local budgets for the operations stipulated
referring to:                                                         in this paragraph.
   a) operations which are not connected with the                        Art. 25. — (1) The deduction right shall be exercised
economic activity of the taxable entities;                            each month by subtracting the deductible tax from the
   b) goods/services purchased by suppliers/providers on              amount representing the value added tax invoiced for the
behalf of their customers and who, subsequently, are                  goods delivered and/or services provided, called collected
charged to the latter;                                                tax.
   c) transport, hotel, restaurant, and similar services,                (2) The exercise of the deduction right shall not take
provided for taxable entities that carry on intermediation            place for each operation, but for all the operations
activities in tourism;                                                completed during one month.

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   (3) The value added tax due to the state budget shall be           submitting the reimbursement application, with the
established monthly based on discounts of the value                   subsequent audit of the documents stipulated under
added tax payers, as the difference between the collected             paragraph (1), i.e. every six months.
tax and the tax deducted according to the law. If the tax                (3) The reimbursement of the value added tax can be
deducted according to the law is higher than the collected            applied for every month.
tax, the reimbursable tax results, and if the collected tax              (4) In view of solving the reimbursement applications,
is higher than the tax deducted according to the law, the             the tax audit authorities must determine the value of the
tax to be paid to the state budget results.                           deductible tax corresponding to the unpaid amounts in the
   Art. 26. — (1) The reimbursable tax for the reporting              Romanian suppliers’/providers’ invoices, for which the
month established in the value added tax discount                     taxable entities do not benefit from the actual
according to article 25 (3) shall be regulated in the                 reimbursement of the amounts from the state budget.
following sequence:                                                   Payment, according to the present law, means any manner
   a) through the compensation made by the taxable entity             of extinguishing the obligations towards suppliers/providers.
within the limits of the tax left to be paid resulting from              (5) The taxable entities which benefit from the
the previous month’s discount or from the next months’                reimbursement of the value added tax, according to
discounts, as applicable, without the notice of the tax               paragraph (2), must determine and declare under oath the
authorities, when preparing the value added tax discounts;            value of the deductive amount corresponding to the
   b) through compensation with other taxes and dues                  unpaid amounts in the Romanian suppliers’/providers’
due to the state budget by the taxable entity, performed              invoices, for which they do not benefit from the actual
ex officio by the tax authorities or, as applicable, at the           reimbursement of the amounts from the state budget. On
express request of the taxable entity, within 30 days from            the occasion of the documents’ audit within the time
the date of submitting the compensation application;                  limits set up in the norms for implementing the present
   c) reimbursement made by the tax authorities.                      law, the tax audit authorities must check the accuracy of
   (2) The payable tax established by the value added tax             the data in the affidavit.
discount according to article 25 (3) shall be paid to the                Art. 28. — The norms for implementing the present law
state budget within the time limit stipulated under                   establish the terms under which, for the reimbursements of
article 29 D.a).                                                      the value added tax, the tax audit authorities of the Ministry
   Art. 27. — (1) The reimbursement of the tax difference,            of Public Finance can request the establishment of personal
left after the compensation made according to article 26              or joint guarantees, according to the law.
(1) and after subtracting the tax corresponding to the
unpaid amounts in suppliers’/providers’ invoices, shall be                                   CHAPTER VII
made by the territorial tax authorities, within 30 days                        Obligations of the value added tax payers
from the date of submitting the reimbursement                            Art. 29. — The taxable entities which carry out taxable
application, based on the documents stipulated by order               operations and/or exempted operations with deduction
of the minister of public finance and on the audits                   right have the following obligations:
performed by the tax audit bodies.                                       A. As regards the registration with the tax authorities:
   (2) Notwithstanding the provisions of paragraph (1), the              a) at the beginning of activity, as well as in the cases
territorial tax authorities shall make, at the request of the         and under the terms stipulated by the present law, the
taxable entities complying with the terms set up by the               taxable entities must register as value added tax payers,
norms for implementing the present law, value added tax               observing the procedures for the fiscal registration of tax
reimbursements, within 15 days from the date of                       payers;

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   b) they must apply with the tax authority for their                   2. sales of goods and /or service provision recorded in
removal from the register of the value added tax payers,              specific documents approved according to the laws in
in the event of termination of their activity, within 15              force;
days from the date of the lawful document which records                  3. sales of goods and/or service provision to the
such a condition.                                                     population based on documents without nominating the
   B. As regards the documents:                                       buyer. At the buyers’ request, the suppliers/providers may
   a) they shall record the deliveries of goods and/or                issue fiscal invoices mentioning: the amount cashed in,
service provision in fiscal invoices or other legally                 and the number and date of the document by means of
approved documents and fill out, in a mandatory manner,               which the beneficiary has made the payment;
the following data: the denomination, the address and                    d) the importers shall prepare the import customs
fiscal code of the supplier/provider and, as applicable, of           declaration, directly or by means of their authorized
the beneficiary, the date of issuing, the denomination of             representatives, determine the tax base for the imported
the goods delivered and/or services provided, the                     goods according to article 19, and calculate the value
quantities, as applicable, the unit price, the value of the           added tax due to the state budget.
goods/services without value added tax, the amount of the                C. As regards operations records:
value added tax. For the deliveries of goods or service                  a) to keep the books according to the law, so as to be
provision with a value added tax value exceeding 50                   able to determine the tax base and the collected value
million lei, such documents shall also be accompanied by              added tax for the deliveries of goods and/or service
a copy of the lawful document which attests to the status             provision carried out, as well as the deductible one
of value added tax payer;                                             related to entries;
   b) the taxable entities paying value added tax must                   b) to provide the necessary conditions for document
request the suppliers/providers to issue fiscal invoices or           issuing, data processing, and management of the records
lawfully approved documents and check if they are                     stipulated by the regulations in the field of the value
properly prepared, and for operations with a value added              added tax;
tax amount exceeding 50 million lei, they must also                      c) to prepare and submit each month, to the tax
request a copy of the lawful document which attests to                authority, by the date of 25 of the following month
the supplier’s/provider’s status of value added tax payer.            inclusive, the discount concerning the value added tax,
The receipt and registration, in the accounting records, of           according to the model established by the Ministry of
fiscal invoices or other lawfully approved documents                  Public Finance;
which do not contain the data stipulated to be filled out                d) to supply the tax authorities with all the necessary
in a mandatory manner under point a), as well as the                  documents with a view to determining the operations
absence of the copy of the lawful document attesting to               carried out both at the head office and the secondary offices;
the supplier’s/provider’s status of value added tax payer,               e) to keep distinct records of the revenues and
in the event of purchases with a value added tax amount               expenses resulting from the operations of the particular
exceeding 50 million lei inclusive, shall cause the loss of           partnerships. The lawful rights and obligations concerning
the right to deduct the related value added tax;                      the value added tax belong to the partner who keeps the
   c) the taxable entities registered as value added tax              records of the revenues and expenses according to the
payers shall not be obliged to issue fiscal invoices for the          contract concluded between the parties. At the end of the
following operations:                                                 reporting period, the revenues and expenses, recorded per
   1. taxi transport, as well as passenger transport based            type, shall be sent to each partner, based on a discount,
on fares and subscriptions;                                           so that they can be recorded in their own account books.

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The amounts settled between the parties without                       means of transport designed for productive activities, which
complying with these provisions shall be subject to the               were manufactured one year at most before their entry in
value added tax at the brackets stipulated by the law.                Romania and have never been used, imported by taxable
   D. As regards the payment of the value added tax:                  entities that make investments complying with the provisions
   a) to pay the due value added tax, according to the                of Law No. 332/2001 on the promotion of direct investments
discount received monthly, by the 25th of the following               of significant impact in the economy, for the period of
month inclusive;                                                      investment implementation, until it is commissioned, but not
   b) to pay the value added tax related to the goods                 later than 30 months from the date of its statistical
placed in a procedure of import, to the customs                       registration with the Ministry of Development and Prognosis;
authorities, except for import operations exempted from                  4. industrial machines, technological units, plants,
the value added tax;                                                  equipment which are imported for the implementation
   c) Notwithstanding the provisions of point b), the                 and progress of investments used for building a new
payment of the value added tax to the customs authorities             productive unit, developing the existing capacities, or
shall be suspended for:                                               upgrading factories, departments, workshops, as well as
   1. industrial machines, means of transport designed                for agricultural machines, for a 120 days’ time limit from
for productive activities, technological units, plants,               the date of import. Also, the payment of the value added
equipment, measuring and control instruments,                         tax to the customs authorities is suspended for 60 days,
automations, which were manufactured one year at most                 for raw materials which are not produced in Romania or
before their entry in Romania and have never been used,               for which there is shortage, imported in view of
imported by small and medium-sized enterprises as                     implementing the object of activity. The approval of the
defined by Law No. 133/1999 on stimulating private                    right to benefit from the suspension of the value added
entrepreneurs to establish and develop small and                      tax payment in customs for the imports stipulated under
medium-sized enterprises, with a view to making                       points 1—4 is granted under the terms set up by order of
investments, for the period of investment implementation,             the minister of public finance;
until it is commissioned, but not later than 12 months                   d) to pay the value added tax related to leasing
from the start of the investment;                                     operations, corresponding to the amounts and payment
   2. industrial machines, technological units, plants,               deadlines stipulated in the contracts concluded with
equipment, measuring and control instruments,                         foreign investors/lenders. The value added tax for such
automations, means of transport designed for productive               operations shall also be paid by the entities, irrespective
activities, which were manufactured one year at most before           of their legal status, that are not registered as value added
their entry in Romania and have never been used, imported             tax payers. If, upon the expiry of the leasing contract, the
by trading companies with majority private capital, which             goods having made its object are transferred to the
are Romanian legal entities, as well as natural entities and          beneficiary’s ownership, the value added tax is due for
family firms authorized according to Decree-law No. 54/1990,          the amount at which the ownership transfer of such
with subsequent modifications, which have their head office           goods is made;
and carry out their activity in the depressed area, in view of           e) to pay the value added tax related to the services
making investments in the depressed areas, for the period of          contracted with providers having their head office or
investment implementation, until it is commissioned, but              domicile abroad, for which the provision place is deemed to
not later than 12 months from the start of the investments;           be in Romania, according to article 7 (1) c), except for the
   3. industrial machines, technological units, plants,               leasing operations contracted with foreign lessors/lenders,
equipment, measuring and control instruments, automations,            which are regulated under point d), within 7 days from the

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date of receipt of the foreign invoice. As regards the                the taxable entities registered as value added tax payers
payments made without invoice, the value added tax shall              shall be made as follows:
be paid at the same time as the payment to the foreign                    a) if the document has not been sent to the beneficiary,
provider. The value added tax related to such operations              it shall be cancelled and another document shall be issued;
shall also be paid by entities, irrespective of their legal               b) if the document has been sent to the beneficiary, the
status, which are not registered as value added tax payers;           correction of errors is made by issuing a new document
   f) to pay, within 7 days from the date of receipt of the           with the values preceded by the minus sign, mentioning
                                                                      the number of the corrected document and, at the same
foreign invoice, the value added tax related to the services
                                                                      time, that a new correct document is being issued. The
contracted with providers having their head office or                 documents in question shall be recorded in the sales and
domicile abroad, for whom the provision place is deemed               purchase log, respectively, and shall be included as such
to be in Romania, according to article 7 (1) a), b) and d),           in the discounts prepared by the supplier and beneficiary,
unless the service provider has designated a fiscal                   respectively, for the month when the correction took
representative in Romania. The value added tax related to             place.
such operations shall also be paid by entities, irrespective              (2) The reduction of the tax base stipulated under
of their legal status, which are not registered as value              article 18 (4) shall be made by means of the suppliers of
added tax payers;                                                     goods and/or service providers issuing new documents
   g) to pay the value added tax due to the state budget,             with the value being preceded by the minus sign, which
prior to the date of submitting the application to the tax            shall also be sent to the beneficiary. Such documents shall
authority for their removal from the register as value                be recorded in the sales, and purchase log, respectively,
added tax payers, should they terminate their activity;               and included as such in the discounts prepared by the
   h) in the case of taxable entities registered as value             supplier and beneficiary, respectively, for the month
                                                                      when the reduction was made.
added tax payers, if the amount to be reimbursed results
                                                                          Art. 32. — (1) The tax audit authorities shall have the
from the discount concerning the value added tax for the              right to perform checks and investigations with the
previous month, they shall have the right to compensate               entities which must pay the value added tax in
this amount with the amount due according to the                      connection with the compliance with the present law,
provisions of points c) — f).                                         including the bookkeeping records. For this purpose, the
                                                                      taxable entities must produce the records and related
                         CHAPTER VIII                                 documents.
                        Final provisions                                  (2) If, following the checks performed, errors or
                                                                      departures from the provisions of the law result, the tax
   Art. 30. — The specimen and contents of the fiscal
                                                                      audit authorities must establish the level of the deductible
invoice forms or other lawfully approved documents,                   and invoiced value added tax.
purchase logs, sales logs, daily sales/purchase dockets, and              (3) If the fiscal invoices, bookkeeping records, or data
other necessary documents in view of implementing the                 necessary for calculating the tax base are missing or are
provisions of the present law shall be established by the             incomplete as regards the quantities, prices and/or tariffs
Ministry of Public Finance, and are mandatory for the                 charged for deliveries of goods and/or service provision,
value added tax payers.                                               the tax base authorities shall proceed to an estimated
   A r t . 3 1 . — (1) Corrections to the value added tax             taxation.
determined in an erroneous manner, written down in                        Art. 33. — For the failure to pay the full amount or a
fiscal invoices or other lawfully approved documents, by              difference from the value added tax within the set time

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limit, the taxable entities shall owe delinquent taxes and               Art. 40. — The present law shall come into force on 1
penalties calculated according to the legislation on the              June 2002, except for the provisions of article 27 (2),
calculation and payment of amounts due for the failure to             which shall come into force on 1 October 2002. On the
pay taxes in due time.                                                date of the present law coming into force, the following
   A r t . 3 4 . — The audit documents issued by the                  shall be abrogated:
specialized authorities of the Ministry of Public Finance                a) Government Emergency Ordinance No. 17/2000 on
for finding the value added tax liabilities shall represent           the value added tax, published in the Official Gazette of
debentures which become writs of execution according to               Romania, Part I, No. 113 of 15 March 2000, approved and
the provisions of the law.                                            modified by Law No. 547/2001;
   Art. 35. — (1) The failure to comply with the provisions              b) the provisions of article 5 concerning the exemption
of articles 29 and 30 shall be punished according to Law              from the value added tax of Law No. 103/1992 on the
No. 87/1994 on the control of tax evasion.                            exclusive right of religious faiths to produce religious
   (2) The late submission of the value added tax discount            objects, published in the Official Gazette of Romania, Part I,
shall be punished according to the provisions of                      No. 244 of 1 October 1992, with subsequent modifications;
Government Ordinance No. 68/1997 on the procedure for                    c) the provisions concerning the exemption from the
preparing and submitting tax declarations, approved and               value added tax of article 42 (1) for the financing sources
modified by Law No. 73/1998, republished, with                        stipulated under article 33 (1) c) of the Law of political
subsequent modifications and completions.                             parties No. 27/1996, published in the Official Gazette of
   A r t . 3 6 . — The determination, in bad faith, by the            Romania, Part I, No. 87 of 29 April 1996, with subsequent
taxable entities, of the value added tax value to be                  modifications;
reimbursed and thus the obtaining of amounts of money                    d) the provisions of article 37, indents 3 and 4, of
from the tax authorities shall be seen as a breach of the             Government Ordinance No. 30/1995 on the lease of the
law and shall be punished with prison from 1 to 7 years.              construction and operation of parts of terrestrial
   Art. 37. — The settlement of the disputes concerning               communication lines — highways and railways, published
the value added tax amounts, found and applied through                in the Official Gazette of Romania, Part I, No. 203 of 1
the audit or taxation documents by the authorities of the             September 1995, approved and modified by Law No.
Ministry of Public Finance, shall be in accordance with               136/1996, with subsequent modifications;
the provisions of the laws in force.                                     e) the provisions of article 173 (3) of the Law on
   Art. 38. — In view of an equal implementation of the               education No. 84/1995, republished in the Official Gazette
provisions of the law on the value added tax, within the              of Romania, Part I, No. 606 of 10 December 1999, with
Ministry of Public Finance a Fiscal Central Commission                subsequent modifications;
shall be established, led by the state secretary in charge of            f) the provisions of article 4 (2), concerning the value
fiscal policy and legislation. The commission’s                       added tax, of Law No. 118/1996 on the establishment and
composition and attributions shall be approved by order               use of the Special Fund for Public Roads, republished in
of the minister of public finance. The decisions of the               the Official Gazette of Romania, Part I, No. 150 of 15 April
Fiscal Central Commission shall be published in the                   1998, with subsequent modifications;
Official Gazette of Romania, Part I.                                     g) the provisions of article 4 (2) concerning the
   Art. 39. — Within 15 days from the date of the present             exemption from the value added tax of Government
law coming into force, the Government, following the                  Emergency Ordinance No. 43/1997 for preparing the
proposal of the Ministry of Public Finance, shall approve             special balance sheet and the adjustment of certain
the norms for implementing the present law.                           credits and interests classified as “losses” with Banca

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Agricol„ — S.A., published in the Official Gazette of                    n) the provisions of article 2 e) of Government
Romania, Part I, No. 153 of 14 July 1997, approved and                Ordinance No. 14/1995 on some steps for stimulating the
modified by Law No. 166/1998, with subsequent                         implementation of complex projects and long
modifications;                                                        manufacturing cycle production, meant for export,
   h) the provisions of article 3 a), article 4 and article 5 (1)     published in the Official Gazette of Romania, Part I,
of Government Ordinance No. 8/1998 on the                             No. 26 of 3 February 1995, approved by Law No. 70/1995,
establishment and use of the special fund for tourism                 with subsequent modifications;
promotion and development, published in the Official                     o) the provisions of article 12 (2) of Law No. 332/2001
Gazette of Romania, Part I, No. 40 of 30 January 1998,                on the promotion of direct investments of significant
approved and modified by Law No. 23/2000, with                        impact in the economy, published in the Official Gazette
subsequent modifications;                                             of Romania, Part I, No. 356 of 3 July 2001.
   i) the provisions of article 7 of Government Ordinance                                                                           ANNEX
No. 116/1998 on the establishment of the special
procedure for the international sea transport activity,                                              LIST
published in the Official Gazette of Romania, Part I, No.                        of the activities referred to in article 2 (5)
326 of 29 August 1998, with subsequent modifications;
   j) the provisions of article 6 (1) a) of Government                   1. Telecommunications
Emergency Ordinance No. 24/1998 on the status of                         2. Water, gas, electrical power, heating power, and freezing
depressed areas, republished in the Official Gazette of               agent supply
Romania, Part I, No. 545 of 8 November 1999, with the                    3. Goods transport
subsequent modifications;                                                4. Services provided by harbours and airports
   k) the provisions of article 76 concerning the                        5. Passenger transport
exemption from the value added tax of the Law on                         6. Delivery of new goods manufactured for sale
physical education and sports No. 69/2000, published in                  7. Activity of commercial fairs and exhibitions
the Official Gazette of Romania, Part I, No. 200 of 9 May                8. Warehousing
2000, with subsequent modifications;                                     9. Activities of commercial publicity authorities
   l) the provisions of article 26 (2) concerning the                    10. Activities of travel agencies
exemption from the value added tax of Government                         11. Activity of shops for personnel
Emergency Ordinance No. 51/1998 on the valuation of                      12. Rental and/or lease of movables and/or immovables.
certain bank assets, published in the Official Gazette of
Romania, Part I, No. 482 of 15 December 1998, approved
and modified by Law No. 409/2001, with subsequent
modifications and completions;
   m) the provisions of articles 211 and 214 of Law No.
133/1999 on stimulating private entrepreneurs to
establish and develop small and medium-sized
enterprises, as modified and completed by Government
Emergency Ordinance No. 297/2000, published in the
Official Gazette of Romania, Part I, No. 707 of 30
December 2001, approved and modified by Law No.
415/2001;

368                                                                   c. 24                                                           369
                                                                                                                          GD No. 598/2002


                                                                    value added tax are taxable and are subject to the regulations
                                                                    stipulated by law as to the value added tax.
                                                                        (2) By operations carried out in Romania one means those
                                                                    deliveries of goods and provision of services whose place of
                                                                    delivery or carrying out respectively, is deemed to be in
              DECISION                                              Romania, as per arts 6 and 7 of the law.
 for the approval of the Application                                    (3) The operations carried out inside the free zones as well as
                                                                    the deliveries of goods and/or the services carried out from
   Norms of the Law No. 345/2002                                    Romania for units located in the free zones, and those carried out
                                                                    by units in the free zones for units in Romania are considered as
       on the value added tax*                                      operations carried out in Romania and are subject to the
                                                                    regulations provided for in the Law on the value added tax.
   Unique article. — The Application Norms are approved                 (4) In order to be included into the value added tax
pertaining to the Law No. 345/2002 on the value added               application sphere, the deliveries of goods and/or the provision
tax, published in the Official Gazette of Romania, Part I,          of services shall be payable. This requirement involves the
No. 371 of 1 June 2002, provided for in the annex which             existence of a direct link between the respective operation and
is an integral part of the present decision.                        the reciprocal arrangement obtained. In order to establish
                                                            ANNEX   whether a certain operation may be placed within the value
                                                                    added tax application sphere, this should offer a certain
                          NORMS                                     advantage to the client whereas the price should be relevant to
         for the enforcement of the Law No. 345/2002                the advantage received, as follows:
                    on the value added tax                              a) the requirement referring to the existence of an advantage for
                                                                    the client’s benefit is fulfilled when there is a commitment from the
                                                                    part of the supplier or of the service provider to supply a specified
                         CHAPTER I                                  good or service to a person providing the financing thereof or, in its
                      Application sphere                            absence, permitting the establishing of such a commitment when
                                                                    the operation is carried out. This requirement is fully compatible with
                           Section 1                                the fact that the service has been a collective one, has not been
                       Taxable operations                           exactly measurable or included into a certain legal obligation;
                                                                        b) the requirement referring to the existence of a connection
    Art. 1. — (1) The application sphere of the value added tax
                                                                    between the operation and the obtained reciprocal arrangement
includes the operations made in Romania and which fulfill           shall be observed even if the price does not reflect the normal
cumulatively the conditions laid down in Art. 1 (2) of the Law      value of the operation, is paid under the form of subscriptions,
No. 345/2002 on the value added tax hereinafter called law.         services or goods, is represented by a sum considered as a
Should at least one of the respective conditions fail to be         discount or it is not paid by the beneficiary, but by a third party.
fulfilled, the operations are not to be included into the               Art. 2. — (1) Within the meaning assigned by Art. 2 (2) of
application sphere of the value added tax. The imports of goods     the law, an economic activity shall not include the sale, by
are also included in the application sphere of the value added      natural persons, of their own homes or of other goods they
tax. The operations included in the application sphere of the       may hold for personal use.
                                                                        (2) One shall by no means consider as economic activity, as
  * GD No. 598/2002 was published in OG No. 437 of 22 June 2002.    per Art. 2 (2) of the law, the activity of collecting the sums

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owed to the local budgets as per the provisions of Art. 42 of               (6) The directorates general of public finance are not
the Law No. 27/1994 on the local fees and taxes, republished,           considered taxable persons as to the turning to good account of
with the subsequent modifications and completions, respectively         the legally confiscated goods or of those which legally became
of the provisions of Art. 50 (1) of the Government Ordinance            the property of the state, according to law.
No. 36/2002 on the local fees and taxes, as from the 1st of                 (7) The deliveries of goods and/or the provision of services
January 2003, carried out by any taxable persons whose object           carried out free of charge by the non-profit making organizations
of activity is the management and maintenance of public places.         shall not be considered economic activities.
    (3) Within the meaning assigned by the present norms, the               Art. 3. — Within the meaning of Art. 3 of the law, the
public institutions provided for in Art. 2 (4) of the law are the       deliveries of goods are considered as follows:
ones defined in Art. 1 of the Law No. 72/1996 on the public
                                                                            a) selling of goods paid for in installments;
finance, with the subsequent modifications, as well as any other
                                                                            b) the transfer to the public domain of certain goods having
institutions and/or bodies the setting up of which is regulated by
a law or a Government Decision, whereas the activities                  belonged to taxable persons, under the conditions laid down by
provided for in the setting up legal document can by no means           the legislation on public property and the legal framework
be carried out by other economic operators, too.                        thereof in exchange for an indemnity;
    (4) The public institutions are taxable persons for:                    c) the transfer of the right of possession over the goods by
    a) the activities listed in the annex to the law;                   enforcement, if the debtor has been registered as a value
    b) the activities provided for in Art. 2 (4) of the law, which      added tax payer;
lead to competitive distortions in case the public institutions are         d) any assets distribution by a trading company to its
not treated as taxable persons for these operations, even if these      associates or shareholders, including any assets distribution
are carried out in their capacity as public authority. When the         having to do with the company’s liquidation or with its
same activity is carried out by several economic operators, from        dissolution with no liquidation, apart from the total transfer of
among whom some benefit by a preferential fiscal treatment as           assets and liabilities provided for in Art. 3 (6) of the law;
regards the value added tax, so that the exchange value of the              e) the goods whose absence is ascertained based on a
delivered goods and/or of the services provided is not saddled          drawn up inventory, both imputable and non-imputable, except
with the value added tax, certain competitive distortions result as     for those provided for in Art. 4 (1) b) of the present norms;
compared with the other economic operators who are compelled                f) the agricultural products having been withheld as payment
to saddle the exchange value of the deliveries of goods and/or of       in kind for the services carried out by taxable persons
the provision of services with the value added tax;                     registered as value added tax payers and who carry out
    c) other activities carried out under the same legal conditions
                                                                        services for the production and/or processing of agricultural
as the ones applicable to the economic operators, even though
                                                                        products, including the payment in kind of the rent tax.
these are implemented in a capacity as public authority.
    (5) The public institutions are not taxable persons for the             Art. 4. — (1) The following are not deemed as deliveries of
following activities:                                                   goods as per Art. 3 of the law:
    a) the selling, to natural persons, of any buildings or parts           a) the entries and coming out of the goods forming
thereof, owned by the state, designed for residential occupancy and     mobilization reserves at taxable persons registered as value
which were finished prior to the introduction of the value added tax;   added tax payers and who have a mandate to this effect. The
    b) the renting of buildings or parts thereof, owned by the          respective goods form the object of the deliveries of goods when
state, designed for residential occupancy;                              taken out of this status and delivered to other beneficiaries;
    c) the deliveries of goods acquired after the 1st of July 1993          b) the goods destroyed due to calamities or to other causes
which were not entitled to a deduction of the value added tax.          beyond control;

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    c) the taking out from the state reserves, on a free of              payer and who exerted his total or partial deduction right, and
charge basis, of an amount of products with a view to                    made in favor of a taxable person having no right to a value
delivering them as humanitarian aids at home and abroad.                 added tax reduction due either to his not being registered as a
    (2) The goods given and/or the services carried out free of any      value added tax payer or to the fact that the operations he has
charge, as well as the gratuitous setting at one’s disposal of certain   carried out are entitled to no deduction, is considered delivery
goods belonging to the taxable person’s assets as per the limits and     of goods. Under such circumstances, the beneficiary shall set
destinations provided for by the law, such as the sponsoring,            forth in his patrimony register the exchange value of the
patronage of art, protocol as well as other actions provided for by      received assets, the value added tax included.
the law shall not be assimilated to the deliveries of goods and/or the       (3) The contribution in kind made by a taxable person
carrying out of services. The maintaining within the legal ceilings      registered as a value added tax payer to a taxable person
shall be assessed on the basis of the data reported by the annual        entitled to the partial deduction of the value added tax is
financial statements. The exceeding of the ceiling shall be              considered delivery of goods, should the value added tax
considered as an operation assimilated to the delivery of goods          relevant to the respective goods or to their components have
and/or carrying out of services, if the right of deducting the value     been totally or partially deducted. As regards the taxable person
added tax tallying with the exceeding has been exerted or the value      having made the contribution in kind, as well as the beneficiary,
added tax is collected. No sponsoring actions, patronage of art or       the value added tax relevant to the respective operation is to
other legally provided actions the payments thereof are made in          be registered in the value added tax discount as both a
cash shall form the object of any calculation for being introduced       collected and a deductible tax, with no effective payments
between these limits. The collected value added tax corresponding to     between the two units with respect to the value added tax.
the exceeding shall be assessed and included into the regularization         Art. 6. — The import of goods intended to become a
column in the settlement of accounts document made up for the            contribution in kind to the authorized share capital of a trading
month when the taxable persons registered as value added tax             company, made by a foreign person, shall be included into the
payers have handed in their annual financial statements, but not         application sphere of the value added tax as per the provisions
later than the legal deadline these were due.                            of Art. 5 of the law. The taxable person receiving the
    (3) The taking over by any taxable persons, registered as            contribution in kind may exert his right to a value added tax
value added tax payers, of certain goods out of their own                reduction, in keeping with the provisions of the law.
sphere of activity so as to use them for the purpose of carrying
                                                                                                      Section 2
out their trade shall not be considered delivery of goods. The                           The place of the taxable operations
same provisions shall apply to the carrying out of services.
    Art. 5. — (1) In keeping with the provisions of Art. 3 (7) of            Art. 7. — (1) The deliveries of goods for which Romania is
the law, the contribution in kind to the authorized share capital        not considered as being the place thereof are not taxable
of a trading company, made between two taxable persons                   operations in Romania.
registered as value added tax payers if the beneficiary is entitled          (2) The goods originating in a foreign country and placed
to an integral deduction of the value added tax is by no means           under an import procedure, Romania being considered the
a delivery of goods if the value added tax relevant to the said          delivery place thereof, shall be deemed as operations taxable in
goods or to any components thereof is totally or partially               Romania.
deducted. The tax payer having contributed in kind is entitled to            (3) The goods originating in a foreign country and placed
such a deduction of the value added tax as provided for in               under suspensive customs procedures are operations taxable in
Art. 22 (4) (e) of the law.                                              Romania only provided that their final destination is Romania,
    (2) The contribution in kind to the authorized share capital         i.e. if they are placed under an import procedure. The goods
brought by a taxable person registered as a value added tax              originating in a foreign country and which exist under customs

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suspensive procedures of active perfecting, temporary                   country where the beneficiary’s business quarters are located or,
importation procedure with total import tax exemption, customs          in their absence, where his stable domicile is situated. If such
transit, as well as the admission of foreign goods to the free          operations are taxable, the beneficiaries having their business
zones straight from abroad with no making out of any customs            quarters or domicile in Romania and who are under contract
formalities are subject to the taxation rules and regulations           with service suppliers from abroad for operations such as those
provided for in the law and in the present norms, providing that        provided for in Art. 7 (1) c) of the law shall pay the value
Romania should not be their final destination, i.e. Romania             added tax. The operations provided for in Art. 7 (1) c) of the
should not be the place for their use and/or final consumption.         law, carried out by suppliers from Romania by virtue of contracts
    Art. 8. — (1) Within the meaning of Art. 7 (1) of the law,          concluded with beneficiaries abroad are not taxable in Romania
Romania shall be considered as the place of the carrying out of         and the suppliers are entitled to a value added tax deduction as
services, if the business quarters, the stable quarters or, in the      per the provisions of Art. 22 (4) d) of the law.
absence thereof, the domicile or the stable residence of the supplier      (5) Regarding the operations provided for in Art. 7 (1) d) of the
wherefrom these services are carried out are located in Romania,        law, the place of the carrying out of services is in the country
apart from the exceptions provided for in Art. 7 (1) points a)—d) of    where such services are effectively supplied, even if the supplier’s
the law.                                                                business quarters are not located in the respective country or if he
    (2) As regards the operations provided for in Art. 7(1) a)          has no stable head offices there, where he would conduct his
of the law, the place of the carrying out of services is located        servicing from or, in the absence of such an office, he has no
in the country where the chattels real exist, whereas the value         domicile or usual residence there either. The value added tax shall
added tax is owed by the service supplier, provided that the            be borne by the service supplier if the operations are taxable and
operations are taxable.                                                 are due in the country where the services are being carried out.
    (3) As regards the operations provided for in Art. 7 (1)               (6) The carrying out of services performed outside Romania
point b) 1 of the law, the place of the services for the                are not operations taxable in Romania.
transportation of persons is in the country where the departure            (7) The foreign persons who are not registered as value
place of the said transportation of persons is located. The             added tax payers in Romania and which carry out deliveries of
transportation of persons the departure place of which is located       goods and/or services, the delivery or servicing place thereof
abroad, with the arrival place in Romania, is not an operation          being considered as located in Romania, shall designate a
taxable in Romania, whereas the taxable persons registered as           representative in charge of taxes domiciled in Romania. Should
value added tax payers benefit by the deduction right as per            they fail to do so, the beneficiaries of the respective operations
Art. 22 (4) d) of the law. As regards the transportation of goods       shall pay the value added tax relevant to these.
or of persons the departure place of which is situated in
Romania, the place of the carrying out of services is Romania,                                      Section 3
notwithstanding whether the arrival place is located in Romania                               Tax-exempt operations
or abroad. Concerning the transportation of goods provided for
in Art. 7 (1) point b) 2 of the law, the place of the carrying out         A. Exemptions inside the country
of services is in Romania, should the departure place be                   Art. 9. — (1) The value added tax exemption as provided for
abroad and the ultimate destination place in Romania. The               in Art. 9 (1) a) of the law covers the hospitalization, human and
value added tax for the transports for which the place of               veterinary medical care, the operations closely connected
execution is considered to be in Romania shall be owed by the           therewith included, as carried out by units specialized for such
supplier of this service only if such operations are taxable.           activities, irrespective of their form of organization and of the
    (4) Regarding the operations provided for in Art. 7 (1) c) of       holder of their property right, as follows: hospitals, sanatoriums,
the law, the place of the carrying out of services is inside the        diagnostic centers, medical centers, rural and city health centers,

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TB health units, medical offices and laboratories, centers of           dues established in keeping with their statute, by organizations
health assistance and care, centers of neuro-psychiatric recovery       having no patrimonial purpose the objectives of which concern
and rehabilitation, other units authorized to carry on such             the political, trade unions’, employers’, professional, religious,
activities, as well as the canteens organized within these units.       patriotic, philosophical, charitable or civic interests, as well as
    (2) The operations which are closely connected with                 their members’ interests under circumstances when this
hospitalization and human and veterinary care include the               exemption generates no competition distortions.
medicine, bandages and other similar goods supplied to the                  (2) The amount of the dues is to be established by the qualified
patients at the moment of their being treated, as well as food and      managing body, as per the statute proper to the organizations
accomodation in units ensuring hospitalization and medical care.        having no patrimonial purpose provided for in par. (1).
    (3) The exemption provided for in Art. 9 (1) of the law shall           (3) The Chamber of Commerce and Industry of Romania and
not apply to: the supply of medicine, bandages and other similar        that of the Bucharest Municipality, as well as the territorial
goods, carried out by persons who offer no medical treatment,           chambers of commerce and industry are exempt from the value
hospitalization and veterinary treatment, like pharmacies.              added tax for the activities carried out for the benefit of their
    (4) Also exempt, as per the provisions of Art. 9 (1) a) of the      members in exchange for the dues cashed on the basis of Art.
                                                                        6 of the Decree-law No. 139/1990 on the chambers of
law, are the accommodation, feeding and treatment jointly
                                                                        commerce and industry in Romania.
performed by authorized taxable persons carrying on their
                                                                            Art. 13. — In accordance with Art. 9 (1) i) of the law, it is
activity in spas and the exchange value of which is settled             exempt from the value added tax the carrying out of services
based on treatment tickets, as well as the funeral services             closely connected with the practicing of sports or of physical
carried out by the sanitary units.                                      education supplied to the benefit of the persons who practice
    Art. 10. — Within the meaning of Art. 9 (1) f) of the law, a        sports or physical education by organizations having no
value added tax exemption is granted for the carrying out of            patrimonial purpose, such as: the sports clubs, the sports
services and deliveries of goods closely connected with the social      training grounds, the hotels and canteens for the sportsmen’s
assistance and protection performed by public institutions, by          exclusive use. No exemptions are granted for the revenues
institutions of public interest or by other bodies acknowledged as      deriving from advertising and from the demise of the rights of
having a social character, such as: old people’s homes and              radio and television broadcasting of the sports events.
pensioners’ homes, centers of integration by occupational therapy,          Art. 14. — In accordance with Art. 9 (1) k) of the law, there
placement centers authorized to carry on social assistance              are exempt from the value added tax the carrying out of
activities and hostels for schoolchildren and students.                 services and deliveries of goods performed by those units
    Art. 11. — In accordance with Art. 9 (1) g) of the law,             whose activities are exempt, in keeping with Art. 9 (1) points
exemptions from the value added tax are granted to the                  a), e), f), g) h), i) and j) of the law, on the occasion of the
carrying out of services and deliveries of goods closely                events meant to secure financial support and which are
connected with the children and youth protection, performed by          organized for their exclusive benefit, provided that these
the public institutions, by the institutions of public interest or by   exemptions should not generate competition distortions. Such
other bodies acknowledged as having a social character, such            activities may be: theatre, choreographic or cinema
as: pilot centers for disabled young people, centers of                 performances, exhibitions, concerts, lectures, provided that the
rehabilitation and recovery for the disabled youths, as well as         revenues deriving from these activities serve only for the
other bodies dealing with the youths’ supervising, maintenance,         purpose of meeting the expenses made by the organizing units.
education or spending of spare time.                                        Art. 15. — In keeping with Art. 9 (1) l) of the law, there are
    Art. 12. — (1) Within the meaning of Art. 9 (1) h) of the law       exempt from the value added tax the production, broadcasting
there are exempt from the value added tax the carrying out of           and/for retransmission of the radio and/or television programmes
services and deliveries of goods performed to the benefit of            except for the advertising ones made by companies producing
their members, in their collective interest and in exchange for         and/or broadcasting audio-visual programmes and by those

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dealing with the cable distribution of the audio-visual               tickets and subscriptions selling for which the performing unit
programmes. The works pertaining to the receiving of the audio-       owes the tax on performances shall be exempt from the value
visual programmes shall pay the value added tax.                      added tax, as well as the sums distributed to the film
    Art. 16. — In accordance with Art. 9 (1) m) of the law, the       proprietors and distributors representing their respective shares
selling of films or of licenses for films aimed at being broadcast    of the revenues, pertaining to the activity of cinema films
on television is exempt from the value added tax, except for          exploitation and distribution for the public.
those films or licenses for films meant to advertise a certain            Art. 21. — (1) Within the meaning of Art. 9 (2) j) of the law
product or person. By film one means the artistic production,         the following are exempt from the value added tax:
including the recording material carrier. The copying of the films        a) the publishing and/or printing of: books, handbooks,
and/or videotapes after the original ones and the film processing     dictionaries and/or encyclopaedias, children’s illustrated books,
services having no connection with the television broadcasting        drawing books for children, painting albums, special copybooks
are not exempted from the value added tax.                            for schoolchildren, atlases and other printed matters bearing the
    Art. 17. — In accordance with Art. 9 (1) n) of the law, the       ISBN code, the ones recorded on magnetic support included;
transportation of the sick and wounded by specially equipped              b) the selling of: books, handbooks, dictionaries and/or
and authorized vehicles, performed by the ambulance units is          encyclopaedias, children’s illustrated books, drawing books for
exempt from the value added tax, irrespective of their form of        children, painting albums, special copybooks for schoolchildren,
organization and of the holder of the property right, as well as      atlases and other printed matters bearing the ISBN code, the
by other units, authorized by the Ministry of Health and Family       ones recorded on magnetic support included, whether they are
for the purpose of carrying on such activity.                         sold directly or by intermediaries.
                                                                          (2) The exemption from the value added tax provided for in
    Art. 18. — In accordance with Art. 9 (2) c) point 3 of the
                                                                      par. (1) shall not apply to the revenues derived from advertising
law, there are exempt from the value added tax the specific           or from the publishing, printing or selling of any printed matters
operations carried out by the National Bank of Romania and            for the exclusive purpose of advertising.
specifically regulated by the Law No. 101/1998 on the Statute             Art. 22. — The following are exempt from the value added
of the National Bank of Romania, with the subsequent                  tax, as per Art. 9 (2) k) of the law:
modifications and completions. Tax exemptions are also granted            a) the delivery of medical prostheses of any kind and
to the specific operations taken over by the National Company         accessories for these. The medical prosthesis is any medical
for the Transfer of Funds and Settlements of Accounts — Inc.,         device meant to be introduced and remain implanted inside the
from the National Bank of Romania for which it is authorized by       human body or into an orifice thereof, totally or partially following
the National Bank of Romania.                                         a medical or surgical operation, other medical devices used for
    Art. 19. — In accordance with Art. 9 (2) g) of the law, there     the replacement of a part of the human body, as well as other
are exempt from the value added tax the delivery of goods             devices which are to be carried in the hand, necessary to
carried out by units belonging to the penitentiary system, should     compensate a certain deficiency or infirmity. The accessory of a
these goods be produced by the detainees within these units.          prosthesis is an article especially provided by the producer in
The carrying out of services, resulting from the work of the          order to be used together with the medical prosthesis;
detainees, by the units within the penitentiary system is also            b) the delivery of orthopaedic products, such as: wheel-
exempt from the value added tax.                                      chairs and/or other similar vehicles for the invalids, parts and/or
    Art. 20. — In accordance with Art. 9 (2) i) of the law, there     accessories of wheelchairs or of similar          vehicles for the
are exempt from the value added tax the entrance fees at              invalids, orthopaedic articles and/or orthopaedic apparatus,
castles, museums, fairs and exhibitions, zoos and botanical           including medical and/or surgical belts and bandages and
gardens, libraries, as well as the operations within the sphere of    crutches, splints, inner waterways, as well as other articles
the tax on performances, regulated by the Law No. 147/1998            necessary for fractures and articles and apparatus for
on the tax on performances. The sums collected from the               orthopaedic prosthesis.

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    Art. 23. — (1) In accordance with Art. 9 (3) and (4) of the            tax payers is applied for. The stocks of goods shall be
law, there are exempt from the value added tax the activities              inventoried to this effect and the value added tax relevant to their
performed by the taxable persons with incomes deriving from                value shall be assessed, so as to be introduced into the
declared taxable operations or, as the case may be, with yearly            purchase cost of the goods in stock. From the bookkeeping
incomes, up to the taxable ceiling provided by the law,                    standpoint, the sum of the value added tax pertaining to the
inclusive. The taxable persons who have not been registered as             stock shall be entered to the debit of the stocks account
value added tax payers on the date when they were set up                   corresponding by the account credit 4426 “deductible VAT” and
because they stated that the yearly incomes they obtain are                shall be registered in the value added tax settlement of accounts
placed under the legal taxable ceiling, shall apply for their              with a minus sign, in the month when the stock inventory was
registration as value added tax payers in accordance with the              performed. The taxable persons having goods at a retail price on
legal provisions in force, if they obtain, during one fiscal year,         their records shall register simultaneously the blotting out of the
such incomes deriving from taxable operations that reach                   account 4428 “non-exigible VAT” by the following bookkeeping
beyond the taxable ceiling. After they are registered as value             entry:
added tax payers, the said taxable persons do no longer benefit                371 = 4428, the sum being written in red.
by any exemption, even though their subsequent incomes are                     (5) The revenue authorities shall effect the removal from the
below the taxable ceiling provided by the law.                             records of the value added tax payers having applied for it, on
    (2) The taxable persons registered as value added tax                  the first day of the month following the one when the application
payers, whose incomes obtained in 2001 deriving from taxable               was made.
operations are below the 1.5 billion lei ceiling, may apply for the            (6) The taxable persons which were removed from the
cancellation of their registration as value added tax payers. The          records as value added tax payers, as per Art. 9 (3) of the
taxable persons which registered themselves as value added tax             law, shall not be allowed to subsequently apply for the
payers, as from 1 January 2002 until the coming into force of              registration by their option as value added tax payers. The
this law, may also apply for the cancellation of their registration        taxable persons which did not apply for the cancellation of their
as value added tax payers, if the incomes they derived from                registration as value added tax payers up to 30 September
taxable operations do not exceed 600 million lei inclusive. The
                                                                           2002, shall remain on the records, providing the provisions of
taxable persons applying for the cancellation of their registration
shall bring proof of their having liquidated their liabilities             the law and of the present norms are observed and will not be
pertaining to the value added tax of the latest discount related           allowed to subsequently apply for cancellation.
to the value added tax. The taxable persons failing to fulfill this            Art. 24. — The deliveries of goods having been purchased
obligation shall not benefit by the provisions of Art. 9 (3) of the        after 1 July 1993 fall under the provisions of Art. 9 (5) of the
law, i.e. they may not apply for the cancellation of their                 law, provided that they were exclusively destined to the carrying
registration as value added tax payers. The application for this           out of tax-exempt operations and the deduction right thereof has
registration cancellation shall be handed in to the territorial            never been exercised.
revenue authority not later than 30 September 2002.                            B. Exempt import operations
    (3) The taxable persons who derived, in 2001, revenues from                Art. 25. — In accordance with the provisions of Art. 10 b) of
taxable operations under the taxation ceiling of 1.5 billion lei, having   the law, the goods introduced in this country by travellers or by
however derived revenues from such operations exceeding 600                other natural persons domiciled in this country or abroad, under
million lei from 1 January 2002 till 31 May 2002, may not apply for        the conditions and within the limits established by Government
the cancellation of their registration as value added tax payers.          Decision in keeping with the customs procedure applicable to
    (4) The taxable persons shall be under the obligation to rectify       them, without any customs duties, are exempt from the value
the purchasing cost of the raw materials, materials, merchandise           added tax.
and of other goods existing in their stock at the end of the                   Art. 26. — (1) The value added tax exemption provided in Art.
month when their cancellation of the registration as value added           10 f) of the law, for the import of goods received on a free of

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charge basis as aids or donations for humanitarian, social,                      (4) The value added tax exemption provided for in Art. 10 f)
charitable, religious, health protection, cultural, artistic, educational,   of the law, for the import of goods directly financed from
scientific, sports purposes, for the environment protection and              unredeemable loans obtained from international bodies or foreign
improvement and for the protection and preservation of the historical        governments, shall be granted by the control and clearing
and architectonic monuments, shall be granted by the control and             customs offices based on the documents ascertaining that these
clearing customs offices, based on an one’s account statement                goods are financed from unredeemable loans.
signed by the legal representative of the importer or by the person              (5) The value added tax exemption provided for in Art. 10 f) of
empowered by him, to acknowledge that the goods are meant for                the law, for the import of goods financed directly from unredeemable
the above mentioned purposes. The legal representatives assume               loans obtained from non-profit-making and charitable organizations
their entire responsibility as to the correctness of the statement on        from abroad, shall be granted by the control and clearing customs
the purposes for which the imports are made. The insincere                   offices based on the documents ascertaining that the said imports
statements bring about the civil or criminal liability, as the case may      are financed from unredeemable loans and are meant for purposes
be, in accordance with the provisions of the Law No. 141/1997 on             having a humanitarian character as well as for social, charitable,
the Customs Code of Romania.
                                                                             religious, health protection, cultural, artistic, educational, scientific,
    The one’s account statement shall be made in three original
copies: one copy shall be filed with the customs office where the            sports purposes and for the environment protection and
import customs declaration is made, one copy shall go to the                 improvement, as well as for the protection and preservation of the
territorial revenue authority and the third copy shall remain in the         historical and architectonic monuments. The documents ascertaining
beneficiary’s financial accounting files. With a view to obtaining the       the financing source and the goods destination are agreements,
exemption from the value added tax as provided by the law, the               protocols and/or conventions and memoranda concluded with non-
respective goods shall observe, cumulatively, the following conditions:      profit-making and charitable organizations from abroad.
    a) to be sent by the sender to the addressee with no                         (6) As regards the goods imported as provided in par. (1) —
payment liabilities whatsoever;                                              (4), the revenue authorities and those of the Financial Guard shall
    b) not to become the object of subsequent sellings;                      follow up the destination acquired by the respective goods and,
    c) to be used solely for the purposes they have been imported            should they notice it has been changed, they shall inform the
for. If and when the goods destination is changed, the importers             customs authorities so that the legal measures are taken. The
are obliged to fulfill all the legal formalities regarding the import of     taxes and fees thus owed shall be established and followed up
the goods and to pay the value added tax pertaining to the import.           for a five-year period since the goods have entered this country.
    (2) By unredeemable loans granted to Romania, as per Art. 10                 (7) Within the meaning of Art. 10 g) of the law, the foreign
f) of the law, one understands such loans granted by                         goods which become a state property, as per the law, are:
international bodies, by foreign governments and/or by charitable                a) the goods abandoned following a written statement,
and non-profit-making organizations from abroad, the                         handed in to the customs authorities;
beneficiaries of which have their stable head offices in Romania                 b) the goods the customs position of which is not regulated
and which form the object of agreements, protocols and/or                    by the addressees when the preservation delay thereof, granted
conventions and memoranda concluded with foreign                             by the customs authority, has expired;
governments or with international bodies. The imports paid off                   c) the goods confiscated by the concerned authorities in
from the reciprocal arrangement fund set up from the exchange                keeping with the legal provisions.
value expressed in lei of the aids received by Romania as                        C. Exemptions granted for exports or other similar
goods and services are considered to be financed directly from               operations and for the international transportation
unredeemable loans.                                                              Art. 27. — (1) In accordance with Art. 11 (1) a) of the law,
    (3) Any loan that is financed from the sources provided for in           the export of goods, the transportation and the carrying out of
par. (1) is considered as being financed directly from                       services directly connected with the export of goods as well as
unredeemable loans.                                                          the goods sold through duty-free shops are exempt from the

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value added tax. The export consists in the delivery of goods            whereas the finished product is exported by one single unit, an
performed by taxable persons for beneficiaries having their head         exemption from the value added tax shall be granted to each unit
offices abroad, which goods are transported outside the territory        that took part in the production of the finished product and
of this country, on due fulfilment of all export customs formalities.    concluded contracts for the exchange value of the goods or of the
    (2) As regards the export carried out directly, by taxable persons   services with the same beneficiary from abroad which is also the
registered as value added tax payers, acting for themselves, the         addressee of the exported goods, as well as the unit in charge of
proof for the exemption procedure shall be made based on:                the export of the finished product. The handing over of the products
    a) the external invoice and the fiscal invoice on which the          between the units in the country shall be made following the foreign
mention “exempt with a deduction right” is made;                         beneficiary’s order as per the contract provisions, based on the
    b) the export customs declaration endorsed by the customs            shipping advice, with the mention “no invoice required”.
authorities;                                                                 a) The exporter shall account for the value added tax
    c) the document ascertaining the carrying out of the                 exemption on the base of the documents provided for in par. (2).
international transportation, as the case may be, as per the                 b) The producing/processing units shall account for their
delivery condition.                                                      exemption based on:
    (3) For the exports made for themselves by taxable persons               1. the contract concluded with the foreign partner, which
registered as value added tax payers, in case the goods                  should mention the quantities of goods or the contracted
delivery to the foreign beneficiary is made directly from the            processing, as well as the units in the country where their
producer’s unit as per the contract concluded between the                handing over is to be made, the same as the deadline set for
producer and the exporter, both the producer and the exporter            the accounting for of the export with a copy of the export
shall benefit by a value added tax exemption.                            customs declaration, endorsed by the customs authority;
    a) The exporter shall account for the granted exemption with             2. the external and the fiscal invoice, issued by the foreign
the documents provided for in par. (2).                                  beneficiary, on which the mention “exempt with a deduction
    b) The producer shall account for the exemption with:                right” should be made;
    1. the contract concluded with the exporter;                             3. the shipping advice bearing the mention “no invoice required”.
    2. the fiscal invoice issued by the exporter, on which the               (5) As regards the export which is made through commission
mention “exempt with a deduction right” is made;                         agents, justification of the value added tax exemption by the
    3. a copy of the international transport document, as the            principal shall be based on the following documents:
case may be, in keeping with the delivery condition. The                     a) a copy of the external invoice;
producer’s name and the place shall be mentioned on the
                                                                             b) the contract concluded with the commission agent, stating
international transport document or, if requested by the case,
                                                                         the quantities of goods, as well as the deadline set for the
the specification of the goods exported by every producer shall
be introduced in the annex thereof;                                      accounting for of the export with a copy of the export customs
    4. a copy of the export customs declaration endorsed by the          declaration, duly endorsed by the customs authorities and a
customs office, in the column 31 of which the producer’s name            copy of the annex list attached to the customs declaration, on
and the place shall be written. In case there are several                which the commission agent has written the name of the unit
producers to be mentioned, the export customs declaration shall          which is the owner of the exported goods;
bear the mention “in keeping with the annex including the                    c) the fiscal invoice issued by the principal to the
producers — the place”. The annex shall be duly certified by             commission agent, with the mention in writing “exempt with a
the stamp and signature of the author of the declaration and it          deduction right — export on commission”.
shall be attached to the export customs declaration.                         (6) The commission agent shall account for the exemption for
    (4) In the case of goods requiring successive processing             commission, as per Art. 11 (1) r) of the law, based on the
operations to be carried out by various units in the country, as well    following documents:
as the incorporation of other goods therein, including the packing,          a) the external invoice;

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    b) the export customs declaration endorsed by the customs              (8) For other carrying out of services directly connected with
authorities and the annex list attached to the customs declaration,    the export of goods, the value added tax exemption shall be
on which the commission agent has written the denomination of          accounted for with:
the unit which is the owner of the exported goods;                         a) the contract concluded with the exporter or with the
    c) the document attesting the carrying out of the international    beneficiary from abroad or with commission agents acting on
transport, as the case may be, depending on the delivery conditions;   behalf or on the account thereof, or their orders;
    d) the fiscal invoice for the commission, bearing the mention          b) any documents handed in by the exporter or by the
“exempt with a deduction right”;                                       commission agent acting on behalf or on the account thereof,
    e) the contract concluded between the principal and the            from which it shall result that the said operations are directly
commission agent, providing the deadline set for the carrying          connected with the export of goods, or the external invoice in the
out of the export.
                                                                       case of services contracted with beneficiaries from abroad or with
    (7) The transporters benefit by the value added tax exemption,
as per Art. 11 (1) a) of the law, the same as the forwarding           commission agents acting on behalf or on the account thereof.
firms, as per the provisions of Art. 11 (1) a) and r) of the law,          (9) The value added tax exemption for the goods sold during
for the transport of the exported goods at destination abroad. The     one month through duty-free shops, shall be accounted for with:
exemption shall be accounted for as follows, in keeping with the           a) the export customs declaration, for the home produced
type of transportation:                                                goods;
    a) in the case of motor transport, the following documents             b) the import customs declaration, for the goods coming
shall be necessary: the contract concluded with the exporter or,       directly from abroad, from either the warehouses or from the
as the case may be, with the forwarding firm or with the               free zones.
beneficiary from abroad or their written orders; the international         Art. 28. — (1) The international transport of persons falling under
transportation deed endorsed by the customs bodies or, for the         the value added tax exemption as per Art. 11 (1) b) of the law is
forwarding firms, a copy thereof;                                      that transport whose place of carrying out is considered to be
    b) in the case of combined transport or of transport by            Romania as per Art. 7 (1) b) of the law.
pipeline, directly connected with the export of goods, the following       (2) The international motor transport of persons is exempt of
documents shall be necessary: the contract concluded with the          the value added tax as per Art. 11 (1) b) of the law, if its
exporter or, as the case may be, with the forwarding firm, or with     duration on the routes abroad exceeds 24 hours. The
the beneficiary from abroad or their written orders; a copy of the     transporters shall account for the value added tax exemption with:
export customs declaration, endorsed by the customs bodies; the            a) the transport license;
specific transport document, endorsed by the customs bodies;               b) the job specifications of the route license, as the case
    c) in the case of railway transport, the following documents       may be;
shall be necessary: the contract concluded with the exporter or, as
                                                                           c) the travelling warrant or other documents endorsed by the
the case may be, with the forwarding firm or with the beneficiary
from abroad or their written orders; the international railway         customs body, from which the date of exit/entrance from/into the
transport document bearing the stamp of the dispatch station for       country shall result;
the transporter, or a copy thereof for the forwarding firms; the           d) the chart of the travelling tickets or, as the case may be,
document of the goods car passing on to the neighboring railway,       the fiscal invoices for the occasional travels;
to confirm that the goods left the country, for the transporter;           e) the fiscal invoice with the “exempt with a deduction right”
    d) in the case of river, sea and air transport, the following      mention for the exchange value of the sold tickets, if the selling
documents are necessary: the contract concluded with the               thereof is made through the commission agents.
exporter or, as the case may be, with the forwarding firm or               (3) For the international air, river, sea and railway transport
with the beneficiary from abroad or their written orders; the          of persons, the transporters shall account for the value added
relevant shipping document, endorsed by the customs bodies.            tax exemption with:

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    a) the specific transport documents from which the transport        for the reimbursement of the value added tax shall be accounted
route shall result, the exit/entrance date from/into this country,      for solely with documents pertaining to the purchases made
as the case may be;                                                     during the quarter for which the value added tax reimbursement
    b) the fiscal invoice bearing the “exempt with a deduction right”   is applied for, alongside of documents attesting the payment of
mention, if the travel tickets are sold by commission agents;           the exchange value of goods and services up to the date when
    c) the sale sheet/chart of the sold tickets and, if the case        the application is forwarded.
may be, the fiscal invoices in the case of occasional travels.              (7) The general directorates of public finance in the counties or
    (4) The taxable persons selling tickets for the international       that of the Bucharest Municipality, as the case may be, shall study
transport of persons are exempt from the value added tax on             the reimbursement applications and the attached documents.
these operations, as per Art. 11 (1) b) and r) of the law. The          Pursuant to the study and checking up, a note shall be drawn up
tax exemption shall be accounted for with:                              mentioning the number and date of the application, the result of
    a) the sale sheet/chart of the sold travelling tickets;             the checking up and the reimbursement proposal or, as the case
    b) the fiscal invoice for the commission, bearing the “exempt       may be, the rejection of the value added tax exemption application.
with a deduction right” mention on it, or, as the case may be,          The note shall be duly approved by the general manager of the
the invoice received from the transporter for the sold tickets.         general directorate of the public finance in the counties or that of
    (5) The agencies of the foreign air travel companies                the Bucharest Municipality, as the case may be.
functioning on the territory of Romania benefit by a value added            (8) If the reimbursement of the value added tax is approved,
tax exemption as to the tickets for the international transport of      the notifications to the Treasury and to the applicant shall be
persons, as per Art. 11 (1) b) and r) of the law, based on the          drawn up. Upon the receipt of the notification, the Treasury
reciprocity granted to the Romanian air travel companies having         shall write Treasury-type money orders on behalf of each
agencies abroad. The responsibility for the checking up of the          agency, with due mention of the sum to be reimbursed.
observance of the reciprocity conditions shall be incumbent upon            Art. 29. — In accordance with the provisions of Art. 11 (1) c)
the General directorate of the air travel services and airports         of the law, exemptions from the value added tax shall be granted
within the framework of the Ministry of Public Works,                   for the transport of goods and/or persons by ships and planes
Transportation and Housing. This shall hand in to the Ministry of       under Romanian flag, ordered by beneficiaries from abroad directly
the Public Finance the list including the countries where the           or through forwarding firms, whose activity is considered to take
Romanian air travel companies have opened agencies, whether             place in Romania. The accounting for of the exemption shall be
they benefit from the value added tax reimbursement in the              made by documents attesting the carrying out of the transport. As
respective countries and under what circumstances. The said             regards the transport of goods and/or persons by ships and
information shall be updated whenever modifications of the              planes under Romanian flag, ordered by beneficiaries from abroad
mutual relations between the concerned countries occur.                 directly or through forwarding firms and made between two
    (6) The value added tax exemption for the tickets sales in          ports/airports from abroad, the place of operation is considered to
Romania carried out by the agencies of the foreign air travel           be abroad and the transporters benefit by the deduction right as
companies shall consist in the reimbursement, by the Ministry of        per Art. 22 (4) d) of the law.
Public Finance, through the general directorates of public finance          Art. 30. — (1) As regards the transport of the imported
in the counties or, as the case may be, that of the Bucharest           goods, the exchange value of which is included into the tax
Municipality of the value added tax pertaining to the acquired          base as per Art. 19 (1) and (2) of the law, the transporters, the
goods and services, destined to the agencies’ operating                 forwarding firms respectively, shall account for the value added
necessities. The reimbursement of the value added tax shall be          tax exemption provided for in Art. 11 (1) e) of the law, in
made on a quarterly basis, pursuant to an application duly              accordance with the type of transport as follows:
forwarded by the agencies of the foreign air travel companies to            a) for road transport, the following documents are needed: the
the county general directorates of public finance or, as the case       contract concluded with the importer or, as the case may be,
may be, to that of the Bucharest Municipality. The applications         with the forwarding firms or with the supplier from abroad or their

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orders, the international shipping document or a copy thereof for        and/or persons within the international traffic shall account for
the forwarding firms, a copy of the import customs declaration;          the value added tax exemption granted as per Art. 11 (1) f) of
    b) for transport by pipelines and for the combined transport         the law with the document stamped and signed by the customs
which are directly connected with the imports of goods, the              agent, attesting that the said goods were effectively loaded on
following documents are needed: the contract concluded with              board of the vessel or plane, and the fiscal invoice bearing the
the importer or, as the case may be, with the forwarding firm            “exempt with a deduction right” mention.
or the supplier from abroad or their orders, the specific shipping           (2) The value added tax exemption for the goods destined to
document, a copy of the import customs declaration;                      be used on ships and planes or to be incorporated into ships
    c) for railway transport, the following documents are needed: the    and planes under a foreign flag and which carry on international
contract concluded with the importer or, as the case may be, with        transports of persons and/or goods shall be accounted for with:
                                                                             a) the external invoice and the fiscal invoice, bearing the
the forwarding firm or with the supplier from abroad or their orders;
                                                                         “exempt with a deduction right” mention on them;
the international transport document on the railway, bearing the             b) the export customs declaration, endorsed by the customs
stamp of the dispatch station for the transporter, or a copy thereof     bodies.
for the forwarding firms; the document of the goods car passing              Art. 32. — The accounting for the value added tax exemption
from the neighboring railway to confirm the goods entering the           provided for in Art. 11 (1) g) of the law shall be made with the
country for the transporter, a copy of the import customs declaration;   fiscal invoice bearing the “exempt with a deduction right” mention
    d) for river, sea and air transport, the following documents         or, as the case may be, with the external invoice as well as with
are needed: the contract concluded with the importer or, as the          the specific documents showing that the services are carried out
case may be, with the forwarding firm or with the supplier from          in ports or airports and are subsidiary to the planes in the
abroad or their orders; the specific transport document, a copy          international traffic, to sea trade ships and on international rivers.
of the import customs declaration.                                           Art. 33. — (1) In accordance with Art. 11 (1) i) of the law,
    (2) The carrying out of services subsidiary to the transport         are exempt from the value added tax the operations carried out
and of other services pertaining to the imported goods the               by taxable persons registered as value added tax payers,
exchange value of which is included in the customs value as              contracted with beneficiaries having their head offices or
per the provisions of Art. 19 (1) and (2) of the law shall be            domicile abroad or with commission agents acting on behalf or
accounted for by the service providing units with:                       on the account thereof, regarding:
    a) the contract concluded with the transporter, with the                 a) services carried out on the account of beneficiaries having
importer of the goods or with the beneficiary from abroad or             their head offices abroad, for the imported goods during their
                                                                         guarantee period;
with such commission agents acting on behalf and on the
                                                                             b) the transport and the services subsidiary to the transport,
account thereof, or the orders placed by these;                          pertaining to the goods in transit over the Romanian territory;
    b) the documents handed in by the transporter, or by the                 c) services consisting in the drawing up of studies, making
goods importer, or by the commission agents acting on behalf             of marketing research, and granting of specialized assistance;
of the latter or on his acccount, showing that the said services             d) the services the exchange value of which is included in
are subsidiary to the transport or pertaining to the imported            the customs value pertaining to the imported goods;
goods; the external invoice, for the services carried out under              e) mail services carried out on the territory of Romania by
contract with beneficiaries from abroad or with commission               the operators provided for in the Government Ordinance
agents acting on their behalf or on their account.                       No. 70/2001 for the ratification of the Documents adopted by
    Art. 31. — (1) The taxable persons registered as value               the Congress of the World Postal Union held in Beijing (1999),
added tax payers who carry on deliveries of goods destined to            approved by the Law No. 670/2001, consisting in the taking
be used on ships or planes under a Romanian flag or to be                over and delivery of the mail dispatches from abroad, the
incorporated into these, which carry on transports of goods              financial-postal services included.

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    (2) The accounting for the value added tax exemption for the           D. Special exemptions connected with the international
services provided for in par. (1) a), c) and d) shall be made with:    traffic of goods
    a) the external invoices and the fiscal invoices;                      Art. 36. — (1) The placing of certain goods under the system
    b) the contracts concluded with the foreign partners or their      of active perfecting is subject to the regulations included in the
orders.                                                                Law No. 141/1997 on the Customs Code of Romania, as regards
    (3) The accounting for the value added tax exemption for the       the import rights. In accordance with the provisions of Art. 12 a)
services provided for in par. (1) b) shall be made with:               of the law, are exempt from the value added tax the operations
    a) the specific transport document, the transit customs            of transformation or processing of the foreign goods/imported
declaration, the fiscal invoice bearing the “exempt with a             goods on the territory of Romania, destined to be re-
deduction right” mention and, as the case may be, the external         exported/exported under the form of compensatory products, as
invoice, issued by the transport beneficiary or by the forwarding      provided in Chapter VII, section IV of the Law No. 141/1997.
firms in the case of transporters;                                         (2) The taxable persons having concluded contracts of active
    b) a copy of the specific transport document and of the            perfecting with beneficiaries from abroad and who carry out the
transit customs declaration, the fiscal invoice bearing the            export or, as the case may be, the re-export of the
“exempt with a deduction right” mention or, as the case may            compensatory products shall account for the value added tax
be, the external invoice too, issued on behalf of the shipment         exemption with the following documents:
beneficiary, in the case of forwarding firms;                              a) the contract concluded with the beneficiary from abroad or
    c) the contracts concluded with the shipment beneficiary or with   his order;
the forwarding firms or their orders, the fiscal invoice bearing the       b) the authorization for active perfecting issued by the
“exempt with a deduction right” mention or, as the case may be,        customs bodies;
the external invoice too, a copy of the transit customs declaration,       c) the external invoice and the fiscal invoice bearing the
in the case of units carrying out services subsidiary to the           “exempt with a deduction right” mention;
transport of goods in transit on the territory of Romania.                 d) the export customs declaration or, as the case may be,
    (4) The accounting for the value added tax exemption               the re-export one, endorsed by the customs bodies or a copy
granted for the services provided for in par. (1) e) shall be          after the export customs declaration or, as the case may be,
made with international specific postal documents.                     the re-export one, drawn up by the unit in charge of the
    Art. 34. — The commission agents acting on behalf or on            export/re-export of the compensatory products, for the units
the account of another person shall account for the value              which ceded their right to active perfecting;
added tax exemption, provided for in Art. 11 (1) r) of the law,            e) the document certifying the carrying out of the international
the provisions of Arts 27—33 of the present norms, when they           transport, as the case may be.
intervene in the tax exempt operations as per Art. 11 (1) a) —             (3) The taxable persons that signed processing contracts with
c), e) — g) and i) of the law.                                         the holder of the authorization for active perfecting operations
    Art. 35. — (1) The operations provided for in Art. 11 (1) a) —     benefit by the value added tax exemption for these operations,
c), e) — g), i) and r) of the law for which no value added tax         as per the provisions of Art. 12 f) of the law, based on the
exemption is accounted for in keeping with the present norms,          following documents:
shall be subject to a standard quota of the value added tax.               a) the contract concluded with the holder of the authorization
    (2) The contracts concluded with the foreign partners, as          for active perfecting operations or his order showing the
provided for in Arts 27—33 of the present norms, shall be              deadline set to account for the export, with a copy of the
translated into Romanian and certified on their own responsibility     export customs declaration, endorsed by the customs body;
by the taxable persons having signed such contracts. The same              b) a copy of the authorization for the active perfecting operations;
provisions shall also apply to the contracts signed by the taxable         c) the fiscal invoice bearing the ”exempt with a deduction
persons provided for in Arts 36 — 39 of the present norms.             right” mention, for the carried out processing operations.

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    (4) The invoicing of the goods sent for processing, by the               b) documents handed in by the unit which bonds the goods
holder of the active perfecting authorization or by the person to        into a bonded warehouse or by the commission agent acting on
whom the active perfecting procedure has been ceded, to the              its behalf or on its account, showing that the respective
units in charge of the execution of the processing is forbidden.         operations are directly connected with the export of goods, or
The said goods shall be sent for processing based on the                 the external invoice, in case of carrying out services contracted
shipping advice. The units carrying out the processing shall hand        with beneficiaries from abroad or with commission agents acting
over the goods to the holder of the active perfecting authorization      on their behalf or on their account.
or to the person to whom the active perfecting procedure has                 Art. 38. — The value added tax exemption provided for in
been ceded, based on the shipping advice and on the fiscal               Art. 12 c) of the law shall apply to the goods bonded under a
invoice for the exchange value of the carried out services.              temporary importation procedure with full exemption from the
    (5) For the transport of the compensatory products to their          payment of import taxes, as well as to the carrying out of
destination abroad, the transporters, including the forwarding           services directly connected with these operations.
                                                                             Art. 39. — (1) The value added tax exemption provided for
firms, shall account for the value added tax exemption with the
                                                                         in Art. 12 d) and e) of the law shall be granted for:
documents provided for in Art. 27 (7) of the present norms.                  a) the bringing of foreign goods in the free zones straight
    (6) For the carrying out of such services that are directly          from abroad, with a view to simply storing them, without any
connected with the compensatory products export, the                     customs formalities;
exemption shall be accounted for with the documents provided                 b) the foreign goods sale and purchase commercial operations
for in Art. 27 (8) of the present norms.                                 between various operators in the free zone and between these
    Art. 37. — (1) In accordance with the provisions of Art. 12 b)       and the natural and legal persons outside the free zone;
of the law, the units which place, to the order of their beneficiaries       c) the removal of the foreign goods out of the free zone
from abroad, in customs warehouses located on the territory of           outside this country, with no export customs declarations;
Romania compensatory products achieved under an active                       d) the transport, packing, marking and other services directly
processing procedure as per the provisions of Art. 111 (1) a) of         connected with the operations provided for in points a) — c).
the Law No. 141/1997, benefit by the value added tax exemption,              (2) The value added tax exemption provided for in par (1)
which shall be accounted for with the following documents:               shall be granted as long as the foreign goods are not imported or
    a) the contract concluded with the beneficiary from abroad;          placed under a different customs procedure; subsequently, the
    b) the authorization for the active processing operations,           regulations or the taxation procedure shall be applied, in keeping
issued by the regional customs directorate within the range of           with the customs procedure under which the respective goods are
which the titular of the respective operation is located;                placed.
    c) the external invoice and the fiscal invoice bearing the               (3) The foreign goods brought from the free zones to
“exempt with a deduction right” mention;                                 Romania or which are consumed or used in the free zones shall
    d) the bonding authorization;                                        be subject to the regulations provided for in Arts 126 — 134 of
    e) the bonding customs declaration, endorsed by the                  the Law No. 141/1997 or, as the case may be, to the regulations
customs bodies;                                                          provided in the Government Ordinance No. 51/1997 regarding the
    (2) The carrying out of services directly connected with the         leasing operations and the leasing companies, republished.
operations provided for in par. (1) are also exempt from the
value added tax. This exemption shall be accounted for with:                                      CHAPTER II
    a) the contract concluded with the unit which bonds the                          Persons obliged to pay value added tax
goods into a bonded warehouse, with the beneficiary from                    Art. 40. — (1) The designation of the fiscal agent shall be
abroad or with commission agents acting on their behalf or on            made based on an application handed in by the foreign person
their account or the orders placed by these;                             to the revenue authorities with which the proposed agent is

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registered as a fee and tax payer. The following documents               person’s activity in Romania is to be continued, the application can
shall be attached to the application:                                    be approved only after the foreign person fulfills all the formalities
    a) the declaration for the commencement of the activity,             required for the designation of another fiscal agent. Subsequent to
which shall include: the date, the volume and the nature of the          the foreign person’s termination of activity or to the replacement of
activity he will carry out in Romania;                                   the fiscal agent he designated, the fiscal agent shall be liable for
    b) a copy of the document for the setting up abroad of the           the payment of the value added tax, of the delinquent taxes, for
respective taxable person;                                               the delay penalties and for the fines, within the time limits provided
    c) the written acceptance expressed by the person proposed to        for in the law. The fiscal agent may ask the relevant revenue
act as a fiscal agent, by which he pledges to fulfill the obligations    authority to effect, within 5 months as from the date when his
incumbent upon him as per the law and in which he shall specify          mandate has ended, a thorough audit of the operations carried out
the nature of the operations and the assessed value thereof.             while he was still in charge. The approval of the application for
    (2) Only one single agent shall be allowed for the operations        waiving the commitment assumed by the fiscal agent shall be
both taxable or exempt with a deduction right, to be carried out         given by the revenue authority, provided that he shall remain liable
by the foreign person in Romania. The coexistence of several             for all irregularities, if any, to be discovered subsequently, if these
fiscal agents having limited commitments shall not be allowed.           are imputable to him or result from the complicity between himself
Any taxable persons registered as value added tax payers may             and the foreign person or other persons.
be designated as fiscal agents.                                              (6) The liabilities of the fiscal agent as to the application of
                                                                         the value added tax pertaining to the operations carried out by
    (3) The revenue authority shall check up the compliance with
                                                                         the foreign person in Romania are those provided for by the
the conditions provided for in paras (1) and (2) and, in no more
                                                                         Romanian legislation for the value added taxpayers having their
than 30 days since the date of receipt of the application, shall         head offices in Romania. The foreign person shall send his
let know both the foreign person and the person proposed as              fiscal agent the external invoice destined to his beneficiary, with
his fiscal agent about the decision they made. If the application        no mention on it of the amount of the value added tax due, as
is approved, the approval decision shall be sent simultaneously          well as two copies of the respective invoice. The fiscal agent
with the fiscal code assigned to the fiscal agent, which must be         shall issue the fiscal invoice in keeping with the regulations in
different from the fiscal code assigned to his own activity. The         force in Romania and shall apply the value added tax on the
fiscal code shall be assigned by the general directorate of the          tax base as established by converting into lei the exchange
information technology within the framework of the Ministry of           value of the goods deliveries and/or the carrying out of services
Public Finance. In the event that the application is rejected, the       mentioned in the external invoice, at the exchange rate
decision shall be sent to both parties, with due motivation of           announced by the National Bank of Romania on the date when
the refusal.                                                             the fiscal invoice is issued. In the fiscal invoices, the heading
    (4) Subsequent to his having been accepted by the relevant           destined to the supplier shall include the name and the address
revenue authority, the fiscal agent shall be hired for all the           of the fiscal agent, as well as the Romanian fiscal code
operations to be effected by the foreign person in Romania, for          assigned to the foreign person’s fiscal agent. The original copy
the whole duration of his assignation.                                   of the fiscal invoice shall be sent to the beneficiary alongside of
    (5) The fiscal agent may give up his commitment by an                the original external invoice issued by the foreign person.
application forwarded to the revenue authority. In his application, he       (7) The value added tax discount, forwarded by the fiscal agent,
must specify the last value added tax discount he shall hand in          shall exclusively include the operations resulting from the activity
while still in this capacity and to propose a date, subsequent to        carried out in Romania by the foreign person he acts on behalf of.
the one his application is forwarded, when his mandate shall end.        If the fiscal agent is appointed by several foreign persons, this
He is also obliged to mention whether the giving up of his mandate       shall forward one discount for each foreign person he acts on
is due to the foreign person’s termination of activity. If the foreign   behalf of. For his own activity, for which the fiscal agent is

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registered as a value added tax payer, a distinct discount shall be            (11) The trading companies which cede part of their incomes
made, on the terms provided by the regulations in force for the            deriving from the selling of products subject to the value added tax
value added tax payers having their head offices in Romania.               shall estimate the sum due to their foreign partner by applying the
   (8) The exercising of one’s right of deduction on the value             quota provided for in the concluded contracts on the sums obtained
added tax, pertaining to the goods and services the foreign                from the selling of products, the value added tax excluded. The
person purchases from this country, and which are destined to the          selling of goods shall be reflected in the books as follows:
taxable operations or to the tax exempt operations with a                      411 = % with the total value of the invoice;
deduction right he carries out in Romania, shall be effected as                     701 — with the selling price of the finished goods, the
per the provisions of chapter VI “Deductions procedure” of the                      collected VAT and the sum due to the foreign partner
law. For the exercising of one’s deduction right, the fiscal agent                  excluded;
has, as a rule, to detain the original documents provided by the                    462 — with the sum due to the foreign partner;
law. Upon approval from the revenue authority with which he is                      4427 — with the sum representing the value added tax,
                                                                                    estimated by applying the quota provided for by the law to
registered as a value added tax payer, the fiscal agent can
                                                                                    the sums accumulated in the accounts 701 and 462;
account for the value added tax deduction based on the
                                                                               462 = 446 — with the tax on dues, as kept back from the
photocopy of the original invoice, provided that the following             sum owed to the foreign partner;
prerequisites are met:                                                         446 = 5121 — with the tax transferred to the state budget;
   a) the foreign person justifies in front of the revenue                     462 = 5121 — with the sum paid to the foreign partner.
authority the legal obligation laid down by the country where he
has his stable domicile of detaining original inovices at the                                          CHAPTER III
foreign company’s head office;
                                                                                    Generating fact and payability of value added tax
   b) the foreign company shall certify that the photocopies are
true copies of the original one;                                               Art. 41. — (1) The import-export connected operations carried
   c) the foreign person shall make a pledge in writing that he shall      out, as per the Government Decision No. 276/1995 on the carrying
temporarily put the original invoices at the fiscal agent’s disposal, at   out of import and export connected operations achieved on the
the request of the revenue authority, for checking purposes.               economic unit level, with the subsequent completions, by the
                                                                           taxable persons carrying out a foreign trade activity as regards: the
   (9) The foreign persons that carry out in Romania taxable
                                                                           import of energetic products and basic raw materials, connected
operations and/or exempt operations with a deduction right are
                                                                           with the export of products free for export, as well as the import of
not obliged to designate a fiscal agent domicilied in Romania,
                                                                           materials, component parts, subsystems, equipment and machinery
under the following circumstances:                                         for production, connected with the export of the resulting finished
   a) when the value added tax is the beneficiary’s liability, as          products, are subject to the value added tax as follows:
per the provisions of Art. 7 (1) c) of the law;                                a) at the goods’ admission into the country, the importer is
   b) if they have subsidiaries through which they carry on their          obliged to draw up the import customs declaration, to pay the
activity and which are registered as payers of taxes and fees in           relevant value added tax and to duly exercise his deduction right
Romania;                                                                   under the circumstances provided by the legal regulations in force;
   c) when they carry out deliveries of goods or services which                b) the imported goods given to the producers for the
are exempt from the value added tax.                                       execution of the products to be exported, the exchange value of
   (10) If the foreign person fails to designate a fiscal agent            which represents the payment for the imported goods, shall be
domicilied in Romania, the liability for the value added tax               invoiced on a negotiated price basis plus the value added tax;
payment pertaining to the taxable operations he carries out on                 c) the products made by the producers and delivered to the
the territory of Romania is incumbent upon the beneficiaries.              foreign trade units as payment in exchange for the imported

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goods received from them shall be invoiced on a negotiated              works falling under the provisions of par. (1). The option
price basis plus the value added tax.                                   statement shall be transmitted for each building work.
    (2) The payability of the value added tax pertaining to the            (3) After the transmission of the option, the contractors are
operations provided in par. (1) b) and c) emerges, in the cases         forbidden to invoice the value added tax prior to the carrying
of both the supplier and the beneficiary, on the date of the            out of the delivery for the respective building works.
products delivery for export.                                              (4) The non-observance of the conditions provided for in
    (3) The import-export connected operations shall be                 paras (1) — (3) shall bring about the cancellation of the option
accounted for with the following documents:                             and the obligation to collect the value added tax pertaining to
    a) the operating licence;                                           the cashed advance payments.
    b) the contracts concluded by the foreign trade company with           (5) The contractor may give up this option any time, which
the foreign partner and with the producers at home, from which          renders him liable to collect the value added tax pertaining to
the fact must result that these operations are not effected with        the cashed advance payments.
money, but by value compensations;
    c) the documents provided for in Art. 27(2) of the present                                      CHAPTER IV
norms.                                                                                                 Tax base
    Art. 42. — (1) Within the meaning of Art. 15 d) of the law,             Art. 45. — In the case of payment in kind, the value of all
the fact generating the value added tax for the goods of foreign        the received goods and/or services shall integrally cover the
origin, brought in the country on the basis of a customs                exchange value of the delivered goods or of the carried out
suspensive procedure, arises on the date when these are                 services, as the case may be.
placed under an import customs procedure.                                   Art. 46. — For the determination of the tax base for the
    (2) For the exported goods which are returned, the fact             deliveries of goods and/or the carrying out of services estimated
generating the value added tax arises on the date when the              in foreign currency in the contract and the payment of which is
respective goods are sold to local beneficiaries.                       made in lei at the exchange rate valid on the day it is made, the
    Art. 43. — For the commission operations in tourism, the            supplier or, as the case may be, the party carrying out the
value added tax becomes exigible on the date when the tourist           services shall draw up the fiscal invoice simultaneously, in foreign
services are carried out.                                               currency and in lei. The tax base shall be corrected by the
    Art. 44. — (1) For the building works which are finalized into      difference of price resulting from the modification of the exchange
chattels real, the contractors can make an option for the value         rate in force on the date when the invoice is cashed, as against
added tax payment on the date when the fact generating the              the one applied on the date of invoicing. The supplier is obliged
tax arises, the delivery date respectively, for the building works      to issue the fiscal invoice, in black for the cashed additional sums
which meet one of the following prerequisites:                          or, as the case may be, in red for the sums to be deducted.
    a) they are carried out within the framework of a single contract       Art. 47. — (1) The tax base shall be integrally calculated on
which provides the contractor’s obligation as to the procuring,         the delivery of goods and/or on the carrying out of services,
installation or incorporation of movables into the respective work;     even though the contract provides the payment by instalments.
    b) the value of the materials and apparatuses necessary to              (2) In the case of operations paid by instalments, the value
the operation of the installations or incorporated into the building    added tax integrally calculated as per the provisions of par. (1),
works exceeds 50 % of the price as negotiated between the               the “non-exigible VAT” shall be registered in the account 4428
contractor and the beneficiary.                                         and, as it becomes exigible, it shall be registered in the credit
    (2) The option shall be transmitted to the territorial revenue      of the account 4427 “collected VAT” through the debit of the
authority with which the contractor is registered as a value added      account 4428 “non exigible VAT”.
tax payer, in a statement through which he pledges to collect,              Art. 48. — The tax base for renting is the sum agreed upon
when the delivery is made, the value added tax pertaining to the        by virtue of the contract concluded by the parties.

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    Art. 49. — The tax base for the working and/or protection         tourist services using their own or rented means, shall
equipment partially paid for by the employees, is the exchange        determine the tax base separately for each activity.
value borne by the employees.                                             Art. 52. — (1) For the sales of goods in second-hand
    Art. 50. — For the goods sold on consignment basis, the tax       procedure the tax base shall be determined upon the delivery
base consists of:                                                     of the goods and shall be made of the amount representing the
    a) the sum deriving from the selling of the goods left in         difference between the selling price obtained, including the value
consignment by value added tax payers. For such sold goods,           added tax, and the purchasing price of the respective goods.
the respective value added tax payers are obliged to issue            The collected value added tax, pertaining to the sales of goods
fiscal invoices not later than the last day of the month in which     in second-hand procedure, shall be calculated by applying the
the selling was made;                                                 recalculated quota of 15.966% on the thus determined amount.
    b) the sum equivalent to the commission applied on the                (2) By delivery of goods in second-hand procedure, within the
selling of goods belonging to persons who are not value added         meaning of value added tax, it is understood the sale by the
tax payers or who are exempt from the payment of the value            taxable persons registered as payers of value added tax of
added tax.                                                            second-hand goods purchased in the country from natural or
    Art. 51. — (1) The taxable persons registered as payers of        legal persons that are not registered as payers of value added
value added tax, that carry out activity of intermediation in         tax.
tourism, shall determine the tax base for that activity by                (3) By second-hand goods, within the meaning of value
deducting from the price or tariff cashed from the client,            added tax, there shall be understood tangible personal property
including the value added tax, the following elements:                that has been used before the purchase and is to be repaired,
    a) the price, including the value added tax, invoiced by the      improved or sold as such, with the exception of works of art,
performers of the services of transport, hotel, restaurant and of     antiques, collection articles, precious metals and stones.
other performers;                                                         Art. 53. — For the operations carried out by the pawnshops
    b) the expenses made by the agency or by the organizer of         the tax base shall consist of:
tourist circuits, such as the expenses regarding car insurance of         a) the value obtained from the sale of the goods that
the means of transport, visa fees, daily allowance and                become the property of the pawnshop, as a result of non-
accommodation for the driver, highway fees, parking fees, fuel.       refunding the loan;
    (2) The collected value added tax pertaining to the                   b) the purchase price for the goods that become property of
intermediation activity in tourism, shall be calculated by applying   the pawnshop and are used according to article 3 (4) in the
the recalculated quota of 15.966% on the basis of taxation            law.
determined according to the provisions of paragraph (1). From             Art. 54. — In order to be excluded from the tax base, the
the value added tax there shall be deducted the value added           rebates, allowances, end-year rebates, discounts and other price
tax pertaining to the goods and/or services purchased meant for       reductions, provided for in art. 18 (3) a) of the law, have to
the own needs of functioning of the units that carry out an           fulfil the following conditions:
intermediation activity in tourism.                                       a) to be actual and in exact amounts to the benefit of the client;
    (3) The taxable persons registered as payers of value added           b) not to be, in fact, the remuneration of a service or a
tax, that perform tourist services using their own or rented          compensation for a certain performance;
means, such as means of transport, hotels, restaurants, shall             c) to be reflected in fiscal invoices or in other legal
determine the tax base on the basis of the prices and of the          documents.
tariffs negotiated with the beneficiaries of the tourist services.        Art. 55. — (1) The penalties, as well as the amounts
    (4) The taxable persons registered as payers of value added       representing prejudice established by a final judgement, charged
tax, that carry out both intermediation operations, as well as        for total or partial non-fulfilment of the contract obligations, shall

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be excluded from the tax base only if charged above the                   (4) The beneficiaries that received packing in exchange for a
negotiated prices and/or tariffs.                                      guarantee have the obligation to communicate periodically to the
    (2) From the tax base there shall not be excluded the              supplier, but not later than the legal term for taking the annual
amounts cashed for the covering of the damages caused by the           inventory, the quantities of packing taken out of the accounts as
destruction, deterioration, non-returning on time of the rented        a result of destruction, wearing out, minuses or other causes of
goods or others similar, which, in fact, shall represent the           the same nature. On the basis of the data communicated by
exchange value of the goods delivered or services performed.           the beneficiaries, the suppliers shall be obliged to invoice with a
    Art. 56. — (1) The amounts paid up by the supplier/performer       value added tax the quantities of the respective packing, within
to the client’s account shall be discounted to him on the basis of     3 days from communication.
a fiscal invoice in which there shall be mentioned “breakdown             (5) The packing circulation system based on exchange shall
invoice — for payments on behalf of the client”, accompanied by        apply compulsorily in the relations with non-payers of value
copies of the invoices paid on behalf of the client. In the fiscal     added tax, on delivery.
breakdown invoice there shall be emphasized the fiscal invoices
or other legally approved documents that were paid off, the tax
base and the pertaining value added tax. The supplier/performer                                    CHAPTER V
shall not exercise the right of deduction for the amounts paid off           Taxation quotas and calculation of the value added tax
on behalf of the client and shall not collect the value added tax          Art. 58. — (1) The quotas applied to the taxable operations
from the fiscal breakdown invoice. Likewise, he will not register      shall be those in force on the date when the fact generating the
these amounts in the expense accounts, respectively income             value added tax takes place, with the exception of the operations
account, the respective amounts being registered in the account        stipulated in article 20 (3) in the law, for which the quotas in
462 “Various creditors”, including the value added tax. The client     force on the date in which the value added tax becomes exigible
has the right to deduct the value added tax mentioned in the           shall apply. The deliveries of goods and the service performances
fiscal breakdown invoice, accompanied by the copies of the fiscal
                                                                       up to the date of 31 May 2002, justified by forwarding and
documents on the basis of which it was drawn up.
    (2) The provisions of paragraph (1) shall only apply in case       transport documents, with official reports of reception or with other
the suppliers/performers and the client are taxable persons            similar documents, from which there should result that the delivery
registered as payers of value added tax.                               and/or performance have been carried out up to the mentioned
    Art. 57. — (1) The packing circulating by invoicing shall be       date, shall be invoiced with the quotas in force on the date of
included in the tax base of the value added tax on delivery,           carrying out the respective operations.
and on their restitution the taxable amount shall be                       (2) The mode of calculation of the recalculated quota,
correspondingly diminished, by drawing up certain invoices in          stipulated in article 21 (2) in the law, shall be the following:
red or with the minus sign, by the unit that initially supplied the    (taxation quota/taxation quota + 100) x 100. The level of the
packing, which shall be compulsorily registered both in the            recalculated standard quota shall be 15.966%.
accounting of the supplier, and in the accounting of the
beneficiary.                                                                                       CHAPTER VI
    (2) The circulation packing, such as crates, cylinders, bottles,                          Deductions procedure
jars, exchanged between the suppliers of merchandise and the
beneficiaries, shall not be invoiced and shall not be included in          Art. 59. — The value added tax shall be deductible at
the taxe base of the value added tax on delivery.                      beneficiaries at the moment in which this is exigible at the
    (3) The provisions of paragraph (2) shall apply under the          suppliers and/or performers, with the exceptions stipulated in
conditions in which the beneficiaries do not have quantities of        article 22 (2) in the law.
packing needed for the exchange, but they get from the                     Art. 60. — (1) The right to deduction stipulated in paragraph
suppliers of merchandise the necessary packing in exchange for         (4) of article 22 in the law refers to the purchase of goods and/or
a money guarantee.                                                     services meant for carrying out the operations stipulated in the

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same paragraph, including for the making of investments                 without right of deduction to taxation, shall be deducted according
necessary for the carrying out of such operations.                      to the provisions of article 22 in the law, on the basis of inventory
    (2) The activities of sponsoring, advertising, protocol, as well    and in accordance with the legal documents of origin.
as other activities stipulated in laws, carried out within the limits       (7) In case of taking out of the records as payers of value
and according to the destinations stipulated in them, shall not         added tax, as well as of modifying the value added tax system
constitute delivery of goods and/or services, according to article      in the sense of passing from taxation to exemption without
3 (4) and article 4 (4) in the law. The taxable persons                 deduction right, for goods such as raw materials, materials and
registered as payers of value added tax shall have the right to         the goods existing in stock on the respective date, established
deduction of the value added tax for the acquisitions meant for         on the basis of inventory, the right of deduction exercised on
the carrying out of these activities, in accordance with article 22     the acquisition of goods shall be recalculated in accordance
(4) c) in the law.                                                      with the new taxation system.
    (3) The activities stipulated in paragraph (2), carried out             (8) For the goods stipulated in article 4 (1) b) and c) in the
beyond the limits stipulated by laws, as well as the non-               present norms, the value added tax deducted initially shall not
observance of the destinations stipulated by them shall constitute      be recalculated.
delivery of goods and/or service performance according to article           Art. 61. — (1) Within the meaning of article 23 in the law, the
3 (4), article 4 (3) in the law respectively, and shall conform to      right of deduction of the value added tax related to the
the taxation rules of taxable operations, namely the related value      acquisitions of goods and/or services shall be exercised subject to
added tax shall be collected and the value added tax related to         their degree of utilization in carrying out the operations that have
acquisitions shall be deducted.                                         deduction right, stipulated in article 22 (4) in the law.
    (4) The microenterprises that fit in the provisions of                  (2) The taxable persons that carry out both operations that
Government Ordinance No. 24/2001 on the taxation of micro-              give the right to deduction and operations that do not give the
enterprises, for the goods granted within the protocol activities,      right to deduction shall determine the value added tax to be
shall have the right to deduct the value added tax for the              deducted as follows:
acquisitions meant for the carrying out of these activities, as             a) the acquisition of goods and/or services meant for the
well as the units that are taxed on the basis of the statutory          achievement of operations that give the right to deduction shall
instruments that settle the tax on profit.                              be registered in the purchase journal, that is drawn up
    (5) The taxable persons that carry on operations abroad which,      separately for these operations, and the value added tax related
if carried out in Romania, would give the right to deduction of the     to them shall be deducted integrally. In the cases in which
value added tax are entitled to the deduction of the value added        investments are made meant exclusively for the carrying out of
tax pertaining to the acquisitions made in the country, meant for       operations that give deduction right, their related entries shall be
the carrying out of these operations. By operations carried on
                                                                        registered in the same journal and the related value added tax
abroad there shall be understood the service performances for
which the place of the performance is situated abroad, according        shall be deducted integrally. The acquisitions of goods and/or
to the provisions of article 7 in the law, and the deliveries of        services for which on the date of acquisition the sure
goods for which the place of delivery is situated abroad, according     destination for operations with deduction right was not known,
to the provisions of article 6 in the law.                              cannot be registered in this journal. These shall be registered in
    (6) The value added tax, related to the raw materials and           the purchase journal related to the acquisition of goods and/or
materials, to the finished products, to the products under              services meant both for the carrying out of operations that give
manufacture and to the goods existing in stock at the beginning         deduction right, and for those that do not give deduction rights,
of the month in which the taxable persons have been registered          stipulated in point c). If subsequently these goods/services were
as payers of value added tax, as well as those meant for the            used exlusively for operations that give deduction right,
carrying out of the goods and services whose regime of value            adjustments shall be made for the related tax to be integrally
added tax is modified in the sense of passing from exemption            deducted.

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    b) the value added tax related to the acquisition of goods and/or    shall be determined by applying the provisional pro rata utilized on
services meant exclusively for the carrying out of operations that do    the deductible value added tax, related to the acquisitions meant
not give the right to deduction, as well as of investments that are      both for the carrying out of operations that give the right to
meant for the carrying out of such operations shall not be deducted.     deduction, and those that do not give the right to deduction.
    c) The acquisition of goods and/or services meant both for the       Starting from 1 June 2002, the taxable persons shall keep the
carrying out of operations that give the right to deduction, and of      provisional pro rata determined at the beginning of the year 2002
those that do not give the right to deduction, as well as                and utilized up to 31 May 2002, until the determining of the
investments meant for the carrying out of these operations shall be      definitive pro rata according to the provisions of paragraph (6).
pointed out separately in the purchase journal. The value added tax          (6) The definitive pro rata shall be determined in December
related to these operations shall be deducted on pro rata basis.         subject to the actual achievements during the year, according to
    (3) A separate record of the administration of goods,                the calculation formula stipulated in paragraph (4), and shall be
according to the destination stipulated in paragraph (2) shall be        introduced in the breakdown of value added tax, drawn up for
compulsory.                                                              the month of December. The adjustment of the deductions
    (4) The pro rata shall be determined as a ratio between: the         operated according to the provisional pro rata shall be made on
income obtained from operations that give the right to deduction, at     the basis of the definitive pro rata, as follows:
numerator, and at denominator the income from the numerator plus             I. In the year 2002:
the income obtained from operations that do not give deduction               a) for the months January—May 2002, the definitive pro rata
right, subsidies, allowances from the state budget or local budgets,     shall be applied on the deductible value added tax, resulting
as well as any other income from which the activity is financed.         from the breakdowns regarding the value added tax, submitted
From the pro rata calculation there shall be excluded the financial      during that period. The difference between the amount achieved
incomes, as stipulated in the Regulations for applying the Law on        and the actual amount deposited on the basis of the provisional
accountancy No. 82/1991, republished, approved by Government             pro rata shall be cumulated with the amount obtained according
Decision No. 704/1993, if these do not derive from the specific          to point b);
professional activity with financial character, by units that carry on       b) for the months June—November, 2002, the definitive pro
                                                                         rata shall apply on the deductible value added tax, related to the
financial-banking activities. The units that make their own
                                                                         acquisitions stipulated in paragraph (2) c), resulting from the
investments financed from subsidies and/or allowances from the           breakdowns regarding value added tax, submitted for the period.
state budget or local budgets shall not take these amounts in the        The difference between the resulting amount and the actually
pro rata calculation. The pro rata shall be determined annually, as      deducted amount on the basis of the provisional pro rata shall be
a rule, as stipulated in paragraphs (5) and (6), in which case the       cumulated with the amount obtained as per letter a) and shall be
elements stipulated at the denominator and numerator shall be            included at line 10 of the breakdown. For the acquisitions meant
cumulated for the entire fiscal year, and by exception this can be       both for the carrying out of operations that give the right to
determined monthly, according to the provisions of paragraph (8),        deduction, and for those that do not give the right to deduction, in
in this case the elements stipulated at the denominator and              the month of December, the definitive pro rata shall be applied.
numerator being those actually achieved during each month.                   II. After 31 December 2002, for the months January—
    (5) The pro rata applicable provisionally for a year shall be the    November of each fiscal year, the definitive pro rata shall be
definitive pro rata for the preceding year or the pro rata               applied to the deductible value added tax, related to the
determined corresponding to the value added tax system related to        acquisitions stipulated in paragraph (2) c), resulting from the
the goods and services expected to be achieved in the current            breakdowns regarding the value added tax, submitted for that
year. The taxable persons shall communicate in writing to the            period. The difference between the amount resulting and the
territorial fiscal body at the beginning of the fiscal year, but not     amount deducted on the basis of the provisional pro rata shall
later than the 25 February, the pro rata level applied, as well as       be introduced at line 10 in the breakdown. For acquisitions
the mode of its determining. The value added tax to be deducted          meant both for carrying out operations that give right to

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deduction, and for those that do not give right to deduction, as            b) if the investment is utilized for operations both with
from December the definitive pro rata shall be applied.                deduction right and without deduction right, the value added tax
    7) In case the pro rata calculated according to paragraph (4)      initially deducted shall be recalculated on the basis of definitive
does not ensure the correct determination of the tax to be             pro rata determined at the end of the calendar year following
deducted, the territorial fiscal bodies may approve the applying of    the one of commissioning the investment.
special pro rata, at the request of the taxable persons involved,           Art. 62. — (1) The legal documents stipulated in article 24 (1) a)
on the basis of the justification presented. The special pro rata      in the law, on the basis of which the taxable persons can deduct
may be determined on the basis of other elements than those            the value added tax, shall be: the original copy of the fiscal invoice
stipulated in paragraph (4), so as to allow special pro rata, at the   or other specific documents approved by Government Decision No.
request of the taxable persons involved, on the basis of the           831/1997 on the approval of the models of the common forms
justification presented. The special pro rata may be determined on     regarding the financial and accounting activity and of the
the basis of other elements than those stipulated in paragraph (4),    methodological norms regarding their drawing up and utilization or
so as to allow the exercising of the right to deduction as correctly   by orders of the minister of public finance, issued on the basis of
as possible. If the approval was granted during the year, the          Government Decision No. 831/1997, the fiscal vouchers issued by
taxable persons are obliged to recalculate the value added tax         the electronic fiscal marking devices, approved according to the
deducted from the beginning of the year on the basis of special        Government Emergency Ordinance No. 28/1999 on the obligation of
pro rata approved. The taxable persons may renounce the applying       the economic units to utilize electronic marking devices, republished,
of the special pro rata only at the beginning of a calendar year       belonging to the units selling motor fuel, provided these vouchers
and shall be obliged to inform the fiscal bodies.                      are stamped and have the name of the buyer and the number
    (8) At the justified request of the taxable persons the fiscal     plate of the motor vehicle. For acquisitions of goods subject to
bodies with which these are registered as          payers of value     excise duties the legal document of value added tax deduction shall
added tax may approve for the pro rata to be determined                be the original copy of the special fiscal invoice utilized for the
monthly, according to the provisions of paragraph (4). In the          circulation of these products, endorsed by the fiscal supervisor. The
year in which the approval was granted the taxable persons are         fiscal invoices or other legal documents issued in the name of the
obliged to recalculate the value added tax from the beginning of       employees of one of the taxable persons, who are on a business
the year on the basis of the monthly pro rata. The taxable             trip, for the accommodation in hotels or other similar units, shall be
persons may renounce the applying of the monthly pro rata              legal documents for the deduction of the value added tax,
only at the beginning of a fiscal year and shall be obliged to         accompanied by the detailed account of travelling, drawn up in
inform the fiscal bodies. The monthly pro rata actually achieved       accordance with the legal provisions.
shall be definitive and shall not be adjusted at the end of the             (2) The right to deduct the value added tax written down in
year.                                                                  the documents for the acquisition of goods and/or services shall
    (9) The taxable persons that up to 31 March 2002 have              be exercised subject to the date of the fiscal invoice or of another
applied specific criteria for the deduction of value added tax,        legal document, if that was received until the date of submitting
approved by the territorial fiscal bodies, shall continue to apply     the detailed account of the value added tax. The value added tax
them and a monthly pro rata determined according to paragraph          related to the acquisition of goods and/or services during a
(4), until the end of the year 2002.                                   calendar month shall be registered in the purchase journal and
    (10) The value added tax pertaining to the goods and/or            taken over accordingly in the detailed account regarding the value
services purchased before the commissioning of an investment           added tax, drawn up for the respective month. The acquisition
objective, deducted according to the provisions of paragraph (2),      documents received after the date of submitting the detailed
shall be recalculated at the end of the calendar year following        account drawn up for the respective month shall be included in
that of commissioning the investment, as follows:                      the detailed account drawn up for the following months.
    a) if the investment is utilized exclusively for operations that        (3) For the imports made through commission agents, the
give not deduction right, the value added tax deducted initially       value added tax, written down in the import customs declaration
shall be recalculated integrally;                                      or in the survey report drawn up by the customs authorities,

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shall be deducted only by the beneficiary unit, on the basis of        paragraph (1) in the law, called reimbursement with anticipated
the respective documents, transmitted in certified copy by the         control, shall submit at the territorial revenue authority the
commission agents.                                                     reimbursement application stipulated in annex no. 2 on which they
    Art. 63. — (1) The value added tax to be reimbursed for the        checked the box “reimbursement with anticipated control”,
month of reference stipulated in article 26 (1) a) in the law,         accompanied by the detailed account of value added tax from
shall consist of the intermediary value added tax to be                which the amount to be reimbursed shall result. The revenue
reimbursed, determined as difference between the deducted tax          authorities shall reimburse, within 30 days from the date of
and the collected tax during the month of reference and/or the         submitting the application, the amounts resulting following the
tax to be reimbursed from the detailed account of the preceding        verification of the documentation established by order of the minister
month, taken over in the accounting of the month of reference.         of public finance.
    (2) The compensation of the tax difference, stipulated in              (2) In view of solving the applications of reimbursement with
article 26 (1) a) in the law, shall be calculated by the revenue       anticipated control the revenue authorities shall proceed as follows:
authorities which shall proceed as follows:                                a) shall determine the value added tax pertaining to the
    a) compensation shall be carried out on the basis of the control   unpaid invoices to the suppliers of goods and/or service
made within 30 days from the submitting of the compensation            performers, until the date of the control;
application, in case the taxable persons request the compensation          b) from the amount to be reimbursed resulting from the
without also requesting the reimbursement of the value added tax.      latest detailed account of the value added tax, amended with
The taxable persons must submit at the territorial revenue             the would be differences resulted following the verification, the
authorities the compensation application according to the model        tax pertaining to the unpaid invoices shall be deducted, thus
shown in Annex No. 1, as well as the detailed account of the           determining the tax pertaining to the paid invoices;
value added tax from which results the amount to be reimbursed;            c) shall return the amount of value added tax pertaining to
    b) there shall be compensated, ex officio, on the basis of the     the paid invoices, determined according to letter b), in case the
control made on the occasion of the reimbursement with                 taxable person has no taxes and fees owed to the state budget
anticipated control, the amount representing other taxes and fees      and unpaid until the date of making the control;
due to the state budget, within the limits of the amount to be             d) if the amount compensated is smaller than the value
reimbursed, in case the taxable persons request the                    added tax pertaining to the paid invoices, they shall return the
reimbursement of the value added tax. Upon reimbursement with          difference between the tax pertaining to the paid invoices and
                                                                       the amount compensated ex officio, according to the provisions
subsequent control the ex officio compensation shall be made on
                                                                       of article 63 (2) b) in the present norms, in case the taxable
the basis of the data in the Card of the payer of taxes and
                                                                       person has taxes and fees owed to the state budget and unpaid
fees, and the control is made at the same time with that for           on the date of carrying out the control;
reimbursement with subsequent control. In both cases no                    e) shall not proceed to reimbursement if following the
compensation application shall be submitted.                           compensations made ex officio the compensated amount is higher or
    (3) In carrying out the compensation operations the value          equal to the value added tax pertaining to the paid invoices.
added tax in the invoices unpaid to suppliers/performers shall             (3) The reimbursement with anticipated control of the value
not be taken into account.                                             added tax shall be made by also taking into account the
    (4) After submitting the compensation application to the           provisions of the Government Ordinance No. 11/1996 on the
pertaining revenue authority the respective amount, verified and       execution of the budgetary debts, approved and modified by Law
confirmed by the control body can no longer be included in the         No. 108/1996, with the subsequent modifications and completions.
detailed account and retained from the value added tax                     (4) In case the control bodies propose, following the verification,
pertaining to the goods or services invoiced during the period         the approval of partial reimbursement of the value added tax or
following that for which compensation was requested.                   the rejection of the application, these shall mention in the drawn
    Art. 64. — (1) The taxable persons that request reimbursement      up control document the reasons and the causes that determine
of the value added tax according to the provisions of article 27       the respective situation. By the control document there shall be

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established the mode of pointing out, respectively by expenditure or        compensated amount ex officio according to the provisions of
by taking over in the following month detailed account the amounts          article 63 (2) b) in the present norms;
not accepted for reimbursement, subject to causes.                              c) in case the amount to be compensated is higher or equal
     (5) After submitting the application for reimbursement with            to the value added tax pertaining to the paid invoices, the
anticipated control at the competent revenue authorities the                reimbursement application with subsequent control shall be
respective amount, verified and confirmed by the revenue authority,         rejected, the taxable person having the possibility to request the
can no longer be included in the detailed account and retained from         compensation stipulated in         article 63 (2) a) in the present
the value added tax pertaining to the goods or services invoiced in         norms.
the period following that for which reimbursement was requested.                (8) If the total points resulting from the risk analysis sheet is
The amounts stipulated in the detailed account of the preceding             higher than 135 points exclusively, the revenue authorities are
month for which, until the date of submitting the detailed account for      obliged to notify the taxable persons which did not meet the
the following month, confirmation or approval for the reimbursement         necessary points and to transmit them a copy of the risk analysis
was not received, can be taken over in the detailed account of the          sheet, within 10 working days from the date of submitting the
following month, in which case there shall be considered that the           reimbursement application. The taxable persons may request, within
taxable person has renounced his reimbursement application.                 3 days from the date of receiving the notification, the reconsidering
     (6) The taxable persons that request the reimbursement of the          of the points granted. Within two days from the date of intimation,
value added tax with half-yearly verification of the documentation,         the revenue authorities shall reconsider the points granted and,
according to the provisions of article 27 (2) in the law, called            depending on the result, shall proceed to the carrying out of the
reimbursement with subsequent control, have the obligation to               reimbursement or, as the case may be, shall communicate the
submit to the territorial revenue authority the detailed account for        negative answer to the taxable person. The taxable person whose
the value added tax, from which the amount to be reimbursed is
                                                                            reimbursement application with subsequent control was rejected
resulting, and the reimbursement application, on which they
                                                                            also after reconsidering the points may request the reimbursement
checked the box “reimbursement with subsequent control”.
                                                                            according to the provisions of article 27 (1) in the law, in which
     (7) The taxable persons that request reimbursement with
subsequent control of the value added tax are obliged to observe            case he shall submit another application of reimbursement in which
the provisions of paragraph (5) of article 27 in the law. The               be checked the box “with anticipated control”.
invoices paid to the suppliers until the submitting of the application          (9) For the reimbursements with subsequent control the control
shall be taken into account. The territorial revenue authorities have       revenue authorities have the obligation to carry out half-yearly the
the obligation to draw up the risk analysis sheet, stipulated in annex      verification of the documentation established by order of the minister
no. 3, within 10 working days from the date of submitting the               of public finance. The reference date for establishing the dates on
reimbursement application. The risk analysis grill, included in the risk    which the controls shall be made is the date of approval of the first
analysis sheet, shall be updated half-yearly by Government                  reimbursement with subsequent control, and from this date on the
Decision, on the proposal of the Ministry of Public Finance. If the         controls are to be made every six months, if within the respective
rating resulting from the risk analysis sheet is below and including        intervals only reimbursements with subsequent control were granted.
135 points, the territorial revenue authorities shall proceed as follows:   If in the respective periods reimbursements with anticipated control
     a) in case the taxable person has no unpaid taxes and fees             were also made, their control should compulsory include also the
owed to the state budget within legal time limits, they shall               previous period for which the taxable person had benefited from
return the amount of value added tax pertaining to the paid                 reimbursement with subsequent control. After effecting a
invoices, resulting from the reimbursement application;                     reimbursement with anticipated control, the reference term for
     b) if the compensated amount is smaller than the value                 establishing the date on which the controls of the reimbursements
added tax pertaining to paid invoices, they shall return the                with subsequent controls shall be made is the date of the first
difference between the value added tax pertaining to the paid               reimbursement with subsequent control made after that with
invoices, resulting from the reimbursement application, and the             anticipated control.

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    (10) The sub-units of secondary offices type without legal         15 days from the date of the legal document in which the
personality, registered as payers of value added tax, shall benefit    respective case is registered.
from reimbursement only if the central unit and all the component          (2) The persons, irrespective of their legal status, that
sub-units have paid their value added tax owed to the state budget.    exclusively carry out operations for which they do not have the
    Art. 65. — The provisions of articles 63 and 64 in the             capacity as taxable person or operations exempted from the
present norms, referring to the reimbursement with subsequent          value added tax without deduction right, shall not be registered
control effected on the basis of article 27 (2) in the law, shall      or, as the case may be, shall be taken out of the records as
apply starting from 1 October 2002.                                    payers of value added tax, upon their request.
    Art. 66. — (1) The territorial revenue authority of the Ministry       (3) There are also subjected to the registration as payers of
of Public Finance may request the taxable persons that submitted       value added tax the public institutions stipulated in article 2 (5)
                                                                       in the law, in case they carry out activities for which they have
reimbursement application of the value added tax with anticipated
                                                                       the capacity as taxable person. There may be registered as
control, for amounts that exceed 1 billion lei, personal or liable     payer of value added tax the public institution on the whole or,
guarantees in case the reimbursement is requested as a result of       as the case may be, subject to the nature of the carried on
effecting certain exports whose equivalent value in foreign            activities, only a part of the organizational structure through
exchange not cashed until the date of ending the control is equal      which the taxable operations are achieved and/or exempted with
or higher than the amount requested on reimbursement.                  deduction rights.
    (2) The guarantee shall consist of a cash deposit or a letter          (4) The sub-units of the type of secondary offices —
of bank guarantee issued by a bank authorized by the National          branches, agencies, representations or other such units without
Bank of Romania, as follows:                                           legal personality — may be registered as payers of value
    a) for amounts to be reimbursed between 1 and 10 billion lei       added tax under the following conditions:
inclusively, the guarantee shall consist of 20% of the amount              a) the central unit must be registered as payer of value added tax;
requested for reimbursement;                                               b) to have the acceptance of the central unit and of the
    b) for reimbursing amounts of over 10 billion lei exclusively,     revenue authorities with which this is registered as payer of value
the guarantee shall consist of 30% of the amount requested for         added tax;
reimbursement.                                                             c) to meet the conditions for the observance of the
    (3) The revenue authorities shall unfreeze the constituted         provisions of article 29 in the law.
guarantees, in proportion to the equivalent value of the exports           (5) For the taxable persons that, according to law, fulfill the
envisaged on the date of constituting the guarantee that had           conditions as payers of value added tax, but have not submitted
been cashed subsequently.                                              statement for fiscal registration or, as the case may be, statement
                                                                       of mentions, in view of being registered as payers of value added
                                                                       tax, the revenue authorities shall proceed as follows:
                          CHAPTER VII                                      a) shall establish the difference between the value added tax
                       Payers’ obligations                             in which the taxable person would have had deduction right,
   Art. 67. — (1) According to the provisions of article 29 (A)        according to the legal documents related to the acquisition of
in the law, the taxable persons that carry out taxable operations      goods and/or services, and the value added tax which he would
and/or exempted with deduction right have the obligation under         have had the obligation to collect, related to the goods
the terms stipulated by law to declare themselves as payers of         delivered and the services performed;
value added tax, following the procedures regarding the fiscal             b) in case, according to the methodology stipulated in letter
registration of the taxes and fees payers. Likewise, they shall        a), a difference of fee owed to the state budget is resulting,
have the obligation to request the revenue authority the taking        they shall calculate the legal increases and the penalties for
out of the records as payer of value added tax, according to           delay in payment, shall apply the penalties stipulated by law
the legal settlements in force, in case of ceasing activity, within    and shall take measures for stepping within the law.

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    (6) If, according to the methodology stipulated in paragraph           days from the date of cashing the amounts. These provisions shall
(5) a), there results that the value added tax which the taxable           also apply for the building works that are finalized in a movable, for
person would have had the right to deduct is higher than the               which the entrepreneurs have not opted for postponing the payability
fee that he would have had the obligation to collect, this has             of the value added tax. The fiscal invoices for advance payments
no right to request to the budget the reimbursement of the                 shall be regularized by rectification on the date of issuing the fiscal
respective amount, a consequence of the non-fulfillment of the             invoice for the integral equivalent value of the deliveries of goods
obligation to register himself as payer of value added tax. The            and/or of the service provision. The taxable persons that carry out
revenue authorities shall apply the penalties stipulated by law            activity of selling goods on the basis of sale-purchase contracts to
and shall take measures for stepping within the law.                       natural persons, with spread out payments under the form of
    Art. 68. — (1) For the goods delivered with a delivery note            advance payments, the delivery of the goods being made after the
the suppliers shall be obliged within 3 working days from the              integral payment of the equivalent value of the contracted goods,
date of delivery to issue fiscal invoices and transmit them to             shall not have to issue fiscal invoices for the cashed advance
the beneficiaries. The delivered goods without a delivery note             payments but on the delivery of the goods. For the cashed
shall be invoiced on the date of delivery. Upon the constitution           advanced payments the value added tax shall be collected on the
of a trading company, for the contribution in kind to the                  basis of a list of sales (cashing).
registered capital, the fiscal invoice shall be issued by the                  (6) For the advance payments stipulated in points 1—4 of
person contributing in kind to the registered capital of the new
                                                                           letter c) of paragraph (4) of article 16 in the law, the taxable
company, after registering as payer of taxes and fees of that
company. For the advance payments cashed, the provisions of                persons shall not be obliged to issue fiscal invoices. On the
paragraph (5) shall also apply.                                            request of the beneficiaries, the taxable persons may issue
    (2) For the provision of services, others than those stipulated        fiscal invoices without the added value tax for these advance
in paragraphs (3) and (4), the providers shall be obliged to               payments, their regularization and the final invoicing to be made
issue fiscal invoices or other documents legally approved, on              within 3 working days from the date of delivery and/or
the date of finalizing the service provision or, as the case may           providing, subject to the taxation regime of the operation.
be, at the end of the month in which the service provision was                 (7) The transfer of property for the goods in executing the
finalized, subject to its nature. For the advance payments                 debts, in case the goods were handed over on the basis of
cashed the provisions of paragraph (5) shall also apply.                   understanding between debtor and creditor, shall be taken down
    (3) For the deliveries of goods and/or service provision that          in fiscal invoices by the debtor, if the operation constitutes
are made continuously — electric and thermal power, natural gas,           delivery of goods according to the provisions of article 3 c) in
water, telephone services and others similar — the invoicing shall         the present norms.
be made within 3 days from the date of drawing up the                          (8) In case of goods subject to forced execution, if the
documents by which the suppliers/providers have established the            operation constitutes delivery of goods according to the
quantities delivered and the services provided, but not later than         provisions of article 3 c) in the present norms, the obligation of
the end of the month following the one in which the
                                                                           issuing fiscal invoice reverts to the natural or legal person
delivery/provision took place. For the advance payments cashed
the provisions of paragraph (5) shall also apply.                          authorized by law to carry out the sale of the respective goods,
    (4) For the service provision discounted on the basis of work          and who shall proceed as follows:
situations, such as works of construction-installing, the invoicing            a) shall issue fiscal invoice of forced execution, in three
shall be made on the date of confirming the works situation by             copies, with the observance of the provisions of article 21 (2) c)
their beneficiaries. In the case of advance payments being                 in the law, in case the goods were sold by tender. The original
cashed, the provisions of paragraph (5) shall also apply.                  copy of the forced execution fiscal invoice shall be sent to the
    (5) For advance payments the suppliers of goods and the                buyer, respectively to the successful tenderer, and the second
providers of services shall be obliged to issue fiscal invoices within 3   copy shall be sent to the forced executed debtor;

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    b) shall cash the equivalent value of the goods, including the    document, if that was cashed from the beneficiary. For the non-
value added tax, from the buyer, and the value added tax shall        payment within the term established by law of these amounts,
be transferred to the state budget within 3 working days from         increases and penalties shall be charged for the delays
the cashing from the buyer. A copy of the document by which           calculated from the date of cashing, according to the legislation
the payment of the value added tax was made shall be                  regarding the calculation and payment of the amounts owed for
transmitted to the debtor.                                            the non-payment on time of the taxes and fees;
    c) The value added tax in the fiscal invoices of forced               b) in case the equivalent value of the goods sold and/or
execution shall be registered by natural or legal persons             services provided listed in the fiscal invoice or in another
authorized by law to make the sale of the goods subject to            document was not cashed, totally or partially, from the
forced execution, in other commercial trading accounts than           beneficiary, the persons mentioned in paragraph (2) shall be
those specific to the value added tax. In case the natural or         obliged to rectificate the invoices or documents issued with
legal person authorized by law to carry out the sale of goods         value added tax and, at the same time, to issue invoices or
subject to forced execution is registered as payer of value           other documents without the value added tax.
added tax, shall not point out the respective operations in the           Art. 70. — (1) The value added tax due, established by the
detailed account regarding the value added tax.                       detailed account of value added tax, shall be paid, until the
    (9) In case the forced execution was made according to the        date of 25 of the following month including, to the state budget
provisions of paragraph (8), the debtor shall have the following      in the accounts opened with the state treasury for that purpose.
obligations:                                                              (2) The taxable persons registered as payers of value added tax,
    a) to register in its own records the delivery of goods           that have in their structure sub-units of the type of secondary offices
operation, on the basis of forced execution fiscal invoice            — branches, agencies, representations or other similar units without
transmitted by the natural or legal person authorized by law to       legal personality — that are not registered as payers of value added
carry out the sale of goods, including the related value added tax    tax, shall draw up a single detalied account of value added tax for
collected. In case the payment of the goods in installments is        the entire activity, on the basis of the detalied accounts regarding
provided for, the value added tax shall be collected on the date      the value added tax filled-in by these sub-units up to and including
established for the payment of the installments;                      line 17. The sub-units shall not fill-in lines 8 and 13 in the detalied
    b) to register, on the basis of the payment document              account regarding value added tax, which they transmit to the
transmitted by the natural or legal person authorized by law to       central unit. The detalied account regarding the value added tax
carry out the sale of goods, the value added tax at line 23 of        drawn up by the sub-units not registered as payers of value added
the detailed account regarding the value added tax.                   tax shall not be submitted to the revenue authorities.
    (10) The buyers/successful tenderers shall exercise their right       (3) The value added tax owed according to the provisions of
of deduction of the value added tax on the basis of the fiscal
                                                                      article 29 D.b) in the law shall be paid to the customs bodies.
invoices of forced execution. In case payment of the goods in
installments is provided for, the value added tax shall be                (4) For the taxable persons registered as payers of value
deducted on the date established for the payment of the               added tax the operations stipulated in article 29 D.c)—f) in the
installments.                                                         law shall be registered in the accounts as follows:
    Art. 69. — (1) The natural or legal persons that do not fulfill       a) registration of the payment obligation of the value added
the conditions of registration as payers of value added tax shall     tax:
not have the right to issue fiscal invoices or other documents                  4428            =                      446
for sales of goods and/or service performance.                          “Not exigible V.A.T.” “Other taxes, fees and assimilated transfers”
    (2) The persons infringing the provisions of paragraph (1)            The operation shall be introduced in the journal of purchases
shall be obliged to proceed as follows:                               in columns 9 and 10, corresponding to the destination of the
    a) shall transfer to the state budget an amount equal to the      goods and/or services, according to the provisions of article 61
value added tax declared in the fiscal invoice or in another          (2) in the present norms;

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    b) the registration of the payment obligation redemption by                                   CHAPTER VIII
actual payment of value added tax:                                                               Final provisions
              446              =512 or other availability account         Art. 71. — (1) The taxable persons registered as payers of
  “Other assimilated taxes,                                           value added tax, that wrongly invoiced exempted operations without
      fees and transfers”      “ Availability in current account”     deduction right with value added tax, shall be obliged to follow the
             4426              =                4428                  procedure established in article 31 (1) in the law, in view of correct
         ”Deductible VAT”       “Not exigible VAT”                    invoicing, without value added tax, of those operations.
    The operation shall be registered in the journal of purchases         (2) The value added tax owed according to the provisions of
in columns 7 and 8, corresponding to the destination of the           article 29 D.c)—f) in the law, found by the tax audit authorities as
goods and/or services, according to the provisions of article 61      unpaid within the legal term and not pointed out in the accounts,
paragraph (2) in the present norms, on the basis of the               shall be paid within the terms established by the legislation in
document of payment of the value added tax;                           force regarding tax control and shall not be registered in the
    c) registration of payment obligation redemption by the           detailed account of value added tax. For the non-payment of
compensation made according to article 29 D.h) in the law:            these amounts within the term established by law, increases and
              446              =                4424                  penalties for delay shall be charged calculated according to the
  “Other assimilated taxes,                                           legislation regarding the calculation and payment of the amounts
      fees and transfers”              “VAT to reimburse”             owed for the non-payment on time of taxes and fees.
             4426              =                4428                      (3) The value added tax owed according to the provisions of
       “Deductible VAT”                 “Not exigible VAT”            article 29 D.c)—f) in the law, found by the tax audit authorities
    The operation shall be registered in the journal of purchases     as unpaid within the legal term, but recorded in the accounts,
in columns 7 and 8, corresponding to the destination of the           shall be paid within the terms stipulated by the legislation in
goods and/or services, according to the provisions of article 61      force regarding tax audit and shall be registered in the detailed
(2) in the present norms, on the basis of the accountancy note        account of value added tax drawn up for the month in which
which shall mention the compensation operation on which the           the payment is made. For the non-payment within the
date shall compulsorily be mentioned;                                 established term by law of these amounts, increases and
                                                                      penalties for delay shall be owed as calculated according to the
    d) in case the payment or the compensation of the value           legislation regarding the calculation and payment of the amounts
added tax shall be made within the terms stipulated in article        owed for the non-payment on time of the taxes and fees.
29 D.c)—f) in the law, the following accountancy registration             (4) The differences of value added tax found by the tax audit
can be made:                                                          authorities shall be paid or shall be returned within the terms
    1. in the case of payment:                                        stipulated by the legislation in force regarding tax audit. The
             4426              =512 or other availability account     respective amounts shall not be included in the detailed
       “Deductible VAT”        “ Availability in current account”     accounts of value added tax. For the non-payment within the
    2. In the case of compensation:                                   term established by law of these amounts, increases and
             4426              =                4424                  penalties for delay shall be charged as calculated according to
       “Deductible VAT”                “VAT to reimburse”             the legislation regarding the calculation and payment of the
    The registrations in the journal of purchases shall be made       amounts owed for non-payment on time of taxes and fees.
according to the provisions of letter b) and/or c)                        (5) The units providing tourist services that concluded until
    (5) For the persons that are not registered as payers of          and including the date of 31 May 2002 firm contracts with
value added tax the operations stipulated in article 29 D.d)—f)       beneficiaries from abroad may apply, up to and including the
in the law shall be registered in the accounts as follows:            date of 31 December 2002, for the respective contracts, the
    635 = 446 — with the value added tax owed;                        regime of exemption from value added tax with deduction right.
    446 = 5121 or other availability account — with paid value            (6) The units performing tourist services that opt for the
added tax.                                                            exemption from value added tax with deduction right, stipulated

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in paragraph (5), shall be obliged to the payment of the                                                                                                                                                 ANNEX No. 1
contribution of 3% to the Fund for development and promotion                                                                                                                                                to norms
of tourism, calculated on the income cashed from these
contracts after the date of 1 June 2002.                                                ROMANIA
    (7) The legal persons, as well as the natural persons and family                                                                        VALUE ADDED TAX
                                                                                          M.P.F.
firms authorized according to Decree-law No. 54/1990 on the                                                                             COMPENSATION APPLICATION
organization and carrying on of certain economic activities on the                      MINISTRY
basis of free initiative, with the subsequent modifications, that                       OF PUBLIC
concluded firm import contracts until the date of 31 May 2002                            FINANCE
inclusively, shall benefit, for the contracts thereof until 31 December
2002 inclusively, by the tax system and the procedures applicable to
the import rights in force until 31 May 2002, inclusively.                         FISCAL CODE OF PAYER
    (8) For the additional acts to the contracts stipulated in                     DENOMINATION
paragraph (7) and the import contracts, concluded after 1 June
                                                                                   Locality                                                      Street                              No.
2002 inclusively, the legal provisions in force regarding the
import rights after this date are applicable.
    (9) The legal persons that purchase imported goods on basis of
agreements concluded with international organizations, ratified until             I request the compensation of the amount of ........................, resulting from the account related
31 May 2002 inclusively, shall benefit until 31 December 2002             to the month ........................ year ................. with the following taxes and fees owed to the state budget:
                                                                                  1. Income tax ...........................................
inclusively by the tax system and the procedures applicable to the
                                                                                  2. Profit tax ..............................................
import rights in force until the date of 31 May 2002 inclusively.                 3. Other taxes and fees owed to the state budget .............................................
    (10) The building of dwellings provided by the National Agency
for Dwellings on basis of firm contracts concluded with building                  Name and surname .............................................., position ..............................................................
companies up to the date of 31 May 2002 inclusively shall benefit                 Signature and stamp ............................................................................................................................
by VAT exemption with right of deduction until the building
completion, in accordance with the contract terms, those introduced
by additional acts imposed by justified technical situations, included.                                               BOX RESERVED TO FISCAL BODY
    (11) The persons that, irrespective of their legal status,
concluded until 31 May 2002 inclusively firm contracts for the             Compensation approved of the amount of ..................................                       Tax authority ............ Code ..........
building of dwellings with legal and/or natural persons authorized         Compensation not approved of the amount of ...........................                          Registration Number ....................
to perform building works, shall benefit by VAT exemption with             Name of person approving the compensation ............................                          Date of submitting (DD/MM/YY) .../../..
                                                                           Position ......... Signature ........... Date (DD/MM/YY) ....../...../....                      Received
deduction right for the contracts thereof up to the date of
31 December 2002 inclusively.
    (12) The terms for the enforcement of the provisions of
paragraphs (10) and (11) shall be settled by Order of the                 M.P.F. code 14.13.03.02
minister of public finance.
    (13) Within the meaning of these norms, firm contracts are            Printed at the Autonomous Régie “National Printing House”
the valid contracts whose date of coming into force is prior to
the date of 1 June 2002.
    (14) The provisions of these norms are applicable from the
date of the law’s coming into force.
    Art. 72. — Annexes no. 1—3 are an integral part of these
norms.

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                                                                                                                          ANNEX No. 2                                                                                                                                              ANNEX No. 3
                                                                                                                             to norms                                                                                                                                                 to norms
                                                                                                                                              MINISTRY OF PUBLIC FINANCE
              ROMANIA                                                                                                                         GENERAL DIRECTORATE OF PUBLIC FINANCE
                                                                                                                                              OF COUNTY/MUNICIPALITY.....................................
               M.P.F.

              MINISTRY                                 VALUE ADDED TAX
                                             TAXA PE VALOAREA AD√UGAT√                                                                                                                  THE RISK ANALYSIS SHEET
              OF PUBLIC                                                                                                                                                       FOR THE REIMBURSEMENT OF VALUE ADDED TAX
               FINANCE                                REIMBURSEMENT APPLICATION                                                                                                        WITH SUBSEQUENT CONTROL

          FISCAL CODE OF PAYER                                                                                                                                 I. Data on the taxable person:
          DENOMINATION                                                                                                                                 1. Denomination...............................................................
                                                                                                                                                       2. Fiscal code..................................
                                                                       Street                             No.                                          3. Address.....................................................................................................................
           Locality
                                                                                                                                                               II. Number and date of reimbursement application............................
                                                                                                                                                               III. The risk analysis grill:

           I request                                                                                                                           No.                                                                                                              Points             Points granted
                                                                                                                                                                                                   Criteria
           reimbursement with anticipated control

           reimbursement with subsequent control                                                                                                     Amount requested on reimbursement

 in account No. …… .........opened with ……....................................                                                                       a) up to 500 million lei inclusively
                                                                                                                                                     b) between 500 million, exclusively and 1.5 billion lei inclusively
      The reimbursed amount resulting from the detailed account related to the month of …........…                                                   c) between 1.5 billion, exclusively and 5 billion inclusively
year …… is of …… lei.                                                                                                                                 d) over 5 billion
      The amount requested on reimbursement is of …… lei*)
                                                                                                                                                      If first reimbursement application
                                                                                                                                                     Total amounts reimbursed in last 6 months for which control
        I declare on my own responsibility that the amount requested on reimbursement is related to the                                              was not made:
paid invoices to suppliers/providers in the country from which results the deductible value added tax.**)
                                                                                                                                                     a) up to 1 billion inclusively
         Name and surname ……..............................................., position …….......................................                      b) between 1 billion exclusively and 2 billion inclusively
         Signature and stamp …........................................................................................................…....          c) between 2 billion exclusively and 5 billion inclusively
                                                                                                                                                     d) over 5 billion
                                            BOX RESERVED TO FISCAL BODY
 Reimbursement approved of the amount of …........................…                        Tax authority ….......... code …......…                   Rejection rate of the amounts requested on reimbursement in the
 Reimbursement not approved of the amount of ……..................                          Registration number ..................……                  last 6 months as per formula: total amounts rejected on
 The amount to be carried forward to the following month …….                               Submitting date (DD/MM/YY)                                reimbursement/total amounts requested on reimbursement* 100
 Name of the person approving reimbursement …...................…                          .../.../...                                               a) up to 10% inclusively
 Position …....… Signature…....…Date (DD/MM/YY) …/…/…                                      Received
                                                                                                                                                     b) between 10% exclusively and 30% inclusively

         *) In the case of requesting reimbursement with anticipated control the amount to be reimbursed in                                          c) between 30% exclusively and 50% inclusively
the detailed account for the preceding month shall be mentioned while for the reimbursement with                                                     d) between 50% exclusively and 80% inclusively
subsequent control only the amount related to the paid invoices                                                                                      e) over 80%
        **) The statement on one’s own responsibility is valid only for the tax payers that request
reimbursement with subsequent control.                                                                                                                Behaviour of taxable person with regard to the payment of taxes
                                                                                                                                                      and fees owed to the stage budget, in the last 6 months:




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      a) if made maximum 5 payments with delay
      b) if made more than 5 payments with delay
      c) if backlog in payment that can be compensated from the
      amount to be reimbursed
      d) if backlog higher than the amount to be reimbursed, spread
      out in payment
      If activity carried out also includes:                                                           LAW
      a) producing and/or marking of the following products: alcoholic
      drinks, tobacco products, coffee                                                           on the profit tax*
      b) marketing of scrap iron, logs and unprocessed wood
      c) real estate activities
                                                                                                         CHAPTER I
      Juridical form:                                                                                General provisions
      a) trading company with integral foreign capital                             Art. 1. — (1) The following persons, hereinafter called
      b) trading company with mixed capital
      Conditions for exercising the activity:
                                                                                the taxpayers, are obliged to pay the profit tax, in full
                                                                                keeping with the provisions of this law:
      a) if the period since the establishing of the taxable person until the
      requesting of reimbursement is smaller than 2 years inclusively
                                                                                   a) the Romanian legal persons, for the taxable profit
                                                                                derived from any source, whether located in Romania or
      b) If in the last two years changed the registered office
                                                                                abroad;
      If in the last 12 months did not submit to the fiscal body:
      a) detailed account regarding the value added tax
                                                                                   b) the foreign legal persons carrying on activities
      b) several detailed accounts regarding value added tax                    within a permanent head office in Romania, for the
      If sanctioned on the occasion of fiscal controls carried out              taxable profit relevant to the head office thereof;
      during the last two years for tax dodging with:                              c) the foreign legal and natural persons developing
      a) contraventional fine and supplementary differences
      b) preparing of a penal file
                                                                                certain activities in Romania as beneficiaries or in
      Period elapsed since the last substance control:                          partnership with a Romanian legal persons in association
      a) maximum 12 months                                                      or in another entity, which would by no means generate a
      b) between 12 months and 24 months included                               legal person, for their profits derived in Romania;
      c) over 24 months                                                            d) the Romanian legal persons and the residing natural
      d) no substance control since establishing
      If activity suspended during the last year
                                                                                persons, for the incomes they derive in Romania as well
      If losses recorded:                                                       as abroad, from such partnership that may by no means
      a) in the last year                                                       generate any legal persons. Under such circumstances, the
      b) in the last two running years                                          tax owed by the natural person is to be calculated, kept
      c) in the last three running years
                                                                                back and paid by the legal person;
      TOTAL POINTS GRANTED
                                                                                   e) the foreign legal persons deriving the incomes
                                                Unit manager,                   mentioned at Art. 16, for the taxable profit related to the
                                                                                incomes thereof.
                                                                                   (2) The following bodies are exempt from the profit tax:
                                                                                   a) The State Treasury;
                                                                                   b) the public institutions, as regards their public funds
                                                                                including the extrabudgetary incomes and the disposable
                                                                                funds achieved and used according to the Law no.
                                                                                72/1996 on public finance, with the subsequent

                                                                                  * Law No. 414/2002 was published in OG No. 456 of 27 June 2002.


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amendments and the Law No. 189/1998, on the local                        (3) The Romanian legal persons having no patrimonial
public finance, with its subsequent amendments and                    purpose are exempt from the profit tax for any incomes
completions, if the law does not provide otherwise;                   falling into the following categories:
   c) the organizations of the blind, of the invalids and of             a) the subscription paid by members;
other disabled persons, as to the profits derived by their               b) the contribution, either financial or in kind, from
economic units having no legal personality and which are              members and followers;
being placed under protection in keeping with the special                c) the registration taxes, established as per the laws in
law on organization and functioning as regards the                    force;
disabled persons’ special protection and employment;                     d) any donations and sums of money and any goods
   d) the Romanian foundations set up as per the                      received as sponsorship;
stipulations in certain legacies;
                                                                         e) the interests and dividends obtained following the
   e) the cooperatives operating as protected units of the
disabled persons and which are especially organized in                placement of the disposable funds derived from such
keeping with the law on the organization and functioning              incomes;
with respect to the disabled persons’ special protection                 f) any incomes taxable by virtue of the tax on
and employment;                                                       performing activities;
   f) the religious cults, as regards their incomes derived              g) any resources obtained from the state budget and/or
from the manufacturing and selling of the objects and                 from local budgets;
products necessary for the carrying on of the cult activities,           h) the incomes derived from any occasional actions
in keeping with the Law No. 103/1992, on the religious                convened by trade unions/employers’ organizations for
cults’ exclusive right to produce objects of cult and to              social or professional purposes, in keeping with their
detain whatever incomes derive from rents, if any,                    organization and functioning statutes;
providing that the said funds are used for the maintenance               i) the incomes, derived by way of exception, from the
and functioning of the cult units, for the building,                  demise of the tangible assets owned by legal persons
repairing and reinforcement of churches and ecclesiastic              having no patrimonial character, other than those which
buildings, for tuition and for certain actions specific to the        are or were used for the economic activity.
religious cults, including the revenues in cash obtained as              (4) The legal persons with no patrimonial purpose are
damages, following the compensatory measures provided                 exempt from the profit tax for the incomes derived from
for by the Law on the restoration of the property right;              any economic activities amounting to no more than the
   g) the accredited and the authorized private higher                sum in lei equivalent to EUR 10 000 per one fiscal year
educational institutions, as to the used incomes, in keeping          but not exceeding 10 per cent of the total tax exempt
with the Law on education No. 84/1995, republished with               revenues provided for in paragraph (3).
the subsequent modifications and completions, and with the
                                                                         (5) Romanian legal persons having no patrimonial purpose
Government Ordinance No. 174/2001 on certain measures
for the improvement of the higher education system                    and falling by no means under the prerequisites regarding
financing;                                                            the revenue level provided for in paragraph (4) shall pay an
   h) the householders’ associations set up as legal persons          income tax for the profits derived from their economic
and the tenants’ associations acknowledged as equivalent to           activities such as calculated in accordance with Art. 2 (1).
the householders’ associations, in keeping with the Law on               Art. 2. — (1) The profit tax quota is 25 per cent, with
housing No. 114/1996, republished, with the subsequent                the exceptions provided for in the present law.
modifications and completions, as regards the income derived             (2) As regards the National Bank of Romania, the profit tax
from the economic activities which are or shall be used for           quota amounts to 80 per cent and is applied to the revenues
the improvement of the comfort and efficiency of the building         remaining following the writing off of the deductible
and for the maintenance and repair of the joint property.             expenses and of the reserve fund, as per the legal provisions.

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   (3) The taxpayers deriving profit from whatever activities            Art. 4. — (1) The fiscal year of every taxpayer shall be
they may be carrying on in the free zones shall pay a profit          the calendar year.
tax quota of 5 per cent for the taxable profit corresponding             (2) When a taxpayer sets up or ceases to exist during
to the said incomes, up to 31 December 2004.                          one fiscal year, the taxable period shall be considered the
   (4) The taxpayers who cashed, from a bank account                  duration of the taxpayer’s existence within that fiscal year.
opened in Romania, any revenues in foreign currency                      Art. 5. — (1) But for the provisions of paragraph (2), in
deriving from exports of goods and/or of services, sums               the case of associations or of other forms of organization
resulting from their own activity either directly or by a             devoid of any legal personality, the taxes due by each
commission contract, shall pay a profit tax quota amounting           partner, associate or beneficiary shall be calculated within
to 6 per cent and applying to that share of the taxable profit        the limits of his profit share.
which corresponds to the weight of these revenues within                 (2) As regards the sharing partnerships or any other
the total amount of the income. The sum relevant to the               similar associations, the incomes and expenses shall be
reduction of the profit tax quota from 25 per cent shall be           allotted to them within the limits of the sharing quotas
earmarked by the end of the year as a personal financing              owned by each associate. Any additional payments provided
source within the limits of whatever profit may be left after         for in the partnership contract, the supplementary
the expenses pertaining to the profit tax are entered in the          conditions included, are by no means deductible when the
books. For the services the beneficiary of which is abroad, a         taxable profit is being calculated.
diminished tax quota shall be applied.                                   Art. 6. — In the cases of those taxpayers carrying on
   (5) As from 5 January 2003, the profit tax quota shall             activities having to do with night clubs, bars, discos and
amount to 12.5 per cent for the share of that taxable                 casinos, the profit tax due as per the present law and
profit corresponding to the weight of the incomes derived             pertaining to these activities can by no means be lower
from exports, out of the income total amount. As from 1               than 5 per cent of the incomes derived from such
January 2004, the profit tax quota shall be 25 per cent.              activities. Should the profit tax be lower than 5 per cent
   (6) A proper stimulation of the exports shall be effected          of such incomes, the taxpayer shall pay an income tax
by means of a support system financed from the annual                 amounting to 5 per cent of the obtained profits.
budgets, the granting mechanism thereof following to be
approved by a Government Decision.                                                              CHAPTER II
   Art. 3. — (1) The taxpayers who benefit by the facilities                      The assessment of the taxable profit
provided for in Art. 2 (3) — (5) are not subject to the                  Art. 7. — (1) The taxable profit is calculated as the difference
provisions of Art. 11 (5). The taxpayers shall express their          between the incomes deriving from any source whatever and
option for either of the two facilities, at the beginning of          the expenses pertaining to their achieving within one fiscal
the fiscal year.                                                      year from which the non-taxable incomes shall be deducted
   (2) As regards the taxpayers carrying on their activity            and the non-deductible expenditures shall be added.
in the free zones, the most favorable quota shall be                     (2) As regards the chattels and real estate obtained by a
applied to the incomes they derive from exports, as                   taxpayer and sold on the basis of an installment contract,
provided for in Art. 2 (3) and (4).                                   the taxpayers may express their option for the entering of
   (3) The taxpayers benefiting by those facilities as per            installment amount in the books as taxable incomes, on
Art. 2 (3) — (5) and per Art. 11 (5), do no longer benefit by         such deadlines as provided for in the contract. The relevant
facilities such as the nature of the profit tax, provided for         expenses are deductible on the same deadlines as provided
in other statutory instruments.                                       in the contract concluded between the parties, proportionally
   (4) The taxpayers provided for in Art. 35 (3) — (5) do             with the sum total of the installments registered into the
not fall within the provisions of paragraph (3).                      total value of the contract. The option shall be made at the

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moment of the merchandise delivery and the decision made              supervision, with all the subsequent modifications. As for
thereupon shall by no means be reconsidered.                          the insurance contracts to be turned over in reinsurance,
   Art. 8. — In accordance with the terms of the present              the technical reserves shall decrease by registration at
law, the following incomes shall be considered as exempt              incomes, so that their level should cover the risk share
from taxation:                                                        incumbent upon the insurer after the reinsurance is
   a) the dividends one Romanian legal person receives                deducted. The sums pertaining to the formation or increase
from another Romanian legal person;                                   of the reserves existing in the contracts which are turned
   b) the differences over in the participation titles value,         over to reinsurance are by no means deductible.
registered subsequently to the incorporation of the stocks,              (4) Any other reserves formed in keeping with certain
benefits, of the issue bonuses or by compensating certain             special statutory instruments are not considered deductible
debts at the company detaining the said participation titles;         expenses. An exception to this rule are the legal reserves
   c) the incomes derived from the cancellation of debts              formed by the National Bank of Romania, by other banks,
deemed as non-deductible expenses, as well as from the                the guarantee funds and the credit cooperatives.
cancellation of the provision for which no deduction was                 (5) The change of destination of any reserves and funds
granted or of the incomes deriving from the recovery of               deductible from the taxable profit in keeping with the legal
certain non-deductible expenses;                                      provisions, by their being distributed in any way to the
   d) other tax exempt incomes, provided as such in the               shareholders on the occasion of the winding up, merging,
relevant special statutory instruments.                               splitting and dissolution of a company or on the withdrawal
   Art. 9. — (1) On the assessment of the taxable profits,            of a shareholder/associate, shall bring about the taxation of
expenses are deemed as deductible only provided that                  these sums with both a profit tax and a dividend one, as
they are relevant to the taxable incomes.                             per the legal provisions in force. The sums transferred in
   (2) The accounting concepts established by the legal               the case of the dissolution without liquidation are an
regulations in force, the LIFO method (Last In, First Out)            exception, should the taxpayer’s successor of right maintain
are acknowledged when the taxable profit is being                     the taxation system in keeping with the present law.
                                                                         (6) The following shall be deductible when the taxable
assessed. The applied assessment concept should remain
                                                                      profit is being assessed:
the same along the entire duration of the financial year.
                                                                         a) the sponsoring and Maecenatism expenses made as
   (3) At the assessment of the taxable profit, only the              per the laws in force, up to a 5 per cent limit applied to the
following sums are deductible, having served at the                   difference between the total incomes and the total expenses,
formation or the increase of the reserves and provisions:             excise included, less the expense relevant to the profit tax
   a) as regards the reserve, it may amount to no more                and the ones pertaining to sponsoring and/or Maecenatism;
than 5 per cent of the accounting profit, until this reaches             b) the perishables, within the limits provided in the
one fifth of the social capital such as subscribed and paid           norms approved by a Government Decision to be issued
in, in keeping with the provisions of Law No. 31/1990 on              in 90 days since the coming into force of the present law.
the trading companies, republished with the subsequent                   (7) As per the provisions of the present law, the non-
modifications and completions;                                        deductible expenses are:
   b) with respect to any authorized credit banks and                    a) the personal expenses of the taxpayer pertaining to the
cooperatives, the compulsory provisions formed as per the             profit tax owed, including those representing any differences
norms issued by the National Bank of Romania. The same                in the previous years or in the current one, as well as any
policy shall apply to guarantee funds, too;                           profit or income taxes he might have paid abroad;
   c) the technical reserves, calculated by the insurance and            b) the fines, confiscations, late payment fines owed to
reinsurance companies, formed as per the provisions of Law            the Romanian authorities as per the legal provisions,
No. 32/2000 on the insurance companies and on insurance               other than those provided in the commercial contracts.

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The fines, penalties and increases owed to foreign                    other forms of association in agriculture, for the right of use
authorities or within the economic contracts concluded                of the agricultural land brought by the associated members,
with persons who do not reside in Romania and/or with                 on the distribution quota out of the output derived from its
any foreign authority are non-deductible expenses, except             use as provided in the company or association contract;
for such increases whose regime is regulated by the                      l) the expenses which entered the account books, as
conventions for the double tax avoidance;                             determined by the losses in the value of the share certificates,
   c) the total expenses pertaining to the travelling                 of the immobilized securities in the portfolio activity, with
allowance granted to the employees for any trips in this              the exception of those expenses pertaining to their selling;
country and abroad, should the said amount exceed by                     m) the expenses pertaining to the non-taxable incomes;
2.5 times the legal ceiling set for public institutions;                 n) the expenses with the luncheon vouchers granted by
   d) the sums destined to the formation of the provisions            the employers, if they are not issued in keeping with the
beyond the limits already established by Government Decision;         provisions of the State Budget Annual Law;
   e) the sum of the expenses made for social purposes                   o) the expenses pertaining to the contributions paid to
and which exceed the limits considered deductible as per              special funds, over the established limits or which are in
the State Budget Annual Law;                                          no way regulated by any statutory instruments, including
                                                                      the contributions to pension funds, others than the
   f) the expenses pertaining to such assets as stocks or
                                                                      compulsory ones;
tangible assets, which were declared missing from the                    p) the expenses made for the insurance premiums paid
managed inventory or damaged, with no compensation                    by the employer on behalf of the employee. Those expenses
charges whatever and for which no insurance was made, as              pertaining to the insurance premiums for occupational
well as the value added tax pertaining to these expenses;             hazards, occupational diseases and professional risks are
   g) the expenses representing the value-added tax                   exempt;
relevant to the assets given to the employees as benefits                q) the protocol expenses exceeding the 2 per cent limit
in kind, if their value was not subject to taxation by PAYE           applied to the difference resulting from the sum total of
(Pay As You Earn);                                                    the revenues and expenses, the excises included, less the
   h) any expenses made for the benefit of the shareholders           expenses made for the profit tax and the protocol
or of the associates, other than those generated by the               expenses registered during the entire year;
payment for the delivered merchandise or by the services                 r) other payroll expenses and/or similar to these, which
offered to the taxpayer at market value;                              are not taxable as per natural person if the law does not
   i) the expenses pertaining to the research and                     provide otherwise;
development activities and to the management and                         s) the expenses made for any management, consulting,
administration ones, as registered by a permanent head-office         service and assistance, provided that no contracts in
belonging to either a foreign natural person or to a legal one,       writing were concluded for these services and that the
expenses which were not made in Romania and which                     beneficiaries cannot account for their service provision
exceed 10 per cent of the taxable salaries and wages of the           for their authorized activity;
employees working at the permanent head office in Romania;               t) the expenses pertaining to the insurance premiums
   j) such expenses which have made the object of                     by no means relevant to the taxpayers’ tangible and
bookkeeping registrations but are not based on documents in           intangible assets, as well as those irrelevant as to the
proof, as per the Law on accountancy No. 82/1991,                     object of activity he was authorized to perform, with the
republished with all the subsequent modifications and                 exception of those linked to the assets forming the bank
completions, such document being proof of the carrying out            guarantee for the loans necessary for the carrying out of
of this operation;                                                    such activities as the taxpayer is authorized to perform.
   k) the expenses made by agricultural companies, set up                Art. 10. — (1) The expenses for interests are wholly
as per the Law No. 36/1991 on agricultural companies and              deductible should the leverage be lower than one.

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   (2) If the leverage exceeds one, inclusively, the                  computers and their peripheral equipment, commissioned
expenses for the interests are deductible up to the level             after the coming into force of the present law, the accelerated
of the total incomes deriving from the interests plus 10              depreciation system can be used, without approval from the
per cent of the taxpayer’s other incomes. The expenses for            territorial fiscal body. The same depreciation system may also
the interests which remain non-deductible shall be carried            be applied in the case of patents since the date of their
forward to the following period, on the same terms, up to             putting into practice by the taxpayer.
their full deductibility.                                                (2) The expenses made for the exploitation of the natural
   (3) If the expenses resulting from the exchange rate               deposits such as land stripping, exploration, drilling and
differences exceed the taxpayer’s incomes resulting from              development, failing to finally become economic objectives
the exchange rate differences, the said difference shall be           capable of becoming operational, shall be recovered during
considered as expense pertaining to the interest within               the following 5 years, in equal installments drawn from the
the meaning of paragraphs (1) and (2) and the                         revenues obtained from such exploitation.
deductibility of such a difference shall be subject to the               (3) The taxpayers authorized to carry on their activity in
limitations as per the provisions of these paragraphs.                the field of the natural deposits exploitation shall by all
   (4) The interests and the losses resulting from the                means enter the account books and deduct, when assessing
exchange rates differences relevant to the loans obtained             the taxable profit, the provisions regarding the restauring
directly or indirectly from international development banks           of the damaged lands and for their rehabilitation in order
and from other similar organizations, as mentioned in the             to be re-introduced into the economic, forest and
instructions provided for in Art. 34, as well as those                agricultural circuits, within the limits of a quota amounting
guaranteed by the state are not provided for in this article.         to 1 per cent of the annual difference between the incomes
   (5) In the case of loans obtained from bodies other                and expenses pertaining to exploitation, registered as per
than the authorized crediting institutions, the deductible            the bookkeeping regulations, along the entire operation
interest shall be limited to:                                         duration of the natural deposits exploitation.
   a) the level of the reference interest rate of the National
                                                                         (4) As regards the holders of oil agreements for sea
Bank of Romania, as regards the interest calculated in lei;
   b) the level of the EURIBOR interest rate plus two                 areas including zones where the water depth exceeds 100
percentage points, as regards the loans calculated in Euro;           m, the quota of the provision provided for the taking out
   c) the level of the LIBOR interest rate plus two                   of operation of the drilling rigs, for the demobilization of
percentage points for other foreign loans.                            the installations, outbuildings and annexes, as well as for
   (6) The limit provided for in paragraph (5) shall be               the environment rehabilitation shall amount to 10 per
applied to each loan, prior to the application of the                 cent out of the annual exploitation profit, for the entire
provisions of paragraphs (1) and (2).                                 duration of the oil exploitation.
   (7) The provisions of paragraphs (1)—(3) shall not apply              (5) The taxpayers investing in fixed assets and/or in
to banks, to Romanian legal persons and to the branches               depreciable patents, according to the law, which are
of the foreign banks carrying on their activity in                    destined to the activities they are authorized to carry on
Romania, as well as to the crediting institutions.                    and who expressed no option whatever for the accelerated
   Art. 11. — (1) The expenses pertaining to the depreciation         depreciation regime, may deduct additional depreciation
of the tangible and intangible assets are deductible within the       expenses amounting to 20 per cent of their entering
limits of the provisions of Law No. 15/1994 on the                    value. The value which remains to be recovered along the
depreciation of the capital immobilized into tangible and             useful life shall be determined after a sum equal to the
intangible assets, republished, with the subsequent                   20 per cent deduction is cut out of the entering value.
modifications and completions. As regards the technological              (6) The depreciation additional deduction is granted on
equipment i.e. the machinery, equipment and installations,            the date when the fixed assets are commissioned, as per

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the provisions of Law No. 15/1994. The purchases of                   order of their registration, with every deadline set for the
animals and plantations shall be exempt from this                     profit tax payment, as per the legal provisions in force in
provision, the deduction in such cases following to be                the year when they occurred.
granted as follows:                                                      (2) The fiscal loss suffered by the legal person that
    a) in the case of animals, on the date of the purchase;           ceases to exist consequent to any splitting, dissolution,
    b) in the case of plantations, on the date of the final           liquidation or merging, shall not be recovered.
taking over on the setting up of the plantation.                         (3) For the foreign legal peresons, the provisions of
    (7) The fixed assets purchased on the basis of a financial        paragraph (1) shall apply only with regard to the economic
leasing contract shall fall within paragraphs (1) or (5), as          activities, participation shares, profits and losses that can
the case may be, the said assets being purchased on the               be assigned to their permanent head offices in Romania.
basis of a financial leasing contract including a final clause           (4) The taxpayers that were obliged to pay profit tax and
for the transfer of the property in the goods on the                  that had previously registered any fiscal losses, fall within
termination of the financial leasing contract.                        the provisions in paragraph (1) as from the date they
    (8) The taxpayers who benefit by the facilities provided          reverted to the taxpaying system regulated by the present
for in paragraphs (1) and (5) shall by all means preserve             law. This loss shall be recovered as from its registration date.
these fixed assets in their patrimony for at least half of               A r t . 1 4 . — (1) In case any taxpayer is subject to
their usual operating time.                                           liquidation / dissolution, the profit derived from the
    (9) The legal persons who, until the coming into force of         liquidation of his patrimony shall also be taken into
this law, benefited by the fiscal facility provided for in Art.       account when the taxable profit is assessed.
212 of the Government Emergency Ordinance No. 297/2000                   (2) In case of any merging or splitting of a certain
for the completion of Law No. 133/1999 on the private                 taxpayer that ceases to exist, the sums derived following
entrepreneurs setting up and developing the small and                 the assessment pertaining to these operations shall be
medium-sized enterprises approved and modified by Law                 reflected in the reserve accounts of the resulting entities
No. 415/2001, are obliged to preserve into their patrimony            but shall not be used for the increase of the share capital.
the achieved investments for at least half of their normal            Otherwise, these sums shall be subject to taxation by such
operating time.                                                       a quota as provided for in Art. 2 (1).
    (10) If the provisions in paragraphs (8) and (9) are
observed, the profit tax shall be recalculated, the period when                               CHAPTER III
the deduction has been applied included, with the due                           Taxation applied to foreign legal persons
increases and penalties for the delay, as per the laws in force.           and to incomes derived from any sources abroad
    Art. 12. — In the case of financial leasing, the user shall be        Art. 15. — The taxpayers defined in Art. 1 (1) b) and c)
fiscally treated as a proprietary, whereas, in the case of the        owe a tax on the profit assignable to their permanent
operational leasing, the lender/finance provider has this             head offices in Romania. The tax quota shall be the one
quality. The depreciation of the asset forming the object of a        established in Art. 2 (1), (3) or (4), as the case may be.
leasing contract shall be made by the user, in the case of the            Art. 16. — (1) The foreign legal persons achieving the
financial leasing, and by the lender, if the leasing is               following incomes shall pay taxes on the profit relevant to
operational, the expenses being deductible. In the case of the        these, as per the provisions of the present law, the quota
financial leasing, the user shall deduct the interest, while in       thereof being provided in Art. 2 (1):
that of the operational leasing the user shall deduct the rent.          a) the incomes derived from or connected with any real
    Art. 13. — (1) The annual loss, as established by the             estate located in Romania, including the renting with the aim
profit tax statement, shall be recovered from the taxable             of using such a property and the gain obtained following the
profits to be derived during the following five consecutive           alienation of any right pertaining to such property, including
years. The recovery of the losses shall be effected in the            any other property rights assignable indirectly, also by

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alienation of shares and other similar rights in a company            another legal person; the preservation of a products or
the tangible assets of which are mainly formed — directly or          goods stock so as to be subsequently exhibited at a trade
indirectly — of real estate located in Romania;                       fair or exhibition and which could be sold when these close.
   b) the incomes derived from the working of the natural                (5) The permanent head office shall not include any
resources located in Romania, including the profit                    fixed business place destined to the products and goods
obtained subsequent to the selling of a certain right                 purchasing or to the gathering of information, the
pertaining to such natural resources;                                 maintenance of a steady business place for the carrying out
   c) the incomes derived from the alienation of a                    of activities having a preparatory or auxiliary character, for
property right detained with a Romanian legal person.                 any combination of the previously mentioned activities,
   (2) Any other income which is not mentioned in                     provided that the entire activity conducted within this fixed
paragraph (1) is considered as an income derived on the               business place, resulting from the said combination, should
territory of Romania should it be paid by a Romanian                  actually have a preparatory or auxiliary character.
resident or if payments are made through the agency of                   (6) When a natural or a legal person, other than an agent
some permanent head office in Romania.                                having an independent statute, acts on behalf of an
    Art. 17. — (1) Within the meaning of the present law, a           enterprise and also has and uses a power of attorney so as to
permanent head office means the place through the                     conclude any contracts on behalf of the enterprise, one shall
agency of which any activity performed by a foreign                   consider that the mentioned enterprise has a permanent
natural or legal person is, wholly or partially, conducted            head office with respect to any activities whatever the said
either directly or through an independent agent. Should               person may carry out on behalf of the enterprise, except for
an association or another entity devoid of any legal                  such cases when this person’s activities are being limited to
personality carry out any activities through the agency of a          those mentioned in paragraph (5).
permanent head office in Romania, one shall consider that                (7) It shall not be considered that an enterprise has a
the parties or the beneficiary carry out their activity in            permanent head office only because this carries out its
                                                                      activity through the agency of a broker, of a general
Romania, through the agency of a permanent head office.
                                                                      comission agent or of any other agent having an independent
   (2) The permanent head office shall include: one                   statute, provided that this person acts within the framework
location for the management, a branch office, a subsidiary            of its usual activity, as described in its setting up documents.
office, a department, a division, a factory, a shop, a                   (8) By a dependent agent one means a natural or legal
workshop, a mine, an oil or a gas well, a quarry or any               person, as well as other entity carrying out their activity in
other place of extraction of the natural resources.                   Romania, on behalf on the account and under the control
   (3) A construction site or any other place where                   of a foreign natural or legal person, based on a written
construction equipment was brought, where an erection                 document signed by them and concluding an agreement
or installation project exists, where one carries out any             on behalf of the latter, except for the representations
activities pertaining to the supervision, consulting and              authorized to function on the territory of Romania.
supply of services for the said project or for connected                 (9) Prior to the commencement of any activity, the
ones, shall become a permanent head office should its                 legal representative of the permanent head office shall by
duration exceed six months.                                           all means register it with the territorial fiscal body within
   (4) A permanent head office shall not include: any use of          the area of which he is supposed to work.
installations for the purpose of storage, of the products or             (10) With a view to achieving a real assessment of the
goods display; the preservation of a products and goods               taxable profit for the permanent head office, only the
stock for the purpose of storage and display; the                     expenses pertaining to the deriving of its incomes shall be
preservation of a products and goods stock for the purpose            deducted, as per the provisions of Chapter II. The
of storage and display; the preservation of a products or             following regulations shall be taken into account when
goods stock solely with a view to their being processed by            assessing the taxable profit of the permanent head offices:

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   a) the relation between a foreign trade company and                of the month following the one the tax is to be assessed for.
its permanent head office cannot be judicially established            To this effect, the profit and the profit tax shall be calculated
by agreements/contracts; consequently, the operations                 and set forth quarterly, cumulated since the beginning of the
these are part of generate no profit whatsoever and,                  year or monthly, as in the case of the banks.
following the carrying out of these operations, the                      (2) The National Bank of Romania, the banks and the
permanent head office registers no loss;                              Romanian branches of the banks which are foreign legal
   b) whatever represents no expenditures or profits of               persons shall by all means pay on the account of the profit
the foreign trade company cannot represent expenditure                tax, for the month of December of each fiscal year, a sum
or profit of the permanent head office;                               equal with the tax owed for the month of November of the
   c) the circulation of the assets and of the financing              same year, until 25 January of the following year
between these, as well as the demise of the movables and              inclusively, whereas the regularization on the basis of the
immovables lead by no means to the creation of profits or             data in the balance sheet shall be made no later than the
to the registration of losses.                                        deadline set for the handing in of the financial statements.
   Art. 18. — (1) The Romanian legal person is entitled to a             (3) The taxpayers, others than those provided for in
cut from the profit tax owed in Romania of a sum equal                paraghraph (2), shall pay, on the account of the profit tax
with the tax on the income deriving from a foreign source,            for the IVth quarter, up to January 25 of the following
to be paid either directly or by P A Y E (Pay As You Earn)            year inclusively, a sum equal with the tax as assessed and
abroad, based on documents confirmed by the competent                 set forth for the IIIrd quarter, the regularization to be
foreign authorities, acknowledging this payment as per the            made on the basis of the data in the balance sheet
exchange rate set by the National Bank of Romania on the              following to be made until the deadline set for the
date when the payment is made. In this case, the amount               handing in of the financial statements.
to be taken into account for the assessment of the taxable               (4) The legal persons who cease to exist shall hand in
profit is the gross one, the tax paid abroad included.                the tax statement and shall pay the profit tax 10 days
   (2) The deducted sum shall be at the level provided for            prior to the date when the legal person’s cessation of
in Art. 2 (1), but no more than the profit tax calculated by          existence is registered with the trade register.
application of the profit income quota provided in the                   (5) The legal persons having no patrimonial scope shall
present law, as to the incomes derived from each foreign              assess and pay their profit tax on a yearly basis, the set
income source, after the deductible expenses pertaining to            deadline thereof being 25 January of the following year.
these are deducted.                                                      (6) The taxpayers deriving their profits from cereals and
   A r t . 1 9 . — The losses deriving from any incomes               technical plants cultivation, as well as from fruit tree
generated by foreign sources shall be deducted solely                 growing and viticulture, shall pay their profit tax on a yearly
from these incomes, per each income source in part. The               basis, up to 25 January of the following year inclusively, for
unadjusted losses shall be carried forward to be recovered            that share of the taxable profit corresponding to the weight
in the following years, as per Art. 13.                               of these incomes within the total amount of their incomes.
                                                                         Art. 21. — (1) During one fiscal year, the taxpayers shall
                                                                      hand in the tax statement no later than the deadline set for
                         CHAPTER IV                                   the tax payment inclusively, following that, after the profit
             The profit tax payment and control                       tax amount is finally established based on the yearly
    Art. 20. — (1) The profit tax payment shall be made               balance sheet data, the tax statement pertaining to the
quarterly, up to the date of 25 of the first month of the             expired fiscal year be handed in, not later than the
following quarter included, except for the National Bank of           deadline set for the handing in of the financial statements.
Romania, for the Romanian banks and for the Romanian                     (2) Along with their yearly tax statement, the taxpayers
branches of the banks which are foreign legal persons whose           shall also hand in a statement on the payments made or
payments are made on a monthly basis, up to the date of 25            on any payment commitments towards any foreign

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natural and/or legal persons, with the sums, purpose of                  a) the operations intended to facilitate any tax dodging
the payment and the beneficiary thereof duly mentioned.               or diminishing;
This statement shall not include any sums engaged or                     b) such operations that are effected on behalf of the
paid for the operations dealing exclusively with the                  taxpayer but in favor of the associates, shareholders or of
import of goods and with international transportation.                any person acting on their behalf;
   (3) Any liability as to the assessment of the declared                c) the debts the taxpayers assumed on the account of
taxes and to the handing in of the tax statement no later             certain loans made or guaranteed by the shareholders,
than the set deadline is fully incumbent on the taxpayers.            associates or by any other person acting on their behalf,
   (4) The tax statement shall be duly signed by the                  with the aim at performing an actual setting forth of the
administrator or by any other person legally authorized to            said operation;
stand for the taxpayer.                                                  d) the distribution, sharing, income allotment, the
   Art. 22. — Those taxpayers who finalized the closing of the        deductions, crediting or cuts made between two or among
previous financial exercise are exempt from the provisions            several taxpayers or those operations directly or indirectly
in Art. 20 (3). They shall submit the final tax statement and         controlled by persons sharing the same interests, in order
shall pay the profit tax relating to the closed fiscal year, up       to avoid any tax dodging and to perform an actual setting
to 25 January of the following year, inclusively.                     forth of the said operation.
   Art. 23. — The payment of the taxes falling within the                (2) As regards any transactions made between
provisions of the present law shall be made in lei.                   associated persons, the value acknowledged by the fiscal
   Art. 24. — Any failure to pay the profit income up to its          authority shall be the market value thereof.
falling due shall bring about increases of sums and delay                (3) Particularly, by associated persons one means the
penalties as per the regulations of the legislation in force.         following:
   Art. 25. — Any findings, control, pursuing, cashing and               a) the natural persons, their ancestors, descendents,
enforcement with respect to the taxes falling within the              collateral relatives, their respective spouses and their
provisions of the present law, as well as the application of          affines up to the third degree inclusively;
any penalties, delay increases of sums and delay penalties               b) an entity and any other person detaining, directly or
shall be performed by the fiscal bodies of the Ministry of            indirectly, properties belonging to the associates of that
the Public Finances, as per the legislation in force.                 person, 20 per cent or more of the value, or the number
   Art. 26. — Any tax inspector or other employee of a                of shares or of the proxy rights of that entity or
certain fiscal unit, having been fully authorized therefore, is       controlling that entity in fact;
entitled to enter any premises where the taxpayer conducts               c) two entities, if a third person detains inclusively
his business or any other premises open to the public, as per         properties of that person’s associates, directly or
the Government Ordinance No. 70/1997 on the fiscal control,           indirectly, 20 per cent or more of the value, of the
as approved with modifications and completions by Law No.             number of shares or of the proxy rights of each entity or
64/1999, with its subsequent modifications, with the aim of           controlling those entities in fact;
assessing the taxpayer’s fiscal liabilities. Access is permitted         4) The following methods shall be used for the
during the normal working hours but access beyond these               assessment of the transactions market value:
time limits shall be allowed only with the written                       a) the price comparison method, where the taxpayer’s
authorization released by the fiscal unit management, as              selling price is compared with the prices practised by
accounted for by the necessity of the control.                        other entities independent of him, when comparable
   Art. 27. — (1) With the view to assessing any fiscal               products or services are sold;
liabilities as per the provisions of the present law, the                b) the cost-plus method, where the market usual price is
fiscal bodies are entitled to duly and pertinently control            to be assessed as a value of the main costs, increased by a
and recalculate the taxable profit and the due tax for:               profit rate similar to the taxpayer’s activity domain;

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   c) the re-selling price method, where the market price             dividend tax are duly paid to the state budget. The
is assessed on the basis of the re-selling price of the               situations when the taxpayer’s overdue tax liabilities are
products and services to independent entities, diminished             to be overtaken, based on a protocol concluded with the
by the selling price and a profit rate.                               state administrative bodies are excepted; the obligation of
   (5) Out of the methods provided for in paragraph (4),              paying these debts shall duly result from the above
the most adequate one shall be used, according to the case.           mentioned document, as well as any transactions made
   (6) The proceedings for the application of these methods           on the capital market.
shall be described in the instructions approved by a                     (2) Whenever any modification such as that provided
Government Decision, as per the provisions of Art. 34.                for in paragraph (1) is made, the trade register office is
   Art. 28. — (1) The public servants working within the              bound to claim, for either the proof issued by the relevant
fiscal units, as well as those persons who no longer detain           territorial bodies, attesting the payment of any tax
this capacity, are bound to keep the secret on any                    liabilities or the protocol previously concluded with the
                                                                      state administration bodies, should these tax liabilities be
information regarding a certain taxpayer, which they have             taken over.
gathered when exercising their duties.                                   (3) The non-observance of the provisions in paragraphs
   (2) The information referring to a certain taxpayer may            (1) and (2) is considered as an infringement of the law
be transmitted only to the following:                                 imputable either to the company manager or to the legal
   a) to the authorities having fiscal duties for the                 representative, as the case may be, as well as to the issuer
fulfillment of certain liabilities resulting from the                 of the mentions certificate and is to be sanctioned as per
enforcement of a fiscal law;                                          the provisions of the penal law.
   b) to the labor and social protection authority which is
entitled with the making of social security payments and                                        CHAPTER V
of other such payments;                                                              Transitory and final provisions
   c) to fiscal authorities in other countries, based on an
international convention ratified or approved by the                     Art. 31. — The methods of calculation and reflecting
Parliament;                                                           into profit of the operations pertaining to the assets
                                                                      distribution, should the taxpayers proceed to partial or
   d) to any competent judiciary authorities, in accordance           total liquidations as well as to their reorganization, shall
with the legal provisions.                                            be described in the instructions in Art. 34.
   (3) The person receiving any fiscal information, as per               Art. 32. — The net loss registered during the period of
the provisions of paragraph (2), shall by all means keep              exemption can be recovered from the future taxable
the fiscal secret on the information received.                        profits, as per the provisions of the present law. The net
   (4) Provided there is a written consent of the taxpayer,           loss shall be calculated as the difference between the
an information referring to the said taxpayer may be                  losses and the taxable profits registered during the period
passed on to another person.                                          of exemption.
   (5) The non-observance of the obligation to keep the                  Art. 33. — (1) The tax liabilities regulated in the present
fiscal secret shall be sanctioned in accordance with the              law shall go as incomes to the state budget.
penal law.                                                               (2) As an exception of the provisions of paragraph (1), the
   Art. 29. — Any dispute against the control or taxation             profit tax and the increases and fines owed by the autonomous
documents accomplished by the fiscal bodies shall be                  régies subordinated to local and county councils shall go as
settled as per the legal provisions.                                  incomes to the budgets of the respective local councils.
   Art. 30. — (1) Any assignment or alienation by whatever               Art. 34. — (1) Within 30 days since the coming into
means of the stocks or shares belonging to trade                      force of the present law, the Government shall approve,
companies, as well as the transfer of the patrimony of an             on the proposal of the Ministry of Public Finance, the
entity belonging to a non-residing person shall possibly be           instructions on the calculation methods and the necessary
made solely after such tax liabilities as the profit tax and          forms to be filled in for the profit tax purposes.

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    (2) Within 30 days since the coming into force of the             since the coming into force of the present law. This provision
present law, the Government shall approve the policy of tax           shall no longer be applied as from the date when the
deductions of the provisions belonging to trade operators             taxpayer’s shareholders structure changes. As per the
and to banks, credit cooperatives and guarantee funds.                provisions of this article, in the case of the quoted companies,
    (3) For the unitary application of the present law, there         one shall consider that such a modification of the said
has been established the Central Tax Committee for the                shareholders group occurs if more than 25 per cent of the
direct taxation, coordinated by the Secretary of State in             shareholders’ structure modify during one calendar year.
charge of the state incomes activity. The components of                  Art. 36. — (1) On the date of the coming into force of
this Committee and its regulations shall be approved by               this law, the following legal documents are abrogated:
Order of the minister of public finance.                                 a) the provisions of the Government Ordinance No.
    (4) All the Orders, form patterns and the norms for their         70/1994 on the profit tax, approved with modifications as
filling in, with reference to the profit tax, as well as the          per the Law No. 73/1996 republished in the Official
decisions of the committee mentioned in paragraph (3) shall           Gazette of Romania, Part I, No. 40 of 12 March 1997, with
be published in the Official Gazette of Romania, Part I.              the subsequent modifications and completions;
    Art. 35. — (1) The present law shall come into force on              b) the provisions of Art. 2 of the Government
1 July 2002.                                                          Emergency Ordinance No. 127/1999 on the setting up of
    (2) It will be considered that the calendar year 2002 is          certain measures having a fiscal character and meant to
made of two tax years. The first tax year includes the                improve the formation and collection of the state
period between 1 January — 30 June 2002, during which                 incomes, published in the Official Gazette of Romania,
the provisions on the profit tax shall be enforced as                 Part. I, No. 455 of 20 September 1999, approved with
published in the Government Ordinance No. 70/1994 on                  modifications by Law No. 576/2001;
the profit tax, republished, with the subsequent                         c) the instructions referring to the profit tax, as
modifications and completions, as well as the other legal             provided for in Art. 14 of the Law No. 84/1992 on the free
norms in force, incidental. The second tax year includes              zones policy, published in the Official Gazette of
the period between 1 July — 31 December 2002, during                  Romania, Part I, No. 182 of 30 July 1992;
which the provisions of the present law shall be enforced.               d) the provisions of Art. 6 (1) c), referring to the profit tax,
    (3) As regards the legal persons having obtained their            of the Government Emergency Ordinance No. 24/1998 on the
permanent certificate of investor in a depressed area                 depressed areas policy, approved with modifications by Law
prior to the date when the present law comes into force,              No. 20/1999, republished in the Official Gazette of Romania,
the profit tax exemption shall be further applied as long             Part I, No. 545 of 8 November 1999, with the subsequent
as the depressed area exists.                                         modifications and completions;
    (4) The taxpayers who made investment expenses prior                 e) the provisions of Art. 43 (2) on the profit tax, in Law
to 30 June 2002, according to the provisions of the                   No. 32/2000 on the insurance companies and the
Government Ordinance No. 27/1996, republished, on the                 insurance supervision, as published in the Official Gazette
granting of facilities to the persons residing or working in          of Romania, Part I, No. 148 of 10 April 2000, with the
certain places in the Apuseni Mountains and in the “Delta             subsequent modifications and completions;
Dun„rii” (The Danube Delta) Biosphere Reservation shall                  f) the provisions of Art. 19 (1) and (4) on the profit tax of
still benefit by the regulations provided thereof.                    the Government Ordinance No. 78/2001 for the
    (5) The taxpayers who carry on their activity in a free zone      modification of Law No. 199/2000, on the effective
on a licence basis and who, until the coming into force of the        utilization of the energy, as published in the Official Gazette
present law, have made investments in the said free zone,             of Romania, Part I, No. 541 of 1 September 2001 and
expressed in depreciable tangible assets used in the                  approved with modifications by Law No. 120/2002;
processing industry and amounting to at least US $ 1 000 000,            g) the instructions referring to the profit tax provided
shall benefit by a profit tax exemption for a 5 year period           for in Art. 89 (3) of the Law on banking No. 58/1998, as

452                                                                                                                                 453
Regulations on small and medium-sized enterprises — Taxation system


published in the Official Gazette of Romania, Part I, No.
121 of 23 March 1998, with the subsequent modifications
and completions;
   h) the provisions of Arts 212 and 213 referring to the
profit tax, of the Government Emergency Ordinance No.
297/2000, for the completion of Law No. 133/1999, on the                            DECISION
incentives offered to the private entrepreneurs for the
setting up and developing of the small and medium-sized                   on the procedure of the export
enterprises, as published in the Official Gazette of
Romania, Part I, No. 707 of 30 December 2000, approved
                                                                         and import licenses of Romania*
with modifications by Law No. 415/2000;                                  Art. 1. — The export and import operations shall be
   i) the regulations in Arts. 6 and 7 on the income tax of           carried out only by the economic units which included in
the Government Ordinance No. 24/2001, on the taxation of              their object of activity the carrying out of such operations.
the microenterprises, as published in the Official Gazette               Art. 2. — The export and import of goods from and into
of Romania, Part I, No. 472 of 17 August 2001;                        the customs territory of Romania shall be deregulated not
   j) the provisions of Art. 7 b), referring to the profit tax, of
                                                                      being subjected to export licenses, import licenses,
the Government Ordinance No. 65/2001, on the setting up and
operation of the industrial parks, as published in the Official       respectively.
Gazette of Romania, Part I, No. 536 of 1 September 2001;                 Art. 3. — An exception from the provisions of Article 2
   k) the provisions of Art. 10 referring to the profit tax, of the   shall be the goods subjected to certain quantitative
Government Ordinance No. 27/1996 regarding the granting of            restrictions, the control procedure in accordance with the
facilities to persons residing or working in certain localities in    international commitments undertaken by Romania
the Apuseni Mountains and in the “Delta Dun„rii” (Danube              regarding the non-proliferation of the mass destruction
Delta) Biosphere Reservation, approved with modifications by          weapons and of the rockets, of the radioactive materials, of
Law No. 96/1997, republished in the Official Gazette of               the nuclear installations and the materials of nuclear
Romania, Part I, No. 194 of 13 August 1997;                           interest, as well as any other goods subjected to control, in
   l) the provisions of Arts 2 and 4 of the Government                accordance with the provisions of the present decision, for
Decision No. 335/1995 on the policy of formation, use and             which export and import licenses are necessary.
tax deduction for the provisions formed by trade                         At the same time, there are subjected to the procedure
operators and banking companies, republished in the                   of licenses the trading operations with payment under
Official Gazette of Romania, Part I, No. 87 of 29 April               clearing barter or cooperation accounts, agreed upon on
1996, with the subsequent modifications;                              the basis of government agreements, those for the recovery
   m) the provisions of Art. 68 of the Law on physical                of State’s external debts, those that are carried out on the
education and sports No. 69/2000, published in the                    basis of credits granted or contracted at government level,
Official Gazette of Romania, Part I, No. 200 of 9 May                 as well as the export-import linked operations.
2000, with the subsequent modifications and completions.                 Art. 4. — For the purpose of ensuring the general or
   (2) The provisions of Art. 13 (1) and of Art. 14 of the
                                                                      local balance of the internal market, of the general
Law No. 332/2001 on the promotion of the direct
investments having a significant impact on economy,                   security, of cultural and artistic patrimony protection, as
published in the Official Gazette of Romania, Part I, No.             well as of preserving exhaustible natural resources, the
356 of 3 July 2001 shall be abrogated as from 1 January
2005.                                                                   * GD No. 215/1992 was published in OG No. 91 of 13 May 1992.


454                                                                                                                                    455
Regulations on small and medium-sized enterprises — Taxation system                                                GD No. 215/1992


Ministry of Commerce and Tourism shall subject certain                the Ministry of Commerce and Tourism, through the
export goods to certain temporary quantitative                        Foreign Trade Department.
restrictions, to control or to interdiction.                             Art. 10. — The export and import licenses shall be
   Art. 5. — The Ministry of Commerce and Tourism may                 issued within maximum 10 days from the registration of
institute quantitative import restrictions of temporary               the applications with the Ministry of Commerce and
character, as follows:                                                Tourism — the Foreign Trade Department, with a validity,
   a) when an imminent risk of an imbalance in the                    as a rule, until the end of the calendar year for which
external balance of payments appears, or for the purpose              they were issued.
of creating normal foreign exchange reserves;                            Art. 11. — The export or import licenses for the goods
   b) when certain imports, by quantity or manufacturing              subjected to quantitative restrictions, according to the
conditions, cause or threaten to cause a severe prejudice             provisions of the present decision, shall be issued for a
to national manufactures of similar products or directly              period that should avoid blocking up the utilization of the
in competition.                                                       respective quotas.
   Art. 6. — The instituting of quantitative import restrictions         Art. 12. — The rejecting of the applications for export
shall be made at the substantiated request of the National            or import license shall be motivated and shall be
Bank of Romania or of national economic units or of                   communicated to the respective economic unit.
interested associations of national economic units, as the               Art. 13. — The Ministry of Commerce and Tourism
case may be, this applying until the elimination of the               shall establish the methodology of applying the provisions
negative influences that were considered on their institution.        of the present decision.
   Art. 7. — For reasons of protection of public morality,               The Ministry of Economy and Finance shall establish
of health and life of persons, environment and national               the specific procedures for the submitting the customs
security, the Ministry of Commerce and Tourism shall                  documents in applying the present decision.
include certain goods from import to control or                          Art. 14. — The present decision shall come into force on
interdiction to import.                                               1 May 1992.
   Art. 8. — The instituting of quantitative restrictions in             On the date of coming into force of the present
export and import, the putting of the export and import               decision, the Government Decision No. 726 of
goods under control or interdiction, the list of the said             14 October 1991, as well as any provisions to the contrary
products as well as the period of such measures being                 shall be abrogated.
applied shall be made public.
   The list of the goods subjected to the control procedure in
keeping with the international commitments undertaken by
Romania regarding non-proliferation of the mass destruction
weapons and of the rockets, of the radioactive materials, of
the nuclear installations and the materials of nuclear interest,
as well as the procedure of advising the imports and exports
shall be established by joint order of the minister of
commerce and tourism, the minister of foreign affairs, the
minister of industry, the minister of environment and the
minister on national defense, which shall be made public.
   Art. 9. — The issuing of the export and import licenses
stipulated in the present decision shall be carried out by

456                                                                                                                           457
                                           CUPRINS

ORDONANfi√ privind impunerea microÓntreprinderilor ...                                            5

LEGEA contabilit„˛ii .....................................................................       9

                                 CAPITOLUL I
Dispozi˛ii generale ........................................................................     9

                        CAPITOLUL II
Organizarea ∫i conducerea contabilit„˛ii ................................                       12

                           CAPITOLUL III
Registrele de contabilitate ..........................................................          14

                          CAPITOLUL IV
Situa˛ii financiare anuale ...........................................................          15

                             CAPITOLUL V
Contabilitatea trezoreriei statului ∫i a institu˛iilor publice ......                           18

                          CAPITOLUL VI
Contraven˛ii ∫i infrac˛iuni ..........................................................          21

                            CAPITOLUL VII
Dispozi˛ii tranzitorii ∫i finale ....................................................           22

LEGE privind taxa pe valoarea ad„ugat„ ..............................                           25

                                  CAPITOLUL I
Sfera de aplicare ...........................................................................   25
                              Sec˛iunea 1
Opera˛iuni impozabile ................................................................          25
                         Sec˛iunea a 2-a
Locul opera˛iunilor impozabile .................................................                29
                          Sec˛iunea a 3-a
Regimuri de impozitare ..............................................................           32

                                                                                                459
                                 Sec˛iunea a 4-a                                                                                         CAPITOLUL I
Opera˛iuni scutite .........................................................................      33   Sfera de aplicare ...........................................................................       66
                               Subsec˛iunea 1                                                                                        Sec˛iunea 1
Scutiri Ón interiorul ˛„rii ..............................................................        33   Opera˛iuni impozabile ................................................................              66
                        Subsec˛iunea a 2-a                                                                                      Sec˛iunea a 2-a
Opera˛iuni scutite la import ......................................................               38   Locul opera˛iunilor impozabile .................................................                    71
                       Subsec˛iunea a 3-a
                                                                                                                                        Sec˛iunea a 3-a
Scutiri pentru exporturi sau alte opera˛iuni similare ∫i
pentru transportul interna˛ional ...........................................                      39   Opera˛iuni scutite .........................................................................        73

                            Subsec˛iunea a 4-a                                                                                   CAPITOLUL II
Scutiri speciale legate de traficul interna˛ional de bunuri .......                               41   Persoane obligate la plata taxei pe valoarea ad„ugat„ ........                                      93

                          CAPITOLUL II                                                                                              CAPITOLUL III
Persoane obligate la plata taxei pe valoarea ad„ugat„ ........                                    42
                                                                                                       Faptul generator ∫i exigibilitatea taxei pe valoarea ad„ugat„ ....                                  97
                             CAPITOLUL III
Faptul generator ∫i exigibilitatea taxei pe valoarea ad„ugat„ .....                               43                               CAPITOLUL IV
                                                                                                       Baza de impozitare ......................................................................           99
                            CAPITOLUL IV
Baza de impozitare ......................................................................         47                                CAPITOLUL V
                                                                                                       Cotele de impozitare ∫i calculul taxei pe valoarea ad„ugat„ ......                                 103
                                      Sec˛iunea 1
Œn interiorul ˛„rii ..........................................................................    47
                                                                                                                                   CAPITOLUL VI
                           Sec˛iunea a 2-a                                                             Regimul reducerilor .....................................................................          103
La importul de bunuri ................................................................            48
                                                                                                                                     CAPITOLUL VII
                             CAPITOLUL V                                                               Obliga˛iile pl„titorilor ..................................................................        114
Cotele de impozitare ∫i calculul taxei pe valoarea ad„ugat„ .......                               49
                                                                                                                                         CAPITOLUL VIII
                           CAPITOLUL VI                                                                Dispozi˛ii finale ..............................................................................   121
Regimul deducerilor ....................................................................          50   ANEXA nr. 1 — Taxa pe valoarea ad„ugat„; cerere de compensare                                      123
                                                                                                       ANEXA nr. 2 — Taxa pe valoarea ad„ugat„; cerere de rambursare                                      124
                           CAPITOLUL VII                                                               ANEXA nr. 3 — Fi∫a pe analiz„ de risc pentru rambursarea
Obliga˛iile pl„titorilor de tax„ pe valoarea ad„ugat„ ..........                                  55   taxei pe valoarea ad„ugat„ cu control ulterior .....................                               125

                                 CAPITOLUL VIII                                                        LEGE privind impozitul pe profit ............................................                      127
Dispozi˛ii finale .............................................................................   60
ANEX√ — Lista activit„˛ilor la care se refer„ art. 2 alin. (5) .......                            65
                                                                                                                                        CAPITOLUL I
HOT√R¬RE pentru aprobarea Normelor de aplicare a Legii                                                 Dispozi˛ii generale ........................................................................       127
nr. 345/2002 privind taxa pe valoarea ad„ugat„ ..................                                 66
ANEX√ — Norme de aplicare a Legii nr. 345/2002 privind                                                                          CAPITOLUL II
taxa pe valoarea ad„ugat„ ..........................................................              66   Determinarea profitului impozabil ..........................................                       131

460                                                                                                                                                                                                       461
                                  CAPITOLUL III
Impozitarea persoanelor juridice str„ine ∫i a veniturilor din
surse externe .................................................................................    139

                          CAPITOLUL IV
Plata ∫i controlul impozitului pe profit ..................................                        142                                          SOMMAIRE
                             CAPITOLUL V                                                                 ORDONNANCE sur l’imposition des micro-entreprises ........                                     157
Dispozi˛ii tranzitorii ∫i finale ....................................................              147
                                                                                                         LOI de la comptabilité ..................................................................      161
HOT√R¬RE privind regimul licen˛elor de export ∫i import
al Rom‚niei ....................................................................................   151
                                                                                                                                       CHAPITRE Ier
                                                                                                         Dispositions générales...................................................................      161

                                                                                                                                   CHAPITRE II
                                                                                                         Organisation et tenue de la comptabilité ................................                      164

                                                                                                                                         CHAPITRE III
                                                                                                         Livres comptables ..........................................................................   166

                                                                                                                                   CHAPITRE IV
                                                                                                         Situations financières annuelles ................................................              167

                                                                                                                                    CHAPITRE V
                                                                                                         Comptabilité du Trésor public et des institutions publiques.....                               170

                                                                                                                                   CHAPITRE VI
                                                                                                         Contraventions et infractions......................................................            173

                                                                                                                                    CHAPITRE VII
                                                                                                         Dispositions transitoires et finales ............................................              175

                                                                                                         LOI concernant la taxe sur la valeur ajoutée .........................                         177

                                                                                                                                    CHAPITRE Ier
                                                                                                         Domaine d’application..................................................................        177
                                                                                                                                         Section                1re
                                                                                                         Opérations imposables..................................................................        177
                                                                                                                                    Section 2
                                                                                                         Lieu des opérations imposables .................................................               181
                                                                                                                                           Section 3
                                                                                                         Régimes d’imposition....................................................................       184

462                                                                                                                                                                                                     463
                                   Section 4                                                                   ARRÊTÉ portant approbation des Normes d’application de
Opérations exonérées ....................................................................                185   la Loi no 345/2002 concernant la taxe sur la valeur ajoutée ......                                       218
                                                                                                               ANNEXE — Normes d’application de la Loi no 345/2002
                           Sous-section 1                                                                      concernant la taxe sur la valeur ajoutée..................................                               218
Exonérations à l’intérieur du pays ............................................                          185
                          Sous-section 2                                                                                                        CHAPITRE Ier
Opérations exonérées à l’importation.......................................                              190   Shère d’application ........................................................................             218
                                                                                                                                               Section 1re
                           Sons-section 3
                                                                                                               Opérations imposables..................................................................                  218
Exonérations pour les exportations ou autres opérations
similaires et pour le transport international ..........................                                 191                              Section 2
                                                                                                               Lieu des opérations imposables .................................................                         223
                             Sous-section 4
Exonérations spéciales liées au trafic international de biens .....                                      193                                      Section 3
                                                                                                               Opérations exonérées ....................................................................                225
                          CHAPITRE II
Personnes tenues au paiement de la taxe sur la valeur ajoutée...                                         194                                              CHAPITRE II
                                                                                                               Personnes tenues au paiement de la taxe sur la valeur
                               CHAPITRE III                                                                    ajoutée ..............................................................................................   245
Fait générateur et exigibilité de la taxe sur la valeur ajoutée.........                                 195
                                                                                                                                             CHAPITRE III
                                           CHAPITRE IV                                                         Fait générateur et exigibilité de la taxe sur la valeur ajoutée ....                                     249
Assiette..............................................................................................   199
                                                                                                                                                CHAPITRE IV
                                    Section 1re                                                                Base d’imposition...........................................................................             251
A l’intérieur de pays......................................................................              199
                                                                                                                                           CHAPITRE V
                                Section 2
                                                                                                               Taux d’imposition et calcul de la taxe sur la valeur ajoutée ......                                      255
A l’importation des biens.............................................................                   200
                                                                                                                                          CHAPITRE VI
                            CHAPITRE V
                                                                                                               Régime des déductions.................................................................                   255
Taux d’imposition et calcul de la taxe sur la valeur ajoutée ......                                      201
                                                                                                                                          CHAPITRE VII
                           CHAPITRE VI                                                                         Obligations des payeurs ...............................................................                  267
Régime des déductions.................................................................                   202
                                                                                                                                                 CHAPITRE VIII
                           CHAPITRE VII                                                                        Dispositions finales........................................................................             274
Obligations des redevables de la taxe sur la valeur ajoutée .......                                      207   ANNEXE n o 1 — Taxe sur la valeur ajoutée; demande de
                                                                                                               compensation ..................................................................................          276
                                       CHAPITRE VIII                                                           ANNEXE no 2 — Taxe sur la valeur ajoutée; demande de
Dispositions finales........................................................................             212   remboursement ..............................................................................             277
ANNEXE – Liste des activités auxquelles fait référence                                                         ANNEXE no 3 — Fiche d’analyse de risque pour le rembour-
l’art. 2 al. (5)....................................................................................     217   sement des taxes sur la valeur ajoutée à contrôle ultérieur......                                        278

464                                                                                                            c. 30                                                                                                    465
LOI relative à l’impôt sur le profit ............................................                 280

                              CHAPITRE Ier
Dispositions générales...................................................................         280

                         CHAPITRE II                                                                                                                 CONTENTS
Détermination du profit imposable ..........................................                      284   ORDINANCE on the taxation of microenterprises ...............                                             309

                         CHAPITRE III                                                                   LAW on acccountancy ...................................................................                   313
Imposition des personnes morales étrangères et des revenus
provenant de sources extérieures ..............................................                   292                                     CHAPTER I
                                                                                                        General provisions.........................................................................               313
                          CHAPITRE IV
Paiement et contrôle de l’impôt sur le profit.........................                            295                          CHAPTER II
                                                                                                        Organization and management of the accounting system ..                                                   316
                            CHAPITRE V
Dispositions transitoires et finales ............................................                 300                                 CHAPTER III
                                                                                                        The books of account ....................................................................                 318
ARRÊTÉ sur le régime des licences d’exportation et d’importation
de la Roumanie ................................................................................   304                            CHAPTER IV
                                                                                                        Annual financial statements........................................................                       319

                                                                                                                                   CHAPTER V
                                                                                                        State treasury and public institutions accounting.................                                        322

                                                                                                                                 CHAPTER VI
                                                                                                        Contravention and offences ........................................................                       325

                                                                                                                                  CHAPTER VII
                                                                                                        Transitory and final provisions ..................................................                        326

                                                                                                        LAW on the value added tax .......................................................                        329

                                                                                                                                                      CHAPTER I
                                                                                                        Scope .................................................................................................   329
                                                                                                                                             Section 1
                                                                                                        Taxable operations.........................................................................               329
                                                                                                                                       Section 2
                                                                                                        Place of taxable operations..........................................................                     333
                                                                                                                                            Section 3
                                                                                                        Taxation procedures ......................................................................                336
                                                                                                                                            Section 4
                                                                                                        Exempt operations.........................................................................                337

466                                                                                                                                                                                                               467
                        Subsection 1                                                                                                              Section 1
Exemptions inside Romania........................................................                      337   Taxable operations.........................................................................            370
                          Subsection 2                                                                                                    Section 2
Exempt import operations...........................................................                    342   The place of the taxable operations ..........................................                         375
                             Subsection 3                                                                                                      Section 3
Exemptions for exports or other similar operations and                                                       Tax-exempt operations ..................................................................               377
for international transport ..........................................................                 343
                            Subsection 4                                                                                               CHAPTER II
Special exemptions related to international goods traffic......                                        345   Persons obliged to pay value added tax...................................                              397

                          CHAPTER II                                                                                                  CHAPTER III
Entities bound to pay the value added tax .............................                                346   Generating fact and payability of value added tax ...............                                      401

                         CHAPTER III                                                                                                                  CHAPTER IV
Generating fact and payability of value added tax ...............                                      347   Tax base............................................................................................   403

                                         CHAPTER IV                                                                                    CHAPTER V
Tax base............................................................................................   351   Taxation quotas and calculation of the value added tax .....                                           407
                                       Section 1
Inside Romania ..............................................................................          351                                CHAPTER VI
                                                                                                             Deductions procedure ...................................................................               407
                                    Section 2
For imported goods .......................................................................             352
                                                                                                                                               CHAPTER VII
                                                                                                             Payers’ obligations .........................................................................          418
                           CHAPTER V
Tax brackets and calculation of the value added tax ...........                                        353
                                                                                                                                                CHAPTER VIII
                                CHAPTER VI                                                                   Final provisions ..............................................................................        425
Deductions system .........................................................................            354   ANNEX No. 1 — Value added tax; compensation application                                                427
                                                                                                             ANNEX No. 2 — Value added tax; reimbursement application                                               428
                                                                                                             ANNEX No. 3 — The risk analysis sheet for the reimbursement
                          CHAPTER VII
Obligations of the value added tax payers ..............................                               359   of value added tax with subsequent control...........................                                  429

                                   CHAPTER VIII                                                              LAW on the profit tax ...................................................................              431
Final provisions ..............................................................................        364
ANNEX — List of the activities referred to in article 2 (5)...                                         369                                     CHAPTER I
                                                                                                             General provisions.........................................................................            431
DECISION for the approval of the Application Norms of the
Law No. 345/2002 on the value added tax ..............................                                 370                             CHAPTER II
ANNEX — Norms for the enforcement of the Law                                                                 The assessment of the taxable profit ........................................                          435
No. 345/2002 on the value added tax .......................................                            370
                                                                                                                                       CHAPTER III
                                   CHAPTER I                                                                 Taxation applied to foreign legal persons and to incomes
Application sphere .........................................................................           370   derived from any sources abroad ..............................................                         443

468                                                                                                                                                                                                                 469
                         CHAPTER IV
The profit tax payment and control..........................................                 446

                           CHAPTER V
Transitory and final provisions ..................................................           451

DECISION on the procedure of the export and import
licenses of Romania ......................................................................   455




                                                                                                                 Editor: Regia Autonom„ îMonitorul Oficial“, Bucure∫ti
                                                                                                                      Bun de tipar: 20 noiembrie 2002. Ap„rut: 2002
                                                                                                   Tipografia îMonitorul Oficial“, Bucure∫ti, str. Izvor nr. 2–4, Palatul Parlamentului, sectorul 5
                                                                                                                     E-mail: marketing@ramo.ro, Internet: www.monitoruloficial.ro




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