Legislation covering different types of sales taxes which apply to the material being sold, including selling material as growing forest (standing stock sales). Risk relates to situations where products are sold without legal sales documents or far below market price resulting in illegal avoidance of taxes.

1.7.1. Applicable laws and regulations

Government Decision no. 924 / 4 November 2015 for the approval of the rules for selling timber annually harvested in the public property forest fund:

http://legislatie.just.ro/Public/DetaliiDocument/172892
http://legislatie.just.ro/Public/DetaliiDocumentAfis/175690

Ordinance no. 6/2013 establishing specific measures for taxation exploitation of natural resources other than gas (Art. 2 (3)):

http://legislatie.just.ro/Public/DetaliiDocument/144896

Law 227/8 September 2015 Fiscal Code (Art. 2):

http://legislatie.just.ro/Public/DetaliiDocument/171282

1.7.2. Legal Authority

Ministry of Public Finances;

National Agency for Fiscal Administration (ANAF)

1.7.4. Sources of Information

Government sources

Mfinante.ro (N.Y): Ministerul Finanțelor a publicat normele de aplicare a noului Cod Fiscal (General clarifications about the Methodological norms for the application of the Law regarding taxes). Available at:

http://www.mfinante.ro/acasa.html?method=detalii&id=120035

Non-Government sources

Avocatnet.ro (2015): Impozitul pe profit: ce se schimba din 2016, potrivit noului Cod fiscal? [Online] 28 September 2015]. Available at:

http://www.avocatnet.ro/content/articles/id_41544/Impozitul-pe-profit-ce-se-schimba-din-2016-potrivit-noului-Cod-fiscal.html. [Accessed 14 November 2016].

1.7.5. Risk Determination

Overview of Legal Requirements

Income and profits are taxed as follows: 16% is paid on profits, and an additional 0.5% on income from harvesting activities.

Description of risk

The Romanian state had made substantial investments in recent years in the modernisation of its tax collection regime. Today, almost all taxes are calculated by special programmes (electronic accounting records, online statements, etc.) and their collection is mainly based on electronic systems. All economic activities are taxed under the Fiscal Code. In 2015 a special Agency was founded to check financial records, statements and other documents required for tax calculation. This measure forced many companies into legal registration. After activities are legally registered, tax evasion is practically impossible. All companies’ or employed persons’ activities, like updating personal documents, participation in tenders, loans, etc., depend upon their due payment of taxes and fees.

Risk conclusion

This indicator has been evaluated as low risk. Identified laws are upheld. Cases where law/regulations are violated are efficiently followed up by the authorities and/or by the relevant entities taking preventive actions.

1.7.7. Control measures and verifiers

Generic

  • There shall be consultation with financial authorities to verify that all required income and profit taxes have been paid.

Country Specific

  • N/A
Categories: 1. Controlled Wood Category 1 – Legality, 1.7. Income and profit taxes
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