The Emergency Ordinance No. 25/2018 for amending and completing certain normative acts, as well as for approving fiscal-budgetary measures ("OUG 25/2018") was published in the Official Gazette No. 291/30.03.2018, thus amending the provisions of Law No. 227/2015 regarding the Fiscal Code (the "Fiscal Code").

1. 05 April 2018
Summary:
1. Emergency Ordinance No. 25/2018 for amending and completing certain
normative acts, as well as for the approval of fiscal-budgetary measures
Normative act amending the Fiscal Code
The Emergency Ordinance No. 25/2018 for amending and completing certain normative
acts, as well as for approving fiscal-budgetary measures ("OUG 25/2018") was published
in the Official Gazette No. 291/30.03.2018, thus amending the provisions of Law No.
227/2015 regarding the Fiscal Code (the "Fiscal Code").
Below we present the main amendments brought to the Fiscal Code further to the
publication of the above-mentioned normative act:
1. Corporate income tax
a. Introduction of a new informative statement regarding the beneficiaries of
sponsorships
Profit taxpayers who perform sponsorships and/or grant private scholarships are
required to submit the informative statement regarding the beneficiaries of the
sponsorships/private scholarships for the year in which the related expenses incurred,
until the general deadline of March 25th
the following year.
2. Microenterprise tax
a. Microenterprises are granted the option to become profit taxpayers and
apply the provisions of Title II regarding the corporate income tax
Through OUG 25/2018, microenterprises are granted the option to become profit
taxpayers and apply the provisions of Title II regarding the corporate income tax.
Consequently, microenterprises which have a minimum share capital of RON 45,000 and
have at least two employees may opt once for applying the profit tax system.
If these conditions are not met, the companies will return to the microenterprise
taxation system starting with the fiscal year following the one in which the share capital
is reduced to less than RON 45,000 lei and/or the number of employees falls below two.

2. Fiscal Bulletin – 05 April 2018
2
If the number of employees falls below two, the threshold must be reinstated within 60
days in order to continue to apply the profit tax provisions.
Microenterprises that opt for applying the profit tax system compute and pay the profit
tax by taking into consideration the revenues and expenses incurred in the quarter in
which the taxation mechanism is changed.
b. Tax incentive for microenterprises performing sponsorships
Separately, OUG 25/2018 provides that microenterprises sponsoring nonprofit and cult
units, which are accredited social service providers with at least one licensed social
service, are granted fiscal incentives. As of April 1st
, 2018, the amounts granted as
sponsorships may be used to decrease up to 20% of the quarterly microenterprise
income tax due. The amounts that are not deducted from the microenterprise tax are
carried forward in the following quarters for a period of up to 28 consecutive quarters.
As regards the declarative obligations, microenterprises are required to submit an
informative statement concerning the beneficiaries of the sponsorships for the year in
which the related expenses incurred.
The general deadlines for submitting this statement are as follows:
• Until January 25th
of the year following the one in which the sponsorship
expenses incurred;
• Until the 25th
of the month following the last quarter for which the
microenterprise tax is due, for microenterprises which opt to fall under the
profit tax system);
3. Income tax
a. Introduction of the income incurred from sports activity contracts in the
self-employment income category
According to OUG 25/2018, earnings incurred from sports activity contracts are
considered self-employment income. The related tax is calculated by applying a 10%
rate on the gross income. The income tax is withheld at source by the income payers
at the time when the income is paid.
The income tax calculated and withheld at source is considered final tax and is paid to
the state budget until the 25th
of the month following the one in which it was retained.
b. The possibility to redirect a higher percentage from the income tax
Apart from the possibility of redirecting 2% from the income tax for supporting non-
profit entities that operate according to the law, as well as for supporting cult entities
and private scholarships, OUG 25/2018 introduces the possibility to redirect up to 3.5%
from the income tax due for supporting nonprofit and cult units, which are accredited
social service providers with at least one licensed social service.

3. Fiscal Bulletin – 05 April 2018
3
Editors
Ţuca Zbârcea & Asociaţii Tax S.R.L. is the specialised tax consultancy entity of Ţuca
Zbârcea & Asociaţii, offering a full range of advisory and compliance services. Ţuca
Zbârcea & Asociaţii Tax S.R.L. covers transaction planning, operational tax advice,
efficiency structures (tax optimization schemes), tax reviews and due diligence, tax
authorities’ audits and dispute resolution (including mitigating the risks and the
potential impact of time-consuming disputes with local fiscal authorities), tax
compliance and representation, as well as transfer pricing. Our team comprises seven
tax consultants previously working in management positions with Big Four companies
and the Ministry of Finance. The group cooperates closely with the firm’s lawyers
specialising in administrative law, as well as contentious-administrative disputes.
Ţuca Zbârcea & Asociaţii Tax S.R.L. is a proud member of A.R.S.I.T. - Asociaţia pentru
Reformarea Sistemului de Impozite şi Taxe - a nonprofit organisation created in an
effort to represent the voice of the Romanian taxpayer in relation to state authorities.
Alexandru Cristea
Tax Partner
+4 037 413 61 15
alexandru.cristea@tuca.ro
Şos. Nicolae Titulescu nr. 4-8
America House, Aripa de Vest, et. 8
Sector 1, 011141, Bucureşti, România
T + 4 021 204 88 90
F + 4 021 204 88 99
E office@tuca.ro
www.tuca.ro/tax
This material is for reference only. It does not seek to provide final fiscal advice, which may be requested according to each specific issue. For
details and clarifications on any of the topics dealt in this Fiscal Bulletin, please do not hesitate to contact the tax consultants indicated
hereinabove.