Ordinance 79/2017 brought important updates to the Romanian
Fiscal Code regarding corporate income tax, micro-enterprise income
tax, personal income tax, statutory social contributions and value
added tax (VAT). The new provisions will be effective from 1
January 2018.
Romania's Ordinance 79/2017 introduced rules against tax
evasion practices that will have a direct impact on the operation
of the internal market. These changes will impact companies already
operating in Romania as well as companies that are planning to do
business in the country. Here is a summary of the main changes.
Exceeding borrowing costs
Where the exceeding borrowing costs incurred in a fiscal period
exceed the deductible threshold of EUR 200,000, they will be
deductible for corporate income tax purposes up to the limit of 10%
of the calculation base. The non-deductible exceeding borrowing
costs can be carried forward indefinitely. This limitation also
applies to any debt-related costs in
