New Financial And Fiscal Legislative Amendments

Government emergency ordinance no. 8/2013 for the amendment and supplementation of Law no. 571/2003 regarding the Fiscal Code and the regulation of certain financial and fiscal measures (published in the Official Gazette no. 54/23.01.2013) enters into force starting from 1 February 2013. GEO 8 introduces a number of important amendments and supplementations in the fiscal legislation. We shall further present some of the amendments related to direct taxation, respectively to social insurance:

New general rules

The fiscal authorities may refuse the application of the provisions of the double tax treaties in the case of artificial transactions. The artificial transactions are defined as those transactions lacking economic content and that may not be normally used within common economic practices, their essential scope being that of avoiding taxation or of obtaining fiscal advantages that would not have otherwise been granted.