The government adopted at its meeting on Friday a regulatory act providing for the obligation of all legal entities with activities in the oil and gas sector to pay the additional turnover tax.
"According to the new regulations, all legal entities that operate in the oil and gas sectors are required to pay the additional turnover tax. The ordinance indicates the NACE codes associated to main or secondary activities in the oil and natural gas sectors, clarifies the scope of application of the additional turnover tax, by establishing specific rules for the payment obligation for foreign legal entities that either individually or in a form of association deliver goods, provide services on the territory of Romania or deliver goods from Romania's territory, conducting activities in the oil and natural gas sectors, but which have not a registered permanent seat in Romania," a government release states.
The Executive mentions that in order to reduce the tax default risk, rules are set in place for the respective legal entities to pay a security of 1,000,000 euros, as well as rules for the appointment of a representative for the calculation, statement and payment of the said tax.
The ordinance also provides for the exclusion from the scope of the additional turnover tax, under certain conditions, of taxpayers who collect income from the sale of solid fuels, naphthalene, heating oil, lamp oil, hydrogen, lubricating and cooling products.
The regulatory act also establishes rules for the enforcement/exit from the taxation system, for legal entities that begin/end operating in the oil and natural gas sector, clarifies that the additional turnover tax does not fall within the scope of Romania's double taxation avoidance conventions with another state, and introduces the necessary technical correlations required by the proposed amendments/additions. AGERPRES