Limitless deductibility for interests on leasing, less VAT-related red tape and no more foreign currency repatriation deadlines for exporters, these are some of the most important modifications of the fiscal legislation endorsed by the Government during its latest meeting.
The leasing companies will be assimilated to credit institutions, so that the deductibility cap for interests on leasing operations will be dropped, according to an ordinance endorsed by the Executive last Thursday.
The Finance Ministry came to the conclusion that some of the provisions in the fiscal-financial law were impossible to apply and modified several regulations, including Law 414/2002 on profit tax in force since mid last year.
This law stipulated that the companies were allowed to have interests on loans from non-bank legal entities deducted up to level of the interest-derived revenues plus 10% of their other revenues. This provision also stood for the interests on the leasing operations.
The new normative act assimilates leasing companies with credit institutions from a fiscal standpoint, so that the interests on the leasing operations are subject to the same deductibility conditions. Therefore the interest expenses may be fully deducted from the taxable profit, in case the companies’ debts are low enough so that the indebtedness rate is below one.
At the same time, corporate branches and other non-legal entities will no longer be included in the fiscal records as VAT payers, according to the ordinance endorsed by the Government.
Other modifications of the law target eliminating the conditioning of the VAT reimbursement to the payment of the bills to suppliers, as well as the extension of the early reimbursement deadline from 30 to 60 days and the extension of the reimbursement deadline followed by a control from 15 to 30 days.
The companies engaged in export operations will no longer be bound to collect their foreign currency revenues therefrom derived within a specific time frame, as stipulated in the old legislation.




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