The National Commission for Strategy and Forecasting issued Order 239/2019 approving the methodology regarding the system for calculating the turnover in accordance with Emergency Ordinance (OUG) 43/2019. It applies from July 2019
Art 1. – (2) The mechanism for calculating the turnover provided by the present methodology is applied by the companies established according to the Law no. 31/1990 regarding the companies, republished, with the subsequent modifications and completions, hereinafter referred to as companies, which have registered in the constitutive act at least one of the codes mentioned at art.60 point 5 letter a) of Law no. 227/2015 regarding the Fiscal Code with the subsequent modifications and completions, hereinafter referred to as the Fiscal Code, and which actually carry out construction activity.
(3) In order to apply the fiscal facilities, the companies that carry out activities in the construction sector, must cumulatively fulfill the conditions mentioned in point 5 of art.60 of the Fiscal Code.
Art. 3 – In order to determine the percentage of 80% of the total turnover, the indicators “Total turnover” and “Turnover actually achieved from the construction activity” are calculated as follows:
(1) ”Total turnover”: “Achieved cumulatively from the beginning of the year, including from the reporting month, is supplemented by the sum of the cumulative revenues from the beginning of the year until the end of the reporting month, realized from the sale of products and the provision of services, evidenced according to the Order of the Minister of Public Finance no. 1.802 / 2014 for the approval of the Accounting Regulations regarding the individual annual financial statements and the consolidated annual financial statements, as subsequently amended and supplemented, or, as the case may be, of the Order of the Minister of Public Finance no. 2.844 / 2016 for the approval of the Accounting Regulations according to the International Financial Reporting Standards, with the subsequent amendments and completions, at which:
- are added, cumulative from the beginning of the year to the reporting month including, the amounts representing:
a) revenues from operating subsidies related to the net turnover, recorded in accounting during each reporting month;
b) the monthly credit balances before the transfer to the profit and loss account of the incomes related to the costs of the stocks of goods and services in progress, distinguished in accounting at the end of the reporting months in which the credit balance is recorded;
c) the revenues from the production of tangible assets and the production of real estate investments, recorded in accounting during each reporting month;
2. deduction, from the beginning of the year to the reporting month inclusive, of the amounts representing the monthly balances due before the transfer to the profit and loss account of the incomes related to the costs of the stocks of goods and services in progress, distinguished in accounting at the end of the reporting months in which the debtor balance is recorded.
(2) ”Turnover actually achieved from the construction activity” – is completed by the companies that carry out one or more activities among which are also found the CAEN codes provided in art. 60 point 5 of the Fiscal Code, with the turnover, realized actually from the activities carried out according to the CAEN codes provided to art. 60 point 5 lett. a) respectively with the sum of the cumulative income from the beginning of the year to the end of the reporting month, made from the sale of products and the provision of services, after deducting, from the beginning of the year until the end of the reporting month, the income from royalties, management locations and rents, distinguished according to the Order of the Minister of Public Finance no. 1.802/2014 for the approval of the Accounting Regulations regarding the individual annual financial statements and the consolidated annual financial statements, with the subsequent modifications and completions, or, as the case may be, the Order of the Minister of Public Finance no. 2.844/2016 for approving the Accounting Regulations in accordance with the International Financial Reporting Standards, as subsequently amended and supplemented, at which:
- there are added, from the beginning of the year until the reporting month, inclusive, the amounts representing:
a) revenues from operating subsidies related to the net turnover, recorded in accounting during each reporting month;
b) the monthly credit balances before the transfer to the profit and loss account of the incomes related to the costs of the stocks of products and services in execution, distinguished in accounting at the end of the reporting months in which the creditor balance is recorded;
c) the revenues from the production of tangible assets and the production of real estate investments, recorded in accounting during each reporting month;
2. deduction, from the beginning of the year to the reporting month inclusive, of the amounts representing the monthly balances due before the transfer to the profit and loss account of the incomes related to the costs of the stocks of products and services in execution, distinguished in the accounting at the end of the months of reporting in which the debtor balance is recorded;
Art. 5 – (1) When determining the turnover actually achieved from the construction activity according to art. 60 point 5 of the Fiscal Code, in order to establish the revenues from the sale of products, only the incomes obtained from the sale of finished products, semi-finished goods, residual products and goods, which are obtained from own production, are taken into account. Income from the sale of products purchased for resale purposes is not taken into account.
Art. 9 – In order to apply the fiscal facilities in the field of constructions, starting from July 2019, inclusive, the following procedure is being carried out:
(1) In the case of companies existing on January 1, 2019:
a) calculating the ratio between “the actual turnover realized from the construction activity” and “the total turnover”, determined according to art.3, for the year 2018;
b) in the case where the percentage resulting from the calculation of the report from letter a) is at least 80%, the fiscal facilities are granted during the period July-December 2019, in compliance with the condition provided in art. 60 point 5 letter a) of the Fiscal Code throughout the period of the application of fiscal facilities;
c) in the case where the percentage resulting from the calculation of the report from letter a) is up to 80%, proceed to the determination of the indicators “turnover actually achieved from the construction activity” and “total turnover”, for 2019, according to the principle of newly established companies;
d) in order to benefit from the fiscal facilities for the period July – December 2019, in the case presented at letter c), the ratio between “the turnover actually realized from the construction activity” and “the total turnover”, must be at least in percentage of 80%.
(2) In the case of companies established during 2019
a) The indicators “turnover actually achieved from the construction activity” and “total turnover” determined according to art. 3 are calculated cumulatively from the beginning of 2019 or from the month of establishment in the course of 2019, as the case may be, until the month in which the exemption is applied, including:
b) In order to benefit from the tax facilities, the ratio between the “turnover actually achieved from the construction activity” and the “total turnover” determined according to the letter a), must be at least 80%.
(3) When granting fiscal facilities in the field of construction for the period January – June 2019, the regulations in Emergency Ordinance (OUG) No. 114/2018 regarding the establishment of measures in the field of public investments and fiscal-budgetary measures, amending and supplementing certain normative acts and extending certain terms, and for the period July – December 2019, Emergency Ordinance (OUG) regulations No. 43/2019 for the modification and completion of some normative acts regarding the establishment of measures in the field of investments
Art. 10 – In the case of the activities related to the CAEN 711 code, the revenues taken into account when determining the indicator “turnover achieved from the construction activity” are those obtained from the activities that are confined to the fields provided in the CAEN codes listed in art. 60 point 5 letter a) of the Fiscal Code
Art. 11 – The mechanism for calculating the turnover provided by the present methodology is properly applied by the employers provided in art. 60 point 5 letter b), other than the companies established according to the Law no. 31/1990 on companies, republished, with subsequent amendments and completions.