The procedure for modifying the fiscal group in the field of profit tax :
If an entity fulfills the holding condition provided in article 422 point 1 of the Fiscal Code and the conditions provided in article 423 paragraph (2) of the same law, it may enter as a member of a fiscal group starting with the fiscal year following the fulfillment of the conditions
Group entry is based on a change request. The legal representative of the responsible legal person of the group submits, to the competent fiscal body, the Application regarding the fiscal group in the field of profit tax (F173), having ticked the corresponding box, at least 60 days before the beginning of the fiscal year for which the new entry is requested. member. If a member of the tax group no longer fulfills the condition of detention provided for in Article 422 point 1 of the Fiscal Code, the conditions provided for in Article 423 paragraph (2) or are in one of the situations in Article 428 paragraph (3) of the same law, it leaves the fiscal group and no longer applies the system of fiscal consolidation in the field of profit tax starting with the quarter following the one in which the conditions are no longer met.
The legal representative of the responsible legal person of the group submits, to the competent fiscal body, the Application regarding the fiscal group in the field of profit tax, provided in annex no. 2 to the order, having ticked the box “Request for modification”, within 15 days from the end of the quarter in which the occurrence of the event that generated the situation of leaving the group takes place.
The abolition of the fiscal group
If all members of the tax group voluntarily request the dissolution of the group during a fiscal year, before the expiration of the 5 fiscal year period, the fiscal group shall be dissolved starting with the following fiscal year.
The option to abolish the fiscal group in the field of profit tax is communicated by submitting, by the legal representative of the responsible legal person of the group, to the competent fiscal body, an application signed by the legal representatives of all members of the group.
The application regarding the fiscal group in the field of profit tax (F173), having ticked the corresponding box, is submitted at least 60 days before the beginning of the fiscal year with which the fiscal group is abolished.
Following the recalculation of the profit tax according to article 428 paragraph (5) of the Fiscal Code, the responsible legal person of the fiscal group submits rectifying fiscal declarations from the date of application of the system and until the end of the year in which the group operated. Starting with the following fiscal year, each legal person fulfills its declaratory and payment obligations, in its own name, according to the fiscal regime that is applicable to it.
In the situation where the fiscal group is dissolved before the expiration of the 5 fiscal year period as a result of the non-fulfillment of the conditions provided in article 422 point 1 of the Fiscal Code or of the conditions from article 423 paragraph (2) let. b) -f) of the same law, as well as in the situation where as a result of not fulfilling the conditions regarding the number of at least two members it is not fulfilled, the fiscal group is dissolved starting with the quarter following the one in which it no longer meets the conditions.
Following the recalculation of the profit tax, the responsible legal person of the fiscal group submits rectifying fiscal declarations from the date of application of the system and until the end of the quarter in which the group operates.
Starting with the quarter following the dissolution of the group, each legal person fulfills its declaratory and payment obligations, in its own name, according to the fiscal regime that is applicable to it.
If, after the expiration of the 5-year consolidation period, the members of the fiscal group no longer wish to apply the fiscal consolidation, the fiscal group is dissolved starting with the following fiscal year.
Starting with the year following the one in which the fiscal group is dissolved, each legal person fulfills the declaratory and payment obligations, in its own name, according to the fiscal regime that is applicable to it.
Fiscal result, tax return and payment:
Each member of a group will calculate its own fiscal result, and based on these individual results the consolidated fiscal result of the group will be calculated. Thus, the profit tax in the rate of 16% will be due to the state only if there is a positive consolidated fiscal result, ie profit at group level.
The negative consolidated fiscal result will be considered a loss at group level. In other words, the members of a group will be able to compensate each other for losses and profits, but only during the existence of the group.
When determining the profit tax due by the tax group, the amounts representing: the tax credit, the profit tax exempted according to article 22 and article 221 of the Fiscal Code, exemptions and reductions of profit tax calculated according to the legislation in force, the amounts representing the expenses will be taken into account. sponsorship and / or patronage and expenses regarding private scholarships, according to the law, the acquisition cost of electronic fiscal cash registers and other amounts deducted from the profit tax, according to the legislation in force, determined by each member and communicated to the responsible legal entity.
These amounts are deducted from the profit tax due by the tax group. In order to determine the consolidated fiscal result of the fiscal group, the responsible legal person is obliged to record in the fiscal record the individual fiscal results determined by each member, as well as the amounts deducted from the profit tax due by the group, mentioned above, including those of the person legally responsible.
According to the Fiscal Code, each member of the fiscal group has the obligation to prepare the transfer pricing file which will include both the transactions carried out with the members of the fiscal group, as well as with the affiliated entities outside the fiscal group. By derogation from the provisions of paragraph (2) of article 108 of Law no. 207/2015, with subsequent amendments and completions, the transfer price files prepared by each member of the fiscal group will be presented by the responsible legal entity.
The fiscal losses registered by a member of the group before the application of the fiscal consolidation system in the field of profit tax are recovered, in accordance with the provisions of article 31, by the respective member, only from his taxable profits.
The fiscal losses registered by a member of the group during the application of the fiscal consolidation system are recovered from the consolidated fiscal result of the group.
In case of dissolution of the group after the period provided in article 423 paragraph (1), the losses registered and not recovered during the fiscal consolidation period shall be recovered by the responsible legal person, according to article 31.
In the case of a group that applies the system of declaration and payment of the quarterly profit tax, each member will have to calculate his own fiscal result and send it to the group representative.
This will be done until the 25th of the first month following the end of quarters I – III, and for the fourth quarter the communication will be made until the deadline for submitting the profit tax return (ie March 25). Then, the calculation, declaration and payment of the quarterly profit tax due by the group will be made by the representative until the 25th of the first month following the end of quarters I – III.
The finalization and payment of the profit tax for the fiscal year in question will be done by the entire group representative, until March 25. If a tax group applies the system of declaration and payment of the annual profit tax, with quarterly advance payments, the advance payments will be established in the amount of a quarter of the tax due for the previous year, determined by summing the profit tax due for the previous year. group member.
The deadline for paying the annual tax, which the group representative will have to respect, will be March 25.
Therefore, the company-representative of the fiscal group will be the one that will deal with the submission of a consolidated annual declaration regarding the profit tax (plus the declaration 101 completed by each group member). This will declare the fiscal result of the entire group. The company-representative will also deal with the payment of the profit tax for the group.
Legal basis:
– Fiscal Code (approved by Law no. 227/2015, published in the Official Gazette no. 688 of 10.09.2015), with subsequent amendments and completions;
– Fiscal Procedure Code (approved by Law no. 207/2015, published in the Official Gazette no. 547 of 23.07.2015), with subsequent amendments and completions;
– Methodological Norms for the application of the Fiscal Code (approved by HG no. 1/2016).