Under a law passed in the Senate on 28 June, the minimum entry value of fixed assets will increase from 2,500 to 5,000 lei. Note that this value is relevant in the case of depreciation of fixed assets, an obligation by which companies investing in tangible and intangible assets gradually recover their physical and moral wear and tear.
In order for these provisions to apply, the draft law must also be adopted by the Chamber of Deputies, as it was initiated in the context in which the minimum entry value of fixed assets has not been updated since 2013 (Government Decision (HG) 276/01.07.2013 – the minimum entry value was increased from 1,800 to 2,500 lei).
“The remaining undepreciated value of fixed assets with an entry value between 2,500 lei and 5,000 lei, existing in the assets of economic operators on the date of entry into force of this law, will be recovered during the remaining normal period of operation”, is specified in the draft law adopted in the Senate.
According to the provisions of Law 15/1994, companies that immobilize capital in tangible and intangible assets subject to depreciation, through use or over time, shall calculate, record in the accounts and recover their physical and moral wear and tear for the purpose of restoring the capital employed.
These operations are known as depreciation of fixed assets.
According to the initiators of the bill, “the measure can be considered a tax facility because it allows immediate tax deduction of expenses on fixed assets, if their value is below 5,000 lei.”