Order no. 4.636/2022 regarding the assets for which the reinvested profit tax exemption applies and Order no. 2578/2022 regarding the amendment of the NAFA President's Order no. 1,699/2021 for the approval of taxpayers' tax registration forms and the types of tax obligations that form the tax vector

Recently, the Minister of Finance Order 4636/2022 was published in the Official Gazette regarding the assets used in the production and processing activity and the assets representing refurbishment for which the reinvested profit tax exemption is applied, according to article 22 of Law no. 227/ 2015 regarding the Fiscal Code.

We remind you that according to Ordinance no. 16/2022, the tax exemption of the profit invested is granted also for the assets used in the production and processing activity, the assets representing refurbishment, starting with 1 January 2023

Thus, starting from this date, the profit invested in technological equipment, assets used in the production and processing activity, assets representing refurbishment, electronic computers and peripheral equipment, machines and household, control and invoicing devices, in computer programs, as well as for the right to use computer programs, produced and/or purchased, including on the basis of financial leasing contracts, and put into operation, used for the purpose of carrying out the economic activity, is exempt from tax. Tangible assets, with the exception of assets used in the production and processing activity, assets representing refurbishment, for which the tax exemption is applied are those provided in subgroup 2.1, respectively in class 2.2.9 of the Catalog regarding the classification and normal operating periods of fixed assets , approved by Government decision.

Additionally, the Order no. 4.636/2022 defines the new assets for which the reinvested profit tax exemption is applied as those assets provided in certain subgroups and classes in the Catalog regarding the classification and normal operating periods of fixed assets, approved by Government decision:

• class 1.1.1. "Industrial buildings";
• class 1.1.2. "Light constructions with metal structures (production halls, assembly halls, etc.)";
• class 1.1.3. "Hydroelectric plants, stations and substations, connection stations";
• class 1.1.4. "Thermoelectric and nuclear-electric plants";
• class 1.2.1. "Agrozootechnical buildings";
• class 1.2.2. "Light agricultural buildings (barracks, sheds, sheds, cabins)";
• class 1.2.3. "Deposits of mineral or natural fertilizers (composting buildings)";
• class 1.2.4. "Forage silos";
• class 1.2.5. "Silos for grain storage and preservation";
• class 1.2.7. "Buildings for breeding animals and birds, paddocks";
• class 1.2.8. "Helesteie, ponds, pools; locks and lifts; dams; gutters etc. for fish farming";
• class 1.2.9. "Arable terraces, orchards and vineyards";
• class 1.2.10 "Greenhouses, solariums, nurseries and mushroom farms";
• subgroup 2.2. "Measurement, control and regulation apparatus and installations";
• subgroup 2.4. "Animals and Plants".

Provisions of the OMF no. 4,636/2022 entered into force on 1 January 2023.

Order no. 2578/2022

- The following forms are modified:

• Form 010 - Declaration of fiscal registration/Declaration of mentions/Declaration of deletion for legal persons, associations and other entities without legal personality;
• Form 700 - Declaration for the registration/modification in an electronic environment of the mentions subsequent to the fiscal registration, as well as for the cancellation of the fiscal registration.

- At the same time, instructions for completing these forms are provided, taking into account the changes that have occurred.

For more details regarding the above, please consult the Official Gazette no. 1272 of 30 December 2022.

The EY team is available for further details on the above