Tax Code
of 22 December 2003


Version updated on 01 January 2009

Updated version includes amendments made by:
   - Norms for the application of Title IX of the Tax Code, approved by Government no. 44/2004
   - Correction published in the MOF. no. 112 02/06/2004
   - Fiscal Procedure Code 2004
   - G.D. no. 977/2004
   - G. O. no. 94/2004
   - Law no. 507/2004
   - G.D. no. 783/2004
   - G.O. no. 83/2004
   - Law no. 494/2004
   - G.E.O. no. 123/2004
   - G.E.O. no. 138/2004
   - Law no. 96/2005
  - G.E.O. no. 24/2005
   - G.E.O. no. 30/2005
   - G.E.O. no. 45/2005
  - Law no. 164/2005
  - Law no. 163/2005
   - Tax Code
   - Law no. 210/2005
   - Law no. 247/2005
   - Constitutional Court Decision no. 568/2005
   - G.D. no. 797/2005
   - G.E.O. no. 203/2005
   - G.E.O. no. 21/2006
   - G.E.O. no. 33/2006
   - Law no. 317/2006
   - G.O. no. 43/2006
   - G.D. no. 1514/2006
   - Law no. 343/2006
  - G.E.O. no. 110/2006
   - G.E.O. no. 22/2007
  - G.D. no. 667/2007
   - G.E.O. no. 106/2007 published in the MOF. 703 of 10.18.2007
   - Law no. 372/2007 published in the MOF. 899 of 12.28.2007
   - G.E.O. no. 155/2007 published in the MOF. 884 of 12.21.2007
   - G.E.O. no. 51/2008 published in the MOF. 327 of 04.25.2008
   - G.E.O. no. 94/2008 published in the MOF. 485 of 06.30.2008
   - Order no. 1984/2008 published in the MOF. 478 of 27.06.2008
   - G.D. no. 664/2008 published in the MOF. 472 of 26.06.2008
   - G.E.O. no. 50/2008 published in the MOF. 327 of 04.25.2008
   - G.E.O. no. 91/2008 published in the MOF. 480 of 06.30.2008
   - G.E.O. no. 127/2008 published in the MOF. 705 of 10.16.2008
   - G.E.O. no. 200/2008 published in the MOF. 815 of 04.12.2008.

Article 7. - (1) For the purposes of this Code, except Title VI, terms and expressions below have the following meanings:
   5. association without legal personality - any joint venture, economic interest group, civil society or other entity that is not a separate taxable person for the purposes of income tax and profit, according to norms issued in implementation;
  18. nonprofit organization - any association, foundation or federation founded in Romania in accordance with the law, but only if the income and assets of the association, foundation or federation are used for an activity of general, non-patrimonial or community interest;
Article 13. – The following persons, referred to as taxpayers are required to pay income tax under this law:
   c) foreign legal entities and non-resident natural persons operating in Romania in an association without legal personality;
Article 14. - Income taxes are applied as follows:
  c) in case of foreign legal entities and non-resident individuals operating in Romania in an association without legal personality, on the part of the taxable profits of the association attributable to each person;
Article 15. - (1) The following taxpayers are exempt from tax on profits:
 (2) Non-profit organizations, trade unions and employers' organizations are exempt from paying income tax for these types of income:
  a) members dues and registration fees;
  b) members and supporters cash or in kind contributions;
  c) the registration fees established by legislation;
  d) income from visa fees and sporting penalties;
  e) donations and money or goods received through sponsorship;
  f) dividends and interest earned on investing available funds from exempt income;
  g) income tax for shows;
  h) resources obtained from public funds or grants;
  i) income from occasional actions such as fundraising events with the participation fee, parties, lotteries, lectures, used in social or professional purposes, according to their status;
   j) exceptional income from giving up assets owned by nonprofit organizations other than those who are or have been used in an economic activity;
   k) income from advertising and publicity, made by nonprofit organizations for public utilities, under the laws of organization and functioning of culture, scientific research, education, sports, health, and the chambers of commerce and industry, trade unions and organizations employers;
   l) amounts received from failure to comply with the conditions of the donations / sponsorship, under the law, provided that those amounts be used by nonprofit organizations, in the current year or in subsequent years to achieve their goals and objectives, according to the constituting act or statutes, as appropriate;
   m) income from damages restituted by insurance companies for damage to their assets, other than those used in economic activity;
  n) amounts received from income tax payable by individuals under the provisions of Title III.
(3) Nonprofit organizations, trade unions and employers' organizations are exempt from income tax for income from economic activities up to the equivalent of 15,000 euros a year, but not more than 10% of total income exempt from income tax, provided under par. (2).
Organizations referred to in this paragraph shall pay income tax which corresponds to income, other than those provided in par. (2) or this paragraph, the tax calculated by applying the rate specified in Art. 17 para. (1) or. 18, respectively.

Associations without legal personality

   Article 28. - (1) In case of an association without legal personality, income and expenses shall be assigned to each registered shareholder, corresponding to the participation rate in the association.
  (2) Any association of foreign entities without legal personality, which operates in Romania, must designate one party to meet the obligations required of each participant under this title.
Designated person is responsible for:
a) registering associations to the competent fiscal authority, before it begins to run the activity;
b) the association’s accounts management;
c) paying the tax on behalf of shareholders, according to art. 34 para. (1);
d) filing a quarterly tax declaration to the competent fiscal authority, which shall contain information on the association’s income and expenses attributable to each partner, and tax which has been paid to the budget on behalf of each associate;
e) providing information in writing to each member, about the association’s income and expenses attributed to him, as well as the tax that has been paid to the budget on behalf of this associate.
   (3) In an association without legal personality between two or more Romanian legal persons, the registered income and expenses shall be attributed to each registered shareholder, according to the rates of participation.
   (4) In an association without legal personality with a foreign legal entity and / or non-resident individuals, as well as Romanian individuals, the Romanian legal entity person must meet the obligations required of each participant, according to this title.