Tax Code (Law no. 227/2015).

This Tax Code establishes: (a) the legal framework regarding taxes, duties and mandatory social contributions, which are revenues of the state budget, local budgets, the state social insurance budget, the budget of the National Single Health Insurance Fund, the unemployment insurance budget and the guarantee fund for the payment of salary claims; (b) the categories of the taxpayers who are obliged to pay these taxes, duties and social contributions; (c) the method of their calculation and payment; and (d) the procedure for amending these taxes, duties and social contributions. The taxes and mandatory social contributions regulated by this Code are the following: (a) profit tax; (b) tax on income of microenterprises; (c) income tax; (d) tax on income obtained in Romania by non-residents; (e) tax on representations; (f) value added tax; (g) excise duties; (h) local taxes and fees; (i) construction tax; and (j) special tax on immovable and movable assets of high value. The taxes and duties regulated by this code are based on the following principles: (a) the neutrality of fiscal measures in relation to the different categories of investors and capitals, with the form of ownership, ensuring equal conditions for investors, Romanian and foreign capital through the level of taxation; (b) the certainty of taxation, by developing clear legal norms that do not lead to arbitrary interpretations, and the terms, method and amounts of payment are precisely established for each payer, respectively so that they can follow and understand the fiscal burden that falls on them, as well as be able to determine the influence of their financial management decisions on their fiscal burden; (c) the fairness of taxation or fiscal equity ensures that the fiscal burden of each taxpayer is established based on the contributory power, respectively depending on the size of his income or properties; (d) the efficiency of taxation ensures similar levels of budgetary revenues from one budgetary year to another by maintaining the yield of taxes, duties and contributions in all phases of the economic cycle, both in periods of economic boom, as well as in times of crisis; and (e) the predictability of taxation ensures the stability of taxes, fees and mandatory contributions, for a period of at least one year, during which no changes can occur in the sense of increasing or introducing new taxes, fees and mandatory contributions. For agricultural land unused for 2 consecutive years, the local council may increase the land tax by up to 500%, starting with the third year, under the conditions established by decision of the local council.