GEO no. 7/2013 establishing the tax on additional incomes resulting from price deregulation in the natural gas sector

ORDINANCE no. 7 dated January 23rd 2013

establishing the tax on additional incomes resulting from price deregulation in the natural gas sector

 

Pursuant to art. 108 of the Romanian Constitution, republished, and to Art. 1 point  I.3. of Law no. 1/2013 enabling the Government to issue ordinances,

The Government of Romania adopts this ordinance.

Art. 1. – (1) For the purpose of this ordinance, the expressions below have the following meanings:

a)      investments in the upstream segment are development and expansion investments in the existing fields, exploration and development of new production areas;

b)      the reference period is the month for which the tax on the additional incomes resulted from the price deregulation in the natural gas sector is calculated;

c)      price deregulation in the natural gas sector is the process of gradual elimination of regulated prices for natural gas supply to end-customers, according to schedules established according to regulations in force;

(2) The group of economic interest has the meaning referred to in art. 118 paragraph (1) of Law no. 161/2003 regarding certain measures for ensuring transparency in the exercise of public dignities and offices and in the business environment, for preventing and punishing corruption, with subsequent amendments and additions.

Art. 2 – (1) Economic operators, including their subsidiaries and/or economic operators belonging to the same group of economic interest, which actually carry out natural gas extraction and sale activities in Romania on the national territory, in the territorial sea, in the contiguous zone and/or the exclusive economic zone of Romania in the Black Sea, are obliged to calculate, declare and pay the tax on additional income resulting from price deregulation in the natural gas sector, tax established in conditions of this ordinance.

(2) The tax referred to in paragraph (1) is 60% of the additional incomes, as they are determined according to the annex that is an integral part of this ordinance, from which royalties related to these incomes shall be deducted, as well as investments in the upstream segment.

(3) The maximum limit for deducing investments in the upstream segment cannot exceed 30% of the total additional incomes.

(4) The value of investments in the upstream segment taken into account for establishing the deduction represent the value of investments of each reference period, plus the value of investments reported in the previous reference periods, recorded in accounting according to the legal regulations in force.

Art. 3 – All investments in the upstream segment are amortized according to the tax regulations provided by Law no. 571/2003 on the Tax Code, with additional amendments and additions.

Art. 4 – The tax on additional incomes, calculated in the conditions of this ordinance, represents, for the economic operators in the natural gas sector, a deductible expense when establishing the taxable profit, under the provisions of Law no. 571/2003, with subsequent amendments and additions.

Art. 5 – (1) The economic operators referred to in Art. 2 paragraph (1) shall calculate, declare and pay on a monthly basis the tax on additional incomes resulting from the price deregulation in the natural gas sector no later than on the 25^th of the month following that for which the additional tax is due.

(2) The form and content of the statement on the tax on additional incomes resulting from the price deregulation in the natural gas sector shall be set by order of the President of the National Agency of Fiscal Administration, within 30 days from the entry into force of this ordinance.

Art. 6 – The tax on additional incomes resulting from price deregulation in the natural gas sector, established according to this ordinance, is revenue to the state budget and is managed by the National Agency of Fiscal Administration, according to the Government Ordinance no. 92/2003 on the Tax Procedure Code, republished, with subsequent amendments and additions.

Art. 7 – The tax on additional incomes established under this ordinance shall apply for additional incomes achieved until December 31^st 2014, inclusively.

Art. 8 – This ordinance enters into force on February 1^st 2013.

 PRIME MINISTER

VICTOR-VIOREL PONTA

      IN WITNESS WHEREOF:

Deputy Prime Minister, Minister of Public Finance,

Daniel Chiţoiu

Minister Delegate for Budget,

Liviu Voinea

Minister of Economy

Varujan Vosganian

President of the National Agency for Mineral Resources

Gheorghe Duţu

 Bucharest, January 23^rd 2013.

No. 7.

ANNEX

Calculation formula for the additional incomes

The tax on additional incomes due = 0.60*(VS – royalty*VS-VI)

VS= [(PCC – PRCC)*VGCC + (PCNC – PRCNC)*VGCNC],

where:

VS – the additional income

VI – the value of investments in the upstream segment during the period for which the additional tax is due;

PCC – the price of natural gas from own domestic production for resale to household consumers established according to the provisions of the Government Decision on the acquisition price for natural gas from domestic production for the regulated natural gas market;

PRCC – the purchase price of natural gas from domestic production for households in 2012, respectively RON 495/TCM, adjusted with the IPC rates in the years after 2013 until the date of application;

VGCC – the gas volumes from domestic production sold for household consumers;

PCNC – the price of natural gas from own domestic production for resale to non-household consumers according to the provisions of the Government Decision on the acquisition price for natural gas from domestic production for the regulated natural gas market;

PRCNC – the purchase price of natural gas from own domestic production for non-household consumers in 2012, respectively RON 495/TCM, adjusted with the IPC rates in the years after 2013 until the date of application;

VGCNC – the gas volumes from domestic production sold to non-household consumers.

IPC – the consumer price index published by the Romanian National Institute of Statistics.

 

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