Romania/ 5.1 General legislation
5.1.5 Tax laws
Law no. 35/1994 creates a cultural added tax, also known as the cultural stamp. The law stipulates the conditions under which the funds are collected and used from the eight domains in which cultural stamps are applied (literature, cinema, theatre, music, folklore, visual arts and architecture). In 2011 architecture was added through a modification in the above-mentioned law.
There are provisions regarding the cultural sector in the Fiscal Code and in Law no. 87/1994 on Combating Fiscal Evasion.
In 2010, through GO no.58/26.06.20010, the ordinary rate of VAT of 19% was raised to 24%, with effect from 1 July 2010. However, some cultural services have an exemption from this rate.
Article 140 – Rates
The reduced rate of 9% applies on the tax base for the following services and/or products:
- access to castles, museums, memorial houses, historical monuments, architectural monuments and archaeological sites, zoo gardens, botanical gardens, exhibitions and cultural events, cultural markets, cinema theatres, and others already exempted by Article 141, line 1, letter m in the Fiscal Code.
Under the New Fiscal Code (G.O no.30/2011), the tax regime for income generated from copyright was modified. Article 50 stipulates that the net income for copyright is calculated deducting 20% (the previous rate was 40%) of expenditure from the annual gross income and 25% (the previous rate was 50%) in the case of monumental artworks after all social contributions are paid.
Law No. 571/2003, "The Fiscal Code" modified by G.O no.30/2011 states:
Article 15 - Exemptions
- (2) The non-profit organisations, trade unions and employers' associations are exempt from the payment of tax on the following types of incomes:
- (k) Incomes obtained from advertising and publicity, which are raised by non-profit organisations of public utility, according to the laws on organisation and operation, in the field of culture, scientific research, education, sport, health, as well as by chambers of commerce and industry, trade unions and employers' associations.
Article 117 - Exemptions from the tax provided in this chapter
The following incomes shall be exempt from tax on incomes raised in Romania by non-residents:
- (d) Prizes won by non-residents as a result of participation in national and international artistic, cultural and sports festivals financed from public funds;
Article 141 - Exemptions for operations inside the country
- (k) Provision of services and/or delivery of goods provided to members in their collective interest, in return for a subscription fee fixated in accordance with statute, of non-profit organisations that have political, union, religious, patriotic, philosophical, philanthropic, professional or civic objectives and objective of representing their members' interests, provided that this exemption does not cause distortion of competition;
- (m) Provision of cultural services and delivery of goods closely related to services provided by public institutions or by non-profit cultural organisations; and
- (o) The specific activities of the national public TV and radio stations, except for publicity / advertising and other commercial activities.
Article 285 - Exemptions and facilities for legal entities
- (1) the tax on buildings, the tax on land, the fees on means of conveyance, the fees for the issuing of certificates, advisory opinions and authorisations, as well as the other local fees, provided in Article 282 and Article 283, shall not apply to the following:
- (a) Any institution or unit which operates under the coordination of the Ministry of Education, Research and Youth, with the exception of premises used for economic activities;
- (b) Foundations established according to law for the purpose of maintaining, developing or assisting the national cultural institutions, or supporting activities with a humanitarian, social or cultural character.
Chapter published: 23-08-2012