Blog entry by Violeta Chiriloaie
The co-operative becomes one of the legal organizational forms with the most convenient fiscal regime in Romania due to Law 164/ 29th of July 2016.
New fiscal facilities for agriculture co-operatives
based under Law 566/2004 and their members are now granted. Article 21 of Law
164/2016 mentions that the services and goods provided by such organizations to
their shareholders will not be considered a sales commercial action. It means
that, even if the cooperative has a VAT registration, buying products through
these kind of organizations will help members save 20% of the expenses. (art.
In addition, processing co-operatives will be free
from the tax on profit for 5 years. The same will be the case for co-operatives
established in order to facilitate the acquisition of materials and technical
equipment and for those who are selling agricultural products, if their yearly
turnover is smaller than 2.000.000 euro. (art. 25)
The same document mentions that co-operative members
registered as authorized persons, individual enterprises and microentreprises
will also be excepted from the tax on income, but only for the goods sold
throughout the co-operative.
advantages do not stop here. The law also decides the exemption from the tax on
property for the owners of the buildings used by the co-operatives and no
charge for the incomes obtained by landowners from the farming rent.
The fiscal facilities mentioned by the Law 164/2016 also apply to producers groups and organizations established under Government Rule no. 37/2005.
Another novelty introduced by the document is the
acceptance of a new type of entity: the marketing federation. Its goal is to
supply cooperatives with inputs and to capitalize its production in raw estate,
half or fully processed.
Dear Farmers, do not miss this chance! It's time to become more efficient and more profitable joining your forces with your fellows!
In case you need more info and help, do not hesitate to contact your local authorities!