LAW 66 08/07/1992
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The Law No. 66/July 8, 1992Law on the granting of certain facilities for attracting foreign capital in the field of exploration and exploitation of natural gas and petroleum deposits*)ISSUED BY: PARLIAMENTPUBLISHED IN: OFFICIAL GAZETTE OF ROMANIA, Part I, No. 166, July 17, 1992. *) The Law No. 66/July 8, 1992 - Law on the granting of certain facilities for attracting foreign capital in the field of exploration and exploitation of natural gas and petroleum deposits - was published in the "Monitorul Oficial" (Official Gazette of Romania), Part I, No. 166/July 17, 1992. With a view to attracting foreign capital in activities of exploration and exploitation of natural gas and petroleum deposits, of those aiming at increasing the final recovery factor from deposits included, the present law shall be adopted on the grounds of Article 17 under Law No. 35/1991, to regulate the facilities that may be granted to foreign investors contracting the execution of works in this domain.Article 1
Foreign investors contracting the execution of works of exploration and exploitation of natural gas and petroleum deposits and the sharing of production, those aiming at increasing the final recovery factor from deposits included, shall benefit by the following facilities:1. With regard to the profit tax achieved from activities provided under the present law:a) payment of the profit tax by the Romanian contracting party, on behalf of the foreign investor, and the issue, annually, by the Romanian fiscal bodies of a certificate with regard to this payment; the sums thus payed shall be considered income for the foreign investor and expenditure for the Romanian contracting party, to be covered by it from an additional quota of the production obtained, negotiated correspondingly to the granting of this facility; orb) payment of profit tax at the level of the tax quotas provided by the law in force at the date when the contract was concluded;2. With regard to customs duties:a) exemption from customs duties of imports carried out by the foreign investor or his subcontractors, of goods required for the execution of exploration and exploitation works, or for increasing the final recovery factor of natural gas and petroleum deposits;b) exemption from customs duties of imports of household commodities and articles of personal use required by the alien staff of the investor, that of the affiliated companies, and of investor's foreign subcontractors; the goods exempted from import customs duties shall be specified in the contract appendices;c) exemption from customs duties of natural gas and petroleum export quotas due to the foreign investor from the sharing of production as well as of the export of goods imported by him and his alien staff, in the conditions provided under paragraph b).Article 2
Besides the facilities provided under Article 1, the foreign investors and their affiliated companies as well as their alien staff shall be exempt from paying any rates and taxes other than those provided in the appendix to the present law, for activities directly linked to the object of the contract.Article 3
The foreign investor shall have the right to receive, to remit, or to retain abroad, tax exempted, and to use without restrictions the revenue achieved from the sale of natural gas and petroleum resulting from his quota. In case from such sales made in Romania the local currency obtained is in excess of immediate needs, the foreign investor shall have the right to change it in convertible currency in the conditions of the law, to remit it freely, or to retain it abroad.Article 4
For the current establishment of the obligations taken over by the Romanian contracting party, according to Article 1, paragraph 1, subparagraph a), on behalf of the foreign investor, the fiscal laws in force at the date of the conclusion of the contracts shall be applied over the whole duration of their execution.Article 5
The facilities granted to foreign investors, according to the present law, shall be established for each contract in part over the whole duration of the contract, which may not be longer than 30 years. Contracts shall be concluded with the clause of their coming into force on the date of their approval by the Government. APPENDIX 1 ---------- TAXES AND DUTIESfor which no payment exemption is granted1. Income tax on revenues in form of wages and other taxable salary rights according to the law2. Notarial taxes3. Stamp duties4. Taxes on formalities, issue of certificates, permits, and other documents5. Taxes on the performance of certain services6. Taxes on the opening of bank accounts (bank expenses, bank commissions)7. Licence taxes8. Taxes on registrations, mentions, and strikings off in the Trade Register9. Taxes for deeds and information furnished by the Trade Register10. Taxes and rents in connection with the area stipulated by contract11. Arbitration taxes12. Other taxes - visa taxes, residence taxes, road taxes, airport taxes, other similar taxes - established by law or the local public administration authorities. ----------
