According to Dan Schwartz, managing partner with consultancy firm Scot & Company Consulting, this amendment was requested by the business environment, to clear up the issue of the distribution of income and expenses among the Romanian associates of a partnership registered abroad.
Before this amendment, said Schwartz, “this income was sometimes considered dividends and taxed as such by the fiscal authorities, without deducting the corresponding expenses (also distributed by the partnership). This led to fiscal disputes between the authorities and taxpayers.”
The Fiscal Code says the income and expenses registered by partnerships without legal personality are assigned to each associate according to their share.