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Tax & Legal Weekly Alerts

2017

Our weekly Tax & Legal Alerts provide you with information on different tax and legal issues in Romania.

Companies   will   be   able   to   communicate   with   the   tax authorities  starting  withJune  via  the  Virtual Private Space service

Legal entities and entities without legal personality will be able to communicate with tax  authorities  via  the  Virtual  Private  Space  (SPV)  service  as  of  June  1, according to an MFP order. At the same time, the list of documents that can be communicated through the SPV will be extended, including tax returns.

Upcoming Deloitte events in May 

“VAT in practice”, 14 – 15 June 2017 

Deloitte Tax & Legal in mass media

New provisions of the public-private partnerships and concessions legislation-an analysis published by Georgiana Singurel, Partner Reff &Associates,and Alexandru Lascu, Managing Associate Reff & Associates

The list of the most relevant amendments to the Methodological Norms for the Application of the Tax Code

Amendments and additions to the Methodological Norms for the application of the Tax Code in respect of corporate income tax, micro-enterprise income tax, income tax, statutory social contributions and value added tax have been recently published in the Official Monitor.

Upcoming Deloitte events in May

“VAT in practice”, 16-17 May 2017

“Debts & Restructuring C/SEE Forum”, 24 May 2017

Deloitte Tax & Legal in mass media

Comparative study on VAT registration procedures in EU Member States

The procedure for solving VAT returns with refund option will change starting May 1

The amendments made to the procedure, adopted by Order 1232/2017, mainly concern the setup of a special database at the ANAF level, in which the taxable persons that present a tax risk for the VAT refund are registered.

Upcoming Deloitte events in April

„International mobility of Romanian employees in EU/EEA” - Deloitte seminar

„GDPR – Are we ready?” - Conference organized by Deloitte, Reff & Associates together with IAPP - International Association of Privacy Professionals

Short presentation of the most relevant amendments brought to the green certificates support scheme

The new provisions included in GEO 24/201 are mostly favorable to the renewable energy producers as they regulate several methods for ensuring the sale of the producer’s green certificates until the expiry of the support scheme in 2031. We present below the most relevant amendments.

Upcoming Deloitte events in April

Immigration process in Romania. Challenges and opportunities – Workshop

Deloitte in mass media

New obligations for employers who post workers in EU, an article written by Deloitte’s specialists for wall-street.ro

Posting of workers: New regulations and obligations for employers

Employers who post employees for business purposes in the European Union, EEA or the Swiss Confederation in the transnational provision of services will have to fulfil additional obligations once Law 16/2017 entries into force.

Upcoming Deloitte events in April

Deloitte in mass media: An analysis by Dan Badin, Partner Deloitte, on “Taxation of corporations – A problem of Romania?”

Undertaking by an insurance company – a new form of guarantee for potential customs debts

Economic operators may establish customs guarantee through a guarantor, insurance company, once with the entry into force of the Union Customs Code.

This is a new form of guarantee for potential customs debt in addition to the dedicated forms used until present (Letter of bank guarantee or cash deposit). 

A new feature for AEO certified companies – access to the national centralized clearance procedure

AEO certified companies have the possibility to declare goods in a centralized manner at a single customs office, even though physically the goods are presented at other customs office in the country. This will lead to cost optimization and better control of customs clearance of goods.

Corporate Tax: Fiscal authority announces audits after the deadline for submission the tax declaration, March 27

Corporate Tax and VAT will be, since April, targeted by tax audits recently announced by fiscal authority. In this context, we recommend companies to pay more attention to the data reported. At the same time, companies that have become major taxpayers to the state budget in 2016 and, therefore, had not enough time to prepare the transfer pricing documentation file could be another area of interest to the tax authorities.

Pre-insolvency & Insolvency Guide - A guide for companies with cross-border activities

Complete and prompt information about the insolvency law applicable to each European country can facilitate decisions that are crucial in crisis situations for the financial situation of companies that have relationships with external partners or have extended their operations in other countries. That is why more than 50 specialists from Deloitte Legal network around 19 European countries have analyzed and synthesized the legal provisions and cross-border insolvency proceedings in Pre-insolvency & Insolvency Guide, which you can see on Deloitte website.

Upcoming Deloitte Events in March: See more in attachment 

Taxation of profits: Romania takes one step forward to BEPS rEvolution

Romania is expected to implement, considering its development particularities, plan BEPS (Base Erosion and Profit Shifting), after the Government adopted, March 2, a draft in this regard.

The average gross salary, depending on which is calculated the ceiling for social contributions, will be 3,131 lei in 2017

The indicator is used to determine the monthly computation base of the health social insurance contributions (CASS) for individual income obtained from independent activities, intellectual property rights, rental, association with a legal person, agriculture, forestry and fishing activities. 

Corporate Tax: The Consumer price index for prepayments

The consumer price index used to compute the corporate income tax prepayments is set at 101,4%, according to the order issued by the Ministry of Public Finance.

Free-Trade Agreements: The impact of a changing EU and global context for companies

The changing global trading environment and the disruptive trends, such as Brexit, rising populism, elections in the European countries and the announced renegotiation of trade deals by the new US President, might affect the global supply chains, as long as the free markets are put under an increasing pressure.

At the same time, the exclusive competence of the EU to negotiate and conclude Free-Trade Agreements is questioned. The decision will be issued by the European Court of Justice. In case the Court decides that all the 28 Member States need to approve the Free-Trade Agreements, the treaties that are under negotiation, with Canada and Ukraine, will come into force later than estimated.

In conclusion, the companies need a forward looking and strategic approach in order to identify and anticipate upon possible benefits as well as risks of Free-Trade Agreements.

Therefore, companies can prepare by conducting a review of the Free-Trade Agreements applicable on their whole supply chain, gaining insights on possible opportunities and risks.

Order no. 96/2016 for the approval of the performance criteria for the establishment, appointment and equipping of the voluntary and private services for emergency situations

Order no. 96/2016 for the approval of the performance criteria for the establishment, appointment and equipping of the voluntary and private services for emergency situations has replaced the following orders, which have been repealed as of the date of entering into force of the present order. The repealed orders are: Order no. 158/2007 for the approval of the performance criteria for the establishment, appointment and equipping of the private services for emergency situations, Order no. 718/2005 for the approval of the performance criteria regarding the organizational structure and the equipping of the voluntary services for emergency situations and Order no. 250/2010 regarding the organization and conduct of the training schedules of the prevention specialists part of the voluntary services for emergency situations.

The European Court of Justice ruled that repayment of import duties entail the payment of interest

The European Court of Justice ruled in a decision of January 18, 2017 (Case C-365/15) that the repayment of import duties that have been imposed by a void regulation and unduly paid by an importer, entail the obligation for the customs authorities to pay late payment interest.

Update of the VAT return

The main changes refer to an update of the VAT rate and the insertion of new fields related to the special regime for farmers as well as to the invoices issued during the time when the taxpayer had the VAT number cancelled.

Update of the statement 390

The statement now includes a special field for intra-Community supplies performed by the farmers that apply the special regime.

New Order concerning VAT registration and the ex officio VAT registration cancellation

After form 088 was repealed, on 1 February 2017 the President of the National Agency for Fiscal Administration (NAFA) has issued a new order related to the VAT registration procedure and the procedure for ex officio VAT registration cancellation.

Decision to set quota for work permits that can be issued to foreigners during 2017

On Monday, January 30, 2017 it was published the decision establishing the work permits quota for year 2017 that can be issued to foreign citizens. 

New obligations for importers and manufacturers of refrigeration, air conditioning and heat pump equipment

Starting 1 January 2017, importers and EU manufacturers of refrigeration, air conditioning and heat pump equipment charged with hydrofluorocarbons (fluorinated gases) are not allowed to introduce such equipment on the Union market unless hydrofluorocarbons concerned are accounted for within the quota system referred to in Regulation (EU) 517/2014 on fluorinated greenhouse gases ("F-Gas Regulation").

New procedure regarding the health insurance contribution exemption for certain categories of individuals

In the Official Gazette no. 65 dated 26.01.2017 it was published the Order no. 3697/727/2016 approving the procedure for claiming the health insurance contribution exemption for individuals who are not registered as payers in the health insurance system and the template and content of the form 603 "Personal statement for the health insurance contribution exemption".

New rules governing the activity of the real estate developers and their reporting obligations

By way of background, on 30 September 2016, the Emergency Government Ordinance no. 52 as of 14 September 2016 on credit agreements for consumers relating to immovable property and on the amendment of the Emergency Government Ordinance no. 50/2010 on credit agreements for consumers entered into force, regulating, among other aspects, the activity and the registration with the National Authority for Consumer Protection of the real estate developers.

The registration procedure in the Registry of the Ministry for Economy, Trade, Industry and the Business Environment of the economic operators authorised to perform waste recovery operations was adopted

According to Law no. 211/2011 on the regime of waste, the economic operators that perform waste recovery operations have the obligation to register at the Ministry for Economy, Trade, Industry and the Business Environment.

The adoption of Order no. 1422/2016 which regulates the procedure of registration in the Registry of the economic operators authorised to perform waste recovery operations contributes to the clarification and improvement of the legal framework applicable in the domain of waste, including that of the packaging waste.

 

The Draft Order for the approval of the form and content of the ”Declaration regarding the obligations owed to the Environmental Fund” is subject to public debate

On January 16th, 2017, following the latest legislative amendments performed regarding the contributions and taxes owed to the Environmental Fund, the Ministry of Environment has put under public debate the Draft Order for the approval of the form and content of the ”Declaration regarding the obligations due to the Environmental Fund”, which is envisaged to be enforced, in order to ensure the alignment of the legal framework applicable to the Environmental Fund obligations.

 

Brief overview of the Guidelines issued by Article 29 Data Protection Working Party on Data Protection Officers

On 13 December 2016, Article 29 Data Protection Working Party (“WP29”) adopted the Guidelines on Data Protection Officers.

The Guidelines are aimed at clarifying the relevant provisions of the GDPR in order to help controllers and processors to comply with the law but also to assist the DPO’s in their role. The Guidelines also provide best practice recommendations building on the experience gained in some EU Member States

Amendments to the Tax Code

Law no. 227/2015 regarding the Tax Code was amended and suplemented according to Law no. 2/2017 published in the Official Gazette no. 36 / 12.01.2017.

Law no. 2/2017 amends Title IV "Personal Income Tax" and V "Mandatory Social Contributions".

Amendments to the Order regarding software development activities

Order 2284/2016 regarding software development activities was published in the Official Gazette No. 22 / 09.01.2017.

Form 088 was repealed

The President of the National Agency for Fiscal Administration, Bogdan-Nicolae Stan, has repealed the Form 088 (Affidavit to assess the intention and capacity to undertake economic activities involving operations in the scope of VAT).

New Methodology for the computation of contributions, taxes, penalties and other amounts owed to the Environmental Fund entered into force

On December 29, 2016, a new Methodology for the computation of contributions, taxes, penalties and other amounts owed to the Environmental Fund (the “New Methodology”) was published in the Official Gazette of Romania and entered into force on the same day. The New Methodology was approved by Order of the Minister of the Environment, Waters and Forests No. 2413/2016 for the amendment of Order No. 578/2006 and was published in the Official Gazette of Romania No. 1064/2016.

Extension of the application term for certain taxes within energy & resources sector

The Emergency Ordinance no. 99/2016 published in the Official Gazette no. 1035/22.12.2016 extends the application term of certain taxes within energy & resources sector as set by Ordinance no. 5, 6 and 7 /2013 issued by the Romanian Government.

Amendments to the Tax Code

Law no. 227/2015 regarding the Tax Code was amended and suplemented according to Emergency Ordinance no. 3/2017 published in the Official Gazette no. 16 / 06.01.2017.

Emergency Ordinance no. 3/2017 amends Title II "Income tax", III "Micro Enterprise Income Tax", IV "Personal Income Tax" and V "Mandatory Social Contributions".

Law regarding the removal of fees and the amendment of certain laws

Decision regarding the national minimum gross salary

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