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Tax & Legal Weekly Alerts
Our weekly Tax & Legal Alerts provide you with information on different tax and legal issues in Romania.
Government Emergency Ordinance No. 129/2024 amending and supplementing the legislation on national system for monitoring road transport of goods RO e-Transport
As a result of requests from the business environment, as well as starting from the need to ensure the proportionality of sanctions in relation to the seriousness of the act, the new Ordinance regulates gradual confiscation of undeclared goods based on the number of the contraventions and suspends until 31 March 2025 the fines for non-compliance regarding the transfer of vehicle positioning data to the RO e-Transport system.
New obligations for employers in the recruitment process of people with disabilities
As of January 2025, employers with more than 50 employees, who are required to employ persons with disabilities for a percentage of at least 4% of the total number of employees, will have the additional burden of proving that they have sought the support of non-governmental organizations that, according to their statutes, provide services for the benefit of persons with disabilities, in order to comply with the percentage established by law.
Procedure for the use and operation of the national RO e-Transport system
On June 27, 2024, Order no. 1.337/1.268/2024 for the approval of the Procedure for the use and operation of the national system for monitoring the transport of goods in the RO e-Transport system, both those with goods classified as high fiscal risk, and the international transport of goods.
And on June 28, 2024, Emergency Ordinance no. 87/2024 was published, which provides, among other things, strictly for those companies that hold the status of Authorized Economic Operator, the postponement of the application of contraventions for failure to declare international road transport of goods in the RO e-Transport system until January 1, 2025.
Important changes in terms of VAT, excise duties and VAT treatment applied to the SGR system
The new provisions are contained in Emergency Ordinance no. 78/2024, amending and supplementing Law no. 227/2015 on the Fiscal Code, published in the Official Gazette on June 26, 2024.
New amendments brought to the RO e-Invoice system
On June 21, 2024, was published in the Romanian Official Gazette the Emergency Ordinance no. 69/2024 which provides for certain changes in the field of electronic invoicing.
The implementation of the pre-filled RO e-VAT return
On June 21, 2024, was published in the Romanian Official Gazette the Emergency Ordinance no. 70/2024 regarding the measures for the implementation and use of the pre-filled RO e-VAT return.
Amendment of certain normative acts regarding the regime of work and residence of foreigners in Romania
Law No 28/2024 aims to transpose the provisions of the EU Directive 2021/1.883 pertaining to the conditions of entry and residence of third-country citizens for the purpose of highly skilled employment, as well as other amendments concerning the regime of foreigners.
Complex rules for ensuring a global minimum tax level of 15%, provided by Law 431/2023
The law transpose EU Directive 2022/2523 on ensuring an overall minimum level of taxation of MNE Groups and Large National Groups in the Union ("Directive 2022/2523").
Social Security Agreement between Romania and the United States of America
The normative act ratifies the Agreement and establishes the conditions and terms regarding its applicability.
Decision regarding the establishment of the quota of foreign workers newly admitted to the labor market in 2024
The published decision establishes the quota of foreign workers newly admitted to the labor market in 2024.
Amendments to the procedure for issuing portable A1 documents and certificates attesting the applicable legislation in terms of social security
The procedure for issuing portable A1 documents and the certificates attesting the applicable legislation will be carried out via RODPA1 application.
Form 212 "Unique tax return on income tax and social contributions due by individuals"
The Order approving the model, content, submission, and administration of Form 212 (Unique tax return) was published.
Convention and Protocol between Romania Principality of Liechtenstein for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital
Both the Convention and the Protocol for its implementation were published in the Official Gazette and govern the relationship between the two States regarding the taxation of income earned by a resident of one contracting state in the territory of another contracting state.
Amendments to Government emergency Ordinance no. 39/2018 regarding public-private partnership introduced by the approval law
Law no. 7/2024 for the approval of Government Emergency Ordinance no. 39/2018 regarding public-private partnership introduces a series of substantial amendments over the legal framework applicable to public-private partnerships.
Fiscal changes related to certain fiscal-budgetary measures in the field of public expenditures, for fiscal consolidation, combating tax evasion, amending and supplementing certain normative acts, as well as extending certain deadlines.
The Emergency Ordinance No. 115/2023 was published in the Official Gazette No. 1139 on December 15, 2023, and provides for a series of amendments to the Fiscal Code with an impact on various taxes.
Fiscal amendments regarding the consolidation of financial-tax discipline, to ensure financial long-term sustainability in Romania and combat the tax evasion and fraud. The law no. 296 regarding some tax-budgetary measures for ensuring long-term financial sustainability was published in the Official Gazette no. 977 in 27.10.2023 and provides a series of amendments to the Fiscal Code with impact on several taxes and fees, but also on the RO e-Invoice system that will enter into force in Romania starting with 2024.
Tax changes provided by the Draft Law published on 4 October 2023 by the Ministry of Finance aimed at Romania's obligation to transpose EU Directive 2022/2523 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union ("Directive 2022/2523").
Romania should ensure the transposition of the provisions of Directive 2022/2523 and its entry into force within the national law by 31 December 2023, with the provisions to be applicable as of 1 January 2024. We emphasize that the proposals are in the draft stage and may undergo changes until publication in the Official Gazette.
Amendments to Government Emergency Ordinance No 77/2009 on the organisation and operation of gambling and to Government Emergency Ordinance No 20/2013 on the establishment, organisation and operation of the National Gambling Office and amending and supplementing Government Emergency Ordinance No 77/2009
The GEO 82/2023 introduced a number of amendments to the legislation on the organizing and operation of gambling, mainly aiming that all gambling operators (including online) should be located on Romanian territory, this being a condition for licensing and authorization.
The proposals for fiscal changes provided by the Draft Law, published on September 19, 2023, on some fiscal budgetary measures to ensure Romania's long-term financial sustainability
The draft law proposes a series of amendments to the Fiscal Code with impact on several taxes and fees, but also on the RO e-Invoice system expected to enter into force in Romania starting with 2024. Please note that the proposals are in the stage of public debate and may undergo changes until publication in the Official Gazette.
CESOP - New EU-wide reporting on the payment processors
Central Electronic System of Payment information (“CESOP”) is a new fiscal reporting requirement at the EU level imposed on payment processors starting with January 1, 2024. Through this requirement, payment processors will need to monitor and report quarterly, in electronic XML format, information regarding cross-border payments at the transaction level.
Amendments and supplements to the Methodological Norms aimed at establishing the conditions for applying the new VAT exemptions in the medical field and other changes in VAT area
The decision to amend and supplement Title VII "Value Added Tax" of the Methodological Norms for the Implementation of Law no. 227/2015 regarding the Fiscal Code aims to establish the conditions for applying the new VAT exemptions in the medical field (introduced by Law no. 88/2023) and to align the provisions of the Methodological Norms with the provisions of the Fiscal Code (introduced by Government Ordinance no. 16/2022) regarding the increase of the VAT rate applicable to certain non-alcoholic beverage supplies, accommodation activities, restaurant and catering services, as well as the modification of the maximum value threshold for the supply of residential properties to individuals.
Amendments to the Companies Law No 31/1990 on cross-border mergers, conversions, and spin-offs, with effect from July 23, 2023
The amendments to Companies Law No 31/1990 concern the procedure applicable to cross-border mergers, as well as the regulation, as a novelty, of cross-border conversions and spin-offs, with the aim of facilitating the cross-border mobility of companies and ensuring a greater protection for the shareholders, creditors and employees of companies involved in this type of operations.
Amendment for the calculation of clawback tax
Starting with third quarter of 2023, the quarterly contribution regulated by the Emergency Ordinance 77/2011 regarding the contributions for the financing of some expenses in the health field (clawback tax), will be calculated differently based on 2 types of medicines (innovative and generics) compared to 3 types as currently applicable (innovative, generics and produced in Romania).
Thus, an unitary regime will be applied depending on the classification of the medicines and there will no longer be any difference for medicines produced in Romania.
VAT exemption for products and services for the medical sector
Draft Government Decision on the norms for the application of Law nr. 88/2023 has been published for public debate. The law introduced new VAT exemptions with the right to deduct in the medical sector, with applicability from 12 June 2023. However, it was established that these VAT exemptions will apply under the conditions set out in the methodological norms, norms that were not available at the entry into force of the law.
Order of the Ministry of Finance for the amendment of the accounting regulations applicable to economic entities
Based on this order, additions are made to the provisions of the Order of the Ministry of Finance no. 2.048/2022 based on which it was implemented the European Directive 2.101/2021 according to which multinationals and standalone entities must draw up and publish a report with information related to profit tax if they obtain revenues of more than RON 3.700.000.000 at the consolidated level for each of the last two consecutive financial years.
The procedure regarding the annulment of the fiscal liabilities that may be subject to the annulment provided by Law no. 43/2023 – annulment of fiscal liabilities related to the reclassification of gift vouchers
Order no. 906/2023 provides, on the one hand, the Procedure regarding the elaboration and transmission by the fiscal control structure of the list of fiscal liabilities that may be subject to the annulment provided by Law no. 43/2023 for the annulment of some fiscal liabilities, and on the other hand, the Procedure for the annulment of the fiscal liabilities that may be subject to the annulment provided by the Law. no. 43/2023 for the annulment of some fiscal liabilities, as well as the ways to refund them.
The European Commission released its legislative proposal authorizing Romania to introduce as of 1 January 2024 a derogating measure to apply mandatory B2B electronic invoicing
According to this legislative proposal submitted for Council of the European Union’s approval, Romania will be able to implement mandatory electronic invoicing in all B2B transactions starting with 1 January 2024.
Order of the Ministry of Finance for the amendment of Order 2.844/2016 regarding the application of International Financial Reporting Standards
According to this order, the entities resulting from the reorganization of state-owned legal entities can apply IFRS regulations.
Order of the Minister of Finance amending and completing certain regulations on financial and accounting documents
This order aims to align the archiving period of the mandatory accounting registers and the supporting documents which are the basis for the financial accounting records with the Accounting Law provisions.
Notification received from the tax authorities by companies having the obligation to submit SAF-T reports
Recently, companies included in large taxpayers’ category as of 1 January 2022 received through the Virtual Private Space (SPV) notifications regarding the submission of SAF-T reports (D406 statements).
Given that the companies do not appear in the tax authorities evidence with the submitted SAF-T reports, by these notifications, the tax authorities kindly request the companies to take the necessary steps in order to submit the SAF-T reports.
The law regarding the tax amnesty of gift vouchers
Law no. 43/2023 regarding the cancellation of certain obligations stipulates that the tax obligations differences (principal and accessories) arisen as a result of the reclassification of income that was obtained by individuals as gift vouchers from third parties (other than their employers) are cancelled or refunded depending on the case.
Order no. 185/2023 for the approval of the model and content of the form "Declaration on certain single-use plastic products" and the instructions for its completion and submission
On February 15, 2023 it was published in the Official Gazette no. 128 Order no. 185/2023 approving Declaration on certain single-use plastic products to be submitted to the Environmental Fund Administration, as well as the instructions for completing and submitting it.
Order no. 165/7/1272/456/2023 regarding the update of Form 112 (Tax return with respect to tax payment obligations for social security contributions, income tax and the nominal record of insured individuals)
On February 10, 2023 it was published in the Official Gazette no. 119 the Order no. 165/7/1272/456/2023. The order was issued for the purpose of updating the Form 112 to be in line with the applicable legal provisions for reporting income for the month of January 2023, including with respect to the reporting of Stock Option Plan benefits.
OECD Forum on Tax Administration - Manual on the Handling of Multilateral Mutual Agreement Procedures and Advance Pricing Arrangements
The Manual on the Handling of Multilateral Mutual Agreement Procedures and Advance Pricing Arrangements was issued by OECD Forum on Tax Administration on February 1st, 2023 as a guide to multilateral Mutual Agreement Procedures and Advance Pricing Arrangements processes and how they could function, providing tax administrations and taxpayers with basic information on the operation of such procedures and suggesting different approaches based on the existing practices of jurisdictions, but without imposing a set of binding rules.
Ordinance no. 16/2023 for the amendment and completion of the Tax Procedure Code
The ordinance aims to transpose COUNCIL DIRECTIVE (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation ("DAC 7")
The law that regulates the tax treatment applicable to subscriptions for using sports facilities
Law no. 34/2023 amending and supplementing Law No. 227/2015 regarding the Tax Code provides that the benefits granted by the employer to their employees under the form of subscriptions for the use of sport facilities are not subject to salary income tax and social security contributions, under certain conditions. The new tax treatment for such benefits is applied starting with the income obtained in February 2023.
Amendments to Accounting Law and to Government Emergency Ordinance the obligation of economic operators to use tax electronic cash registers
Law no. 36/2023, published in the Official Gazette on January 12, 2023, which changes the retention period for keeping data and accounting documents, applies from January 15, 2023.
New changes regarding the Government’s Ordinance no. 16/2022 for the amendment of Law no. 227/2015 regarding the Tax Code have been introduced through Law 370/2022
The law brings changes in various areas, respectively corporate tax, microenterprises income tax, withholding tax, local taxes, income tax, and exercise duties.
Law 376/2022 on the amendment of Government Emergency Ordinance no. 28/1999 regarding to the economic operators’ requirement of using fiscal electronic cash registers
The law provides clarity regarding the tax treatment of tips.
New Order issued by the Minister of Research, Innovation and Digitalization, the Minister of Education, the Minister of Labor and Social Solidarity, and the Minister of Finance on the classification of the software development activities
The new Order on the classification of software development activities has been published. The previous Order is repealed and replaced by this Order, which entered into force on 01.01.2023.
Order of the Minister of Finance regarding the assets used in the production and processing activity and the assets representing refurbishment for which the tax exemption of the reinvested profit is applied, according to art. 22 of Law no. 227/2015 regarding the Fiscal Code
The order brings a series of clarifications regarding the assets used in production eligible for the application of the reinvested profit facility.
Government Emergency Ordinance no. 188/2022 amending and supplementing Law no. 207/2015 regarding the Tax Procedure Code and Government Emergency Ordinance no. 74/2013 regarding the measures for improving and reorganizing the activity of the National Agency for Tax Administration, as well as for amending and supplementing other normative acts
The Ordinance brings significant changes to the Tax Procedure Code, especially in the matter of fiscal controls, among the most important regulated aspects being: changes regarding the risk class/subclass following the risk analysis, the modification of the rules regarding requests for information from ANAF and the flow of communication with the tax authority, changing certain rules for carrying out the tax inspection, issuing the provisional tax assessment decision, regulating the compliance notice, changes regarding the documentary verification procedure, changes regarding the anti-fraud control and verification of the tax status of natural persons.
Order for the approval of the procedure for the use and operation of the RO e-Transport national system for monitoring the transport of goods with high fiscal risk.
The new RO e-Transport implementation procedure has been published.
Order of the Minister of Finance and of the Minister of Agriculture and Rural Development on the application of the reduced VAT rate of 9% for the delivery of fertilizers and pesticides of the kind normally used in agricultural production, seeds and other agricultural products intended for sowing or planting, as well as for the provision of services of a kind normally used in agricultural production
The order details the tariff positions of goods representing fertilizers, pesticides, seeds, and planting materials, but also the provision of services for which the VAT rate on delivery on the territory of Romania is 9% as of January 1, 2023.
Order no. 2518 of 15th of December, 2022 for amendment of some Orders of the NAFA President on the organization of the administration of the activity of large and medium taxpayers
On 15th of December, 2022, in the Official Gazette no. 1207, the Order on the organization of the administration activity of large and medium taxpayers was published. Through this it is also mentioned the reference dates on SAF-T reporting at the level of companies classified as medium taxpayers.
Publication of a new version of the SAF-T scheme including amendments targeting finance-banking and insurance companies
On 19th of December, 2022 a new SAF-T scheme was published on the NAFA website, bringing clarifications and novelty elements on reporting, especially for companies in the finance-banking and insurance fields.
The amount of the minimum gross salary per country guaranteed in payment will increase in 2023 and the framework model of individual employment agreement undergoes changes
Through the Government Decision no. 1447/2022 for establishing the minimum gross national salary guaranteed in payment the amount of the minimum wage was modified to the amount of RON 3,000 and by Order of the Ministry of Labour and Social Solidarity no. 2171/2022 for the approval of the framework model of the individual employment agreement some of the mandatory elements of any individual employment agreement have been amended and new elements have been introduced.
Mandatory registration of rental agreements and its corresponding procedure
On December 5, 2022, Order no. 2031/2022 for the amendment of the Order no. 114/2019 on the approval of the registration procedure for rental agreements, as well as the approval for the form and content of the named “Request for rental agreements’ registration”, was published in the Official Gazette no. 1164.
Decision on the work permit quota for newly admitted foreign workers on the labor market in 2023
On December 9, 2022, the Government Decision no. 1448/2022 on establishing the quota for newly admitted workers on the labor market in 2023, was published in the Official Gazette no. 1186
Legislation amendments regarding some fiscal-budgetary measures, the postponement of specific deadlines, as well as the amendment of certain normative acts
On December 9, 2022, Government Emergency Ordinance no. 168/2022 regarding some fiscal-budgetary measures, the postponement of specific deadlines, as well as the amendment of certain normative acts, was published in the Romanian Official Gazette no. 1186.
Additions to accounting regulations applicable to economic entities license holders, providers of electricity and natural gas transport and distribution services
The Order of the Minister of Finance no. 3.900/2022, published in the Official Gazette of Romania from 20.10.2022, completes the measures applicable to final customers of electricity and natural gas for the period April 1, 2022, to March 31, 2023, and the accounting treatment of the capitalization of additional costs with the purchase of electricity and natural gas, realized between January 1, 2022, and August 31, 2023.
GD No. 1214/05.10.2022 for amending and supplementing GD No. 1074/2021 on establishing the deposit-return system for non-reusable primary packaging (DRS)
On October 07, 2022, it was published in the Official Gazette No. 979 GD No. 1214/05.10.2022 for amending and supplementing GD No. 1074/2021 on establishing the deposit-return system for non-reusable primary packaging (DRS).
Amendments brought to the Labour Code by Law no. 283/2022 for the amendment and completion of Law no. 53/2003 - Labour Code, as well as Government Emergency Ordinance no. 57/2019 regarding the Administrative Code
On October 19, 2022, it was published in the Official Gazette no. 1013 the Law no. 283/2022 for amending and supplementing Law no. 53/2003 - Labour Code, as well as the Government Emergency Ordinance no. 57/2019 regarding the Administrative Code. The amendments target the transposition of two directives, namely the Directive 2019/1152 on Transparent and Predictable Working Conditions in the European Union and the Directive 2019/1158 on work-life balance for parents and carers.
Additions to accounting regulations applicable to economic entities
European Directive 2.101/2021 was transposed in Romania according to which multinationals and standalone entities must draw up and publish a report with information related to profit tax, if they obtain revenues of more than 750 million euros in each of the last two financial years consecutive.
The procedure for calculating the social security contributions (pension and health insurance) in the case of individuals obtaining salary income from two or more individual employment contracts that equals or exceeds the minimum gross base salary per country
On August 16, 2022, the Order no. 1855/2022 on the procedure for applying the provisions of article 146 para. (57) let. e) of Law no. 227/2015 on the Tax Code was published in the Official Gazette no. 807.
New financing opportunities represented by the granting of grants for investments intended for the manufacturing industry
On August 4, 2022, Government Decision no. 959/2022 for the establishment of a state aid scheme regarding grants for investments intended for the manufacturing industry ("HG 959/2022") was published in the Official Gazette Part I no. 776.
The new regulation aims to establish a state aid scheme, regarding grants for initial investments or for initial investments in favour of a new economic activity in relevant economical sectors.
The maximum budget of the scheme is the equivalent in RON of EUR 300 million, with a maximum annual budget allocation of EUR 150 million.
Introducing the option of sending residence permits/work permits by courier
The General Inspectorate for Immigration will have the option to send work permits and residency permits to employers, respectively foreign citizens living in Romania, by courier, upon request, according to the recently adopted law.
Establishing the conditions under which free access to information in the cadastre and land register system will be obtained
Issued in application of the provisions of the Law on Cadastre and Land Book no. 7/1996, the Order establishes the conditions for free access to data and information from the cadastre and land register system for several professional categories and entities in the private and public sector.
The Order no. 1525/2022 on the establishment of the procedure for granting tax incentives in the agricultural sector and in the food industry
The Order approves the procedure for granting tax incentives and clarifies the conditions that should be met by the employer (e.g., the calculation method for determining the percentage of 80% of the total turnover from eligible activities), as well as by the employee, especially for specific situations (e.g., for internship contracts, apprenticeships, daily laborers).
The Order no. 1528/2022 on the establishment of the procedure for granting tax incentives in the construction sector
The order approves the procedure for granting tax incentives, introduces the possibility to opt for the payment of the social insurance contribution to the private pension fund and introduces changes to the calculation method for determining the percentage of 80% of the total turnover.
Law no. 187/2022 for the amendment and completion of Law no. 165/2018 on the granting of value tickets
The main change refers to the increase of the nominal value of a meal ticket to the maximum value of 30 lei.
New accounting regulations applicable to entities regarding the archiving of payroll statements, published in the Official Gazette
On July 4, 2022 it was published in the Official Gazette no. 668/04.07.2022 Law nr. 195/2022 for the completion of art. 25 of the Accounting Law no. 82/1991, on reducing the archiving period of payroll statements from 50 years to 5 years.
The Order on the approval of the procedure for the use and operation of the national system on the monitoring of the transport of goods with high fiscal risk RO e-Transport was published in the Official Gazette 656 of June 30, 2022.
This order clarifies the way of reporting the transport of goods with high fiscal risk on the territory of Romania, as well as the categories of vehicles that are subject to monitoring in the RO e-Transport system.
In the Official Gazette 657 of 30 June 2022 was published the Emergency Ordinance to support the granting of reductions in gasoline and diesel prices, to modify some provisions regarding the national system for monitoring road transport of goods with high fiscal risk RO e-Transport and repealing Article 28 of Government Emergency Ordinance no. 130/2021 regarding some fiscal-budgetary measures, the extension of certain deadlines, as well as for amending and supplementing certain normative acts.
An important provision contained in this ordinance is the one regarding the modification of the deadline for the application of sanctions in the case of RO e-Transport. Although reporting in this system remains mandatory as of July 1, 2022, failure to report or incorrect reporting in the system of these shipments will not be sanctioned until October 1, 2022.
New changes with respect to the sale of agricultural lands located outside the city limits meant to clarify aspects which have raised multiple questions in practice
The Ordinance aims to clarify certain aspects which have generated deadlocks on the real estate market and, respectively, to remedy some deficiencies in the application of the law. Mainly, the Ordinance sets forth a series of clarifications regarding the obligation to calculate, withhold, transfer and declare the 80% tax, as well as to establish the budgets where this tax shall be allocated.
Law no. 142/2022 for the amendment and completion of Law no. 227/2015 regarding the Fiscal Code
Modification of some aspects regarding the determination and reporting of the income tax for capital gains from transfer of securities and operations with derivative financial instruments
Government Emergency Ordinance no. 67/2022 regarding some fiscal measures, as well as for the modification and completion of the art. 59 of the Law 207/2015 regarding the Fiscal Procedure Code
Introduction of fiscal measures regarding the modification of salary for employees performing dependent activities based on an employment contract, at their main place of work, remunerated at the level of the minimum gross monthly salary guaranteed for payment, and a new tax reporting obligation for postal service providers for cash reimbursement parcels
New requirements regarding the issuance and transmission of electronic invoices
The main change brought to the electronic invoicing system refers to the obligation of taxable persons established in Romania to issue and transmit the invoices in B2G relationship through the national system regarding the electronic invoicing RO e-Invoice.
Law no. 135/2022 for the modification and completion of some normative acts
Amendment of the minimum salary for employees in the agricultural sector and the food industry and the granting of new tax incentives, similar to those already applicable to employees in the construction sector
Procedure amendments for obtaining work permits and long-term visas for foreign nationals
The main changes to immigration legislation are the elimination of the obligation to submit work permit applications at the General Immigration Inspectorate within territorial area and prlongation of their validity, for obtaining the long-term visas purposes
The proposal to amend the VAT Directive (Directive 2006/112 / EC) was adopted by Council’s Directive for the extension of the period of applying the optional reverse charge mechanism
The amendment extends the application of the reverse charge mechanism to the supply of certain goods and provision of certain services that could be fraud-prone and to the VAT anti-fraud mechanism.
Publication of the Order of the President of ANAF establishing the goods classified as having high tax risk which are subject to reporting in the national RO e-Transport system
The Order provides a list of goods that will have to be reported in the RO e-Transport system if transported by road.
Romania transposes the Directive (EU) 2019/633 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain
Law no. 81/2022, which transposes the Directive, aims to implement a mechanism for the protection of vulnerable suppliers in relation to economic operators with a high bargaining power within the agricultural and food supply chain.
Emergency Ordinance regarding National System for the monitoring of road transports of goods with high fiscal risk on the national territory (RO e-transport)
The Emergency Ordinance establishes the types of transports that will be monitored, the categories of taxpayers required to declare in the RO-e transport system, the submission deadlines, as well as the sanctions for the payers which are not compliant with the provisions.
Law for the annulment of some fiscal obligations and the modification of some normative acts
The law which provides for the cancellation of some fiscal obligations and clarifies the tax regime applicable to per diems has been adopted
Activation of Temporary Protection in Romania
Decision no. 367 establishes the conditions for ensuring temporary protection and the categories of eligible persons in Romania.
Order of the President of ANAF containing clarification regarding the obligation of transmission of the SAF-T file
The order contains details regarding the type of information the taxpayer must declare by means of the standard tax control file, the reporting model, the procedure, and conditions of transmission, as well as the transmission deadlines and the date/dates from which the categories of taxpayer are obliged to submit the SAF-T file
Order of the President of ANAF for the approval of the model and content of the form 101 “Declaration regarding the corporate income tax”
The form has been amended in order to take into consideration the latest provisions in respect of the corporate income tax reductions available for taxpayers.
Emergency Ordinance for the amendment and completion of certain normative acts, as well as for the establishment of support measures and humanitarian assistance
On March 8, 2022, was published, in the Official Gazette no. 231, GEO nr. 20/2022, which brings a series of amendments and additions to the Fiscal Code, as well as regarding other normative acts, with the aim of establishing several measures of support and humanitarian assistance in the context of the armed conflict in Ukraine.
Order no. 301 of the Minister of Labour and Social Solidarity for the approval of the employment procedure of Ukrainian citizens coming from the armed conflict zones in Ukraine
The Order contains the employment procedure for Ukrainian citizens who do not have documents proving their professional qualification and work experience have the following options:
Ordinance no. 12/2022 for amending and supplementing certain normative acts in relation to the road transport
On February 3, 2022, the Government Ordinance no. 12/2022 for amending and supplementing some normative acts in relation to the road transport, which also amends the Government Ordinance no. 27/2011 on road transport and Law no. 16/2017 on the posting of employees within the transnational provision of services, published in the Official Gazette of Romania, Part I, no. 196 of March 21, 2017, with subsequent amendments.
CJEU decides again to include contractual “sanctions” in the VAT sphere
On January 20, 2022 the Court of Justice of the European Union (“CJEU”) delivered its judgment in Case C-90/20 Apcoa Parking Danmark A / S. By its judgment, the CJEU ruled that the control fees levied in the event of non-compliance by the beneficiaries with the general conditions of use of car parks must be regarded as consideration for a supply of services and hence, subject to Value Added Tax (VAT).
Government Ordinance no. 4/2022 for the amendment and completion of Law no. 227/2015 regarding the Tax Code, as well as for the extension of the deadline regulated by the Government Ordinance no. 6/2019.
On Friday, January 28, 2022, the Government Ordinance no. 4/2022 for the extension of the deadline regulated by the Government Ordinance no. 6/2019 regarding the establishment of certain fiscal facilities was published within the Official Gazette no. 092 from 28.01.2022.
Government Ordinance for the amendment and completion of certain normative acts, as well as for the amendment of certain deadlines.
On Monday, January 31, 2022, the Government Ordinance no. 11/2022 regarding the amendment and completion of Law no. 227/2015 on the fiscal Code, regarding the amendment and completion of Law no. 207/2015 on the fiscal procedure Code as well as regarding the taxpayers that have the obligation to pay specific tax, according to Law no. 170/2016 was published within the Official Gazette no. 097 from 31.01.2022.
New edition of OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022
Thursday, January 20, 2022, the new edition of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations was published
Decision on the work permit quota for newly admitted foreign workers on the labour market in 2022
On Friday, January 28, 2022, the Government Decision on establishing the quota for newly admitted workers on the labour market in 2022 was published.
Order no. 77/2022 for the amendment of Order no. 3769/2015 on the declaration of supplies / purchases and acquisitions made in the national territory by persons registered for VAT purposes (amendment of the Local Sales and Purchases List D394)
On Monday, January 31, 2022, it was published in the Official Gazette no. 095 / 31.01.2021 Order no. 77/2022 for the amendment of Order no. 3769/2015.
New regional aid map for Romania for the period 2022-2027
Starting January 1st, 2022, based on the Revised Regional Aid Guidelines for the period 2022-2027 and of the new regional aid map for Romania, new state aid intensities will be applicable.
Introducing a new visa category for foreign nationals - digital nomads. The main amendments to the Emergency Ordinance no. 194/2002 on the regime of foreigners in Romania
A new visa category is introduced, the one for digital nomads, representing foreigners who can work remotely through technology and want to live temporarily in Romania.
The Order regarding the establishing products with high fiscal risk, marketed in the B2B relationship
On January 10, 2022, it was published in the Official Gazette no. 27 / 10.01.2022 the order on establishing products with high fiscal risk, marketed in the B2B
relationship.
The Order for the approval of some procedures for collecting the budget receivables representing the VAT due by the taxpayers who apply the special regimes provided by art. 314, 315 and 3152 of Law no. 227/2015 regarding the Tax Code
On January 10, 2022, it was published in the Official Gazette no. 27 / 10.01.2022 the order for the approval of some procedures for collecting the budget receivables representing the VAT due by the taxpayers who apply the special regimes provided by art. 314, 315 and 3152 of Law no. 227/2015 on the Fiscal Code.
The Law no. 5/2022 for the ratification of the Multilateral Convention for the implementation into double tax treaties of the provisions against base erosion and profit shifting, opened for signature and signed by Romania in Paris, at June 7, 2017 has been enacted.
Emergency Ordinance on some fiscal-budgetary measures, the extension of certain deadlines, as well as for the modification and supplementation of some normative acts no. 130/2021 (hereinafter referred to as “GEO 130/2021”)
On December 18, 2021, GEO 130/2021 was published in the Official Gazette no. 1202. The Emergency Ordinance introduces a series of amendments to the Fiscal Code and other normative acts (such as tax evasion law, regulation of the tax amnesty, law on value tickets granting, Labour Code).
Law no. 301/2021 on the approval of Government Ordinance no. 8/2021 regarding the amendment and supplementation of Law no. 227/2015 on the Fiscal Code (hereinafter referred to as “Law 301/2021”)
On December 17, 2021, Law no. 301/2021 was published in the Official Gazette no. 1195, introducing a series of amendments to the Fiscal Code (tax consolidation regime in the field of corporate income tax, income from the transfer of real estate from personal patrimony).
SAF-T reporting was introduced in the fiscal legislation by Order no. 1783/9.11.2021 of NAFA President
On November 9, 2021 was published the secondary legislation regulating the implementation of SAF-T reporting (Standard Audit File for Tax) in Romania, a reporting which becomes mandatory, in stages, from 1st of January, 2022. In this respect, it was published in the Official Gazette no. 1073/9.11.2021, Order no. 1783/9.11.2021 of NAFA President regarding the type of the information that the taxpayer must declare through the Standard Audit File for Tax (“SAF-T” file), the reporting model, the transmission procedure and conditions, the submission deadlines and the dates from which the categories of taxpayers are required to submit the SAF-T file.
New regulations applicable to entities opting for a financial year different than the calendar year, published in the Official Gazette
On October 20, 2021 it was published in the Official Gazette no. 999/20.10.2021 Order no. 1240/04.10.2021 of the Minister of Finance on provisions applicable to persons who opt for a financial year different than the calendar year.
New accounting regulations applicable to economic operators published in the Official Gazette
On October 22, 2021 it was published in the Official Gazette no. 1.012/2021 II. Order of the Minister of Finance for amending and supplementing the accounting regulations applicable to economic operators.
Government Emergency Ordinance on the administration, operation and implementation of the national system regarding the electronic invoice RO e-Factura and the electronic invoice in Romania
Romania implements the EU Directive on electronic invoicing through GEO no. 120/2021, published in the Official Gazette no. 960 / 07.10.2021. The ordinance describes the functioning of the electronic invoicing system and outlines the general rules for the transmission, reception and processing of electronic invoices.
Major reform of the international tax system
Paid days off granted to parents and other categories of persons in the context of the spread of SARS-CoV-2 coronavirus
On October 4, 2021, Government Emergency Ordinance no. 110/2021 for granting paid days off to parents and other categories of people in the context of the spread of SARS-CoV2 coronavirus (“GEO no. 110/2021”) was published in Official Gazette no. 945. Among the most important aspects, the new legal enactment lays down the conditions in which parents are granted days off starting from October 4, 2021 and until the end of the 2021-2022 school year.
New social protection measures of social protection for employees and other professional categories in the context of restriction, suspension or limitation of economic activities, as a result of the epidemiological situation generated by the spread of SARS-Cov2 coronavirus
On October 4, 2021, Government Emergency Ordinance no. 111/2021 establishing support measures for employees and other social categories in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus (“GEO no. 111/2021”) was published in Official Gazette no. 945.
Among the most important aspects, the legal enactment regulates the financial support measures granted between 4 October and 31 December 2021.
Increase of minimum gross base salary per country starting from January 1, 2022.
On October 5, 2021, Government Decision no. 1071/2021 establishing the minimum gross base salary per country was published in Official Gazette no. 950.
New amendments published on Law no. 227/2015 on the Fiscal Code and Law no. 207/2015 on the Fiscal Procedure Code, published in the Official Gazette no. 832/31 August 2021
In the Official Gazette no. 832 / 31 August 2021, Ordinance no. 8 on amending and supplementing Law no. 227/2015 on the Fiscal Code and Ordinance no. 11 regarding the amendment and completion of Law no. 207/2015 on the Fiscal Procedure Code and the regulation of some fiscal measures were published.
Decision for the amendment of the Government Decision no. 1.133/2020 on establishing the contingent of newly work permits admitting foreign workers on the labor market in 2021
On August 12, 2021, the Government Decision no. 836/2021 for supplementing the number of newly admitted foreign workers on the Romanian labor market was published in the Official Gazette no. 780/12.08.2021.
Order for the amendment and completion of the Order of the President of the National Agency for Fiscal Administration no. 2862/2019 for the approval of the Procedure with regarding the ex officio establishment of the annual personal income tax, as well as the model and content of certain forms
On August 20, 2021, the Order no. 1251 of the President of the National Agency for Fiscal Administration was published in the Official Gazette no. 802/20.08.2021 through which certain allowances granted by GEO 30/2020 and GEO 132/2020 will be subject to the ex officio establishment of the annual personal income tax.
Amendments and completions regarding the regulation of some accounting aspects and for the approval of the Accounting Reporting System at June 30, 2021.
The order 762/2021 was published in the Official Gazette of Romania, Part I, no. 697 from 14.07.2021 which provides details related to the regulation of some statutory accounting aspects. It modifies and completes the order of the Minister of Public Finance, no. 1802/2014, published in the Official Gazette of Romania, Part I, no. 963 of December 30, 2014, with subsequent amendments and completions, which extends the aria of applicability of the statutory accounting regulations and establishes requirements for the first year of application of the accounting regulations, as well as thereafter for foreign legal entities that have the place of exercise of effective leadership in Romania.
In the Official Gazette of Romania, Part I, no. 699 of 15.07.2021, the order 763/2021 was published for the approval of the Accounting Reporting System on June 30, 2021 which applies to the economic operators who are incidents accounting regulations approved by Order OMFP no. 1802 / 2014 and by OMFP no. 2844 / 2016 and which in the previous financial year recorded a net turnover at least equal to the RON equivalent of EUR 1,000,000.
Starting with July 1st, 2021, in the context of the implementation of the new European VAT rules included in the e-commerce package, the One Stop Shop (“OSS”) system becomes operational in Romania.
The Government Emergency Ordinance no. 59/2021 published in the Official Gazette on June 28th, 2021, aimed to amend the Tax code, transposes in the national legislation the new European VAT provisions on e-commerce.
The authorities adopted the Emergency Ordinance no. 19/2021 regarding certain tax measures and the amendment of certain normative acts in the tax field
On March 29, 2021, the authorities published in the Official Gazette no. 315/29.03.2021, Emergency Ordinance no. 19/2021 regarding certain tax measures and the amendment of certain normative acts in the tax field (“GEO 19/2021” or “the Ordinance”).
Amongst the most relevant aspect, GEO 19/2021 provides for the following:
• The extension of some fiscal measures intended to help taxpayers get through the issues determined by the COVID-19 pandemic (initially provided by Government Ordinance no. 6/2019, Emergency Ordinance no. 48/2020, Emergency Ordinance no. 69/2020 and Emergency Ordinance no. 181/2020), including an extension of the tax amnesty provided by Emergency Ordinance no. 69/2020;
• Amendments regarding Law no. 227/2015 regarding the Tax Code;
• New tax provision regarding early education.
Digital platforms beware: new reporting requirements from the European Union. The European Council adopted the directive on the extension of the automatic exchange of information rules to digital platform operators (DAC7)
On March 22, 2021, the European Council adopted the amendment to the Directive on administrative cooperation in the field of taxation (DAC7), by expanding the scope of automatic exchange of information to sales through digital platforms too. The new rules will apply starting with 1 January 2023
I. New Labour Code provisions on the suspension or temporary reduction of the employer's activity, introduced by Law no. 298/2020
On December 24, 2020, Law no. 298 supplementing Law no. 53/2003 – the Labour Code was published in the Official Gazette no. 1293/24.12.2020.
II. The Government has extended the applicability of some support measures granted in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus
On December 31, 2020 Emergency Ordinance no. 220/2020 on the application of social protection measures after January 1, 2021 in the context of the spread of the SARS-CoV-2 coronavirus, as well as for the amendment of some normative acts was published in the Official Gazette no. 1326/31.12.2020.
III. The work permits quota for foreign workers admitted to the labor market in 2021 was established
On December 31, 2020 Decision no. 1133/2020 on establishing the work permits quota in 2021 was published in the Official Gazette no. 1326/31.12.2020.
IV. New fiscal provisions brought by the Emergency Ordinance no. 226/2020
On December 31, 2020 Emergency Ordinance no. 226/2020 on certain fiscal - budgetary measures and for amending and supplementing certain normative acts, as well as for the extension of certain deadlines was published in the Official Gazette no. 1332/31.12.2020.
New amendments published on Law no. 227/2015 regarding the Fiscal Code and Law no. 207/2015 regarding the Fiscal Procedure Code
On December 21, 2020 the Law no. 295 for the amendment and completion of Law no. 207/2015 on the Fiscal Procedure Code, as well as Law no. 296 for the amendment and completion of Law no. 227/2015 regarding the Fiscal Code were published in the Official Gazette no. 1266 and no. 1269/21.12.2020.
The current form published in the Official Gazette does not bring substantial changes compared to the drafts of the two Laws. Among the most important regulated aspects are the following:
o aspects related to the definition of certain terms, the corporate income tax, the value added tax, excise duties, the microenterprise tax, the tax on the income obtained in Romania by non-residents or local taxes and duties.
o tax procedure aspects, out of which the most important aspect were in legislative procedure for more than 3 years.
News regarding social protection and supporting measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus
On December 7, 2020, the Government Emergency Ordinance no. 211/2020 regarding the extension of the application of some social protection measures adopted in the context of the spread of the SARS-CoV-2 coronavirus, as well as for the amendment of the Government Emergency Ordinance no. 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, as well as to stimulate employment was published in the Official Gazette no. 1189/12.07.2020 (“GEO no. 211/2020”).
In addition, on December 9, 2020, the Law no. 282/2020 for the approval of the Government Emergency Ordinance no. 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, as well as to stimulate employment growth it was published in the Official Gazette no. 1201/09.12.2020 (“Law no. 282/2020”).
The above-mentioned documents a establish the extension of the application of certain forms of financial support to employers, employees, as well as to other categories of individuals affected by the current epidemiological situation, but also some amendments ad completions regarding the method of granting.
OECD Guidance on the transfer pricing implications of the Covid-19 pandemic
On December 18th, on the OECD website it was published a report on the transfer pricing implications of the Covid-19 pandemic (hereinafter referred to as 'OECD Guidance'). The OECD Guidance provides comments on the application of the arm’s length principle in the pandemic context in four priority issues: (i) performing the comparability analysis; (ii) losses and allocation of Covid-19 specific costs; (iii) treatment of government assistance programs; and (iv) implications of the Covid-19 pandemic on advance pricing agreements.
The report states that these comments should be treated in close connection with the OECD Guidelines , not as a replacement/revision of the latter. Therefore, tax authorities and taxpayers should continue to follow also the provisions of the OECD Guidelines.
Below there is a summary of the main provisions included within the document issued by OECD.
The Parliament of Romania adopted two draft laws for the amendment of the Fiscal Code and the Fiscal Procedure Code
On November 24th, 2020, the Chamber of Deputies adopted the Draft Law PL-x 478/2019 for the amendment and completion of Law no. 227/2015 regarding the Fiscal Code and the Draft Law PL-x 477/2019 for the amendment and completion of Law no. 207/2015 on the Fiscal Procedure Code and Law no. 227/2015 on the Fiscal Code, as well as for the approval of some fiscal and budgetary measures.
These draft laws mainly concern aspects related to the definition of certain terms, the corporate income tax, the value added tax, excise duties, the microenterprise tax, the tax on the income obtained in Romania by non-residents or local taxes and duties, as well as tax procedure aspects, out of which the most important aspect were in legislative procedure for more than 3 years.
The Government regulates the residence and entry rights in Romania applicable in case of a Brexit with Agreement
On November 25, 2020, the Emergency Ordinance no. 204/2020 on the establishment measures for the implementation of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community, regarding the regulations of the entrance right and stay in Romania was published in the Official Gazette no. 1132/25.11.2020.
The National Agency for Fiscal Administration approved the procedure for granting payment rescheduling by the central fiscal body
On November 19, 2020, the Order no. 3.896 of the president of the National Agency for Fiscal Administration for the approval of the Procedure for granting the payment rescheduling by the central fiscal body, as well as for the modification of annex no. 2 of the Order of the president of the National Agency for Fiscal Administration no. 90/2016 for the approval of the content of the application for granting the payment rescheduling and of justifying documents attached to it, as well as of the Procedure for applying the payment rescheduling by the central fiscal body was published in the Official Gazette no. 1104/11.19.2020.
Amendments to the Tax Code made by Law no. 239/2020
On 6 November 2020, the Law no. 239/2020 for amending and completing the Law. 227/2015 regarding the Tax Code was published in the Official Gazette no. 1041/06.11.2020.
These amendments concern provisions related to corporate income tax and personal income tax, which have entered into force on November 9, 2020. Thus, a series of regulations are introduced regarding the income and expenses resulting from early education and from vocational and technical education, dual pre-university and university education.
The Government has adopted new support measures in the context of the epidemiological situation caused by the spread of the SARS-CoV-2 coronavirus
On October 26th, 2020, the Emergency Ordinance no.181 on certain fiscal-budgetary measures, for amending and supplementing regulatory acts and for the extension of certain deadlines (""EGO 181/2020"") was published in Official Gazette No. 988/26.10.2020.
Among the most important issues covered by EGO 181/2020 are the following:
• New provisions on payment facilitation (payment rescheduling) for budgetary obligations due from the date of the declaration of the state of emergency (March 16th 2020), administered by the central fiscal body;
• Exemption for the specific HoReCa tax due until December 31, 2020;
• Extension of the deadline by which the public authorities may grant reductions and / or exemptions regarding the tax on buildings;
• Suspension of the application of the fine for not connecting the electronic cash registers with the computer system of the National Agency of Fiscal Administration (“NAFA”);
• Extension of the term regarding the restructuring of the tax obligations provided by GO 6/2019;
• Favourable tax treatment applicable to COVID-19 tests;
• Extension of some legal deadlines, in order to continue the package of measures adopted due of the pandemic effects on the economy.
Individuals who do not have the quality of pensioners can obtain the retirement pension by paying the social insurance contribution for periods of maximum 6 years
New measures for crossing the Romanian state border by frontier workers
These legislative news have been published in the Official Gazette no. 883, no. 884 from September 2020.
New exemptions applicable to foreign citizens regarding employment in Romania
Approval of the amounts settlement procedure for the indemnity payment related to granting days off for parents in order to supervise children, in case of limitation or suspension of teaching activities, following the spread of SARS-CoV-2
Publication of the methodology for granting the financial support to employees and employers in order to purchase goods in the context of the epidemiological situation
Extension of the state of alert on the Romanian territory starting with September 15, 2020
Publication of the document templates necessary for approving the settlement and payment procedure of the amounts granted as support for employees and employers in the context of the epidemiological situation
These legislative news have been published in the Official Gazette no. 832, no. 836, no. 842 and no. 850 from September 2020.
Fiscal measures in order to stimulate the maintenance / increase of equity, as well as for the completion of certain normative acts
Throughout Friday, 4th of September 2020, it was published in the Official Gazette no. 817, the Government Emergency Ordinance (“GEO”) no. 153/2020 for the establishment of certain fiscal measures in order to stimulate the maintenance / increase of equity, as well as for the completion of certain normative acts.
According to the GEO, it is targeted the reduction of corporate income tax/ microenterprise tax/ specific tax depending on the level of equity/ annual increase of equity. Moreover, certain completions are brought to the Government Emergency Ordinance no. 33/2020 regarding certain fiscal measures in relation to allowances granted for the year 2020 towards taxpayers subject to corporate income tax.
The publishing in the Official Gazette of the Emergency Ordinance for granting days off for parents in order to supervise children, in case of limitation or suspension of teaching activities that require the presence of children in schools and early childhood education units, following the spread of SARS-CoV-2 coronavirus.
The publishing in the Official Gazette of the Decision for the approval of the procedure for settlement and payment of the amounts granted based on the Government Emergency Ordinance no. 132/2020 on support measures for employees and employers in the context of the epidemiological situation caused by the spread of the SARS-CoV-2 coronavirus, as well as to stimulate employment growth.
These legislative news have been published in the Official Gazette no. 790 from August 28, and respectively no. 794 from August 31.
Amendments to the Local Sales and Purchases List return “Informative declaration regarding the deliveries / services and acquisitions made on the national territory by the persons identified for VAT purposes”
On August 21, 2020, the Order of the President of NAFTA no. 3281/2020 amending the Order of the President of NAFTA no. 3769/2015 was published in the Official Gazette of Romania no. 764, Part I.
The law for amending and supplementing Law no. 16/2017 on posting the employees in the framework of the transnational provision of services, as well as the decree for its promulgation, was published in the Official Gazette
The amendment of this Law was published in the Official Gazette no. 736 from August 13, 2020.
New support measures in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus
On August 10, 2020 Emergency Ordinance no. 132/2020 for the establishment of certain support measures for employees and employers in the context of the epidemiological situation caused by the spread of the SARS-CoV-2 coronavirus, as well as for increasing the employment (hereinafter “GEO 132/2020”) was published in the Official Gazette no. 720/10.08.2020.
Among the most important aspects, the normative act provides additional forms of financial support to employers and employees, as well as for other categories of individuals affected by the current epidemiological situation.
A new postponement of the deadline for submitting paper tax returns towards the Environmental Fund Administration, new criteria applicable to biodegradable transport bags and fiscal amnesty for contributions towards the Environmental Fund Administration
This week, the Environmental Fund Administration has posted a new deadline for submitting paper tax returns. The new deadline is the 25th of October 2020 for reporting September 2020.
On the 29th of July 2020 came into force the provisions of Order of Environment, Waters and Forestry Ministry no. 1276/2020 regarding the approval of technical characteristics applicable to transport bags manufactured from materials that comply with SR EN 13432:2020 for which the eco-tax does not apply.
Companies that register fiscal obligations towards the Environmental Administration Fund can apply for amnesty for the accessories deriving from their main tax obligations.
Tax credit for electronic cash registers purchased starting with 2018
On Friday, July 24, 2020, Law no. 153 for the amendment and completion of Law no. 227/2015 on the Fiscal Code, as well as for completing Law no. 170/2016 regarding the specific tax, was published in the Official Gazette no. 659.
According to this law, taxpayers paying corporate income tax, microenterprise tax, specific tax or income tax benefit of tax credit for the acquisition cost of the electronic cash registers purchased and put into operation starting with August 1, 2020. The tax credit applies, as well, for the electronic cash registers purchased and put into operation during 2018, 2019 and 2020 before this the entry into force of this law.
Procedure for the annulment of ancillary payment liabilities
In the context of the tax measures adopted by the authorities in May by GEO 69/2020, aiming to support taxpayers in overcoming the problems caused by COVID-19, Order no. 2.100 of the Minister of Public Finance for the approval of the Procedure for the annulment of ancillary payment liabilities was published on July 20, 2020.
Thus, the Procedure for the annulment of ancillary payment liabilities, implements the mechanism previously established by GEO 69/2020, regulating among others, the following aspects:
- The debtors who can benefit from these tax facilities;
- The categories of outstanding ancillary liabilities that may be subject to the annulement;
- The steps that must be followed in order to benefit from the tax facilities;
- Particular situations of the debtors.
Important ammendments brought to Order 103/2016 on justifying the application of VAT exemptions
The amendments brought to the Order 103/2016 on July 17, 2020 aim to align the national legislation with the European rules applicable since January 1 for the intra-community transactions with goods, to correlate the VAT rules for exports with the customs provisions, as well as implementing certain CJEU rulings on VAT exemptions.
In brief, the amendments are addressing the following issues:
- implementation of new rules in order to justify the european transport in case of intra-EU supplies of goods;
- alignment of rules for applying the VAT exemption for exports with the customs rules;
- extension of the period during which the documents necessary justifying VAT exemption can be obtained from 90 to 150 days;
- clarifying certain VAT exemptions as a result of recent cases judged at the Court of Justice of the European Union (CJEU).
DAC 6 – Romania adopted the extension with 6 months of the reporting deadlines and of the mandatory and automatic exchange of information in the tax field
On July 1, 2020, Emergency Ordinance no. 107/2020 was published in the Official Gazette no. 579, amending certain provisions of Ordinance no. 5/2020, by extending with 6 months the reporting deadlines of the transactions with tax risks, imposed following the implementation of (EU) Directive 2018/822 in Romania.
I. Amendments to the legislation for the introduction of fiscal measures, amendments of legislative acts and deadlines extensions in the context of COVID-19
On June 25, 2020, the Emergency Ordinance no. 99/2020 for the implementation of fiscal measures, amendments of legislative acts and the deadlines extension (“GEO no. 99/2020”) was published in the Official Gazette.
II. The postponement of the reporting deadlines established by the (EU) Directive no. 2018/822 (“DAC 6”, “Directive”)
On June 24, 2020, the EU Council reached an agreement (through (EU) Directive 2020/876) regarding the optional 6-month postponement of the reporting deadlines established by the (EU) Directive no. 2018/822 as regards the automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements, whereby the member states may opt for the delay of the reporting deadlines until the beginning of 2021.
I. New rules regarding the yearly visa applicable to environmental authorizations and integrated environmental authorizations
Order 1150/2020 brings, through the approval of the Procedure for the application of the yearly visa, new legal obligations with high impact on businesses that operate under environmental authorizations and integrated environmental authorizations.
II. CJEU clarifies the rules applicable to the distribution of samples free of charge to persons qualified to prescribe or supply them
The Court of Justice of the European Union (“CJEU”) ruled under Decision C-786/18 (“the Decision”) for a preliminary ruling, that in the matter of marketing of medicinal products, more specifically in the case of distribution of samples free of charge, pharmaceutical companies are not allowed to distribute free samples of prescription-only medicinal products to pharmacists.
I. Order no. 456/2020 regarding the procedure for granting the amounts provided by art. III, par (1) and (2) of Government Emergency Ordinance 92/2020 for the establishment of active supporting measures for employees and employers, in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus, was
published in the Official Gazette.
II. G.E.O. 97/2020, for the implementation of administrative simplification measures in the field of social protection, as well as for granting social assistance rights and benefits in
the areas of activity in which restrictions are maintained was published
III. Order of National Agency for Fiscal Administration (ANAF) for the approval of the Procedure for connecting the fiscal electronic cash registers to the national computer system for supervision and monitoring of the fiscal data of ANAF
I. Amendments to the legislation for the introduction of measures to restructure the outstanding budgetary obligations and certain fiscal facilities
II. The Government has adopted new support measures for employees and employers in the context of the epidemiological situation caused by the spread of SARS-CoV-2 coronavirus
III. Order issued by Romanian tax authorities for approval of the annual tax return due by individuals and other changes regarding the declaration of private income.
IV. Law no. 62/2020 regarding the implementation of rent payment facilities during the state of emergency period.
I. Legislative measures adopted in the context of the COVID-19 pandemic
On 21 May 2020 the Law no. 62/2020 on the application of rent payment facilities for the period
related to the state of emergency (""Law no. 62"") was published in the Official Gazette no. 425.
II. Amendments to form 112
On 21 May 2020 the new template of the form 112 - “Declaration regarding the payment liabilities of
social security contributions, income tax and the record of insured individuals” was published in the
Official Gazette no. 426.
I. The authorities have implemented certain tax measures in order to help the taxpayers get through the problems caused by the COVID-19 pandemic
II. The authorities have extended certain measures for social protection, have issued norms for the regulation of the right to stay in Romania for foreign individuals, starting with May 15, 2020, in the context of the epidemiological situation determined by the spread of the SARS-CoV-2 coronavirus.
III. The authorities have instituted new measures for the prevention and control of infections, applicable during the state of alert
The authorities intend to implement certain tax measures in order to help the taxpayers get through the problems caused by the COVID-19 pandemic
As mentioned by the representatives of the authorities, as well as following the press releases after the Government meeting from May 7, 2020, the Romanian Government intends to implement several measures aimed to provide certain tax facilities for taxpayers, in order to combat the problems caused by the COVID-19 pandemic.
Legislative measures undertaken in the context of the COVID-19 pandemic
On April 16, 2020, in the Official Gazette of Romania, part I, the Government Emergency Ordinance no. 48 (“GEO no. 48/2020”) was published, regulating certain financial – fiscal measures.
New Regulation no. 7/2020 (the “Regulation”) issued by the Financial Supervisory Authority (“FSA”) on the authorisation and functioning of alternative investment funds
Payment moratorium under EGO 37/2020 and the related implementation rules: key procedural steps, conditions, matters still open to debate and practical issues
Ordinance for amending the Law regarding the paid leave granted for parents for supervising their children during the temporary period in which the learning institutions are closed
A new Ordinance amending Law 19/2020 was published in the Official Gazette no. 282 from April 3, 2020.
Main amendments brought to the Law no. 19/2020:
Free days are granted to one of the parents for the supervision of the children during the school holidays period too, in case of the temporary closure of the learning institutions during emergency state;
Pre-school learning institutions are also included for granting paid leave;
Legislative measures adopted in the context of COVID-19 pandemic
I. Emergency Ordinance no. 33/2019 on certain fiscal measures and the amendment
of certain normative acts
II. Emergency Ordinance no. 32/2020 on the amendment and completion of
Emergency Ordinance no. 30/2020 amending certain normative acts, as well as for
establishing several measures regarding social protection given the epidemiologic
situation derived from SARS-CoV-2 spreading
III. Emergency Ordinance no. 35/2020 on the method of issuing and extending the
validity of holiday vouchers, in the context of the epidemiological situation
determined by the spread of COVID-19
IV. Order no. 499/2020 for approving the temporary suspension of the distribution
outside the Romanian territory of biocidal products used to ensure the prevention of
the diseases associated with the infection with SARS-CoV-2
Legislative measures adopted in support of companies affected by COVID-19 pandemic
I. Emergency Ordinance no.29/2020 on economic and fiscal measures in the context of COVID-19 pandemic
II. Emergency Ordinance no. 30/2020 amending certain normative acts, as well as for establishing several measures regarding social protection given the epidemiologic situation derived from SARS-CoV-2 spreading
III. Government Decision no. 217 for the application of the provisions of Law no. 19/2020 regarding the paid leave granted for the parents for supervising their children during the period of temporary closure of the educational units
Measures adopted by the Environmental Fund Administration in the context of the COVID-19 pandemic
Given the difficult situation that the economic operators are facing in the context of the spread of infection with SARS-CoV-2 on the Romanian territory, the Environmental Fund Administration (“EFA”) has adopted a series of measures supporting the business environment.
CJEU decision with a potential impact on companies from various industries: VAT is due on the reimbursement of the costs related to the secondment of staff by the parent company to its subsidiary
Law regarding the paid leave granted for the parents for supervising their children, during the period in which the learning institutions are closed
Proposal for amending Order 103/ 2016 on justifying the application of VAT exemptions
On February 20, on the Ministry of Public Finance’s website, a proposal of the Romanian tax authorities for amending and updating Order 103/2016 regarding the methods for justifying the VAT exemptions applicable for intra-Community supplies of goods and exports was published. Briefly, the draft order provides:
- implementation of new rules in order to justify the european transport in case of intra-EU supplies of goods;
- alignment of rules for applying the VAT exemption for exports with the customs rules;
- extension of the period during which the documents necessary justifying VAT exemption can be obtained from 90 to 150 days;
- clarifying certain VAT exemptions as a result of recent cases judged at the Court of Justice of the European Union (CJEU).
OECD published the Transfer Pricing Guidance on Financial
Transactions
On February 11, 2020, OECD published the Transfer Pricing Guidance on
Financial Transactions. It complete the BEPS: Actions 4, 8-10, being transposed
as a new chapter in the OECD Transfer Pricing Guide, Chapter X.
The Authority for the Digitalization of Romania.
Revitalization of public administration modernization?
Thursday, February 13, 2020, Government Decision no. 89/2020 regarding the
organization and functioning of the Authority for the Digitalization of Romania
(“ADR”) has been published in the Official Gazette of Romania. The new
authority shall assume the role of carrying out and coordinating the
implementation of public policies and strategies regarding the digital
transformation of public administration.
DAC 6 – The implementation of Directive 2018/822 regarding the mandatory and automatic disclosure of information in the tax field with regards to cross-border arrangements, which are subject to reporting
On January 31, 2020, Emergency Ordinance no. 5/2020 was published in the Official Gazette no. 68/31.01.2019, bringing a series of changes to Law no. 207/2015 regarding the Tax Procedural Code.
Amendment of Government Ordinance no. 6/2019 regarding the establishment of tax debt restructuring
On January 31, 2020, Emergency Ordinance no. 6/2020 was published in the Official Gazette no. 72/31.01.2019, bringing a series of changes to tax debt restructuring legislation.
The deadline for the submission of the annual tax return and the payment of the related tax obligations has been extended
BREXIT: immigration and social security implications
Changes of the Fiscal Code
On 31st of January, 2020 on Official Gazette no. 72 was published Government Ordinance 6/2020 for implementing in the Tax Code the „VAT quick fixes” agreed by the European Union, and also the provisions related to Directive 2017/952 on hybrid tax mismatches that occur in cross-border transactions.
BREXIT at midnight: Customs, VAT and Excise implications
On January 31, 2020, 00:00 The United Kingdom of Great Britain and Northern Ireland leaves the Customs Union and the Single Market of the European Union.
The BREXIT agreement was approved by the European Parliament, the Council of the European Union and the Parliament of the United Kingdom
Changes regarding the method of declaring to the Environmental Fund
The year 2020 brings new obligations for economic operators with respect to submitting the monthly declarations to the Environmental Fund Administration.
Approval of the Romanian annual tax return form to be used in 2020
The average monthly gross salary income for 2020
The value of the national average gross salary used for establishing the social security state budget for year 2020 is RON 5,429.
Law on occupational private pensions
It is regulated the legal framework necessary for setting up occupational private pension schemes and occupational private pension funds.
The 222 and 224 forms can now be submitted online
Starting with December 17, 2019, forms 222 and 224 regarding the individuals who obtain salary income from abroad for activities performed in Romania, can be submitted to the relevant authorities in electronic version.
The new Law no. 243/2019 on alternative investment funds will enter into force in January 2020
The Government Decision regarding the quota for work authorizations that can be issued for foreigners, for the year 2020, was published
Amendments brought to the Fiscal Code regarding the mandatory social security contributions due by individuals
Law on the amendment of Company Law no. 31/1990 regarding the sole shareholder of a limited liability company (in Romanian “societate cu răspundere limitată” or “S.R.L.”) and the registered office – subject to promulgation
Measures approved by the Government in case of a no-deal Brexit
On November 20, the Emergency Ordinance no. 70/2019 regarding some measures applicable in the case of retreat of the United Kingdom of Great Britain and Northern Ireland from the European Union (“UK”) without an agreement was published in the Official Gazette no. 933/20.11.2019.
Special tax regime applicable to the activities of the Final Tournament of the European Football Championship 2020
The Government approves the Emergency Ordinance no. 18 of March 19, 2019 which provides that the individuals and legal persons involved in the organization of the Tournament benefit from certain tax exemptions from the provisions of the Law no. 227/2015 regarding the Tax Code.
NAFA provides the procedure for establishing ex officio the annual income tax due by individuals
On November 6, the Order no. 2862/2019 of the President of the National Agency for Fiscal Administration was published in the Official Gazette no. 897/06.11.2019, for the approval of the procedure regarding the ex officio establishment of the annual income tax due by the taxpayers (i.e., individuals), as well as the model and content of certain forms.
New obligations for the economic operators involved in trading operations with manufactured tobacco products
Starting with October 31, 2019, the traceability system for manufactured tobacco products (i.e. cigarettes, rolling tobacco) has become operational.
For the other tobacco products, this traceability system will be functional starting with May 20, 2024.
New amendments performed to Law no. 50/1991 regarding the authorization of construction works
Law no. 193/2019 for the amendment and completion of Law 50/1991 regarding the authorization of construction works has been promulgated by the Romanian President and published in the Official Gazette no. 873/ 30 October 2019.
New EORI obligations for Romanian branches of non-EU companies performing export operations
CJEU rejects the VAT exemption for services rendered in connection with the operation of ATMs
The Court of Justice of the European Union (CJEU) ruled, as per a decision of October 3, 2019 (Case C-42/18 - Cardpoint), that the VAT exemption for payment services is not applicable in the case of a supplier that provides ATM operating services to a bank.
Amendments brought to form 112
On October 1, 2019, the new model, contents, method of submission and management of the “Declaration regarding the payment liabilities of social security contributions, income tax and the record of insured people” was published in the Official Gazette no. 794/01.10.2019 (“Form 112”).
The procedure for establishing ex officio the social security contributions due by individuals who derive income from sources other than the salary income
On October 2, 2019, the Order of the President of the National Agency for Fiscal Administration was published in the Official Gazette no. 800/02.10.2019, for the approval of the procedure regarding the ex officio establishment of the social security contributions due by individuals, as well as the model and contents of certain forms.
Emergency Ordinance for amending and supplementing Government Ordinance no. 6/2019 regarding the establishment of tax facilities
On September 26, 2019, the Emergency Ordinance amending Government Ordinance no. 6/2019 regarding the establishment of fiscal facilities ("GO 6/2019") was published in the Official Gazette no. 784/26.09.2019. This provides for the extension of the deadline for submitting the notification regarding the intention to restructure the budgetary obligations from September 30 to October 31, 2019, and brings a number of further clarifications on some aspects related to GO 6/2019.
The Procedure for the annulment of ancillary payment obligations
On September 27, 2019, the Procedure for the annulment of ancillary payment obligations was published in the Official Gazette no. 786/27.09.2019, in accordance with chapter II of Government Ordinance no. 6/2019 regarding the establishment of tax facilities.
Draft law on decapitalised companies
At the beginning of September, the Romanian Senate was referred to, with a new draft law imposing, inter alia, certain measures on decapitalized companies.
Amendment to the manner of applying the fines in case of breach of the legal provisions regarding overtime
On September 18, 2019, the Chamber of Deputies adopted the Law amending art. 260 para. (1) letter i) of the Law 53/2003 – Labour Code as follows: "Constitutes a minor offence and is sanctioned with a fine ranging from RON 1,500 to RON 3,000 the non-compliance with the provisions regarding the overtime for each person identified as performing overtime."
The Ministry of Public Finance targets decapitalised companies
On August 14, 2019, the Ministry of Public Finance published a government ordinance project, proposing amendments to Companies Law no. 31/1990 and to Accountancy Law no. 82/1991. These revisions propose drastic measures for the companies that register a decrease of the net asset or losses.
The procedure for applying the measures to restructure the outstanding tax liabilities as at December 31, 2018, in case of taxpayers having debts greater than or equal to RON 1 million
On August 29, 2019, the procedure for applying the measures to restructure the outstanding tax liabilities as at December 31, 2018, in case of taxpayers having debts greater than or equal to RON 1 million was published in the Official Gazette no 711/29.08.2019. The procedure brings a series of clarifications and details over some aspects from the Government Ordinance no. 6/2019 (“GO 6/2019”).
Decision to supplement the quota for work authorizations that can be issued for foreigners during 2019
On August 30, 2019, has been published the Government Decision increasing the quota for work authorizations that can be issued for foreigners during 2019.
New rules on consumer information regarding the extension of promotional campaigns/clearance sales
On August 30, 2019, the National Consumer Protection Authority has released in public consultation a Draft Order on consumer information requirements applicable to economic operators that continue to place on the market the products that were the subject of promotional campaigns/clearance sales, on the territory of Romania.
Government Ordinances drafts regarding the modification of the Fiscal Code and the Fiscal Procedure Code
Government Ordinance draft for completing the Government Emergency Ordinance no. 28/1999 on the obligations of economic operators to use electronic cash registers for tax purposes
According to the information presented on the website of the Ministry of Public Finance, it is foreseen the publication of two emergency ordinances by which legislative changes will be made, regarding the Fiscal Code and the Fiscal Procedure Code.
Moreover, the Government Emergency Ordinance no 28/1999 is foreseen to be modified.
Thus, on August 14, 2019, three projects were published as following:
- The Government Ordinance project for updating the Government Emergency Ordinance no. 28/1999 on the obligations of economic operators to use electronic cash registers for tax purposes;
- The Government Ordinance draft for amending and supplementing Law no. 227/2015;
- The Government Ordinance draft for amending and supplementing Law no. 207/2015.
In the design of the two emergency ordinances that will produce changes in the two codes, Fiscal and Fiscal Procedure, the date of entry into force of these normative acts would be set, generally speaking, on January 1, 2020.
Amendment of the Companies’ Law no. 31/1990
On August 5, 2019, Law no. 162/2019 regarding the amendment of art. 6 paragraph (2) of the Companies’ Law no. 31/1990 (“Companies’ Law”) entered into force. The amendment regards the limits set in relation with the association right in order to carry out economical activities. More specifically, the limits in relation to a person who can be a founder of a company registered in accordance with the Romanian law have been modified.
Regulation on promoting fairness and transparency for business users of online intermediation services
On July 31, 2019, Regulation (EU) 2019/1150 of the European Parliament and of the European Council on promoting fairness and transparency for business users of online intermediation services entered into force (the “Regulation”).
Ordinance regarding the granting of tax facilities
On August 5, 2019, Ordinance no. 6 was published in the Official Gazette. It regards the granting of certain tax facilities, including the possibility of restructuring the tax liabilities for taxpayers in financial difficulty (i.e. insolvency risk), as well as the cancellation of several interest and penalties for late payment subject to the conditions provided by the Ordinance.
The current facilities are more advantageous than other reliefs provided by the Fiscal Procedure Code.
Amendments to the legislation regarding the threshold applied for the sponsorships credit
On July 26, 2019 the Law no. 156/2019 was published in the Official Gazette, amending para. (4), letter i) of art. 25 of the Law 227/2015 regarding the Tax Code.
New non-harmonized excise duty for soft drinks with high sugar content
The Ministry of Public Finance has published a draft emergency ordinance establishing a new excise duty for soft drinks with a high content of free sugars.
Increase of excise duty on cigarettes starting September 1, 2019
New amendments regarding Companies’ Law no. 31/1990 and Government’s Ordinance no. 26/2000 regarding associations and foundations
On July 21st, 2019 Law no. 129/2019 (“Law 129/2019”) regarding the prevention and the fight against money laundering and financing of terrorism, entered into force, as well as the amendments of other normative acts, which, among other changes, it modifies Companies’ Law no. 31/1990 and Government’s Ordinance no. 26/2000 regarding associations and foundations.
Amendments to the Urbanism Law regarding the litigations initiated with respect to the urbanism documentations
On July 26, 2019, Law no. 151/2019 that supplements Law no. 350/2001 on urbanism and improvement of territory (”Law 151/2019”) was published in the Official Gazette. The normative deed entered into force on July 29, 2019.
Although the majority of the amendments refer to the regulation of the informal settlements of underprivileged individuals, there are several important changes, which concern the legal regime applicable to litigations initiated with respect to urbanism documentation.
Amendments to the legislation on cash registers
Law published on 17th of July for repealing par. (1), (2) and (4) of art. 40 of the Government Ordinance no. 27/2011 on road transport, as well as for amending and completing Government Emergency Ordinance no. 28/1999 on the obligations of economic operators to use fiscal electronic cash registers.
Furthermore, a legislative proposal was put forward in order to eliminate the contravention regarding the non-observance of the deadlines stipulated by the GEO 28/1999, to use electronic cash registers, from under the provisions of the Prevention Law no. 270/2017.
Approval of the Administrative Code – amending the legal regime of the public and private ownership held by the state and the administrative-territorial units
On July 5, 2019 the Emergency Government Ordinance no. 57/2019 (“GEO 57/2019”) regarding the Administrative Code was published in the Official Gazette. The legislative deed entered into force on the same day, with the exception of several provisions for which a subsequent date of entry into force was expressly indicated. Although the Administrative Code mainly contains provisions on the organization and operation of the public authorities, there are several important amendments set forth with respect to the legal regime of the private and public ownership held by the Romanian state or by the administrative-territorial units (“UAT”).
Regulation of the alternative transportation activities
On July 4, 2019, the Government’s Emergency Ordinance no. 49/2019 (“GEO 49/2019”) regarding the alternative transportation activities entered into force. GEO 49/2019 regulates the activity of digital platforms, which offer ride-sharing services, but also the activity of the drivers that offer transportation services registered on such platforms.
Guidelines adopted by the European Data Protection Board
Substantial changes in relation to the management of packaging waste and the contributions to the Environmental Fund
Government Emergency Ordinance No. 50/2019 ("GEO 50/2019”), which brings important changes to the legislation regarding packaging waste and the contributions to the Environmental Fund, was published in the Official Gazette on July 2nd, 2019, and entered into force on the same day. GEO 50/2019 amends and completes GEO No. 196/2005 regarding the Environmental Fund and Law No. 249/2015 regarding the management of packaging and packaging waste.
The online filing of the tax returns that are due to the Environmental Fund has been regulated
Order of the Minister of the Environment No. 572/2019 ("Order 572/2019"), which regulates the conditions for submitting online the tax returns to the Environmental Fund, was published in the Official Gazette on 3 July 2019 and entered into force on the same day.
New rules regarding the registration of entities that manufacture, import or distribute active substances used as raw materials for medicinal products for human use
On June 11, 2019, the Order no. 775/2019 (“the Order”) of the Ministry of Health on the registration of manufacturers, importers and distributors of active substances used as raw materials for medicinal products for human use was published in the Official Gazette, Part I, no. 473.
New criteria for the exemptions provided under the Agricultural Cooperative Law no. 566/2004
According to Order No. 1369/2019, published in the Offical Gazette on June 12, 2019, the procedure for granting tax incentives for the electronic submittal of the “Unique tax return on income tax and social security contributions due by individuals”, as well as for the payment in advance of estimated tax liabilities for the year 2018 has been approved
Proposal to amend VAT treatment in case of leasing transactions
During the Government meeting on the 12th of June 2019, it was duly noted the proposal to amend the Tax Code in order to bring national legislation in line with the Court of Justice of the European Union’s (CJEU) decision in Case C-164/16 Mercedes-Benz, according to which (financial) leasing operations constitute supplies of goods.
Draft law on public procurement and concessions
The National Public Procurement Agency has proposed a draft law with respect to the public procurement and concessions legislation.
Amendments brought in the Energy Industry
Order amending and supplementing the Order of the President of the National Regulatory Authority for Energy no. 18/2019, for the approval of the Methodology regarding the computation and establishment of the annual contribution stipulated in art. 2 par. (3^1) of the Government Emergency Ordinance no. 33/2007 on the organization and functioning of the National Regulatory Authority for Energy
Order amending the Methodology used for establishing the fees for the system service, approved through the Order of the President of the National Energy Regulatory Authority no. 45/2017 and suspending the applicability of certain provisions in the electricity sector
Order amending and supplementing the annex to the Order of the President of the National Regulatory Authority for Energy no. 41/2019 regarding the approval of the Methodology for the establishment of regulatory fees for natural gas transport services and for suspending the applicability of certain provisions in the natural gas sector
Order amending and completing the Order of the President of the National Energy Regulatory Authority no. 217/2018 regarding the approval of the Methodology for setting the regulated fees for gas distribution services
Order amending and completing the Order of the President of the National Energy Regulatory Authority no. 14/2019 regarding the approval of the Methodology for setting the regulated fees for the provision of underground natural gas storage services
Amendments to the Tax Code
Emergency Ordinance no. 35/2019 regarding certain modifications to normative acts was published on May 30, 2019.
Changes at European level for the legal framework applicable from the perspective of consumer protection for contracts for the sale of goods and supply of digital content and digital services
On the 22nd of May, 2019, a legislative package containing a Directive concerning contracts for the supply of digital content and digital services, and a Directive concerning contracts for the sale of goods was published in the Official Journal of the European Union.
The new package aims to adapt the European legislation to the current realities, for the purpose of increasing the level of protection granted to consumers, both for the purchase of goods and for the lawful accessing (either by paying a price, or by supplying personal data) of digital content or digital services.
Amendments to the Tax Code
On May 23th 2019, the Emergency Ordinance supplementing Law 227/2015 on the Tax Code was published. The applicability of the reduced VAT rate of 5% was extended to mountain, bio and traditional food. The amendment enters into force as of June 1st, 2019.
Amendments to fiscal legislation
On May 23th 2019, the Emergency Ordinance regarding certain modifications to normative acts with reference to the health insurance contribution, due for the period 2014-2017, was published.
Contributions to the Environmental Fund: Changes regarding the management of packaging and packaging waste
The management of the contributions to the Environmental Fund has suffered some changes, referring mainly to the management of packaging and packaging waste, as per Order no. 149/2019, published on February 27.
Amendments brought to the tax return no. 112
The main amendments and clarifications for the tax return no. 112 refer to the conditions for applying the tax incentives in the construction field.
The EU alarm signal on computation of goods origin
Almost 40% of EU exporters face difficulties in performing computation of goods origin and 70% have difficulties in obtaining the supplier declaration, shows a study performed by the European Commission in 2018 on origin rules application at exporter level.
Romania risks new infringement: European Commission requests amendment of national law regarding customs debt
The European Commission decided last week to send Romania a letter of delay for requesting law amendment related to customs debt, the stage preceding the infringement procedure.
The amendments to the Tax Code and the Fiscal Procedure Code
A series of amendments, completions are introduced by Law no. 30/2019 published at January 17, 2019:
- Additional conditions for granting sponsorships for corporate tax payers;
- Amendments of the thresholds regarding interest deductibility and other equivalent costs;
- The regulation of income obtained from virtual currency transfers and the tax base calculation method for this type of income;
- The redistribution of the amount representing up to 3.5% from the income tax due on certain types of income to nonprofit entities, cult units and private scholarships;
- Amendments on the moment when it is allowed the adjustment of the VAT taxable amount in case of the bankruptcy of the beneficiary;
- Amendments on the application of the 5% VAT rate for the supply of residential housing as part of social policy;
- Amendments to the Fiscal Procedure Code, establishing the legal framework applicable to the criteria according to which the taxpayers are classified as fiscal risk categories.
Approval of the “Unique statement regarding the income tax and social security contributions due by individuals” form for 2019
Draft GEO on consumer protection: proposed increase in the sanctions to be applied by ANPC
The National Consumer Protection Authority (ANPC) has issued on 14 January, on its own web-site, in a decisional transparency procedure, an emergency government ordinance proposal regarding the amendment and supplementation of certain legal enactments governing consumer protection.
EU-Japan Free Trade Agreement will enter into force on the 1st of February, 2019
Signed on 17th of July at Tokyo, the FTA will reduce or remove most part of the customs duties applicable for the trade of goods originating from the two territories. Registration in the REX system is necessary in order to be able to issue the proof of origin.
Changes regarding the management of packaging and packaging waste
On 14 January 2019 the Law on the approval of Government Emergency Ordinance no. 74/2018 was published, which brings changes to the management of packaging and packaging waste.
At the same time, on 15 January 2019, the order approving the authorization procedure, annual approval and withdrawal of the operating right of the organizations that implement the obligations of extended producer responsibility was published.
Certificates for wholesale or retail sales of energy products will become invalid starting with February 1, 2019
Economic operators who perform wholesale or retail sales of energy products (petrol, diesel fuel, lamp oil, GPL and biofuels) and who intend to continue their activity after January 31st, 2018, will have to submit a new application for authorisation, according to the new conditions established by NAFA Order no. 3236/2018.
Legislative measures with major impact, proposed by the draft GEO
A series of legislative changes with impact on the financial services, electricity, gambling, telecommunications, amongst others, are proposed through a draft of emergency ordinance, published on December 18:
- A tax on the assets of financial institutions – “The Greed Tax” – the rate is progressive, and is determined according to ROBOR;
- Set-up of a minimum contribution for granting and extending the licenses for telecommunications providers;
- A new annual tax for gambling organizers;
- Freezing of the gas selling price by 2022 to 68lei/MWh;
- New rules for setting tariffs and contributions owed by electricity operators;
- Increasing the financial contribution of electricity operators;
- Indexation of local taxes and fees;
- Tax incentives for employees in the construction sector;
- Tax on revenues from advertising on alcohol and tobacco;
- Substantial changes to pension pillar II.
The list of dual-use items has been updated
In order to ensure better control of exports, transfer, brokering and transit of dual-use items, an update was necessary concerning the dual-use list provided by the Council Regulation (EC) 428/2009 setting up a Community regime for the control of exports, transfer, brokering and transit of such items.
EU Regulation: Unlocking e-commerce in the European Economic Area
Regulation (EU) 2018/302 on the prevention of unjustified geoblocking and other forms of discrimination based on citizenship, nationality or domicile headquarters on the internal market entered into force on December 3rd.
The regulation removes geoblocking, which is a discriminatory practice that prevents online customers from accessing and purchasing products or services from a site based in another Member State.
VAT Rate of 5% for restaurant and catering services: Instructions to clarify the application
The instructions of uniform application try to clarify the main difference – from the perspective of a VAT rate applied (9% or 5%) – between restaurant and catering services and supply of goods operations. Even if the instructions provide some examples, it is necessary to perform a qualitative analysis of the entire operation for the proper fit of the operations, because some uncertainties will also remain, as will be explained in this Tax Alert.
The minimum gross base wage per country shall increase and will vary depending on the study levels, starting with January 1st, 2019
The minimum gross base wage per country shall increase and will vary depending on the study levels, starting with January 1st, 2019, pursuant to Government Decision no. 937/2018, published in the Official Gazette no. 1045 of 10.12.2018.
Reauthorization of the temporary storage and customs warehouse require a customs global guarantee
In order to obtain reauthorization, the economic operators holding authorizations for temporary storage or customs warehousing will also have to obtain an authorization for using a global guarantee. The deadline for reauthorization is the 1st of May, 2019.
Lending conditions – The amendments made by the National Bank of Romania through Regulation no. 6/2018
The main amendments concern especially an extended scope of the Regulation 17/2012, new rules for determining the “total indebtedness level” of debtors (individuals) and new reporting obligations towards the National Bank of Romania (NBR). The new amendments will apply starting with 1 January 2019.
We summarized in this legal alert some of the key amendments.
The environmental authorization and integrated environmental authorization: what are the provisions of the procedure for the issuance of the annual endorsement
The procedure which regulates the conditions for the request, issuance or denial of the annual endorsement of the environmental authorization and integrated environmental authorization was recently approved by an order of the Ministry of Environment. The annual endorsement is a condition for the validity of the authorizations.
The main provisions of the procedure, as well as a series of essential aspects that are not clarified, which have significant consequences for the holders of the authorizations, are summarized below.
The Green Public Procurement Guide: minimum environmental protection requirements for certain product groups and services that are required within tender documentations
The Guide provides contracting authorities/entities with information on the minimum environmental protection requirements to be considered when preparing, in accordance with the law, the documentation for the award of contracts/green procurement framework agreements for product categories and/or existing services. The purpose of the guide is to support a potential bidder in preparing the technical and financial bid in an appropriate manner, in consideration of environmental protection conditions.
Amendments made to the immigration law concerning the right to stay and work in Romania for non-EU/EEA/Swiss citizens
Law no. 247/2018 for modifying and completing some normative acts regarding the regime of foreigners in Romania was published on November 7, 2018. The changes are in force starting November 2018 and cover the conditions to acquire residency and to work in Romania.
Draft amendment: State owned institutions will be able to benefit from exemption from excise duty for the fuel delivered in their own tanks
State owned institutions which involve the defence, the public policy, the public health, the national safety and security could be exempted from excise duty for energy products supplied directly to their own tanks in order to be used as aviation fuel. The proposal was mentioned into a draft amendment of the Methodological Norms of the Tax Code, published by the Ministry for Public Finance.
CJEU decision on annual leave. Impact over domestic regulations
Court of Justice of the European Union (“CJEU”) ruled that, in certain conditions, the right to annual leave may be lost if the employee refuses without justification to exercise this right.
European Commission warns Romania to end its VAT split payment mechanism
On November 8th the European Commission decided to send a letter of formal notice to Romania regarding VAT split payment mechanism. The Commission concluded that the Romanian measure is against both EU VAT rules (Council Directive 2006/112/EC) and the freedom to provide services (Article 56 of TFEU).
Starting January 1st, 2020, foreign companies will not be able to perform more than 3 customs operations per year, unless they are established in the European Union
A draft amendment of Order no. 2460/2016 on customs representation norms was published on the Romanian General Customs Directorate website.
The Combined Nomenclature in force in 2019
The European Commission has published the Combined Nomenclature (“CN”) applicable starting January 1st, 2019. Consequently, starting January, you will need to use the new CN codes for customs and excise operations, Intrastat declarations and for operations performed on the basis of a customs and fiscal authorisations issued on CN 2018 tariff codes.
Excisable products: On December 31, 2018 certificates for engross trading of energy products and alcoholic beverages/processed tobacco with no storage will lose their validity
According to a draft order published on the website of the General Customs Directorate, the deadline for economic agents to re-authorize under the new conditions will be extended (initially the re-authorization deadline was set for November 9, 2018).
Declaration and payment of the tax obligations for the branded packaging – official clarification
Declaration and payment of tax obligations remains the responsibility of the economic operator holding the brand for which these products (customized packaging) are designed or manufactured, and placed on the national market, including in its own shops. The situation has been clarified by the Environmental Fund Administration, through an informative note.
New rules governing the financial insurance sector
On October 1st, 2018 the Law no. 236/2018 on insurance distribution entered into force. The law transposes the provisions of Directive (EU) 2016/97 and repeals Law no. 32/2000 on the activity and supervision of intermediaries in insurance and reinsurance.
The regulations issued by the Financial Supervisory Authority (FSA) prior to October 1st, 2018 will continue to apply until the new regulations will be enacted, except for contradictory provisions, where Law no. 126/2018 shall prevail. The FSA is expected to issue in the near future implementation rules for the application of the Law no. 236/2018.
We summarized below some of the key aspects provided by Law no. 236/2018.
Amendments to Tax Code – The final form of the law
The amendments to the Tax Code proposed by the draft emergency ordinance of 29 September 2018 were published in the Official Gazette. The most relevant are: 5% VAT rate to certain services, regulations for taxpayers applying IFRS and updates on the applicable deductions for early reporting and/or payment of income tax and social contributions.
Amendments to Tax Code, proposed draft: VAT rate decreased to 5% for certain services
A draft Emergency Ordinance, released by the Ministry of Finance on September 29, proposes several amendments to the Tax Code. The most relevant are: 5% VAT rate to certain services, regulations for taxpayers applying IFRS and updates on the applicable deductions for early reporting and/or payment of income tax and social contributions.
Certain companies established outside the EU may claim VAT refunds by the end of September
Companies not established in the EU, which paid VAT on imports, and/or acquisitions of goods/services performed in Romania, are entitled to tax refund by the Romanian tax authorities if there is a reciprocity agreement concluded between the two countries.
Risk analysis performed by the tax authorities. Formalities and implications
Considering the fact that, in the past two months, the General Directorate for the Administration of Large Taxpayers (“DGAMC”) started sending official notifications to large taxpayers regarding some risk indicators used in the risk analysis, the question arises whether these have any fiscal consequences and if it requires a formal reply from the latter.
Although the documents have, at a declarative level, a purely informative purpose and do not explicitly seek to obtain additional information/ details/ clarifications from the taxpayers, it is recommended to provide explanations on the risk indicators and clarify any possible inconsistencies.
In this way, the large taxpayers would, on one hand, demonstrate a diligent behaviour by willingness to cooperate with the tax authorities and, on the other hand, prevent a possible assignment in higher risk category with all the consequences of such assignment.
Excisable products: certificates for wholesale trading of energy products, alcoholic beverages or processed tobacco with no storage will lose their validity
Certificates for wholesale trading of energy products, alcoholic beverages or processed tobacco with no storage will lose their validity in 90 days starting with the 10th of August 2018. Within this timeframe, economic operators that have been so authorized can re-register if they hold an authorized wholesale warehouse facility.
European Commission amends the exporter definition from a customs perspective
More than two years after the entry into force of the New Union Customs Code, the European Commission amends the exporter's definition from a customs perspective. The new definition should be less restrictive and limits the conditions to be met in order to act as an exporter to the essential requirements of the functioning of the export customs regime.
Decision of the Court of Justice of the European Union on the VAT exemption for payments and transfers
VAT exemption for payments cannot be applied to a service provider that only instructs banks to transfer sums of money.
Amendments to Law no. 217/2016 regarding the reduction of food waste. Tax implications
The enforcement of measures undertaken for the food waste prevention will become optional, according to Law no. 200/2018 for the amendment and completion of Law no. 217/2016 on the reduction of food waste, published in the Official Gazette no. 647 dated July 25th, 2018.
Additional compliance obligations for companies offering sponsorships
Taxpayers granting sponsorship, acts of patronage or private scholarships will have the obligation to submit a new form, annually, i.e., Form 107 "Informative Statement regarding the beneficiaries of sponsorships/patronages/private scholarships", according to Order no. 1825/2018, published in the Official Gazette no. 646 dated July 25, 2018.
Clarifications on the organization and functioning of the National Office for Centralized Public Procurement
Following the set-up of the National Office for Centralized Procurement (“NOCPP”) by way of GEO no. 46/2018, the Romanian Government brings clarifications on the organization and functioning of the NOCPP by issuing the Government Decision no. 502/2018, published in the Official Gazette no. 614 as of July 17, 2018.
Internship law, main aspects
Internship law published on July 19, 2018 within Official Gazette, settles the legal framework for the manner of performing paid internship programs for persons of at least 16 years, by this manner these persons being able to acquire, among others, the professional experience, practical skills and/or competencies. Internship Law mainly regulates the following that we underline herein below:
- Who can be an intern?
- What entities could conclude internship agreements?
- Organization of internship program and internship agreement
- Amount of internship allowance
- Rights and obligations of hosting organization
The posting of workers in the framework of the provision of services: Main amendments brought to Directive 96/71/EC
Directive 96/71/EC on the posting of workers in the framework of the provision of services was amended by Directive 2018/957/EU, published on July 9, 2018, in order to ensure that a fair balance is struck between the freedom to provide services within the European Union, loyal competition, respectively the social protection of workers by promoting social justice.
Postponing by 2020 the contribution for failure to achieve the collection targets for electrical and electronic equipment and portable batteries and accumulators
On June 27th a law was published amending the Emergency Ordinance no. 196/2005 on the Environment Fund, which postpones until 2020 the payment of the contribution for failure to achieve the collection targets both by economic operators placing on the market electrical and electronic equipment and portable batteries and accumulators, as well as for the collective organizations.
The Constitutional Court upheld: Women can request the continuation of their individual employment agreements until they reach the age of 65
On 5 June 2018, the Constitutional Court upheld the unconstitutionality of art. 56 letter c) first thesis of Law no. 53/2003 - the Labor Code and ascertained that the provisions thereof are constitutional if the collocation “standard retirement age” is construed as not precluding a woman from requesting the continuation of her individual employment agreement, in conditions identical to men, respectively until she reaches the age of 65.
Self-evaluation form - an alternative to ANCEX's denial when exporting dual-use products
The General Directorate of Customs issued a circular to all subordinate institutions introducing a positive measure on dual-use items. As such, exporters can present at the time of customs clearance a self-assessment form as an alternative to the dual-use advice request issued by ANCEX ("ANCEX denial"), thus reducing the time of customs clearance.
Origin of goods – new certification rules in trade between the EU and India, Angola, Congo, Nepal and other GSP countries
Until June 30, 2018, exporters from India, Angola, Congo, Nepal and other GSP countries need to register in the EU Register of Exporters (REX system). After this date, FORM A certificates can no longer be used to certify origin for goods traded between such countries and the European Union.
The first EU regulations on virtual currency exchanges and wallets
On April 19, the European Parliament approved a directive whereby, among others, provides for the first time at European level a legal framework for virtual-fiat currency exchange platforms and custodian wallet providers.
In addition, the approved directive regulates expressly remote and electronic client identification, thus facilitating the digitalization of customer on-boarding across Europe.
Amendments and completions regarding the method of calculation and the procedure for the approval of the maximum prices of medicinal products for human use
By Order of the Minister of Health no. 407 of 30th of March 2018 (the “Order”) published in the Official Gazette no. 288 of 30th of March 2018, it has been approved the amendment and completion of the Order of the Minister of Health no. 368/2017 approving the Norms regarding the method of calculation and the procedure for the approval of the maximum prices of medicinal products for human use (the “Norms”).
Minor offences provided under labor regulations that are object of the prevention law
Law 270/2017 on prevention provides that the public control authorities have the obligation to apply the sanction of warning and to establish a remediation plan if they ascertain that one of the minor offences expressly regulated by law has been committed.
Major changes to the Tax Code
Law no. 72/2018, Government Emergency Ordinance no. 18/2018, Government Emergency Ordinance no. 25/2018 amended recently the Tax Code on profit tax, income tax, withholding tax (“WHT”), microenterprises regime and Value Added Tax (VAT).
Common set of rules for calculating taxable profits (CCCTB), voted by the European Parliament
On 15 March, the European Parliament voted in favour of plans establishing a common consolidated corporate tax base (CCCTB), namely a common set of rules that companies operating in the EU can use to calculate taxable profits.
European Commission directives proposed on taxation of companies in the digital economy
The European Commission proposes two solutions on a long-term and on a short-term for taxation of companies with significant digital presence.
ECOFIN Agreement for the tax intermediaries’ directive and for revising the list of non-cooperative jurisdictions
According to the agreement, tax intermediaries are obliged to report structures including cross-border transactions.
Decision of the Court of Justice of the European Union (CJUE) on time limits for claiming VAT refunds
VAT can be reclaimed after the statute of limitation period has expired.
Opinion of the Advocate General of CJUE on the VAT exemption for transactions concerning payments
VAT exemption denied for instructions to transfer money.
Legislative proposal in connection with the General Data Protection Regulation – Provisions that derogate from the European rules
The Romanian Parliament drafted a legislative proposal regarding the applicable measures for enforcing the (EU) Regulation 2016/679 issued by the European Parliament and the Council on the protection of natural persons with regards to the processing of personal data (“General Data Protection Regulation”).
The companies intending to import, export or produce controlled substances that deplete the ozone layer must register before 8 May 2018
Companies which, in 2019, intend to import or export ozone-depleting substances or which intend to produce or import these substances for essential laboratory and analytical uses, must obtain a license, according to the Notice issued by the European Commission.
Amendments to the Fiscal Code regarding social security contributions section
The government amended the Fiscal Code by the Emergency Ordinance no. 3/2018, published in the Official Gazette no. 125/08.02.2018, regarding social security contributions section, the main subject being, according to the note, to ensure a unitary fiscal regime of the social security contributions.
The deadline to submit the 600 form has been extended
The Government Emergency Ordinance no. 2/ 2018 to extend some deadlines provided by the Law 227/2015 regarding the Tax code has been published. In this respect, the deadline for submitting the 600 form was extended until 15th of April 2018.
Implementation of the New Customs Code - European Commission’s conclusions
In a report published at the end of January on the implementation of the new Customs Code, the European Commission announced, among other things, the amendment of the exporter's definition from the customs legislation’s perspective.
The electronic transport document can be used as a transit declaration
The electronic transport document can be used as a transit declaration for air transport is one of the main changes to the EU Convention on the Common Transit Procedure.
Deloitte in mass media
Costs of split VAT application across the EU outweigh the benefits, concludes a Deloitte study. The impact for Romania is explained by Vlad Boeriu, Partner Deloitte Romania: https://www2.deloitte.com/ro/en/pages/about-deloitte/articles/costurile-aplicarii-split-tva-in-ue-depasesc-beneficiile-impactul-estimat-pentru-romania.html
New obligation for public constructions operating without a fire safety authorization
The beneficiaries of investments consisting in constructions with public destination operating without obtaining the fire safety authorization are obliged to place notice boards in front of the entrances to the respective areas, with the following content: "This area operates without the fire safety authorization."
Cancelation of certain tax liabilities for individuals that are real estate developers
Tax liabilities that result from reclassification of the income from transfer of real estate from personal patrimony into income from independent activities, incurred up to 1st of June 2017, are canceled according to the Law no. 29/2018, published on 18th of January 2018.
A new category of programmers, exempted from income tax
The conditions of granting the income tax exemption for employees that perform activities representing creation of computer programs were amended by the joint order of MEN, MCSI, MMJS, under the no. 1.168/2017/3.024/2018/492/2018/3.337/2017, published in the Official Gazette no. 52 from 18th January 2018.
Law on public-private partnership, substantial amendments
The architecture of public-private partnership is substantial amended according to the provisions enacted by Emergency Ordinance no. 104/2017 for amending and supplementing Law no. 233/2016 on public-private partnership.
The main amendments consists of:
New definition of some concepts;
The possibility for the public partner to finance the investments with financial resources coming from public funds other than post-accession non-reimbursable external funds or their national contribution.
General and specific terms and conditions, together with the contractual framework agreement model, approved in the field of public procurement
Through Government Decision no. 1/2018 approving general and specific conditions for certain categories of procurement contracts related to publicly funded investment objectives, as published in Official Gazette no. 26 of 11 January, 2018, the general and specific terms and conditions, together with the framework agreement model for public or sectoral procurement contracts covering either the performance of works only or both the design and performance of works, have been approved, if such:
are related to publicly funded investment objectives, including non-reimbursable or reimbursable funds, and
the estimated total value is equal to or greater than the threshold value provided by art. 7 par. 1 lt. a of Law no. 98/2016, respectively 24,977,096 lei.
Legislative proposal regarding the authorization of the execution of construction and demolition works
The new proposal for the law regarding the authorization of the performance of construction and demolition works aims to replace Law no. 50/1991, restructuring the law and bringing forward a series of substantial changes.
The national average gross salary applicable for 2018 was published
The value of the national average gross salary used for establishing the budget of the state social insurance for the year of 2018 is 4,162 lei.
VAT split payment – The final form of the law
Only the companies having VAT debts or in insolvency will mandatory apply the VAT split payment system starting with 1 January 2018, according to the final form of the law on the VAT split payment, published in the Official Gazette.
New calculation rules regarding contributions and taxes due to the Environmental Fund
New methodological rules for calculating the contributions and taxes due to the Environmental Fund came into force on December 28, 2017, according to Order of the Ministry of Environment no. 1503/2017 for modifying and completing the methodology of calculation of taxes and contributions due to the Environment Fund.
New provisions on medical leave and allowances
The main changes concern the introduction of a voluntary insurance contract for medical leave contributions.
Amendments for certain tax and social security forms
Taking into consideration the newly introduced tax provisions, entered into force as of 1st of January 2018, certain tax forms have been updated in order to be in line with the new legislative provisions.
Decision to set quota for work permits that can be issued to foreigners during 2018
On Friday, 29 December 2017, it was published the decision establishing the work permits quota for year 2018 that can be issued to foreign citizens.
Changes to the provisions of the law regarding public pensions
The new provisions refer to the monthly basis for computing the social security contribution for individuals insured under a voluntary insurance contract.