Legislative Newsletter August 7, 2014 – BIA Human Capital Solutions

Legislative Newsletter 05/09/2014

Contents:

Emergency Ordinance no. 44/2014
Emergency Ordinance no. 46/2014
Law no. 94/2014
Law no. 120/2014
Government Decision no. 607/2014
Order no. 923/2014

Emergency Ordinance no. 44/2014

Emergency Ordinance no. 44 of June 26^th 2014, published in the Official Gazette Part I no. 475 of June 27^th 2014, for regulating certain measures on debt recovery for social assistance benefits, as well as for amending art. 101 of Law no. 448/2006 concerning the protection and the promotion of the rights of disabled persons, makes the following clarifications:

Comment: The amounts representing damage/irregular payments from public funds, established by the control bodies, by way of social assistance benefits, can be recovered without charging interest and late payment fees. The following social assistance benefits belong in this category:

Social aid granted under Law 416/2001
Family support allowance granted under Law 277/2010
State child allowance granted under Law 61/1993
The rights granted under Government Emergency Ordinance 148/2005 on family support for raising children
The rights granted under Government Emergency Ordinance 111/2010 on leave and monthly allowance for raising children
Monthly placement allowance, aid for house heating, rights of disabled persons granted under art. 58 of Law 448/2006, monthly irredeemable aid granted under Law 122/2006 on refuge in Romania

Emergency Ordinance no. 46/2014

Emergency Ordinance no. 46 of June 26^th 2014, published in the Official Gazette Part I no. 475 of June 27^th 2014, amending and supplementing Law no. 571/2003 regarding the Tax Code, makes the following clarifications:

Comment: This emergency ordinance mainly regulates the procedure and conditions for granting special deduction for restructured loans for natural persons.

The special deduction for loans is granted if loan restructuring, which means changing the repayment terms thereof, cumulatively meets certain conditions.

The deduction may be granted for a single restructuring approved for a natural person under the following conditions:

the natural persons must be holders of a credit agreement ongoing on May 31^st 2014,
the credit must undergo restructuring until January 1^st 2016,
and each natural person who applies must realize gross income from salary/pension of up to 2200 RON, inclusive, in each month of the reporting period for which the deduction is granted.

This tax facility is granted each month, the obligation of granting deduction being of the employer/the pension income payer on the basis of documents submitted by the employee/retiree.

The amount that can be deducted from the salary/pensions tax cannot exceed 900 RON per month.

The provisions of this emergency ordinance shall apply to natural persons having incomes and salaries and/or pensions during January 2016 – December 2017.

Law no. 94/2014

Law no. 94 of July 1^st 2014, published in the Official Gazette Part I no. 496 of July 3^rd 2014, for the approval of Government Emergency Ordinance no. 8/2009 on granting the holiday vouchers, makes the following clarifications:

Comment: According to this law, which came into force on July 6^th 2014, employers who hire personnel by concluding an individual employment contract, may grant holiday vouchers.

Holiday vouchers are granted in the limit of the amounts provided for this purpose in the revenue and expenditure budget of employers. The maximum limit is 6 minimum gross country salaries.

Holiday vouchers are deductible only when calculating income tax.

Law no. 120/2014

Law no. 120 of July 18^th 2014, published in the Official Gazette Part I no. 541 of July 22^nd 2014, for exemption from the payment of debts of individuals from the social security system for farmers to the state budget, makes the following clarifications:

Article 1 – The debts of retirees coming from the social security system for farmers to the state budget, generated by non-unitary interpretations of the Government Emergency Ordinance 67/2003, as subsequently amended and supplemented, are exempt from payment.

Government Decision no. 607/2014

Government Decision no. 607 of July 23^rd 2014, published in the Official Gazette Part I no. 554 of July 28^th 2014, regarding the approval of content and format of study documents that will be issued to graduates of cycle I – undergraduate studies, makes the following clarifications:

Article 2 – The study documents that are issued in the national higher education system for graduates of cycle I – undergraduate studies, who were enrolled in the first year of university studies starting with the 2011 – 2012 academic year, are the following:

a) Bachelor degree;

b) Engineer degree;

c) Town planner degree.

Order no. 923/2014

Order no.923 of July 11^th 2014, published in the Official Gazette Part I no. 555 of July 28^th 2014, approving the General Methodological Rules regarding the exertion of the preventive financial control and the Specific Code of professional standards for persons performing the activity of self preventive financial control, makes the following clarifications:

Comment: This order approves the General Methodological Rules on the activity of self preventive financial control. Upon the entry into force of this Order, the provisions of the Order of the Minister of Public Finance no. 522/2003 are repealed.