LEGISLATIVE NEWSLETTER
Content:
- Order no. 1099/2016
- Joint Order no. 4947/899/2018/1840/906/2016
- Emergency Ordinance no. 46/2016
- Order no. 417/2016
- Emergency Ordinance no. 45/2016
- Decision no. 571/2016
- Decision no. 630/2016
Order no. 1099/2016
Order no. 1099 / 12.07.2016, published in the Official Gazette Part I no. 577 of 29.07.2016, regulating certain aspects concerning the tax residence of individuals in Romania
Are approved the provisions set out in Art. 7, 59 and 230 of Law no. 277/2015 on the Tax Code, subsequently amended and supplemented and in compliance with the conventions for the avoidance of double taxation, as follows:
a) “Questionnaire for determining an individual’s tax residence upon arrival in Romania” (Annex no.1);
b) “Questionnaire for determining an individual’s tax residence upon departure from Romania” (Annex no. 2);
c) “Notifications on fulfilment of the residence conditions according to Art. 7 and Art. 59 of the Tax Code and the Convention for the avoidance of double taxation concluded between Romania and ………, by individuals whose stay in Romania exceeds 183 days.” (Annex no.3);
d) “Notifications on fulfilment of the residence conditions according to Art. 7 and Art. 59 of the Tax Code and the Convention for the avoidance of double taxation concluded between Romania and ………, by individuals whose departure from Romania exceeds 183 days. ” (Annex no.4);
In this Order are also defined the categories of individuals who need to fill in the aforementioned forms.
Chapter II of this Order sets out the criteria for determining an individual’s tax residence, in accordance with the Convention for the avoidance of double taxation.
In accordance with Art. 12 of this Order, the main aspects taken into consideration for determining an individual’s tax residence upon arrival in Romania are:
a) Domiciled in Romania;
b) The permanent home of individuals in Romania which is either owned or rented and is permanently available to them and/or their family members.
c) The centre of vital interests is located in Romania
d) The individual resides on Romanian territory for a period or periods which exceed an aggregate 183 days, in any 12 consecutive months
Other aspects may be regarded when determining an individual’s tax residence upon arrival in / departure from Romania, but these shall be taken into account along with those mentioned above (e.g.: driving license issued by the competent authority of Romania / foreign state, the person is ensured in the social security system in Romania / foreign state throughout the entire period that lives abroad / Romania).
If an individual becomes a tax resident in Romania only for part of the fiscal year, the individual has full tax liability in Romania during that part of the year only. Between the date of arrival in Romania and the date he or she becomes a Romanian tax resident, the individual is considered a tax non-resident and is liable to Romanian income tax only on his or her Romanian source income.
Joint order no. 4947/899/2018/1840/906/2016
Joint Order of the Ministry of National Education and Scientific Research no. 4947 of August 17, 2016, of the Ministry of Economy, Commerce and Relations with the Business Environment no. 899 of August 17, 2016, of the Ministry of Public Finance no. 2018 of August 23, 2016, of the Ministry of Labour, Family, Social protection and Elderly no. 1840 of September 5, 2016 and of the Ministry of Agriculture and Rural Development no. 906 of September 8, 2016, published in the Official Gazette Part I no. 718 of September 16, 2016 on the classification in the applied R & D and/or technological development activities
This new Order sets out the activities which are included in the applied R&D and technological development activities.
Moreover, the Order regulates a series of specific activities which are not eligible and do not fall into the category of applied R & D and/or technological development activities.
The applied R&D and technological development project represents the means to achieve an objective of a program, has a well-defined purpose, is scheduled to be carried out in a determined timeframe by using the allocated resources and has at least the following components: the purpose of the project, the R&D area, objectives, R&D activities, duration, type of funding source, the project budget by specifying explicitly the salary-related and similar expenses incurred for the staff assigned to the project, the category of the outcome, the novelty and / or innovative character of the outcome.
The employees who run R & D and/or technological development activities in Romania based on an individual employment agreement, work relationship, special status provided for by law or secondment act entered into with/at a public or private unit/institution, included in the national R & D system in accordance with Government Ordinance no. 57/2002, benefit from the tax exemption on salary and/or similar income stipulated in Art. 60, section 3 of the Tax Code, if there are fulfilled certain conditions expressly provided by Art. 2 of this Order.
The Order also regulates another important aspect which concerns the supporting documents taken into account when validating the persons exempt from tax on salary and/or similar income resulted while carrying out eligible applied R&D and technological development activities.
Finally, the order specifies that in order to validate the eligibility of the activities which require the application of the tax exemption for salary and/or similar income, the employer, employee or tax authorities may request expert reports drafted by experts enrolled in the Register of Experts from any research & development area, as provided in the Order of the Minister of Public Finance and Minister of National Education and Scientific Research no. 1056/4435/2016 approving the Rules for deductions for Research & Development (R&D) expenses in the calculation of the tax result.
Emergency Ordinance no. 46/2016
The Emergency Ordinance no. 46 of August 31, 2016, published in the Official Gazette Part I no. 685 of September 5, 2016 to supplement Law no. 227/2015 regarding the Tax Code.
The Emergency Ordinance establishes full exemptions from the payment of the building tax / duties, land tax and vehicles tax (buildings / land / means of transport – jointly owned with the spouse), for war veterans and war widows.
Order no. 417/2016
Order no. 417 of July 15, 2016, published in the Official Gazette Part I no. 591 of August 3, 2016, amending the Control methodology for the issuing of medical leave certificates under the provisions of Government Emergency Ordinance no. 158/2005 on leaves and social health insurance indemnities, approved by the President of the National Health Insurance House by Order no. 627/2010.
Emergency Ordinance no. 45/2016
Emergency Ordinance no. 45 of August 31, 2016 published in the Official Gazette Part I no. 684 of September 2, 2016 amending and supplementing Law no. 95/2006 on healthcare reform
This Emergency Ordinance brings important clarifications on the recognition of professional qualifications for healthcare professions and the role of the Ministry of Health as a central authority regarding health policies. Also, the Emergency Ordinance reconciles the national legislation with the EU legislation regulations.
Decision no. 571/2016
Decision no. 571 of August 10, 2016 published in the Official Gazette Part I no. 628 of August 16, 2016, approving the categories of buildings and establishments subject to fire safety procedures for permitting and/or authorization.
Decision no. 630/2016
Decision no. 630 of August 31, 2016, published in the Official Gazette Part I no. 689 of September 6, 2016 approving the Agreement between the Government of Romania and the Cabinet of Ministers of Ukraine on visa fees exemption upon issuing long-stay visas, signed in Solotvino on May 6, 2016.
Consular fees are eliminated upon issuing long-stay visas for the citizens of the other State.