LEGISLATIVE NEWSLETTER

Content:

·         Emergency Ordinance no. 25/2017

·         Ordinance no. 30/2017

·      Order no. 1024/1582/934/2017

·      Order no. 2326/2017

·      Order no. 1626/2017

·      Order no. 2379/2017

·      Order no. 2372/2017

Emergency Ordinance no. 25/2017

Emergency Ordinance no. 25/2017, published in the Official Gazette Part I no. 706 of August 31, 2017, amending and supplementing Law no. 227/2015 regarding the Tax Code, brings the following clarifications:

Comment: This Emergency Ordinance brings a number of amendments, out of which we specify the introduction of Art. 671 – regarding the Definition of Romanian income earned from independent activities, and states: „(1) Incomes earned from independent activities carried out in Romania, in accordance with the law, except for intellectual property rights, are considered as being obtained from Romania, regardless of whether they are received from Romania or abroad.

(2) Income from intellectual property rights is considered to be obtained from Romania only if it is received from an income payer in Romania or from a non-resident through a permanent establishment created in Romania.”

Letter o) of art. Article 76 paragraph 4 is amended to the effect that the income exempted from salary income tax, within the meaning of income tax includes: “o) – amounts or benefits received by individuals from dependent activities carried out in a foreign state, irrespective of the tax provisions of that state, including from dependent activities on board ships and aircraft operated in  international traffic. Exceptions are represented by income obtained from salaries paid by or on behalf of an employer who is a resident in Romania or has the permanent registered office in Romania, income which is taxable in Romania only if Romania has a right to tax. “

Regarding the salary income and income assimilated to salaries not included in the monthly base for the calculation of social security contributions, point 6 of letter s) from art. 142, is amended as follows: “6. Contributions to a voluntary pension fund according to Law no. 204/2006, as subsequently amended and supplemented, and contributions to voluntary pension schemes, qualified as such, in accordance with the legislation regarding voluntary pensions, by the Financial Supervisory Authority, managed by authorized bodies and established in Member States of the European Union or belonging to The European Economic Area, as well as the voluntary health insurance premiums and the medical subscription services, according to Law no. 95/2006, republished, with subsequent amendments and supplements, paid by the employer for its own employees, so as that on an annual basis they shall not exceed  the limits provided in art. 76   par.

(4) letter s) and t) for non-taxable income, as well as premiums related to professional risk insurances “

Other amendments brought by this Emergency Ordinance concern the tax on representatives, income from other sources and the excise duties.

Ordinance no. 30/2017

Emergency Ordinance no. 30/20177, published in the Official Gazette Part I no. 708 of August 31, 2017, amending and supplementing Law no. 207/2015 regarding the Fiscal Procedure Code, brings the following clarifications:

Comment: This Ordinance brings a series of amendments and supplements to the Fiscal Procedure Code, of which we mention that as of January 1, 2018, in the case of tax debts administered by the central and fiscal bodies, the debtors pay them in a unique account, through a payment order issued to the State Treasury for the tax liabilities owed. The types of tax liabilities subject to these provisions are approved by an order issued by the President of ANAF (National Agency for Fiscal Administration), in the case of tax debts administered by the central fiscal body and by order of the Minister of Regional Development, Public Administration and European Funds, in the case of tax debts administered by the local fiscal body.

Also starting with January 1, 2018, upon requesting the opening of a bank account or the rental of a safe deposit box, the credit institutions have to request that the fiscal bodies issue the fiscal identification number or, as the case, of the fiscal registration code for non-resident individuals or  for legal entities which do not have a unique taxpayer reference number. The deadline for submitting the fiscal registration certificate or, as the case, the fiscal identification number to the credit institutions is of 5 days from the request date.

The Ordinance stipulates that, for the purposes of administration of income tax and social contributions, for individuals who are taxpayers according to the Tax Code, the fiscal identification code is their personal identification number (CNP).

Regarding the fiscal registration form, the ordinance provides that it must be filed within 30 days from:

a)    the date of establishment in accordance with the law, for legal entities, associations and other entities without legal personality;

b)     the date of settlement in Romania for foreign legal persons who manage their activity in Romania;

c)   the start date of the activity for individuals carrying out independent economic activities or liberal professions, except those registered in the trade register, according to the special law;

d)   the date of obtaining the first income or becoming an employer, as the case, for individuals, other than those mentioned at letter c);

e)   the date of obtaining the first income for non-resident natural and legal persons who do not have a permanent establishment or a representative office in Romania;

Finally, we mention that failure to submit in time of the Questionnaire for the establishment of a natural person’s residence for tax purposes upon arrival in Romania, respectively of the Questionnaire for the establishment of a natural person’s residence for tax purposes upon  departure from Romania, by those responsible according to the Tax Code, constitutes an offense and is sanctioned with a fine of 50 lei to 100 lei.

Order no. 1024/1582/934/2017

Order no. 1024/1582/934/2017, published in the Official Gazette Part I no. 716 of September 5, 2017, Order of the Minister of Public Finance, of the Minister of Labor and Social Justice and of the Minister of Health  approving the template, content,  submission and management  of “Statement on the payment obligations of social contributions, income tax and nominal records of insured persons” , brings the following clarifications:

Comment:This Order approves the template and content of Form 112 “Statement on the payment obligations of social contributions, income tax and nominal records of insured persons”. The provisions of this Order are applicable starting with the tax returns related to the month of October. From the amendments made, we mention that the new format shall include information regarding the death grants, namely: identification data of the deceased person, death certificate, identification data of the person receiving the death grant and the amount of therein.

Order no. 2326/2017

Order no. 2326/2017, published in the Official Gazette Part I no. 649 of August 8, 2017, regarding the tax statements required to be submitted by electronic means or by remote transmission systems, brings the following clarifications:

Comment: This order establishes the tax statements that must be be submitted electronically via the Internet on the website of the National Agency for Fiscal Administration, applicable with the tax returns of January 2018.

We mention as an example some of the statements provided by this Order:

–  100 ““Statement regarding the liabilities due to the State Budget”, code 14.13.01.99/bs;

–  101 ““Statement regarding corporate income tax”, code 14.13.01.03;

–    205 ““Informative statement regarding the tax withheld, income derived from gambling and gains/losses derived from investments for income beneficiaries”, code 14.13.01.13 / I;

–   207 „“Informative statement regarding the tax withheld/exempt incomes for non-resident income beneficiaries” code 14.13.01.13 /v.n;

–  300 „Value added tax return” code 14.13.01.02

–  710 „Rectifying statement” code 14.13.01.00/r. etc

Order no. 1626/2017

Order no. 1626/2017, published in the Official Gazette Part I no. 745 of September 15, 2017, amending the Annex to the Order of the Minister of Foreign Affairs no.1743 / 2010 for the approval of the Revised list of states whose citizens are required to meet the invitation criteria upon receiving short stay visas to enter the territory of Romania.

Order no. 2379/2017

Order no. 2379/2017, published in the Official Gazette Part I no. 730 of September 11, 2017, for  the amendment and supplement of the Clarifications regarding the IBAN code format related to the expenditure and revenue budget accounts, as well as the cash accounts opened at the State Treasury Units, approved by the Order of the Minister of Public Finance no. 1271/2004.