Government Emergency Ordinance No. 8/2014 dated 26 February 2014 for the amendment and supplement of various legislative acts and other fiscal-budgetary measures was published on 28February 2014.
Amongst the legislative acts amended by this ordinance are Law no. 571/2003 regarding the Fiscal Code (“Fiscal Code”) and Ordinance no. 92/2003 regarding Tax Procedure Code, republished (“the Tax Procedure Code”).
The main amendments brought in this respect are:
- the payer of the income does not have the obligation to submit a rectifying return further to the refund of the withholding tax to the non-resident;
- the payer of the income may off-set the reimbursed amounts with same tax liabilities;
- the payer of the income has the obligation to rectify the informative statements related to the settlement performed;
- if the payer of the income no longer exists, the refund of the withholding tax can be performed by the relevant tax authority.
The main amendments to the Fiscal Code on VAT refer to the following:
– For telecommunications, broadcasting, television and electronically supplied services rendered to non-taxable persons (e.g. individuals) the VAT rate of the country where the beneficiary is established will be applied.
– In order to avoid VAT registration for suppliers of such services in each Member State where the beneficiary is established, the legislation provides the possibility of applying the "mini one-stop-shop" regime. Thus, suppliers established within the Community will collect VAT at the rate applicable in the Member State where the beneficiary is established, without the supplier having to register in that state, with the VAT declaration and payment being performed in the Member State where the supplier is established.
– Suppliers established outside the Community which provide such services to non-taxable persons within the European Union will be required to register in a single Member State in order to declare and pay the VAT related to these services, at the VAT rate applicable in the Member States where the respective beneficiaries are established.
– Providers applying the "mini one-stop-shop" regime will have to submit, on a quarterly basis, a special VAT statement for all these services rendered to non-taxable persons established in the European Union.
The main amendments brought to the Fiscal Code on excise duties and now in force are as follows:
[Source: The Romanian Official Gazette n0. 151 / 28 February 2014]
Income derived from the sale / transfer of participation titles held in a Romanian legal entity by a legal entity tax resident in a country which does not have a double tax treaty concluded with Romania is taxable in Romania.
The procedure for refunding withholding tax paid in excess is now regulated by the Fiscal Procedural Code. An important amendment is that the payer of the income is no longer obliged to submit rectifying tax returns in relation to the refund of the withholding tax to the non-resident.
As of 1 January 2015, telecommunications, broadcasting, television and electronically supplied services rendered to non-taxable persons (e.g. individuals) will be subject to the VAT rate of the country where the beneficiary is established.
The period of six months provided for the issuance of a new tax warehouse licence also includes the period in which the tax warehouse did not function, as a result of challenging the decision to revoke the licence.
For a deeper discussion of how this new legislation might affect your business, please contact:
Country Managing Partner, Romania
Tel: +40 21 225 3708