Government Emergency Ordinance no. 79 / 8 November 2017 concerning the modification and completion of Law no. 227/2015 regarding the Fiscal Code has been published, with its provisions entering into force on 1 January 2018. We present below the provisions regarding corporate income tax, micro-enterprise income tax, personal income tax, statutory social contributions and value added tax (VAT).
Government Emergency Ordinance no. 79 / 8 November 2017 concerning the modification and completion of Law no. 227/2015 regarding the Fiscal Code was published, clarifying the VAT deduction right of taxable persons involved in fraud.
Deadline extension for the application of the limitation of VAT deduction right for car-related expenses
The European Commission has published its proposals for restructuring the VAT system, including the introduction of the Certified Taxable Person (CTP) concept. The concept and authorisation criteria are similar to those for AEO and offer significant benefits to reliable taxable persons.
The Combined Nomenclature applicable as of 1 January 2018 has been published in the Official Journal of the European Union.
Order no. 2927/13 October 2017 (hereinafter “the Order”) regarding the application of the VAT split payment system has been published in the Official Gazette. The Order stipulates the procedure and conditions for the approval of the transfer of amounts from taxpayers’ VAT accounts requiring tax authority consent.
The Decision of the European Court of Justice in Case C-101/16 Paper Consult has been published, clarifying the VAT deduction right in connection to acquisitions of goods and services from suppliers whose VAT number is inactive.
Council Implementing Decision (EU) 2017/1855 was published on 14 October 2017, authorising Romania to increase the VAT registration threshold for taxable persons.
In the Official Journal no. 780 / 03.10.2017 was published the Order of ANAF President no. 2856 on the criteria for the assessment of the fiscal risk in view of approving / maintaining VAT registrations.
Two Minister of Public Finance Orders have been published regarding the application of the new split VAT system - no. 2540 on the issuance of account statements by the Treasury and no. 2541 on the introduction of electronic multiple payment orders.
Order No. 2331 dated 30 August 2017 of the Minister of Public Finance (“the Order”) amending the Nomenclature code of harmonised excise products (“the Order”) has been published.
Order No. 2661/11 September 2017 (“Order”) of the President of the tax administration agency ANAF, amending and supplementing the technical regulations on the uniform enforcement of the customs legislation in free zones, approved by ANAF president Order no. 2759/2016, has been published.
Government Ordinance no. 30/2017 for amending and supplementing Law no. 207/2015 on Fiscal Procedure Code was published in the Official Gazette no. 7082017.
Ordinance 23/2017 on the VAT split payment system was published on 31 August 2017. The Romanian Government has adopted the necessary legislation in order to establish a system for the VAT split payment which will be optional as of 1 October 2017 and mandatory as of 1 January 2018.
Government Ordinance no. 25/2017 for amending the Fiscal Code has been published in Official Gazette no. 706 dated 31 August 2017.
Government Ordinance no. 4/2017 amends Law 227/2015, regarding the Fiscal Code, on the employer calculation base for social insurance contributions and health insurance contributions.
Law 177/2017 approving Government Emergency Ordinance no. 3/2017, amending and supplementing Law no. 227/2015 governing the Fiscal Code, has been recently published.
The National Agency for Tax Administration ("ANAF") has issued a press release inviting individuals - real estate developers to declare their income from the sale of real estate assets from their business patrimony by 30 July 2017.
Romania joined on 7 June the multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting (“MLI”). The MLI brings a lot of changes that affect double tax treaties provisions. This alert seeks to clarify the future applicability of the MLI.
The customs authorities have started reassessing AEO authorisations issued before 1 May 2016, following application of the New Union Customs Code.
The Romanian Government passed legislation on 9 June 2017 to implement country-by-country (CbC) reporting requirements in Romania, transposing the provisions of Directive (EU) 2016/881 dated 25 May 2016 into the national legislation. The new CbC reporting provisions follow the OECD Base Erosion and Profit Shifting (BEPS) Project Action 13 initiative. As such, Romanian ultimate parent entities controlling a Multinational Enterprise (MNE) group with total consolidated group revenue of more than EUR 750 million will have to file CbC reports with the Romanian tax authorities in line with the new regulations. These provisions will also affect other Romanian companies that are part of an MNE group but are not necessarily parent companies.
Government Emergency Ordinance no. 39/2017 for transposing into the national legislation Directive 2014/104/EU on actions for damages in the case of infringements of competition law, as well as for amending and supplementing Competition Law no. 21/1996 (“GEO 39/2017”), has been published in the Official Gazette.
Law no. 16/2017 regarding posting of workers within the framework of the provision of transnational services has been published and comes into force on 20 May 2017. Law no. 344/2006 will be repealed as of that date.
The Court of Justice of the European Union (CJEU) Decision was recently published in the Case C-173/15 GE Healthcare GmbH v. Hauptzollamt Düsseldorf regarding the conditions under which the royalties / licence fees paid should be included in the customs value of imported goods, according to the customs provisions applicable prior to 1 May 2016.
The procedure for centralised customs clearance was implemented at the national level in the systems for reporting goods at the moment of import / export as of 16 March 2016. Under certain conditions, economic operators can lodge the customs declarations related to certain customs operations at a customs office in Romania other than the one where the goods are presented for clearance.
Government Decision no. 284/2017 was published on 4 May 2017, amending and completing the Methodological Norms for the application of Law no. 227/2015 regarding the Fiscal Code, approved through Government Decision no. 1/2016.
The specific excise duty for cigarettes has been set at RON 329.222/1,000 cigarettes for the period 1 April 2017 – 31 March 2018.
A fost publicat Ordinul nr. 872/5932/2284/2903/ 2016 privind încadrarea în activitatea de creaţie de programe pentru calculator, care modifică prevederile Ordinului nr. 217/4172/1348/835/ 2015.
Order n0. 872/5932/2284/2903/ 2016 regarding software development activities has been published, amending the provisions of Order no. 217/4172/1348/835/ 2015.
Government Emergency Ordinance (GEO) no. 3/2017 has been published, bringing a series of modifications and amendments to Law 227/2015 concerning the Fiscal Code.
On 23 November 2016, the President of Romania enacted Law 233/2016, with the main purpose of implementing a legislative framework capable of ensuring efficient cooperation between the public and the private sector regarding public investments. The object of the public-private partnerships is to create, rehabilitate or extend goods intended to provide a public service.
Government Emergency Ordinance no. 84/2016 amending and supplementing certain financial-fiscal normative acts has been published. This Ordinance amends Law no. 227/2015 regarding the Fiscal Code.
Government Emergency Ordinance no 84/2016 for modifying and supplementing financial and fiscal legislation was published in the Official Gazette on 6 December 2016.
Law no. 217/2016 (the “Law”) regarding food waste reduction was published in the Official Gazette of Romania no. 934 dated 21 November 2016.
Law 170/2016 has been published, introducing a specific tax for companies that carry out activities in the field of tourism, hotels, restaurants, bars and public food service.
GD 800/2016 repealed (i) Health Minister Order no. 75/2009 approving the Norms on the calculation of prices for medicinal products for human use, and (ii) Health Minister Order no. 245/2012 regarding the approval of prices for human medicines included in the National Catalogue of prices for such medicines authorised for marketing in Romania ("Canamed").
The European Union offers importers the opportunity not to pay customs duties or to pay a reduced rate for the import of certain goods not produced or produced in insufficient quantities across the European Union.
On 28 October 2016, the Combined Nomenclature applicable as of 1 January 2017 was published in the Official Journal of the European Union.
Government Ordinance no. 25 amends and supplements certain normative acts regarding the conditions for entry and residence of third-country nationals (“Government Ordinance no. 25/2016”). It was published in the Official Gazette on 31 August 2016. Government Ordinance no. 25/2016 transposes into national law the provisions of the European Parliament and European Council Directive 2014/66/EU, regarding the assignment of such foreign nationals within the same company, and of the European Parliament and European Council Directive 2014/36/EU, regarding the employment of such foreign nationals as seasonal workers.
The Ministry of Finance published an order which implements the Common Reporting Standard (CRS). The order clarifies the process for uniform application of the CRS, Law 207/2015 regarding the Fiscal Procedure Code and the FATCA Agreement (Law 233/2015).