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Compulsory Execution Procedure
The Order no. 3454/2016 is issued as per art. 230 of the Tax Procedure Code. According to this article, in case the debtor has uncontested, liquid and enforceable amounts to receive from public authorities or institutions, the compulsory execution is continued by seizing these amounts whenever, following the summons being communicated, a document issued by the respective public authority or institution is submitted to the tax authority, certifying that the amounts are uncontested, liquid and enforceable. Thus, the debtor who has outstanding tax obligations for which measures of compulsory execution are in progress being applied by the tax authority, and who has uncontested, liquid and enforceable amounts to receive from public authorities and institutions may submit to the tax authority a request accompanied by the document issued by the public authority or institution, requesting the application of the provisions of art. 230 of the Law no. 207/2015 on the Tax Procedure Code.
The legislative act also approves the following forms:
a) “Request regarding the application of the provisions of art. 230 of the Law no. 207/2015 on the Tax Procedure Code, with subsequent amendments and additions”;
b) “Certificate”;
a) “Notification regarding the application of the provisions of art. 230 of the Law no. 207/2015 on the Tax Procedure Code, with subsequent amendments and additions”;
a) “Decision acknowledging the withdrawal of the request regarding the application of the provisions of art. 230 of the Law no. 207/2015 on the Tax Procedure Code, with subsequent amendments and additions”;
e) “Garnishment notice on seizing the amounts the debtor has to receive from public authorities or institutions”;
f) “Decision on lifting the measures of compulsory execution applied on the amounts the debtor has to receive from public authorities or institutions” -
Changes regarding the Tax Code and the Tax Procedure Code
Through the Emergency Ordinance no. 84/2016 a series of changes are made to the Tax Code and the Tax Procedure Code.
A. Regarding the Tax Code:
a) Changes are introduced to the fiscal treatment, in terms of VAT and corporate tax, for the taxpayers who were declared fiscally inactive during a certain period of time. In case of reactivation, they will be able to deduct the VAT of the acquisitions made during the period of inactivity, as well as the expenses made during the same period of time;
b) Changes are introduced to the fiscal treatment, in terms of VAT and corporate tax, for the taxpayers who purchased goods from a fiscally inactive person. In case the supplier is reactivated, they will be able to deduct the VAT of the acquisitions made during the period of inactivity, as well as the expenses made during the same period of time;
c) The same changes mentioned in paragraphs a) and b) are made to the fiscal treatment, in terms of VAT and corporate tax, for the taxpayers who had their VAT registration annulled during a certain period of time. In case they register again for VAT purposes, the deduction right can be exercised.
d) The tax exemption for reinvested profit, according to art. 22, will be maintained for the following years also;
e) The limit for the subscribed registered capital beyond which a legal person can choose, when getting incorporated, to pay the corporate tax instead of the micro business income tax was reduced from EUR 25,000 to RON 45,000;
f) The category of withholding taxes for which the income tax payers should submit the information return (D 205) was narrowed down;
g) A special VAT treatment is introduced for farmers organized as physical persons (Physical Person (PF), Authorized Physical Person (PFA), Individual Business (II), Family Business (IF));
h) Any person who temporarily suspends their activity with the Trade Register will no longer have their VAT registration annulled;
i) Paragraphs (4)-(6) of art. 324 regulating certain special VAT returns (392A, D392B) have been suspended until December 31, 2019;
j) The intra-community supplies of goods provided in art. 3151 paragraph (8) letters c) and d) will be stated in D390 VIES also;
k) The provisions on the Register of Intra Community Operators are removed;
B. Regarding the Tax Procedure Code:
a) the tax returns required to be transmitted electronically or online will be established through an Order of the President of the National Agency for Fiscal Administration (A.N.A.F);
b) changes are made regarding the compulsory execution, tax audit and settling of appeals. -
Information Tax Procedure Code
The Order of the President of the National Agency for Fiscal Administration (OPANAF) no. 3592/2016 is issued as per the provisions of art. 61, paragraph (3) of the Law no. 207/2015 on the Tax Procedure Code.
Thus, the bank account information received by the National Agency for Fiscal Administration (A.N.A.F) is transmitted upon the justified request of the local tax authority or of another central and local public authority only after the adherence protocol form regulated by Annex no. 1 to the Order of the Minister of Public Finance no. 2632/2016 for developing the services provided by the Ministry of Public Finance to public authorities and institutions through their own information system is submitted, and after the access to the services available within PatrimVen information system provided for in Annex no. 2 of the same Order is approved.
The request and the transmission of information regarding the bank accounts are made exclusively electronically, through the PatrimVen information system made available by the Ministry of Public Finance, the National Agency for Fiscal Administration respectively.
The registration of the local tax authority or of other central and local public authorities within the PatrimVen information system in order to request and receive information regarding the bank accounts is made according to the Annex no. 2 to the Order of the Minister of Public Finance no. 2632/2016. -
IFRS Accounting Regulations
The Order no. 2844/2016 approves the accounting regulations conforming with the International Financial Reporting Standards applicable to any economic operator who is required under the law to apply these regulations (companies whose securities are accepted for trading on a regulated market or other entities required under legal provisions to apply those regulations), respectively entities who chose to apply those regulations, the conditions of their ability to choose being set forth by legal provisions.
The Order includes distinct provisions for retreating, based on IFRS, the information from the accounting organized based on the Accounting Regulations regarding the annual standalone financial statements and the annual consolidated financial statements, approved by the Order of the Minister of Public Finance no. 1802/2014 with subsequent amendments and additions, which apply to companies whose securities are accepted for trading during the financial year of reporting. -
Intrastat Thresholds for 2017
The Order of the President of the National Institute of Statistics (INS) no. 1302/2016 on the Intrastat thresholds for collecting statistical information regarding the intra-community trade in goods in 2017 establishes the Intrastat thresholds for 2017.Thus, for 2017 the same threshold was set both for intra-community arrivals of goods, and for intra-community dispatches of goods: RON 900,000.
Therefore, in 2017, the Intrastat return will be mandatory for all economic operators registered for VAT purposes who exchange goods with other Member States of the European Union, whose annual value, separately for each of the two flows, arrivals and dispatches, will exceed the threshold of RON 900,000. The economic operators who will perform intra-community exchanges (arrivals and dispatches) below the values mentioned will automatically be exempt from transmitting the return. -
Tax Forms Applicable to Physical Persons
The Order of the President of the National Agency for Fiscal Administration (OPANAF) no. 3695/2016 approves the following forms:
200 “Income return regarding the incomes earned in Romania”;
201 “Income return regarding the incomes earned abroad”;
204 “Annual income return for associations with no legal personality and entities subject to fiscal transparency”;
205 “Information return regarding the withholding tax, gambling incomes and investment earnings/losses, by income beneficiaries”;
207 “Information return regarding the withholding tax/exempt incomes, by non-resident income beneficiaries”;
230 “Request regarding the destination of the amount representing 2% of the annual income tax on salaries and pensions”;
250 “Annual taxation decision for incomes earned in Romania by physical persons”;
251 “Annual taxation decision for incomes earned abroad by physical persons”.
The forms are used to declare the incomes earned starting with January 1st, 2016, and to calculate the annual tax.
Until September 15 of the year following the one subject to taxation, the competent central tax authority issues the annual taxation decisions based on the income returns and the other information in their fiscal records. -
Procedure for Recalculating the Prepayments
The Order of the President of the National Agency for Fiscal Administration (OPANAF) no. 3696/2016 approves the procedure for recalculating the tax prepayments, the contributions for health insurances and social securities.
The procedure is used in situations where the recalculation of prepayments is required, such as:
temporary suspension of business activity;
- end of business activity;
- cancellation of the lease contract;
- adding new business activities to the object of activity. -
Administration of Large Taxpayers
The Order of the President of the National Agency for Fiscal Administration (OPANAF) no. 3609/2016 establishes criteria that set the base for the list of large taxpayers who will be handled by the General Directorate for the Administration of Large Taxpayers (DGAMC), within a maximum number of 1,500 taxpayers.
The following are considered large taxpayers:
a) Based on their activity: the National Bank of Romania; bank companies; insurance companies; financial investment companies; the Romanian Public Television (Societatea Romana de Televiziune); the Romanian Radio Broadcasting Company (Societatea Romana de Radiodifuziune).
B) Based on the investment criterion: the newly incorporated taxpayers who, on the date of their incorporation, commit through a statutory declaration, to make, during a period of maximum 3 consecutive years as of the incorporation date, investments whose RON value equals at least 10 million Euros calculated at the reference Euro exchange rate communicated by the National Bank of Romania on the incorporation date.
C) Based on the criterion of fiscal representation: non-resident taxpayers for whom the large taxpayers act as representatives or fiscal representatives according to the law.
D) based on the criterion of sole fiscal group: the fiscal representative and the members of the sole fiscal group defined according to the provisions of art. 269, paragraph(9) of the Law no. 227/2015 on the Tax Code, with subsequent amendments and additions, provided that one of them meets the selection criteria.
e) Based on the criterion of direct participation: legal persons who directly own at least 50% of the value/number of equity securities in a large taxpayer, as well as legal persons in whom the large taxpayers directly on at least 50% of the value/number of equity securities.
F) Based on the basic criterion: a large taxpayer is the result of 3 indicators combined and selected in economical and budgetary terms, in the following ratios: turnover - 50%, volume of declared tax obligations - 30%; volume of staff costs - 20%.
G) Based on the continuity criterion: the selected large taxpayers who no longer meet the basic criterion are no longer handled by DGAMC after 3 consecutive years of not meeting this criterion, starting with January 1st of the year following the expiry of this period.
The final list of large taxpayers is established by an Order of the President of the National Agency for Fiscal Administration (A.N.A.F.), and is published on their portal. -
Administration of Medium Taxpayers
The Order of the President of the National Agency for Fiscal Administration (OPANAF) no. 3610/2016 establishes the criteria that will set the base for the list of medium taxpayers.
The following are considered medium taxpayers:
a) Based on the criterion of fiscal representation: non-resident taxpayers for whom the medium taxpayers act as representatives or fiscal representatives according to the law.
b) Based on the criterion of sole fiscal group: the fiscal representative and the members of the sole fiscal group defined according to the provisions of art. 269, paragraph (9) of the Law no. 227/2015 on the Tax Code, with subsequent amendments and additions, provided that one of them meets the selection criteria;
c) Based on the basic criterion: a medium taxpayer is the result of 3 indicators combined and selected in economical and budgetary terms, in the following ratios: turnover - 50%, volume of declared tax obligations - 30%; volume of staff costs - 20%.
d) Based on the continuity criterion: the selected medium taxpayers who no longer meet the basic criterion are no longer handled as medium taxpayers after 3 consecutive years of not meeting this criterion, starting with January 1st of the year following the expiry of this period.
The actual list of medium taxpayers is established by an Order of the President of the National Agency for Fiscal Administration (A.N.A.F.), and is published on their portal. -
Change of VAT quota
The standard value added tax (VAT) quota was reduced from 20% to 19% based on the provisions of the Tax Code, starting with January 1st, 2017.
Any presented information is general and is not meant to address the specific conditions of a particular individual or legal person. Although we try to provide accurate and up-to-date information, there is no warranty that such information is accurate at the time of its receipt or that it continues to be accurate. No action should be taken based on this information without relevant professional assistance following a careful examination of the circumstances that are typical of a particular state of affairs.
