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Resolution on the general register of the employees
Resolution no. 905 as of December 14th, 2017 (Published in the Official Gazette, Part I, no. 1005/2017) amends the procedure of declaration of the employment contracts and of the subsequent amendments, respectively introduces a new procedure of sending the general register of the employees.
The resolution extends the deadline of declaration of the amendment of the basic salary for a person until the date of March 31st, 2018, in the context of the transfer of the social contributions from the employer to the employee starting with January 1st, 2018. The deadline is applicable only for the amendment of the value of the employees’ gross basic salary, and the other amendments brought to the employment contract shall be declared within the stipulated deadlines, thus:
• Any amendment of the data related to the title /occupation, the employment contract type, term of the contract or time rate is sent to the register at the latest on the day prior to the amendment performance. Except for the situations where the amendment occurs as a consequence of a judgment, when the recording in the register is made within 20 days of the date on which the employer acknowledged the content thereof;
• Any amendment of the identification data of the employer or employees is sent to the territorial labour inspectorate within 3 business days of the amendment occurrence;
• Any amendment related to the secondment period is sent to the register at the latest on the day prior to the amendment performance. -
Prevention Law
Law no. 270 as of December 22nd, 2017 (Published in the Official Gazette, Part I, no. 1037/2017) regulates a series of measures providing the prevention of contravention perpetration. All the public authorities with attributions of control, acknowledgment and sanction of criminal offices shall be bound, within 3 months of the enforcement of the law, to elaborate and disseminate materials especially dedicated to public information on the applicable legislation on contraventions.
For certain contraventions, established by Government resolution, the inspector shall apply only the sanction of warning, to which a remedy plan shall be enclosed.
The prevention law provides the possibility of remedy of irregularities ascertained over the period of an inspection, within 90 calendar days.
Thus, the inspectors shall no longer be able to apply fines upon the first acknowledgement of a deed, but only provided that it is one of a contravention nature, not of a criminal nature. Thus, for the deeds representing contraventions and stipulated by certain legislative acts, a time interval shall be granted to taxpayers, within which they shall be able to remedy the ascertained irregularities and comply with the legal provisions.
Within maximum 10 days of the expiry of the remedy term, the public authority is bound to resume the inspection and verify whether the signaled issues have been remedied. Otherwise, a new contravention finding protocol shall be drawn up, with the application of the sanctions stipulated by the specific legislation. The same thing shall also happen if the offender perpetrates the same contravention again within 3 years.
The law comes into force within 20 days of the date of the publication in the Official Gazette, i.e. on January 17th, 2018. -
Order for the approval of the templates and content of forms
Order no. 4140 as of December 27th, 2017 (Published in the Official Gazette, Part I, no. 1041/2017) approves the template and the content of the following forms:
• « Statement on the income for which the social security contribution is owed and related to the classification of the generated incomes within the minimum ceiling for the establishment of the health insurance contribution » - Form 600;
• « Notice of assessment on the establishment of the social security contribution and the health insurance contribution for individuals », as well as the annex entitled «Report on the establishment of the social security contribution and the health insurance contribution».
The forms are used for the establishment of the social security contribution and the health insurance contribution owed by individuals, starting with the fiscal year of 2018.
The statement is submitted to the relevant central tax authority by the individuals generating incomes for which social security contribution and the health insurance contribution are owed.
Thus, in the case of the social security contribution, the individuals who are not exempt from the payment of the social security contribution, according to the provisions of art. 150 in the Tax Code, generating incomes from independent activities, from one of several income sources set forth in art. 148 paragraph (2) in the Tax Code owe the social security contribution if they meet a series of conditions.
As regards the health insurance contribution (CASS), the individuals who are not comprised in the categories of people exempt from CASS payment, according to the provisions of art. 154 in the Tax Code, owe the contribution if they generate cumulated annual incomes at least equal to 12 gross national minimum basic wages from one or several income sources, from the following categories:
a) Incomes from independent activities;
b) Incomes from the association with a legal entity, taxpayer according to titles II, III in the Tax Code or Law no. 170/2016 on the tax specific to some activities, for which the provisions of = art. 125 in the Tax Code are applicable;
c) Incomes from the assignment of the use of property;
d) Incomes from investments;
e) Incomes from agricultural activities, forestry and pisciculture;
f) Incomes from other sources.
The individuals generating annual incomes below the level of 12 gross national minimum wages can opt for the submission of the statement and for the payment of the social security contribution within the same terms as in the case of those generating annual incomes over the level of 12 gross national minimum wages, the option being mandatory for the entire tax year.
The individuals bound to the payment of the social security contribution /health insurance contribution submit the statement to the relevant tax authority, by January 31st inclusively of the year for which it is established. In the case of those starting an activity over the year, the statement is submitted within 30 days of the event occurrence date. -
Order on the approval of the forms on the permanent establishment of the annual income tax and the social contributions owed by individuals
Order no. 3726 as of December 19th, 2017 (Published in the Official Gazette, Part I, no. 1038/2017) brings amendments and supplements to Order no. 3695/2016 regulating the tax forms 200, 201, 204, 205, 207, 230, 250, 251 and 255.
A series of new notification forms are introduced for the failure of due submission of statements or errors ascertained in the forms. -
Order for the approval of the template and content of forms used in the incomes tax administration
Order no. 3780 as of December 22nd (Published in the Official Gazette, Part I, no. 1038/2017) approves the template, content and fill-in instructions for the following forms:
a) 220 - « Statement on the estimated income /standard income » and « Accommodation Capacity Sheet »;
b) 221 – « Statement on the incomes from agricultural activities imposed based on standard incomes » and « Annex no… to the Statement on the incomes from agricultural activities imposed based on standard incomes »;
c) 222 - « Informative statement on the initiation /termination of the activity of individuals performing activity in Romania and generating incomes under the form of salaries and assimilated to salaries from abroad »;
d) 223 – « Statement on the estimated incomes for the associations without legal status and for the entities subject to the tax transparency regime »
e) 224 - « Statement on the incomes under the form of salaries and assimilated to salaries from abroad , obtained by individuals performing activity in Romania ».
The forms are used for the declaration of the incomes generated starting with the date of January 1st, 2018 and for the determination of the anticipated payments as tax/ due annual tax.
At the same time, the template and content of the following forms is approved:
a) 256 « Notice of assessment ex officio of the incomes of individuals” and “Annex to the Notice of assessment ex officio of the incomes of individuals”;
b) 257 « Decision of annulment of the notice of assessment ex officio of the incomes of individuals »
c) 260 «Notice of assessment on the anticipated payments as tax /due annual tax » and the annex entitled «Report on the manner of establishment of the net income based on the standard incomes».
The form in letter c) is used for the declaration of the incomes generated starting with the date of January 1st, 2018 and for the establishment of the anticipated payments as tax / due annual tax. The forms in letters a) and b) are used for the assessments ex officio made by the relevant central tax authority starting with the year of 2018. -
Order for the approval of the Procedure of tax registration of the non-resident taxpayers performing activity in Romania via one or several permanent establishments
Following the amendments of the Tax Code in the area of social contributions starting with January 1st, 2018, the amendment of form 013 entitled «Tax Registration Statement/ Amended statement/ Statement of deregistration for the non-resident taxpayers performing activity in Romania via one or several permanent establishments » was necessary.
Order no. 3769 as of December 22nd, 2017 (Published in the Official Gazette, Part I, no. 1033/2017) mentions that the amendment of the total tax owed is made, upon the initiative of the relevant tax authority, by the date of January 15th, 2018, the mandatory contribution for work being added, starting with the date of January 1st, 2018, to the total tax owed by the taxpayers who, on December 31st, 2017, have the capacity of employers or are assimilated thereto. -
Order for the approval of the template and content of the forms used for the declaration of the taxes and duties with establishment regime by self-assessment or withholding
Pursuant to Order no. 3781 as of December 22nd, 2017 (Published in the Official Gazette, Part I, no 1037/2017), both form 100, used for the declaration of the taxes and duties owed to the state budget, and form 710, used for the correction of the liabilities declared by statement 100, shall be sent exclusively online starting with the liabilities related to the month of January 2018.
At the same time, the List of the payment liabilities to the state budget is supplemented by five new positions, from among which the tax on the incomes from intellectual property right and from the lease of agricultural property.
The order brings novelties as to the fill-in instructions of the two forms in terms of the manner of fulfillment of the tax liabilities in the case of the individuals /entities having ceased to exist. Thus, the tax identity code withdrawn following the deregistration of the tax registration can be used subsequent to the deregistration for the fulfillment, by the successors of the individuals /entities having ceased to exist, of the tax liabilities related to the periods over which the individual/entity had the capacity of tax legal entity. -
Ordinances on medical leaves and health insurance benefits
The Emergency Ordinance no. 99 as of December 14th, 2017 (Published in the Official Gazette, Part I, no. 1005/2017) brings amendments to the legislation regulating the contribution to the medical leave payment fund in the context in which the current contribution to the NSHIF (National Sole Health Insurance Fund) shall be incorporated starting with January 1st, 2018 in the new employment insurance contribution (CAM).
Thus, the employees for whom the contribution to the leave and benefit fund is paid by the employer and comprised in the employment insurance contribution are insured by the effect of the law, according to the Government Emergency Ordinance no. 79/2017 for the amendment of the Tax Code.
The ordinance introduces the possibility for other individuals generating incomes to insure for contributions and for medical leaves. Thus, those generating incomes from independent activities, incomes from copyright, incomes from agricultural activities or from civil agreements pay the health insurance contribution (CASS), according to the Government Emergency Ordinance no. 79/2017, but they do not benefit from an indemnity for medical leaves.
The individuals insured for medical leaves and health insurance benefits in the health insurance system are entitled, over the period for which they have their domicile or residence on the Romanian territory, to medical leaves and health insurance benefits, if:
a) They generate incomes from the performance of an activity based on an individual employment contract, a professional relation, a secondment document or special statute, stipulated by law, as well as other incomes assimilated to salaries, in full observance of the provisions of the European legislation applicable in the field of social security, as well as of the agreements on the social security systems that Romania is part of;
b) They generate in Romania the incomes stipulated in letter A, from employers in states that are not subject to the European legislation applicable in the social security field, as well as in the agreements on the social security systems that Romania is part of;
c) They receive the unemployment benefit, according to the law.
Individuals, other than those indicated above under an insurance contract for medical leaves and health insurance benefits can be insured in the health insurance system, in order to benefit from medical leaves and health insurance benefits.
These individuals are conditioned by the payment of a contribution for the insurance of leaves and benefits, at a 1% rate, applied to the chosen monthly incomes ales entered in the insurance contract, that shall represent income to the budget of the National Sole Health Insurance Fund.
The monthly income opted for the payment of the contribution is a chosen income that cannot be lower than the value of the minimum national basic wages guaranteed for payment or higher than the 12 times value thereof.
The minimum insurance period for the granting of the aforementioned rights is of minimum 6 months made over the last 12 months prior to the month for which the medical leave is granted.
The individuals who, on December 31st, 2017, are insured in the health insurance system for medical leaves and health insurance benefits, based on the insurance declaration for medical leaves and health insurance benefits, starting with the date of January 1st, 2018, are bound to conclude the insurance contract stipulated by the Government Emergency Ordinance no. 158/2005, approved with amendments and supplements by Law no. 399/2006. -
Order for the approval of the tax registration forms of taxpayers and the types of tax liabilities representing the total tax owed
Order no. 3725 as of December 19th, 2017 (Published in the Official Gazette, Part I, no. 1027/2017) regulates a few measures, following the amendments brought to the Tax Code in terms of social contributions, by the removal of contributions and the occurrence of a new contribution starting with January 1st, 2018, thus:
• Amendment and supplement of the format of the tax registration statements (010, 015, 016, 020, 030, 060, 061, 070, 700), as well as the fill-in instructions thereof, according to the new provisions of the Tax Code;
• The amendment ex officio by the relevant central tax authority of the total tax owed for all the individual and legal entity taxpayers a having the capacity of employers or assimilated thereto, only for particular labour conditions or for special labour conditions, as applicable;
• The employment insurance contribution owed by the individuals and legal entities having the capacity of employers or being assimilated thereto. -
Amendments on the unemployment insurance system and the employment stimulation
The Emergency Ordinance no. 95 as of December 6th, 2017 (Published in the Official Gazette, Part I, no. 991/2017) amends the unemployment social security legislation, redefines the individuals compulsorily insured in the unemployment social security system, established the individuals that can optionally become insured in the unemployment insurance system and regulates the manner in which subsidies are granted for the employers employing from the categories of people for which such subsidies are applied (graduates, unemployed, people benefiting from professional insertion or reinsertion rights).
The ordinance also regulates the establishment of amounts of money for the guarantee and payment of the salary debts, considering the recent amendments brought by the Government Emergency Ordinance no. 79/2017 on the transfer of social security from the employer to the employee and the introduction of the contribution for the guarantee of the salary debts in the cumulated amount of the employment insurance contribution paid by the employer, at a percentage of 2.25%.
The insured by the effect of the law are defined, as well as those that can be optionally insured for the contribution to the unemployment insurance budget. -
Order on the approval of forms used for the ex officio establishment of the social security contribution and the health insurance contribution for individuals
Order no. 3567 as of December 13th, 2017 approves the template and content of the following forms:
• Decision of cancellation of the decision on the ex officio establishment of the social security contribution and of the health insurance contribution for individuals;
• Annex 1a – «Report on the establishment of the social security contribution »;
• Annex 1b – « Report on the establishment of the health insurance contribution »;
• «Decision of cancellation of the decision on the ex officio establishment of the social security contribution and of the health insurance contribution owed by individuals ».
The forms are used for the ex officio establishment of the social security contribution and of the health insurance contribution owed by individuals, starting with the tax year of 2016. -
Amendments on the accounting Regulations compliant with the International Financial Reporting Standards
Order no. 3189 as of December 8th, 2017 (Published in the Official Gazette, Part I, no. 1001/2017) brings amendments to the accounting regulations compliant with IFRS, these being applicable starting with January 1st, 2018. The entities having the financial year different from the calendar year shall apply them starting with the first financial year beginning after the date of January 1st, 2018.
We briefly mention some of the introduced novelties:
• Recognition of the incomes in case it is estimated that the price of the transactions will not be fully collected and the manner of reporting in the annual financial statements;
• Treatment of the expenses representing marginal costs of obtaining a contract, respectively costs for the performance of a contract;
• Treatment of the sales with right of return;
• Impairment adjustment of the financial assets;
• Derecognition of a financial asset by exchange with another asset;
• Accounting of the assets received by transfer from the clients and the operations on the connections of the used to the utility networks;
• Recognition of other equity items from the amendment of the fair value of financial assets, exchange rate differences related to the non-monetary financial assets;
• Expenses on operations with derivatives;
• Supplementing the plan of accounts with new accounts or the amendment of function of some existent ones. -
Resolution on the establishment of the quota per types of workers newly admitted on the labour market in the year of 2018
For the year of 2018, the quota per types of workers newly admitted on the labour market in Romania is established by Resolution no. 946 as of December 28th, 2017 (Published in the Official Gazette, Part I, no. 1040/2017), thus:
• Permanent workers – 4000;
• Seconded workers – 4000;
• Individuals transferred within the same company – 700;
• Highly qualified workers – 500;
• Seasonal workers – 400;
• Trainee workers – 100;
• Cross-border workers – 100. -
Amendment and supplement of the methodological Norms on the granting of holiday vouchers
Resolution no. 940 as of December 20th, 2017 (Published in the Official Gazette, Part I, no. 1026/2017) brings amendments to the methodological Norms on the granting of holiday vouchers, approved by the Government Resolution no. 215/2009, such as:
• The obligation of granting a single holiday indemnity or of a single holiday bonus is established, as applicable, under the form of holiday vouchers, amounting to RON 1,450 for one employee, starting with July 1st, 2017, for the employees of the public institutions and authorities, as well as for the economic operators wherein the State or the administrative-territorial units are sole or majority shareholders or they directly or indirectly hold a majority interest. The holiday indemnity shall cover the period 1 July 1st, 2017 – November 30th, 2018.
• Determination of the maximum level of the amounts that can be granted to the employees under the form of holiday vouchers by other employers, respectively the equivalent value of maximum six gross national minimum basic wages for one employee, over a tax year;
• Regulation of technical aspects related to the operation of the voucher granting system;
• Establishment of a cumulated maximum ceiling of the fee charged from the employer and the affiliated unit, by the units issuing the vouchers to maximum 1% of the value of the voucher. -
Intrastat value thresholds for the collection of the statistic information of intra-EU trade of goofs in the year of 2018
Order no. 1887 as of November 16th, 2017 (Published in the Official Gazette, Part I, no. 939/2017) on the Intrastat value thresholds for the collection of the statistic information of intra-EU trade of goods in the year of 2018, maintains the Intrastat value thresholds for the year of 2018 at the level of those in 2017, thus:
• RON 900,000 for intra-EU dispatches of goods;
• RON 900,000 for intra-EU entries of goods.
The economic operators that, over the year of 2017, made exchanges of goods with the European Union member states, whose annual value, separated for the two flows, dispatches and entries of goods, exceeds the value of the established Intrastat thresholds, must fill in and send to the National Institute of Statistics Intrastat statistic statements starting with the month of January 2018.
During 2018, other economic operators, making intra-EU exchanges of goods, the cumulated value whereof, from the beginning of the year, exceeds the Intrastat thresholds for the year of 2018 can also become Intrastat data provider. These economic operators must fill in and send Intrastat statistic statement starting with the month in which the cumulated value from the beginning of the year of 2018 of intra-EU dispatches and/or entries of goods exceeds the established Intrastat statistic thresholds, separately for the two flows, dispatches and entries of goods. -
Amendment of the procedure of publication of the lists of debtors recording outstanding tax liabilities, as well as of the quantum of these liabilities (Official Gazette no. 980 as of December 11th, 2017)
Order no. 3501 as of December 5th, 2017 (Published in the Official Gazette, Part I, no. 980/2017) for the amendment of the procedure of publication of the lists of debtors recording outstanding tax liabilities, as well as of the quantum of these liabilities, approved by the Order of the President of the National Agency for Fiscal Administration no. 558/2016.
The order brings amendments to the procedure of publication of the lists of debtors recording outstanding tax liabilities, approved by the Order of the President of the National Agency for Fiscal Administration no. 558/2016.
In compliance with the provisions of the Tax Procedure Code, the National Agency for Fiscal Administration quarterly publishes the list of the debtors to the budget, individuals and legal entities.
Those individuals and legal entities for whom/which debts are higher than the following ceilings are subject to the recording in the list of debtors:
• RON 500,000, in the case of debtors having the capacity of large taxpayer;
• RON 250,000, in the case of debtors having the capacity of middle-sized taxpayer;
• RON 100,000, in the case of the other categories of debtors, including the case of individuals recording outstanding tax liabilities also from the independent performance of economic activities or freelancers;
• RON 15,000, in the case of individual debtors.
By the amendments brought by this order, the tax liabilities that are not considered outstanding are detailed, thus:
• Tax liabilities for which payment facilities were granted and the granting conditions are complied with;
• Tax liabilities recorded in administrative-fiscal documents the enforcement thereof is suspended within the terms of the law of the administrative court;
• Tax liabilities with future payment terms, established by a judicial reorganization plan;
• Tax liabilities below RON 40, existent in the balance on December 31st for which the ex officio cancellation procedure is applied;
• Tax liabilities capitalized by the assignment of the seized property, when a sale of goods is made with the payment in installments, up to the level of the sale price.
It is not considered that a debtor records outstanding tax liabilities if they record debts to the budget and, concomitantly, record a reimbursement claim for amounts higher than the debts, claim that is pending settlement.
In the event the taxpayers are notified about the existence of debts to the budget, they are entitled to go to the tax authority within 5 days of communication for the agreement on the debt. In case the taxpayer fails to respond to the notification, it is considered that the outstanding liabilities are those existent in the records of the tax authority. -
Procedure of implementation and administration of the sole tax group
Order no. 3480 as of December 4th, 2017 (Published in the Official Gazette, Part I, no. 995/2017) amending and supplementing the Order of the President of the National Agency for Fiscal Administration no. 3006/2016 on the approval of the Procedure of implementation and administration of the sole tax group, as well as for the approval of the template and content of some forms, brings amendments to the tax registration and administration procedure of the companies that are part of a VAT tax group. Administrative amendments are introduced, with impact on the competence of administration of the sole tax group.
A new format of the tax group registration application is regulated and a template format tip is introduced, that shall be taken over as template by the future entities that shall form tax groups.
The application is submitted to the tax authority relevant for the fiscal administration of the company representing the tax group . The companies that are members of the tax group shall be transferred to the tax administration of the same tax authority also managing the representative company of the tax group.
All the companies making up the tax group shall be transferred to the administration of the tax authority that the company designated as leader of the tax group is assigned to. -
Ordinance for the prorogation of the payment terms of the fiscal-administrative debts
The Emergency Ordinance no. 113 as of December 28th, 2017 (Published in the Official Gazette, Part I, no. 1038/2017) for the prorogation of a term postpones until July 1st, 2018 the payment in the sole account of the fiscal debts administered by the central tax authority. Thus, starting with July 1st, 2018, the payment of all the tax liabilities would be made in one single account.
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.
