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Granting the allowance for the early payment of the amounts payable by natural-personal taxpayers
Order no. 2,906/2018 of the Chairman of the Tax Administration National Agency for approving the Procedure for Granting the allowance for the early payment of payable amounts, representing income tax, social insurance individual contribution and health social insurance individual contribution, set by annual taxation decisions, was published on November 27, 2018.
Among others, the Order brings clarifications regarding the term for issuing taxation decisions for 2016 and 2017, based on the date on which the income statement is submitted, as follows:
• for the income statements submitted after the respective order becomes effective (November 27, 2018), the deadline for issuing and notifying the annual taxation decisions for CASS for fiscal years 2016 and 2017, and of the annual tax on the revenues obtained by natural persons in 2017 is 3 business days after the statement submittal date;
• for the income statements submitted after October 30, 2018, until November 27, 2018, the deadline for issuing and notifying the annual taxation decisions for setting CASS payable by natural persons for fiscal years 2016 and 2017, and the annual tax on the revenues obtained by natural persons in 2017 is 3 business days as of November 27, 2018.
Regarding the granting of the allowance, the procedure is applied to the natural persons for which the competent central fiscal bodies issued and communicated annual taxation decisions related to period 2014-2017 (after G.E.O. no. 89/2018 becomes effective).
The amounts for which the allowance of 10% is granted according to this order are:
• the annual income tax for the revenues obtained by natural persons in 2017;
• individual CAS payable by natural persons, for period 2016-2017;
• individual CASS payable by natural persons, for period 2014-2017.
The allowance is granted under the condition that the difference between the payable amounts set by the annual taxation decisions and the value of the allowance is paid in full, as follows:
• until December 15, 2018, inclusively, in case of the income tax and individual CAS;
• until March 31, 2019, inclusively, in case of the individual health social insurance.
Allowances are also granted for annual taxation decisions issued following rectification statements submitted until June 30, 2019, even if the annual taxation decisions are communicated after this date, if the aforementioned condition is met.
For the payable amounts set by annual taxation decisions following the fiscal inspection, related to the types of fiscal obligations and the fiscal periods in question, communicated by the competent central fiscal bodies before or after June 30, 2019, the allowance is granted also if the aforementioned condition is met.
After the removal from the fiscal records of the allowance value, the competent central fiscal body notifies the natural person in relation to the granting of the allowance, until August 31, 2019, and in case of annual taxation decisions within 30 days after the notification of the decision, if it took place after June 30, 2019. -
Methodology for distributing amounts paid by natural-person taxpayers in a sole account
Order no. 2,937/2018 of the Chairman of the Fiscal Administration National Agency for approving the methodology of distributing the amounts paid by natural-person taxpayers in a sole account and for settling fiscal obligations
The following amounts are paid in a sole account: income tax, CAS and CASS related to the sole statement. The new sole account (55.04) is valid only for the payable fiscal obligations of natural-person taxpayers, after January 01, 2018.
Thus, for the aforementioned obligations, the actual procedure for distributing payments from the sole account is implemented. The amounts paid in the sole account are distributed proportionally with the amounts paid in accounts:
• 20.A.03.51.00 – Income tax related to the sole statement;
• 22.A.21.48.00 – Social contributions related to the sole statement;
• 26.A.21.49.00 – Health social insurance contributions related to the sole statement
The fiscal obligations shall be settled in the following order:
• all the main fiscal obligations;
• all the secondary fiscal obligations related to the settled main obligations.
The fiscal obligations are settled in the first 5 days after the expiry of the payment deadline provided by the law. -
Order amending the Methodology for distributing amounts paid by taxpayers in a sole account
Order no. 2,892/2018 of the Chairman of the Fiscal Administration National Agency for amending section 34 of the Methodology of distributing the amounts paid by taxpayers in a sole account and for settling fiscal obligations, approved by the order o the Chairman of the Fiscal Administration National Agency no. 1,613/2018
This modification aims the extension until December 31, 2018 of the procedure for redirecting the payments performed in sole accounts 20.A.47.01.00 “Amounts collected for the state budget in the sole account, pending distribution” and 55.02 “Liquidities of the social insurance budgets and special funds, pending distribution” to the new sole account. Also, it is mentioned that the payments, if any, made in these accounts after December 31, 2018 shall be returned to the payers. -
Foreigners’ status in Romania
Law no. 247/2018 operates amendments and supplementations to some legislative measures regarding the residence and occupational conditions for foreigners (non-EU / EEA / Switzerland) in Romania, and shall become effective as of November 2018.
This law transposes EU Directive 2016/801 of the European Parliament and Council, regarding the entrance and residence conditions for foreigners from third-party countries for educational and professional projects.
These set:
• definition of new categories of foreign citizens (intern, researcher and au pair) and also the educational projects in which they participate;
• minimum level of the subsistence means owned by foreign citizens is the minimum national basic salary, and for highly qualified ones the minimum income is two gross average salaries on economy level;
• notification obligations for host companies that have legal relations with foreign citizens;
• reduction in half of the taxes for issuing work permit for work or secondment;
• general conditions in relation to the cancellation and revocation of the right of residence in Romania of foreign citizens who enter Romania and are exempt from the obligation of obtaining the visa. -
Labor Code Amendments
Emergency Ordinance no. 96/2018 introduces two new paragraphs which shall allow the Government to increase the guaranteed minimum national gross salary, differentiated on education level and seniority criteria.
Consequently, all the rights and obligations set according to the law in relation to the guaranteed minimum national gross salary are ascertained by using the level regulated in this manner.
Also, the article that sets the moment when the individual employment contract ceases de jure is supplemented, by indicating the fact that in case of female employees who choose, within 60 calendar days before meeting the standard age conditions and the minimum contribution level for retirement, the retirement can be postponed until the age of 65. -
Ratification of the social security agreement between Romania and the Oriental Republic of Uruguay
By Law no. 262/2018, the Social security agreement between Romania and the Oriental Republic of Uruguay is ratified.
The scope of this Agreement is to ratify the Social security agreement between Romania and the Oriental Republic of Uruguay, signed at Montevideo, on September 13, 2017.
For Romania, the Agreement shall be applied to the legislation regarding the seniority, disability and heir pensions, granted in the public pension system, the state child allowance, and for Uruguay, the legislation regarding the contributive social security pensions, from the pension categories that cover the seniority, disability and heir pensions, both from the system of solidarity between generations, and from the mandatory individual savings system, the contributive family service category.
Regarding the personal application field, the Agreement shall be applied to persons who are or were subject to the legislation of one or both states, their family members and the persons whose rights derive therefrom. -
Order of the minister of public finance regarding the amendment and supplementation of accounting regulations
Order no. 3,456/2018 operates amendments and supplementations to the following accounting regulations, as follows:
i) Accounting regulations regarding individual annual financial statements and consolidated annual financial statements approved by O.M.F.P. no. 1,802/2014
• European companies that have their registered office in Romania are included in the category of companies to which these regulations are applied
• the amortization method can be changed if there is significant modification of the estimated method for consuming the future economic benefits brought by amortizable assets; therefore, the amortization method becomes an estimate (and not an accounting policy)
• the obligation to present non-financial information extends to all the operators that exceed the criteria related to the average number of 500 employees during the financial year
ii) Accounting regulations according to the International Financial Reporting Standards, approved by O.M.F.P. no. 2,844/2016
• The assets that represent the rights to use the support assets that are subject to leasing contracts are distinctly acknowledged in the accounting records of the lessee
iii) Accounting regulations for legal entities without patrimonial purpose, approved by O.M.F.P. no. 3103/2017
• Introducing the possibility of revising the amortization method, when identifying a significant modification of the estimated manner of consuming the future economic benefits brought by amortizable assets -
Other excise, customs procedure and administrative modifications
a) Excises
The procedure for registering the economic operators that perform trade activities with wholesale or retail energy products (gasoline, diesel, liquefied petroleum gas and biofuels) was approved by Order no. 2,761/2018
Resolution no. 874/2018 for amending and supplementing title VIII “Excises and other special taxes” from the Methodological norms for the application of Law no. 227/2015 regarding the Fiscal Code, approved by Government Resolution no. 1/2016 - introduces special provisions on granting a direct exemption from paying excises and for energy products used as aviation fuel by state institutions (involving defense, public order, national safety and security, public health), when taken to direct delivery location on the territory of Romania, if that location was indicated by the authorized warehousekeeper from Romania.
Order no. 3,626/2018 amends annex no. 2 to Order of the minister of public finance no. 221/2016 for approving the configuration of the Excise Code and the Register of harmonized excisable product codes, namely the modification of certain product classifications of NC codes.
b) Customs procedure
Order no. 2,601/2018 of the chairman of the Fiscal Administration National Agency for amending the Norms for using the simplified customs statements and the registration in the declarer’s records, approved by Order of the Chairman of the Fiscal Administration National Agency no. 1887/2016
c) Administration of large and medium-sized taxpayers
Order no. 2,716/2018 operates amendments regarding the administrative reorganization of middle-sized taxpayers. As of November 01, 2018 the administration of the fiscal obligations payable by middle-sized taxpayers, including their secondary offices, is performed by the fiscal body on county or Bucharest Municipality level, as the case may be.
Order no. 2,942/2018 of the chairman of the Fiscal Administration National Agency regarding the amendment of legislative measures regarding the administration and monitoring of large and middle-sized taxpayers. Payments incorrectly made after changing the status of large / middle-sized / small taxpayer shall be automatically redirected, based on the information provided by the National Center for Financial Information after updating the data in the Taxpayers’ Register on change of the administration competence.
d) Modification of the list of reporting jurisdictions, with which Romania will collaborate based on the multilateral agreement of competent authorities for automatic information exchange
Order no. 2,851/2018 modifies the list of the aforementioned jurisdictions by including 7 new jurisdictions: Azerbaijan, Bonaire, Saint Eustasius and Saba, Canada, Grenada, Macao (China), Panama, Hong Kong (China).
e) Inspections and reports of financial auditors
Order no. 166/2018 of the chairman of the Authority for Supervising the Statutory Audit Activity for approving the Norms regarding the performance of inspections at financial auditors and audit companies that perform statutory audit activities, published in Official Gazette no. 922 / November 01, 2018
Order no. 266/2018 of the chairman of the Authority for the Public Supervision of the Statutory Audit Activity for approving the Norms on reporting to the Authority for the Public Supervision of the Statutory Audit Activity and breaches in the statutory audit field
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