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Emergency Ordinance no. 2 of 2017
Emergency Ordinance no. 2/2017 regarding certain financial-fiscal measures and amending and supplementing certain normative acts was published in the Official Journal no. 16 of January 06th, 2017.
The main changes it brought about are presented below:
the gross amount of basic salaries/allowances for the staff paid from public funds of public institutions and authorities of the local public administration is increased by 20% as compared to the amount granted for the month of January 2017 – as of February 1st, 2017;
the pension point value is increased by 9% and amounts to 1,000 lei – as of July 1st, 2017;
the amount of the social allowance for pensioners is 520 lei – as of March 1st, 2017. -
Collaboration protocol for the exchange of information between the National Agency for Fiscal Administration and Non-Bank Financial Institutions (NBFI)
Order no. 3731/2016 approving the framework model of the collaboration protocol for the exchange of information between the National Agency for Fiscal Administration (NAFA) and Non-Bank Financial Institutions was published in the Official Journal no. 17 of January 09th, 2017.
This order provides for the manner of performing the information exchange between NAFA and the NBFI registered in the General Register and the Special Register of the National Bank of Romania, namely through an application form submitted by each NBFI individually in view of accepting to conclude the collaboration protocol.
The categories of information submitted by non-banking financial institutions to the National Agency for Fiscal Administration are also listed in detail, as well as the categories of information submitted by the National Agency for Fiscal Administration to non-bank financial institutions.
Annex 1 of the order comprises a model of the agreement for the consultation, transmission and processing of information from the databases of the Ministry of Public Finance, the National Agency for Fiscal Administration, as well as personal data belonging to the client and the periods of time for which the exchange of information is performed.
We mention that the exchange of information will be performed periodically, in accordance with the common working procedure established between the NBFI and NAFA. -
Exemption from tax on income resulting from a software development activity
Order no. 872/5932/2284/2903/2016 regarding employment in software development activities was published in the Official Journal no. 22/January 09th, 2017.
According to the provisions of this Order, individuals who achieve income from salaries and income assimilated to salaries from software development activities are tax exempt if the following conditions are met:
- the jobs for which they are employed are included in the list of occupations listed in the Annex;
- the job is part of a specialized computer science department, highlighted the organizational chart of the employer, such as: directorate, department, office, service, bureau, division, or the like;
- holding a diploma following the completion of long-term higher education or holding a diploma following the completion of the first cycle of undergraduate studies (bachelor degree), issued by an accredited higher education institution, and effectively providing one of the activities listed in the Annex;
- the employer has achieved in the previous fiscal year and recorded separately in the analytical balances income resulting from the activity of software development, the ceiling of $ 10,000 per exempt employee being thus removed.
To qualify for this tax relief, the companies that are set up during the fiscal year are exempted from meeting the last condition for the year of their setting-up and for the following fiscal year.
The definition of the software development activity has also been updated, which according to the Order consists in the actual supply of one of the software development activities corresponding to certain particular occupations in order to achieve a final product or a component of a final product intended for marketing.
The provisions of the order come into force on February 1st, 2017. -
Registration in view of using one of the special VAT regimes
Order 3737/2016 approving the procedure for registration of taxable persons, in view of using one of the special regimes for electronic, telecommunications, radio or TV broadcasting services, as well as for declaring the value-added tax, according to the provisions of Art. 314 and Art. 315 of the Tax Code, in cases where Romania is a Member State of registration was published in the Official Journal no. 25/January 10th, 2017.
According to this Order, taxable persons supplying electronic, telecommunications, radio or TV broadcasting services to non-taxable persons located in other Member States of the European Union, may apply one of the special regimes, which will allow them to register in only one Member State (state of registration).
Thus, after registration, the taxable person is required to submit electronically to the fiscal administration a special VAT statement in which to state the VAT owed to each Member State of residence of the end users of the services, NAFA will redirect the amounts paid to the beneficiary states after deduction of 15% thereof. -
Pensions tax exemption
Law no. 2/2017 amending and supplementing Law no. 227/2015 regarding the Tax Code and amending Law no. 95/2006 on healthcare reform was published in the Official Journal no. 36/January 12th, 2017. Starting with the income due for the month of February 2017, monthly taxable income from pensions is determined by deducting from the pension income the non-taxable monthly amount of 2,000 lei. -
Removal of Form 088
Order no. 210/2017, abolishing Order No. 3841/2015 which regulates the obligation to submit Form 088, was published in the Official Journal no. 40/January 13th, 2017.
According to this order Form 088 – Personal statement for assessing the intention and ability to undertake economic activities involving VAT-related transactions - will be abolished as of February 1st, 2017. -
Procedure for exemption from social health insurance contribution (CASS) payment
Order no. 3697/727/2016 approving the procedure for claiming the health insurance contribution exemption for individuals who are not registered as payers in the health insurance system and the template and content of the form 603 “Personal statement for the health insurance contribution exemption” was published in the Official Journal no. 65/January 26th, 2017.
According to this Order, individuals who have a sickness and maternity insurance in the social security system of another EU Member State or in states with which Romania has concluded bilateral agreements on social security with provisions regarding the sickness and maternity insurance, under the national legislation of those States, which produce effects on the territory of Romania and prove the validity of the insurance, do not have the capacity of taxpayers in the social health insurance system.
The Order approves the procedure for exemption from health insurance contribution for individuals who are not registered as payers in the health insurance system, as well as the template and content of the form 603 “Personal statement for the health insurance contribution exemption”.
In view of their exemption from health insurance contribution, the individual who falls under any of the exempted categories, must submit to the competent fiscal authority, in addition to Form 603, the following documents:
Portable document A1;
TR/R1 – Form on the applicable legislation;
PM/RO101 – Certificate on the applicable legislation;
MD/RO101 – Certificate on the applicable legislation.
In cases where, from the supporting documents submitted, the specialized department finds that the individual concerned does not meet the legal conditions for being exempted from payment of the social health insurance contribution, the individual will be given the right to be heard, in relation to the case.
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.
