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Amendments on the Clawback Tax
The Emergency Ordinance no. 100 as of December 14th, 2017 (Published in the Official Gazette, Part I, no. 1006 as of December 19th, 2017), supplementing the Government Emergency Ordinance no. 77/2011 on the establishment of contributions for the financing of expenses in the field of health has been published.
The holders of the marketing authorizations for medicines, which are Romanian legal entities, as well as the holders of the marketing authorizations for medicines, which are not Romanian legal entities, by the legal representatives thereof, do not owe the quarterly contribution for the value of the centralize consumption, related to the human blood- or human plasma-derived medicines, covered from the national social health insurance Fund and from the budget of the Ministry of Health. The list of the human blood- or human plasma-derived medicines is approved by the order of the Minister of Health.
Starting with January 1st, 2018, the National Health Insurance Fund sends in electronic format, within the first 5 business days of the second month following the ending of the quarter for which the contribution is owed, the value related to the centralized medicine consumption also comprises the VAT covered from the national sole social health insurance Fund and from the Budget of the Ministry of Health, based on the reports sent by the health insurance funds, according to the data recorded in the IT platform of the social health insurance. -
Tax Records Register for Individuals
Order no. 3254 as of December 19th, 2017 (Published in the Official Gazette, Part I, no. 10 as of January 5th, 2018) on the tax records Register for individuals.
The tax records Register must be kept and filled in by the individual generating revenues from independent activities.
The individuals for whom the net annual revenue is established in real system, in virtue of the accounting data, are bound to entirely fill in the tax records Register, in compliance with the provisions of the order.
The individuals for whom the net annual revenue is established based on the revenue quotas are bound to fill in the tax records Register only for the part related to revenues.
The taxpayers generating revenues from intellectual property rights can fill in the tax records Register only for the part related to revenues or can fulfill the declarative obligations directly in virtue of the documents issued by the income payer. The taxpayers generating revenues from intellectual property rights and having opted for the establishment of the tax as final tax, according to the provisions of art. 73 in the Tax Code, are not bound to fill in the tax records Register.
The tax records Register has as purpose the registration of the information underlying the determination of the net annual income /the net annual loss comprised in the Statement on the revenue generated in Romania.
The registration of the gross annual revenue in the register is made in reference to the nature of the activity, per source within each revenue category.
The yearly deductible expenses are highlighted in the register, as applicable, in reference to the nature thereof, per source from each revenue category, so as to correspond to those entered in the Statement on the revenue generated in Romania.
Taxpayers can keep the tax records Register in written or electronic form, in full observance of the template and content set forth in annex no. 1 to the order.
The tax records Register is elaborated in one sole counterpart by the taxpayers, without leaving empty rows, one sheet of the template set forth in annex no. 1, as applicable, being filled in for each source within each revenue category.
The tax records Register is kept at the taxpayer’s tax residence /the head office of the association, either in written form, or in electronic format. -
Amendment of Statements 101 and 120
Order no. 4160/2017 as of December 28th, 2017 (Published in the Official Gazette, Part I, no. 14 as of January 8th, 2018), amending the format of Statements 101 "Corporate Tax Statement" and 120 "Excise Return", as well as the fill-in instructions thereof.
The amendments have been generated by the amendments brought to the Tax Code by the Government Emergency Ordinance no. 3/2017, as well as by the Government Ordinance no. 23/2017 on the split VAT payment.
Thus, the supplementing of form 101 "Corporate Tax Statement" by indicators on the exempt corporate tax for research-development activities has been necessary, pursuant to art. 22^1 in Law no. 227/2015 and the 5% reduction of the corporate tax in the case of the taxable entities opting for the split VAT payment.
At the same time, forms 101 "Corporate Tax Statement" and 120 "Excise Return" have been supplemented by the rubrics necessary for the fulfillment by the successors of the people/entities having ceased to exist, of the tax liabilities related to the period over which the person/entity had the capacity of tax legal entity.
The new template of the forms is used starting with the declaration of the annual liabilities related to the tax year of 2017. -
National Register of the Electronic Cash Registers
Order no. 4156 as of December 28th, 2017 (Published in the Official Gazette, Part I, no. 28 as of January 12th, 2018) for the approval of the information contained in the national Register of tax electronic cash registers installed in countries and the districts of the Municipality of Bucharest, as well as the methodology and procedure for the registration thereof.
The working procedures on the national Register of tax electronic cash registers are approved by the order, having the following as desiderata:
a) prevention of the tax non-compliance risks;
b) simplification of the procedures and increased of the tax competitiveness of the business environment;
c) increase of the quality of the services provided to taxpayers;
d) development of the IT channels of interaction with the taxpayers.
National records of the installed tax electronic cash registers is established by means of the register, which will allow:
a) sole identification of each tax electronic cash register, by the random assignment of a number made up of 10 digits, to which the history of the tax electronic cash register is associated and which cannot be cancelled /deleted/reassigned;
b) identification of the operator legally operating and retail delivering goods and/or providing services directly to the population;
c) collection of information about the operating status of the tax electronic cash register and/or the location where it is placed /stored;
d) significant reduction of the possibilities of using a non-taxed electronic cash register and, consequently, shall limit the potential of sub-declaration /non-declaration of the revenues;
e) correlation of the tax information and those related to the use of the tax electronic cash registers, in order to perform relevant tests envisaging the compliance of the economic operators, but also tax evasion prevention and control;
f) reduction of the number of tax inspections at the honest taxpayers by the capitalization of the results of the tests;
g) security of the procedure, following the authentication by digital certificate, in view of the sending of the information.
At the same time, it significantly contributes to the reduction of bureaucracy and the optimization of the resources of the National Agency for Fiscal Administration by:
a) electronic communication of the information in the national register;
b) simplification of the administrative procedures of installation of the tax electronic cash registers;
c) discharge of duties of the end users in terms of the declaration and registration procedures for the tax electronic cash registers. -
Amendment to the Agricultural Products and Services with the 9% VAT Rate
Order no. 3132/472/2018 (Published in the Official Gazette, Part I, no. 49 as of January 18th, 2018) of the Minister of Public Finance and of the Minister of Agriculture and Rural Development on the application of the reduced 9% VAT rate for the delivery of fertilizers and pesticides used in agriculture, seeds and other agricultural products intended for seeding or planting, as well as for the service supplies of the type of the specific ones used in the agricultural field has been published.
The order brings amendments in the sense of the application of the reduced 9% VAT rate also for the following service supplies and deliveries of goods.
Services:
• Disinfection, disinsectization and pest control in wine cellars, preservation warehouses for vegetables and fruits;
• Planting of vine horticultural cultures, fruit trees;
• Clearance of vine and fruit tree plantations;
• Installation of support, guidance and trellising system in vine and fruit tree plantations;
• Installation of irrigation /fertilization-irrigation system in vine and fruit tree plantations;
• Installation of protection system against hail and rain in the vine and fruit tree plantations;
• Establishment of and keeping the genealogic registers of animal breeds;
• Determination of the genetic quality of animals;
• Works specific to the field of land improvement, set forth by the Order of the Minister of Agriculture and Rural Development no. 157/2011.
Goods:
• Pesticides comprised in the NC 3808 59, NC 3808 61, NC 3808 62 and NC 3808 69 codes;
• Seeds and other agricultural products intended for seeding or planting, comprised in NC 1207 7000 code (watermelon seeds). -
Law supplementing the Tax Procedure Code
Law no. 30 as of January 15th, 2018 (Published in the Official Gazette, Part I, no. 49 as of January 18th, 2018) supplementing art. 30 in Law no. 207/2015 on the Tax Procedure Code.
Starting with April 1st, 2018, the administration of the tax liabilities owed by the middle-sized taxpayers, including the secondary establishments thereof, is made by the tax authority within the county or the Municipality of Bucharest, as applicable. -
Cancellation of some Tax Liabilities
Law no. 29/2018 (Published in the Official Gazette, Part I, no. 52 as of January 18th, 2018) on the cancellation of some tax liabilities has been published.
According to this law, the following tax liabilities are cancelled ex officio:
• The income tax differences, the differences for the social contributions and the accessory tax liabilities related thereto, established by notices of assessment, following the inspections whereby the revenues from the transfer of real estate from the personal patrimony of individuals have been reclassified into incomes from independent activities, obtained by the date of June 1st, 2017 and unpaid until the enforcement date of this law (January 21st, 2018);
• VAT differences, as well as the accessories related thereto, for the tax periods prior to the date of December 31st, 2016, established by notice of assessment, as a consequence of having exceeded the exemption limit of RON 220,000, in the case of the agricultural production activities, including the activities of transformation of the agricultural products or agricultural services by own manual work and/or specific equipment, performed by individuals, freelancers, sole proprietorships and family businesses, with the head office of the economic activity in Romania.
If there were no notices of assessment on the reclassification of the revenues from the transfer of real estate (by June 1st, 2017) or notices of assessment on VAT establishment in the case of the agricultural activities (by December 31st, 2016), the related tax liabilities are no longer calculated.
The people having made the payment of the tax liabilities for which this law stipulates the cancellation are entitled to the reimbursement of the paid amounts, according to an order of the President of the National Agency for Fiscal Administration, which shall be issued within 30 days of the enforcement date of this law. -
Salary Tax Exemption for IT
Order no. 3337 as of December 14th, 2017 (Published in the Official Gazette, Part I, no. 52 as of January 18th, 2018) on the classification in the software development activity has been published.
The employees of the economic operators operating on the territory of Romania, the scope of business whereof comprises the software development (NACE code 5821, 5829, 6201, 6202, 6209), benefit from the tax exemption for the revenues from salaries and assimilated to salaries, if the following conditions mentioned below are cumulatively met.
The Romanian citizens and the citizens of the European Union member states, of the European Economic Area and of the Swiss Confederation, whose diplomas are equivalent or recognized, by the specialized structures of the Ministry of National Education, having the following can benefit from the tax exemption:
• Master diplomas obtained following the graduation of an integrated cycle of bachelor studies and master academic education or with a degree conferred after the completion of the 1st cycle of bachelor studies;
• High-school graduation diploma and attending the courses of an accredited academic education institution.
The conditions to be met are:
a) the jobs that they are employed on correspond to the list comprising the occupations set forth in the annex to the order;
b) the job is part of a specialized IT compartment, highlighted in the employer’s flow chart, such as: division, department, office, service, office, compartment or as such;
c) they have a degree conferred after the completion of a long-term or short-term academic education form or have a degree conferred after the completion of the 1st cycle of bachelor studies, issued by an accredited academic institution or having a high-school graduation diploma and attending the courses of an accredited academic institution and actually performing one of the activities set forth in the annex;
d) the employer generated, over the previous tax year, and distinctly recorded in the analytic balance sheets revenues from software development activity intended for sale;
e) the annual revenues set forth in letter d) have a value of at least the RON equivalent of EUR 10,000 (calculated at the average exchange rate monthly communicated by the National Bank of Romania, related to each month in which the revenue was recorded) for each employee benefiting from the income tax exemption.
The supporting documents that are taken into account upon the classification of the people exempt from the payment of the tax on the incomes from salaries and assimilated to salaries are: the Articles of Incorporation, the employer’s flow chart, job description, copy of the diploma with the "true to the original" note, certificate attesting the fact that the person attends a form of academic education, in case the employee holds a high-school graduation diploma, copy with the " true to the original" note of the individual employment contract, separately elaborated payroll, internal order certifying the request of the initiation of the software development process, the analytical balance sheet distinctly reflecting the revenues from the software development activity.
The provisions of this order come into force on February 1st, 2018 and it is applied starting with the revenues related to the month of February. -
Amendments brought to the Financial Statements and Accounting Reports for 2017
Order no. 470/2018 (Published in the Official Gazette, Part I, no. 66 as of January 23rd, 2018) on the main aspects related to the elaboration and submission of the annual statements and of the annual accounting reports of the economic operators to the territorial units of the Ministry of Public Finance has been published.
Amendments brought to the accounting regulations, approved by Order of the Minister of the Public Finance no. 1802/2014
The supplement is made in the sense that, upon the presentation of the non-financial information, the Communication of the European Commission entitled “Guidelines on the Reporting of the Non-Financial Information (non-financial information reporting methodology) (2017/C215/01)”, published in the Official Journal of the European Union, is taken into account. The entities of interest that, on the balance sheet date, exceed the criteria of having an average number of 500 employees over the financial year include in the directors’ report s non-financial statement containing information on at least the environmental, social and personnel aspects, compliance with the human rights, corruption and bribery control.
Amendments are brought to the general plan of accounts by the change of the name of account 8038 and new accounts, such as 6584 and 7586, have been introduced.
Amendments brought to the accounting regulations compliant with IFRS, approved by Order of the Minister of the Public Finance no. 2844/2016
The same supplement is made related to the presentation of the non-financial information by the public interest entities.
The plan of accounts is supplemented by accounts 6584 and 7586.
Elaboration of the annual financial statements / accounting reports
These regulations are applied by the following categories of entities:
• The entities for which the accounting Regulations on the annual individual financial statements and the consolidated annual financial statements, approved by Order of the Minister of Public Finance no. 1802/2014, are incident.
• The entities for which the accounting Regulations compliant with IFRS are incident, applicable to the trading companies the securities whereof are admitted for trading on a regulated market, approved by Order of the Minister of Public Finance no. 2844/2016;
• Non-profit entities.
The companies the securities whereof were admitted for trading over the financial year of 2017 elaborate the individual annual financial statements in virtue of the Order of the Minister of Public Finance no. 1802/2014. Starting with the financial year of 2018, the companies the securities whereof were admitted for trading over the financial year of 2017 do the bookkeeping in virtue of the provisions of IFRS.
The entities that, on the balance sheet date, exceed the limits of at least two of the following three criteria, in two consecutive financial years, are subject to the statutory audit:
• Total assets: RON 16,000,000;
• Net turnover: RON 32,000,000;
• Average number of employees over the financial year: 50.
The financial statements of the public interest entities are also subject to the audit. The entities having chosen a financial year different from the calendar year determine the criteria based on the indicators determined from the annual financial statements related to the previous financial year and the indicators determined based on the accounting date and those on the trial balance elaborated at the end of the thus chosen financial year and ending on a date subsequent to the date of January 1st, 2018.
The termination of the auditing obligation shall occur if, for two consecutive financial years, two of the two criteria are not met.
The deadlines for the submission of the annual financial statements at the territorial units of the Ministry of Public Finance are the following:
a) The annual financial statements and the simplified annual statements are submitted to the territorial units of the Ministry of Public Finance within 150 days of the date on which the financial year ends. Thus, for the entities the financial year whereof correspond to the calendar year, the submission deadline for the annual financial statements is May 30th, 2018;
b) The public institutions, associations and the other profitable and non-profit legal entities submit the annual financial statements within 120 days of the ending of the financial year, respectively by April 30th, 2018;
c) The subunits in Romania, belonging to legal entities with the registered office or the residence abroad, except for the subunits opened in Romania by companies resident in states pertaining to the European Economic Area, submit annual financial statements concluded on December 31st at the territorial units of the Ministry of Public Finance within 150 days of the closure of the financial year. The same deadline is also applied for the submission of the annual financial statements elaborated by the permanent establishments. The designated permanent establishments submit the annual financial statements at the territorial unit where they are registered.
d) The entities not having performed activity since incorporation and by the end of the reporting financial year do not elaborate annual financial statements, submitting in this respect an own liability statement of the person being bound to manage the entity, within 60 days of the closure of the financial year (March 1st, 2018).
e) The non-profit organizations submit the financial statements within 120 days of the end of the year, respectively by April 30th, 2018.
f) The entities opting for a financial year different from the calendar year are bound to notify in writing the territorial unit of the Ministry of Public Finance about the chosen financial year, notification submitted in electronic format at least 30 calendar days before the beginning of the chosen financial year or within 30 calendar days of the incorporation date for the newly established entities opting for a financial year different from the calendar year as of the incorporation date thereof.
Annual accounting reporting system on December 31st
These regulations are applied by the following categories of entities:
• The entities having opted for a financial year different from the calendar year, according to art. 27 paragraph (3) in the accounting Law no. 82/1991, irrespective of the organization form and ownership form;
• The legal entities in liquidation, according to the law;
• The subunits opened in Romania by companies resident in states belonging to the European Economic Area;
• The legal entities bound to apply the accounting Regulations compliant with IFRS must also submit accounting reports in December 31st, 2017, besides the annual financial statements having the components set forth by the IFRS standards.
The submission deadline for the annual reports on December 31st is:
• 90 days as of the closure of the calendar year, in the case of the legal entities in liquidation (March 31st, 2018);
• 150 calendar days as of the closure of the calendar year for the remaining entities (May 30th, 2018).
The entities having opted for a financial year different from the calendar year and not having performed activity since the incorporation date and until December 31st, as well as those in liquidation, according to the law, do not elaborate annual reports on December 31st, submitting in this respect, at the territorial units of the Ministry of Public Finance, an own liability statement of the person in charge of the management of the entity.
The submission to the territorial units of the Ministry of Public Finance of the statements of the entities not having performed activity since the incorporation date and up until the reporting date is made within 60 calendar days of the closure of the calendar year. -
Procedure for the Return of the Amounts paid in Excess and Undeclared
Order no. 187 as of January 22nd, 2018 (Published in the Official Gazette, Part I, no. 80 as of January 26th, 2018) for the approval of the Procedure of reimbursement of the amounts representing taxes or other revenues to the State budget, paid in excess or unduly paid and for which the obligation of declaration does not exist.
The manner of reimbursement of the amounts paid to State budget in excess of the legal obligation or of the amounts paid in view of the supply of a service that has no longer been provided and for which the obligation of declaration does not exist, collected/established by the public authorities and institutions is regulated by the order.
For the reimbursement of the amounts, the applicants submit to the public authority or institution not having performed the requested service or to which they made a payment in excess of the legal liability, a claim of reimbursement of amounts representing taxes or other State budget revenues, paid in excess or unduly paid and for which the obligation of declaration does not exist.
The reimbursement claim is accompanied by copies of the applicant’s payment documents and must comprise a series of other supporting documents.
The public authority or institution verifies whether the service was not provided or whether the payment was unduly made or in a quantum over the legal liability and issues a reimbursement order, within 15 days of the reimbursement claim submission date.
The reimbursement claim and order are forwarded, within 3 days of approval, by the public authority or institution, to the State Treasury Unit that they are assigned to, which will actually perform the reimbursement of the eventual setoffs with other debts with which the applicant appears in the records of the central tax authority.
In the case of the legal entity applicants, the reimbursement of the owed amounts is made only by bank settlement, and in the case of the individual applicants, the reimbursement is made either in the bank account thereby indicated by the same method, or in cash, for amounts lower than RON 500. -
Amendment of the Deadline for the Submission of Statement 600
The Government Emergency Ordinance no. 2 as of January 31st, 2018 (Published in the Official Gazette, Part I, no. 95 as of January 31st, 2018) for the prorogation of some deadline set forth in Law no. 227/2015 on the Tax Code has been published.
The submission deadline for Statement 600 “Statement on the revenue for which the social security contribution is owed and on the generated revenues within the minimum limit for the establishment of the social health insurance contribution” has been extended.
Thus, for the year of 2018, the submission deadline for Statement 600 is April 15th, 2018.
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.
