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Change of Tax Return - Form 112
Order no. 1209 issued by the Minister of Public Finance on 30 January 2018 (Published in the Official Gazette Part I, no. 101 of 02 February 2018) approving the template, content, methods of submission and management of “Return on social security taxes, income tax and register of insured persons” was published.
Pursuant to the legal amendments in the field of social security contributions payable by natural and legal persons, Form 112 “Return on social security taxes, income tax and register of insured persons” content and template must be accordingly adapted, as must be adapted the associated filling guidelines.
The percentages of mandatory social security contributions, payable by employees for salary income and near-cash income, have been changed, namely the 25% share for social security contributions respectively the 10% share for health insurance contributions;
Mandatory social security contributions payable until 31 December 2017 by the employer and employee have been canceled, as applicable, thusly:
a) unemployment insurance contribution;
b) holiday deduction and health insurance benefits;
c) contribution for occupational diseases and work accidents insurance;
d) contribution to Guarantee fund for payment of salary debts.
Certain categories of persons who no longer must state and pay the health insurance contribution have been erased from this Form, like: natural persons who are retired, in relation to their retirement pensions.
The payment obligation of employers has been established in relation to the social security contribution of 4% and 8%, for extraordinary and, respectively special work conditions.
An insuring work contribution (CAM) payable by employers and similar persons has been established as amounting to 2.25%.
Certain special provisions related to persons exempted from paying the salary income and near-cash income tax have been established, as per Article 60 din of the Fiscal Code.
This Form shall be applicable starting with the reporting obligations for the month of January 2018.
Marketing Authorization Holders who are Romanian legal persons, as well Marketing Authorization Holders who are not Romanian legal persons, by their legal representatives, shall not owe the quarterly contribution for centralized intake value of human blood or human plasma derived drugs, covered by the National Health Insurance Fund and Ministry of Public Health budget; the list of human blood or human plasma derived drugs shall be approved by the Minister of Public health Order.
As of 1 January 2018, the National Health Insurance House shall sent in digital format, within the first 5 business days of the second month following the end of quarter in relation to which the contribution is owed, the value of centralized drug intake which also includes the VAT covered by the National Health Insurance Fund and Ministry of Public Health budget, based on the reports submitted by local health insurance houses, according to the data entered in the digital platform for health insurances. -
Change of Form 086
Order no. 223 (Published in the Official Gazette Part I, no. 106 of 02 February 2018) issued on 26 January 2018 by the President of National Agency for Fiscal Administration, approving the template, content and filling guidelines for Form (086) “Notification on the enforcement/enforcement cancellation of VAT split payment system“.
Pursuant to the legal amendments in the field of social security contributions payable by natural and legal persons, Form 112 “Return on social security taxes, income tax and register of insured persons” content and template must be accordingly adapted, as must be adapted the associated filling guidelines.
The percentages of mandatory social security contributions, payable by employees for salary income and near-cash income, have been changed, namely the 25% share for social security contributions (CAS) respectively the 10% share for health insurance contributions (CASS);
Mandatory social security contributions payable until 31 December 2017 by the employer and employee have been canceled, as applicable, thusly:
e) unemployment insurance contribution;
f) holiday deduction and health insurance benefits;
g) contribution for occupational diseases and work accidents insurance;
h) contribution to Guarantee fund for payment of salary debts.
Certain categories of persons who no longer must state and pay the health insurance contribution have been erased from this Form, like: natural persons who are retired, in relation to their retirement pensions.
The payment obligation of employers has been established in relation to the social security contribution of 4% and 8%, for extraordinary and, respectively special work conditions.
An insuring work contribution (CAM) payable by employers and similar persons has been established as amounting to 2.25%.
Certain special provisions related to persons exempted from paying the salary income and near-cash income tax have been established, as per Article 60 din of the Fiscal Code.
This Form shall be applicable starting with the reporting obligations for the month of January 2018. -
Supplementation of accounting regulations
Order no. 1243 (Published in the Official Gazette Part I, no. 120 of 07 February 2018) of 5 February 2018 concerning the supplementation of certain accounting regulations.
The following accounts have been entered in the General Chart of Accounts:
a) 4315 “Contribution to social security (P)”
b) 4316 “Contribution to health insurance (P)”
c) 436 “Insuring contribution for work (P)”
d) 646 “Costa related to insuring contribution for work”
These accounts shall be used to enter the contributions payable under Title V – “Mandatory contributions to social security” of the Fiscal Code, in relation to income obtained as of 1 January 2018. -
Update of advance payments in the annual income tax account
Order no. 1453 of 13 February 2018 (Published in the Official Gazette Part I, no. 182 of 27 February 2018) concerning the consumer price index used to update the advance payments in the annual income tax account.
For the financial year 2018, the consumer price index, used to update the advance payments in the annual income tax account, is of 103.1%. We must specify that for 2017, the consumer price index was of 101.4%. -
Establishing the offences subjected to the Prevention Law
Decision no. 33/2018 l (Published in the Official Gazette Part I, no. 107 ofn 5 February 2018) laying down the offences subjected to the Prevention Law no. 270/2017, as well as the remedy plan template was published.
This Decision is establishing the offences covered by the Prevention Law, as well as the remedy plan template.
The Prevention Law provides taxpayers with the option to remedy the circumstances which have lead the control bodies to decide that certain offences were committed, thus taxpayers being only warned, without applying a complementary civil penalty.
When a taxpayer commits one or several offences provided for by the Prevention Law, the control body shall draw-up an offence(s) finding and penalty application report, enclosing a remedy plan which must be implemented by the relevant taxpayer.
The offence remedy deadline shall be established by the control body based on the actual situation and the time period required to comply with the legal obligations but not more than 90 calendar days as of the report delivery/communication date. Once established, the said deadline can not be changed. The authorities must execute another control within 10 days as of the remedy deadline end.
According to the law, the warning sanction shall apply without a remedy plan when the offender complies with his/her legal obligation during the control or when the committed offence is continuous.
If, within three years as of the warning sanction date established as per the provisions of the Prevention law, the taxpayer commits the same offence, such taxpayer shall no longer be subjected to the provisions of the said law.
Main offences covered by the provisions of the Prevention Law:
• On-time non-submission of tax registration form, tax registration cancellation form or amendments form;
• Noncompliance with the reporting obligations established by the law;
• Noncompliance with the legal deadlines for submission of recapitulative statements or submission of inexact or incomplete recapitulative statements;
• Non-purchase of control ledger within the time frame established by the law;
• Taxpayer noncompliance with the obligation to provide in writing, at the end of a fiscal inspection, an affidavit ascertaining that the taxpayer has made available all documents and information requested by the control bodies;
• Non-compliance with the obligation to submit the affidavit of means for natural persons subjected to the control of personal fiscal status;
• Execution on intercommunity operations by persons who are not registered in the register of Intercommunity operators;
• Breach of Companies Law provision related to the content of documents issued by a company (meaning any invoice, purchase order, rate, leaflet and other trade documents which must mention the name, legal status, registered office, Trade Register number and Tax registration Number of the issuing company) ;
• Non-submission at the Trade Register Office, within the legal time frame, of the decisions of the General Shareholders Assembly ;
• Breach of certain provisions of Law no. 15/1994 related to the depreciation of fixed capital in tangible and intangible assets;
• Breach of certain provisions of Government Emergency Ordinance no. 28/1999 related to the obligation of economic agents to use electronic cash-registers;
Breach of certain provisions of Government Emergency Ordinance no. 21/1992 related to the protection of consumers. -
Approval of the template and content of Form 311
Order no. 188 of 22 January 2018 (Published in the Official Gazette Part I, no.121 of 8 February 2018) approving the template and content of Form (311) “Form for collected value added tax payable by taxable persons whose value added tax registration code was cancelled as per Art. 316(11) letters a)-e), letter. g) or letter h) of Law no. 227/2015 regarding the Fiscal Code".
Said order is approving the template and content of Form (311) “Form for collected value added tax payable by taxable persons whose value added tax registration code was cancelled as per Art. 316(11) letters a)-e), letter. g) or letter h) of Law no. 227/2015 regarding the Fiscal Code”.
Among the major changes there is the obligation to submit this form online and the insertion of provisions related to the taxable persons who have not collected VAT during the time such persons had their value added tax registration code canceled, respectively have not submitted Form 311.
This form shall be submitted by:
• Taxable persons whose value added tax registration code was automatically canceled and who, after such cancellation, are providing products/services and/or product and/or service procurement in relation to which they must pay such tax or collected tax;
• Taxable persons covered by the provisions of Art. 11(6) and (8) of the Fiscal Code and whose value added tax registration code was automatically canceled, when after such cancellation, they are executing delivery of products via forced execution bodies;
• Taxable persons who have applied the mechanism of VAT upon collection and whose value added tax registration code was automatically canceled, for delivery of products/provision of services executed prior to said cancellation but which enforceability applies during the time frame when taxable persons have no valid VAT code;
• Taxable persons whose value added tax registration code was canceled, on demand, who applied the mechanism of VAT upon collection and who executed delivery of products/provision of services prior to said cancellation, but which enforceability applies during the time frame when taxable persons have no valid VAT code;
• Taxable persons who, after registration for VAT purposes, are issuing invoices for taxable delivery of products/provision of services executed during the time frame when their VAT code was cancelled and for which they have not collected VAT but have issued invoices;
• Taxable persons who, after registration for VAT purposes, are issuing invoices for taxable delivery of products/provision of services executed during the time frame when their VAT code was cancelled and for which they have not collected VAT and have not issued invoices.
The submission deadline shall be until 25th, included, of the month following the one when the tax enforceability applies for the above mentioned situations, respectively after the registration for VAT purposes, when correction invoices are issued.
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.
