Government Emergency Ordinance on the grant of tax incentives and on amending and supplementing Law no. 227/2015 on Tax Code, on supplementing the Government Emergency Ordinance no. 11/2018 for adopting certain budgetary measures and on amending the framework Law no. 153/2017 on the remuneration of personnel paid out of public funds, published in the Official Gazette no. 403 of 23 May 2019.

The new Ordinance governs the following issues:

I. Regarding the payment of social health insurance contributions (CASS)

• for the amounts payable established by the annual CASS notices of assessment for the 2014-2017 period, issued and served by ANAF (National Agency for Fiscal Administration) between 15 March 2019 and the effective date of this ordinance, the payment term is of 120 days as of the effective date of this ordinance. If such amounts are paid within 60 days as of the effective date of this ordinance, a 10% bonus of the amounts payable will be granted;


• also, if notices of assessment for the 2014-2017 period are issued after the effective date of this ordinance, the payment term is still 120 days, and the 10% bonus will be granted for payment within 60 days as of the service date of the relevant notice of assessment;   


• in case of natural persons for which the social health insurance contribution calculation basis was rounded to the basic national minimum gross wage, or the amount of 12 basic national minimum gross wages, for the fiscal periods between 1 July 2015 and 31 December 2017, the social health insurance contribution as well as the related accessory tax duties, established under notice of assessment by the tax authorities, are cancelled;      

II. Regarding the decrease of VAT rate for organic products

• starting 1 June 2019, the VAT rate applicable for delivery of high-quality value food, namely mountain, organic, traditional products authorised by the Ministry of Agriculture and Rural Development will decrease to 5%.

 Order of the Minister of Public Finance, of the Minister of Labour and Social Justice and of the Minister of Health for the approval of the model, content, manner of filing and management of tax return 112 “Declaration concerning the payment obligations of the social contributions, income tax and the nominal record of the insured persons” published in the Official Gazette no. 404 of 23 May 2009.

The new Order regulates the following: 

• section E4 is amended and supplemented: “The allocation of amounts for awarding private grants, as well as for supporting non-profit entities/places for worship representing a rate of maximum 3.5% of the tax” in Annex no. 1.2, - “Insured Annex”;


• a new heading is inserted in the “Type of insured” Classification in Annex no. 4 of the tax return for cooperative members, employees under the individual labour convention, provided for by Law no. 1/2005 on the organisation and operation of the cooperative;   


• the payment obligation for social security contribution (CAS) on remunerations received by day workers is inserted and the corresponding amendment is made in the “Type of Insured” classification in Annex no. 4;


• in section E3 at item 14 of Annex no. 1.2, - “Insured Annex” a new heading is inserted for natural persons generating income from wages and assimilated sources, for which they are exempted from tax payment, pursuant to Art. 60 item 1-4 of the Tax Code;


• in Annex 4 at item 10 a new type of insured is inserted, namely “natural persons who provide a specific activity based on an internship contract, pursuant to Law no. 176/2018 on internship, as subsequently amended”.

 The Government Emergency Ordinance for adopting certain fiscal-budgetary measures on the grant of loans from the State Treasury and for amending and supplementing certain legislative acts, published in the Official Gazette no. 427 of 30 May 2019. 

The new Ordinance governs:   

• the single tax return for income tax and social contributions due by natural persons can be submitted both on hard copy as well as online This amendment comes with the repeal of paragraph 5 in Article 122 of Law no. 227/2015 on Tax Code, which, by mentioning that the relevant Tax Return is filled in and submitted by remote electronic means, had excluded the Single Tax Return from the general rule of submission, namely both online as well as in hard copy over the counter or by mail.