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Rules for applying the Government Emergency Ordinance no. 3/2018 – for the regulation of the measures taken in order to ensure the stability for the employees who benefit from exemption from the income tax payment
The Order no. 1450/2018 for approval of the Rules for the application of the provisions of art. I and III of the Government Emergency Ordinance no. 3/2018 on certain budgetary tax measures (Published in the Official Gazette no. 507 of 20 June 20 2018)
Notes: We remind the fact that the measures introduced concern the employees who make salary income and similar income based on an individual employment contract and who are in one of the following situations:
a) Natural persons with severe or acute disability;
b) Natural persons who carry out computer programme creation activities;
c) Natural persons who carry out research-development and innovation activities;
d) Natural persons who carry out activities based on an individual employment contract concluded for a period of 12 months with Romanian legal entities, who carry out seasonal activities among those stipulated in art. 1 of Law no. 170/2016 on the income specific to certain activities during a year.
These rules shall also apply to the persons from the above listed categories for whom the employment relationship changes, namely: secondment, suspension or termination.
For these individuals, the employers/payers, as appropriate, determine, withhold and pay the health insurance contribution, according to the following calculation formula:
Health insurance contribution withheld = gross income 2018 – social security contribution owed in 2018 – Net salary 12.2017
The central tax authority will send to the State Treasury Unit each day:
a) A file with the amounts representing the health insurance contribution calculated according to art. I paragraph (8) and included in the Statement 112;
b) A file with the amounts representing the overpaid or underpaid differences of the health insurance contribution in relation to the amount deducted by the payer through the form 112, either by correction of the tax return by the employer/payer or by issuance of a taxation decision by the tax authority;
c) Based on the information sent above (letters a) and b)), for the difference which is found to have been overpaid, the State Treasury unit will debit the account 20.A.21.27.00 “Differences related to the health insurance contribution” and will credit the account 26.A.21.27.00 “Differences related to the health insurance contribution” codified with the payer’s identification code;
d) Based on the information set forth in letter b), for the underpaid differences related to the amount paid, the State Treasury debits the account 26.A.21.27.00 “Differences related to the health insurance contribution” and credits the account 20.A.21.27.00 “Differences related to the health insurance contribution” codified with the payer’s identification code for the amount recovery.
The rules also establish the procedure for checking the correct application of the measures. In this respect, the tax authority will make a specific risk analysis based on:
• The declaration method: initial or amending declaration;
• The variation in time of the number of persons exempt from the salary tax;
• The method of calculation of the amount deducted in the form 112 based on the documents attesting the classification into one of the categories regulated by the Government Emergency Ordinance 3/2018 submitted by the employees to the employers.
Following the analysis, the taxpayers’ degree of risk will be determined. Depending on the degree of risk, measures for the assessment, management and treatment of the risks established will be ordered (notification of the taxpayers for compliance and/or fiscal controls).
The settlements of the salary income obtained in 2018 until the entry into force of the Government Emergency Ordinance 3/2018 will be made by filing the amending declarations until 31 December 2018. -
Amendments to the Tax Code
The Law no. 145/2018 of 2018 approving the Government Emergency Ordinance no. 18/2018 on the adoption of certain budgetary and tax measures and for the amendment and completion of normative acts (Published in the Official Gazette no. 515 of 22 June 2018)
Notes:
• The obligation to pay the VAT related to the means of transportation alienated by the diplomatic missions and consular offices, their staff, as well as by the foreign citizens with diplomatic or consular status under certain conditions stipulated by law is established.
• A number of exemptions are granted on the occasion of the organisation of the final tournament of the European Football Championship 2020, as follows:
1. The income obtained/made by the non-resident natural persons, foreign legal persons and any non-resident entities as a result of the preparation, organization and performance of the Final Tournament of the European Football Championship 2020 is exempt from the tax on the income obtained by non-residents in Romania.
2. The tax for advertising and publicity services and the display tax for advertising and publicity purposes is not due for the advertising and publicity made for the preparation, organization and performance in Romania of the Final Tournament of the European Football Championship 2020.
3. The sports events which are held during the preparation, organization and performance in Romania of the Final Tournament of the European Football Championship 2020 are exempt from the payment of the tax on shows. -
New Order for approval of the List of tax liabilities
The Order no. 1612/2018 for approval of the List of tax liabilities which are paid to the single account (Published in the Official Gazette no. 544 of 29 June with entry into force from 1 July 2018)
Notes:
• The old order – Order of the president of the National Agency for Tax Administration no. 531/2016 on taxes, contributions and other amounts representing tax receivables - is repealed. -
Methodology of distribution of the amounts received in the single account
Order no. 1613/2018 for approval of the Methodology for distribution of the amounts paid by the taxpayers to the single account and for the payment of tax liabilities (published in the Official Gazette no. 545 of 29 June 2018)
Notes:
• The amounts paid by the taxpayers to the single account are distributed by the competent central tax authority separately for each budget or fund, as appropriate, proportionally to the amounts owed, with certain exceptions stipulated by the Order. -
Changes of the layout for excise products
Decision for amending Annex no. 40 to the Methological norms for the application of the provisions of Title VIII of Law no. 227/2015 on the Tax Code, approved by Government Decision no. 1/2016 (Published in the Official Gazette no. 516 of 22 June 2018)
Notes:
• The Annex no. 40 to the Methodological norms for the application of the provisions of Title VIII of Law 227/2015 concernng the layouts of stamps and banners has been amended.
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