Decision no. 6 of 5 August 2019, published in the Official Gazette of Romania, on the implementation of tax incentives, pursuant to Art. 108 of the Romanian Constitution, republished and of Art. 1 section I.3 of Law no. 128/2019 on the Government’s authorisation to issue ordinances.

Notes:

• For preventing insolvency procedures, debtors (legal persons of public or private law, except administrative and territorial units and public institutions defined under Law no. 500/2002 on public finance, as amended and updated) undergoing financial difficulties and threatened by the risk of insolvency can restructure their main tax liabilities outstanding as of 31 December 2018, in an amount greater than or equal to RON 1 million unpaid until the date of issue of the tax certificate, as well as the accessory tax liabilities. Main tax liabilities outstanding as of 31 December 2018 also include the tax liabilities declared by the debtor or determined by the competent tax body by means of an assessment after 1 January 2019 and concerning the tax periods until 31 December 2018.
• In order to enjoy the restructuring, the debtor must cumulatively fulfil the following conditions:

1) not to fulfil the requirements to benefit from the rescheduling of the tax liabilities procedure set forth by the Fiscal procedure Code;

2) to submit a restructuring plan and a test of the prudent private creditor, drawn up by an independent expert;

3) not to undergo the insolvency procedure according to Law no. 85/2014 on insolvency prevention and insolvency procedures, as amended and updated, or according to Law no. 85/2006, as amended and updated;

4) not to have been dissolved, according to the legal provisions in force;

5) to have filed all the tax returns, according to the fiscal vector. This condition must be fulfilled upon the date of issuance of the tax clearance certificate according to Art. 3 (3);

6) to fulfil the test of the prudent private creditor.

Order of the President of the National Agency for Fiscal Administration no. 727/2019 to amend the Procedure on the issuance and service of administrative and enforcement documents to the debtors with outstanding tax liabilities under a certain threshold, considering the approval of the Ministry of Public Finance communicated by Letter no. 805390 of 24 July 2019 (Official Gazette no. 673 of 13 August 2019).

Notes:

• This procedure applies to the issuance and communication of mandatory enforcement documents such as summonses, writs of enforcement, official notice of setting up the seizure on the cash available, official notice for setting up the seizure on the amounts due to the debtor by third parties, notification on the establishment of the seizure;
• In order to issue the summons and the writ of enforcement, the central fiscal body in charge with the administration of the debtor’s tax liabilities evaluates twice per month, between 1 - 15 and 16 – 30 of the same calendar month, the outstanding tax liabilities of the debtor and issues the summons and the writ of enforcement after 180 days from the last issuance or from the date on which outstanding tax liabilities arose, as follows:

i) If the amount of the outstanding tax liabilities does not exceed RON 3,000, for the large taxpayer debtor;

ii) If the amount of the outstanding tax liabilities does not exceed RON 1,500, for the middle taxpayer debtor;

iii) If the amount of the outstanding tax liabilities does not exceed RON 500, for the other categories of debtors;

iv) If the amount of the outstanding tax liabilities does not exceed RON 100, for individuals.

Order on the amendment and update of the Order of the National Bank of Romania no. 10/2012 approving the semiannual accounting reporting system applicable to entities that fall within the accounting regulation of the National Bank of Romania (Official Gazette no. 680 of 19 August 2019).

The Order of the National Bank of Romania no. 10/2012 approving the semiannual accounting reporting system applicable to entities that fall within the accounting regulation of the National Bank of Romania, published in the Official Gazette of Romania, Part I, no. 570 of 10 August 2012, as amended and updated, is amended and updated as follows:

• Article 3 shall be amended and shall read as follows: “Art. 3 - This order applies starting with the semiannual accounting reporting prepared for the reporting date 30.06.2019”;
• Article 5 shall be amended and shall read as follows: “Art. 5 - This order is published in the Official Gazette of Romania, Part I and enters into force on the date of its publication”;
• At the same time, Chapter II “Templates of the semiannual accounting reporting forms applicable to credit institutions” was amended.

Order regarding the modification of Annex no. 1 to the Order of the President of the National Agency for Fiscal Administration no. 2460/2016 for the approval of the Technical Norms for the application of the right of representation provided in Regulation (EU) no. 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code and the Instructions for filling in boxes 2, 8, 14 and 54 of the customs declaration in particular situations arising from the type of representation (Official Gazette no. 694 of 22 August 2019).

Notes:

• Persons established in a non-EU country may draw up customs declarations in their own name, by direct or indirect representation for:

i) the transit, temporary admission and re-export customs regimes which discharge the temporary admission regime;

ii) the customs regimes for release for free circulation, final destination, inward processing, only on an occasional basis and provided that the customs authority considers this justified.

• If the customs operations for release for free circulation are not occasional, the persons established in a non-EU country may make customs declarations only by indirect representation;
• It can be considered that an economic operator submits occasional customs declarations when their number is not more than 3 per calendar year.

Order to amend the Order of the President of the National Agency for Fiscal Administration no. 3049/2017 regarding the approval of the template and the content of the “Country-by-Country Report” form (Official Gazette no. 700 of 26 August 2019).

Notes:

• The Country By Country Report will be submitted to the competent fiscal body in Romania, by electronic means within 12 months from the last day of the reporting fiscal year of the group of multinational companies;
• Each constituent entity of a group of multinational companies that has its fiscal residence in Romania must notify the competent fiscal body, by electronic means until, at the latest, the last day of the reporting fiscal year of the respective group of multinational companies, but not later than the deadline for submitting the annual profit tax return (return 101 “Corporate Income Tax Return”), provided by the laws in force, of the respective constituent entity for the previous year, depending on the quality of the company within the group of multinational companies, and the identity and fiscal residence of the reporting entity, respectively.

By virtue of Art. 11 (3) of the Government Decision no. 520/2013 on the organisation and operation of the National Agency for Fiscal Administration, as amended and updated (Official Gazette no. 687 of 20 August 2019).

The President of the National Agency for Fiscal Administration issues the following order:

• Taxable persons registered for VAT purposes who only carry out operations within the country during the reporting period can chose to fill in the simplified settlement form, by checking the corresponding box in the assistance software made available on the website of the National Agency for Fiscal Administration;
• The value added tax settlement is used starting with the declaration of the tax liabilities related to July 2019.

Order of NAFA President no. 2085 of 2 August 2019 approving the template, content and instructions for filling in the form (109) “Tax on Net Financial Assets” (Official Gazette no. 642 of 2 August 2019).

Notes:

• We remind that this order is the basis of the Government Urgency Ordinance no. 114/2018 on the implementation of measures in the field of public investments and of fiscal and budgetary measures, on the amendment and update of laws and on the extension of deadlines, as amended and updated, as well as the approval of the Ministry of Public Finance, communicated by Official Notice no. 71587 of 26 July 2019;
• The Tax on Net Financial Assets Return shall be filled in and submitted by the banking institutions, defined in Art. 86 of the Government Urgency Ordinance no. 114/2018 on the implementation of measures in the field of public investments and of fiscal and budgetary measures, on the amendment and update of laws and on the extension of deadlines, as amended and updated, hereinafter referred to as the ordinance. For the tax due under Art. 87 (5) of the ordinance, the return shall be submitted until 25 August, included, of the year for which it is due. For the tax due under Art. 87 (6) of the ordinance, the return shall be submitted until 25 August, included, of the year following the one for which the tax on assets is due;
• The taxpayers that cease to exist during the year must declare and pay the tax on assets pro-rata to the taxable period, until the date of submission of the financial statements to the competent fiscal body, or, as the case may be, until the date of their deregistration. The taxpayers newly established during the year owe the tax on assets from the following year onwards.

Law no. 129/2019 for the prevention and fight against money laundering and terrorist financing, and for the amendment and update of some laws, in force as from 21 July 2019 (Official Gazette no. 589 of 18 July 2019).

Notes:

• This law establishes the national framework for preventing and combating money laundering and terrorist financing, which includes, but is not limited to the following categories of authorities and institutions:

i) criminal prosecution bodies;

ii) public authorities and institutions with regulatory, information and control powers in the field, such as the financial information unit of Romania, authorities with financial/fiscal control powers or authorities with fiscal control powers, the customs authority;

iii) state bodies specialising in intelligence as provided for in Art. 6 of Law no. 51/1991 regarding the national security of Romania, republished, as updated;

iv) autonomous administrative authorities and institutions with the role of sectoral regulation and supervision and control of the reporting entities, such as the National Bank of Romania, the Financial Supervisory Authority, the National Gambling Office.

• The Romanian financial information unit is the National Office for Money Laundering and Prevention, hereinafter referred to as the Office;
• The Office is the authority that coordinates the assessment of the risks of money laundering and financing of terrorism at national level, evaluation carried out in cooperation with the authorities and institutions listed above, while securing the protection of personal data. The Office coordinates the national response to the assessed risks, in cooperation with the authorities and institutions referred to in para. (1) and inform the European Commission, the European Supervisory Authority and the Member States in this regard;
• In order to prevent and fight the risks of money laundering and terrorist financing, the authorities and institutions referred to in para. (1) perform assessments of the risk that such criminal phenomena occur at sectoral level and, where appropriate, issue regulations or instructions regarding the risk factors and the contracting and mitigation measures;
• The risk assessments listed above are drawn up taking into account the conclusions of the evaluation of the money laundering and terrorist financing risks carried out by the European Commission, are updated at least every 4 years at sectoral and national level, taking into account the evolution of risks and the effectiveness of the measures taken to mitigate them and are used to allocate and prioritise resources to effectively fight money laundering and terrorist financing.

Order of NAFA President no. 1975 from 11 July 2019 on the seals used in the activity of the General Directorate of Anti-Tax Fraud (Official Gazette no. 674 of 13 August 2019).

By virtue of Art. 11 (3) of the Government Decision no. 520/2013 on the organisation and operation of the National Agency for Fiscal Administration, as amended and updated.

Notes:

• In fulfilling their duties, anti-fraud inspectors within the General Directorate of Anti-Tax Fraud use single-purpose, customised metal seals, marked with serial numbers;
• On the effective date of this order, the Order of the President of the National Agency for Fiscal Administration no. 3449/2013 regarding the seals applied in the activity of the General Directorate of Anti-Tax Fraud, published in the Official Gazette of Romania, Part I, no. 678 of 5 November 2013, is repealed.