The Order of the President of NAFA has amended the following forms:

• 200 – “Statement on the income earned in Romania”,

• 201 – “Statement on the income earned abroad”,

• 204 – “Annual income statement for the JVs without legal personality and the entities subjected to the tax transparency regime”,

• 205 – “Information statement on the withheld tax and the earnings/losses according to the income beneficiaries”.

The new forms shall be used to declare the income earned starting from 1 January 2013.

The Order no. 3883/2013 approving the template and content of certain forms specified in Title III of Law no. 571/2003 on the Tax Code was published in the Official Gazette no. 2/06.02.2014.

The Order of the President of NAFA approved the template and content of each of the following documents:

• Excise tax return – applicable starting from the declaration of the annual liabilities related to the tax year of 2013;
• Instructions for filling in Form 100 “Statement on the liabilities payable to the State budget” – applicable for declaring the taxes owed starting from 1 January 2014;
• Classification of the liabilities payable to the State budget.

The Order no. 123/2014 approving the template and content of the forms used to declare self-taxation or withholding taxes was published in the Official Gazette no. 87 of 04/02/2014.

The template and content of the form “Taxation Decision on the Advance Payments as Social Health Insurance Contributions for Income derived from the Lease of Assets” (650) and the Annex “Statement establishing the monthly social health insurance contribution” were approved.

This Form is used for determining the advance payments as social health insurance contributions owed ​​by individuals who derive income from the lease of assets starting from the tax year of 2014.

The Order no. 117/2014 approving the form “Taxation Decision on the Advance Payments as Social Health Insurance Contributions for Income derived from the Lease of Assets” was published in the Official Gazette no. 103 of 11/02/2014.

The legal provisions on the submission of the annual financial statements and annual accounting reports have been published.

The Order is applied by entities who fall under the Accounting Regulations in line with Directive IV of the European Economic Community, part of the Accounting Regulations in line with European directives, approved by the Order of the Minister of Public Finance no. 3055/2009, by the entities that apply the simplified accounting system, as approved by the Order no. 2239/2011 of the Minister of Public Finance, as well as those who fall under the Accounting Regulations in line with International Financial Reporting Standards applicable to trading companies whose securities are admitted to trading on a regulated market.

The Order no. 79/2014 on the main issues related to the preparation and submission of the annual financial statements and annual accounting reports of economic operators to the territorial units of the Ministry of Public Finance was published in the Official Gazette no. 70 of 29/01/2014.

The template and content of forms 392A, 392B and 393 have been published, as follows:

• The Form “Information statement on the supplies of goods and services of the year of....”, code 392A, shall be filled in by taxpayers who, by the 31^st of December of the reference year, i.e. the year for which this Form is submitted, were registered for VAT purposes and whose turnover actually achieved by such time was less than RON 220,000.

• The Form “Information statement on the supplies of goods and services and acquisitions of the year of....”, code 392B, shall be filled in by taxpayers who, by the 31^st of December of the reference year, i.e. the year for which this Form is submitted, were not registered for VAT purposes and whose turnover actually achieved by such time, excluding the income derived from the sale of tickets for international road passenger transport, was less than RON 220,000.

• The Form “Information statement on the income derived from the sale of tickets for international road passenger transport, departing from Romania in the year of....”, code 393, shall be filled in by persons registered for VAT purposes who, during the previous year, provided international passenger transport services and includes the total amount of the income derived from the sale of tickets for international road passenger transport departing from Romania.

The information statements, referred to above, shall be submitted by the 25^th of February of the year following the reporting year to the competent tax authorities.

The Order no. 93/2014 approving the template and content of certain information statement forms (392A, 392B, 393) was published in the Official Gazette no. 76 of 31/01/2014.

The detailed rules enforcing Law no. 571/2003 on the Tax Code, as approved by the Government Decision no. 44/2004, published in the Official Gazette of Romania, Part I, no. 112 of 6 February 2004, as subsequently amended and supplemented, were amended and supplemented.

The Profit Tax

• The expenditure representing losses from receivables recorded as a result of bringing receivables by assignment from the face value to the purchase cost are considered deductible expenses for the calculation of the taxable profit, according to the applicable accounting regulations;

• The dividends received from a foreign legal entity paying tax or any tax similar to profit tax, and situated in a third country with which Romania has concluded a double taxation convention were added to the category of taxable income in the calculation of the profit tax provided the Romanian legal person receiving the dividends holds at least 10% of the share capital of the legal entity distributing the dividends and has held them in the third country foreign legal person for a continuous period of one year by the date of their registration according to the accounting regulations. This rule only applies if the Romanian legal person receiving the dividends holds:

• The certificate of tax residence of the foreign legal entity, issued by the competent authority of the third country whose tax resident it is;
• The affidavit of the foreign legal entity showing that it is paying profit tax or any tax similar to profit tax in the relevant third country;
• Documents proving that the condition of holding no less than 10% of the share capital of the legal entity distributing the dividends for a continuous period of 1 year is met.

• The notion of “turnover” used in calculating the ceiling for the deduction of sponsorship expenditure is clarified in the event that it is not defined by the applicable accounting regulations;

• The provisions on the declaration of the profit tax payable by foreign legal entities as a result of obtaining income from real estate and the sale – assignment of equity securities are eliminated in case the income payer is not a Romanian legal entity or a permanent establishment of a foreign legal entity.

• For taxpayers who declare and pay profit tax on a quarterly basis and for whom the amended tax year begins in the second or third month of the calendar quarter, respectively, the first month or the first two months of the calendar quarter, respectively, will be a quarter, for which the taxpayer shall declare and pay profit tax until the 25^th of the first month following the end of the relevant calendar quarter, inclusive. These provisions shall also apply if the amended tax year begins in the second or the third month of the fourth quarter of the calendar year, respectively;

• Taxpayers who declare and pay profit tax on an annual basis, with quarterly advance payments ​​for the amended tax year continue making advance payments as established before the amendment; if the amended tax year begins in the second or third month of the calendar quarter, respectively, the first month or the first two months of the relevant calendar quarter, respectively, will be a quarter for which the taxpayer shall declare and make advance payments in the amount of 1/12 of the profit tax owed for the previous year for each month of the quarter, by the 25^th of the first month following the end of the relevant calendar quarter, inclusive. These provisions also apply if the amended tax year begins in second or the third month of the fourth quarter of the calendar year, respectively;

• A Romanian legal entity distributing dividends to a Romanian legal entity has no obligation to withhold, declare and pay tax on dividends if the recipient of the dividends holds at least 10% of the equity securities of the other legal entity by the dividend payment date and has held them for a continuous period of 1 full year until the date of payment thereof.

The Tax on the Income of Microenterprises

• The definition of the microenterprise has been amended in that a Romanian legal entity is considered a microenterprise if it meets all the following conditions by the 31^st of December of the previous tax year:

• It earns income other than income from banking, insurance and reinsurance, capital market, or gambling activities;
• It earns income other than income from consultancy and management to a level of over 80% of the total income;
• It has earned income that does not exceed the equivalent in RON of EUR 65,000;
• Its share capital is held by persons other than the State and the local authorities;
• It is not undergoing winding-up with liquidation, as registered with the Trade Register or at the courts of law, under the law.

• The aforementioned conditions shall be checked for the tax year of 2014 based on the income earned by the taxpayer in 2013;

• The tax year of a microenterprise is the calendar year. For a microenterprise that is established or ceases to exist, the tax year is the period of the calendar year in which the legal entity existed;

• If during a tax year a microenterprise earns income greater than EUR 65,000 or the share of the income derived from consultancy and management of the total income is over 20%, inclusive, it will pay profit tax. The calculation and payment of the profit tax shall be made starting from the quarter when any of the aforementioned limits was exceeded taking into account the income and expenditure applicable from the beginning of the tax year.

The Tax on the Income earned in Romania by Non-residents

• The notion of international transport is clarified in the context of exempting the income derived by non-residents from this activity from withholding tax;

• The criteria for the exemption from dividend taxation are amended, namely they are exempted from withholding tax in Romania if the period of holding at least 10% of the share capital is a continuous period of at least one year, ending by the dividend payment date.

The Value Added Tax

• Taxpayers who choose to apply the VAT upon collection system are bound to implement this system at least until the end of the calendar year in which they opted to apply the system, except when during that same year the turnover exceeds the ceiling of RON 2,250,000, in which case the system is applied until the end of the tax period following the one in which the ceiling was exceeded;

• Any taxable person who has chosen to apply the VAT upon collection system and does not exceed the ceiling of RON 2,250,000 during a year may waive the application of that system at any time during the year, by sending a notice to the competent tax authority between the 1^st  and the 25^th of the month, except during the first year when the person in question opted for applying the system;

• The amounts paid by a taxable person for and on behalf of another person, which are then settled to it, have been excluded from the taxation basis, including when the Lessor personally provides the asset subject to a lease and recharges the exact cost of the insurance to the Lessee;

• Amendments are inserted in the rules on the adjustment/reduction of the taxation basis due to the total or partial abolition of contracts for the supply of goods or services before their performance and in the case of total or partial refusals in terms of the quantity, quality or prices of the supplied goods or services;

• Clarifications have been made regarding the adjustments for the VAT on unused services, assets such as stocks and tangible fixed assets, other than those which are considered capital goods, as well as the VAT on capital goods;

• For purchases made ​​by taxable persons not established in Romania and exempted from the registration for VAT purposes in Romania, the tax deduction is justified based on the original invoice and a copy of the decision determining the method of payment of the Value Added Tax applicable to the supplies of goods and/or services performed occasionally;

• The invoices issued between 1 January 2009 and 31 December 2013, inclusive, that have not been paid off in full/part by the date of the reimbursement application may be included in a reimbursement application submitted by 30 September 2014, without requiring any proof of payment of the invoice.

Excise Duties and Other Special Taxes

• Additions have been made in terms of the basis of calculation used for the excise duties owed for other excisable products (non-harmonized excise duties);

• It is stated that economic operators also benefit from the return regime on request for certain products for which non-harmonized excise duties are paid and which are purchased directly by them from a Member State or are imported, which are subsequently exported, and delivered to another Member State or returned to the suppliers without any changes;

• Specifications are inserted on the chargeability of the excise duties applicable to certain products for which non-harmonized excise duties are paid and which are supplied under a consignment contract;

• The rules on the conversion into RON of the amounts denominated in EUR change in the case of the excise duties and the tax on crude oil from the domestic production. The Ministry of Public Finance communicates on its website how to determine the RON value of the excise duties and the tax on crude oil from the domestic production, no later than by the 20^th of October of each year ;

• The provisions relating to the calculation of the excise duties on beer are amended;

• The provisions relating to the alcohol produced in individual households are amended;

• The provisions on the excise duties owed for own consumption of electricity and the electricity consumption used to maintain the capacity to produce, transport and distribute electricity are supplemented;

• The rules on the exceptions to the excise taxation for energy products and electricity are amended and supplemented;

• The provisions relating to the production and processing of excisable goods to be carried in a tax warehouse are amended;

• The provisions on exemptions from excise duty for energy products and electricity are supplemented;

• The provisions relating to products not covered by the marking system are supplemented.

The Decision no. 77/2014 amending and supplementing the Detailed Rules enforcing Law no. 571/2003 on the Tax Code, as approved by the Government Decision no. 44/2004, was published in the Official Gazette no. 108 of 12/02/2014 and comes into force after its publication in the Official Gazette except certain specifically indicated provisions.

This methodology establishes the method of calculating the contributions and taxes that taxpayers have to declare and pay to the Environmental Fund.

According to this Order, waste generators (individuals or legal entities who are not authorized collectors and/or recovery agents under the law) are required to pay the 3% contribution of the income derived from the sale of ferrous and nonferrous scrap metal, including goods for dismantling.

Furthermore, the obligation to calculate, withhold, declare and transfer to the Environmental Fund the aforementioned contribution is the responsibility of the economic operators performing waste collection and/or recovery activities.

The sale of waste by the waste generators to the economic operators who act as collectors/recovery agents is performed based on the invoice/receipt and payment certificate, subject to withholding the 3% contribution when paying the amount owed to the waste seller, excluding VAT.

The contribution to the Environmental Fund shall be declared and paid on a monthly basis by the 25^th of the month following the month in which the activity took place.

The Order no. 192/2014 amending the Order of the Minister of Environment and Water Management no. 578/2006 approving the Methodology for calculating the contributions and taxes payable to the Environmental Fund was published in the Official Gazette no. 129 of 21/02/2014.