The Diesel used as motor fuel has been established as being subject to a separate level of excise duties in view of:

• The road freight using motor vehicles/vehicle combinations intended exclusively for the carriage by road of goods with a maximum permissible gross weight of at least 7.5 tones;

• The regular or occasional passenger transport, excluding public passenger transport.

The differentiated level will be achieved by reducing the standard level stipulated for Diesel oil of 473.85 Euros for 1,000 liters, or 400.395 Euros per ton, respectively, by 40 Euros per 1,000 liters, or 47.34 Euros per ton, respectively. The reduction is achieved by the return of the amounts representing the difference between the standard level of the excise duties and the differentiated level of the excise duties to the economic operators licensed in the European Union.

Emergency Ordinance no. 14/2014 supplementing article 176 of Law no. 571/2003 on the Tax Code^[1]

[1] Published in the Official Gazette, Part I no. 241 of 04/04/2014

The following have changed: the template and content of forms 221 – “Statement on the income derived from agricultural activities taxed according to income tax brackets” and 260 – “Taxation decision for the advance payments in respect of the income tax/social security health contributions and the payment liabilities in respect of the social security contributions” specified in Title III of Law no. 571/2003 on the Tax Code.

Order no. 530/2014 approving the template and content of certain forms stipulated under Title III of Law no. 571/2003^[2]

[2] Published in the Official Gazette, Part I no. 247 of 07/04/2014

The amendments and additions related to the procedure of settlement of the receivable VAT returns with a refund option have been approved.

The amendments mainly cover the following:

• The repayment applications filed for the same legal term of submission are subject to the procedure of settlement in the chronological order of their registration;

• The anticipated tax audit for the settlement of one or several receivable VAT returns with a refund option, for the same taxpayer, may be completed even if for the relevant taxpayer another tax audit for an earlier period is in progress;

• New items have been added in terms of the stages of compliance with the tax risk category;

• In the case of the returns that pose a low tax risk, the tax authority issues the repayment decision within a maximum of 5 days after the date of submission of the return;

• In the case of the taxpayer who gives up the refund option, after having been classified as posing a high tax risk, and if the anticipated tax audit has not started, the tax inspection department shall give back the VAT return to the administration body;

• In the case of the taxpayer giving up the refund option, after having been classified as posing a high tax risk and if the anticipated tax audit has started, it will be continued and completed as a partial VAT tax inspection.

The specified amendments apply starting from:

• The VAT returns for March of 2014 for taxpayers who use the month as a VAT tax period;

• The VAT returns for the first quarter of 2014 for taxpayers who use the quarter as a VAT tax period;

• The VAT returns for the first half of 2014 for taxpayers who use the half year as a VAT tax period;

• The VAT returns for 2014 for taxpayers who use the year as a VAT tax period.

The Order no. 491/2014 amending and supplementing the procedure of settlement of the receivable Value Added Tax returns with a refund option^[3].

[3] Published in the Official Gazette, Part I no. 249 of 07/04/2014

A new article on the exemption from tax of the reinvested profit has been added to Law no. 571/2003 on the Tax Code.

Thus, the profit invested in process equipment deemed to be new – machinery, plant and work equipment - used for the purpose of conducting the economic activity is exempted from tax.

It is important to note that the profit tax exemption related to the investments made is granted subject to the limit of the profit tax owed for that period.

The amount of the profit for which the profit tax exemption was enjoyed less the part corresponding to the legal reserve shall be distributed at the end of the financial year, with priority for establishing the reserves up to the amount of the accounting profit recorded by the end of the financial year. If an accounting loss is recorded, the profit tax related to the invested profit shall not be recalculated, and, consequently, the taxpayer shall not distribute the amount of the invested profit to reserves.

In order to benefit from this facility, taxpayers are required to keep the relevant equipment in the corporate assets for a period at least equal to half of the economic useful life, as determined according to the governing accounting regulations, but not less than 5 years.

Warning:

• If the set condition is not met, the profit tax shall be recalculated for the relevant amounts and ancillary tax receivables shall be levied starting from the date of application of the facility;

• There are certain pieces of equipment that do not fall within the scope of this facility (e.g.: equipment transferred as part of reorganization operations, or equipment that is sold as part of the bankruptcy proceedings, etc.);

• Taxpayers benefiting from this facility may not opt for the accelerated depreciation method for the equipment in question.

The facility applies to the profit reinvested in process equipment and/or equipment purchased after 1 July 2014 and commissioned on 31 December 2016 inclusive.

The Emergency Ordinance no. 19/2014 amending and supplementing Law no. 571/2003 on the Tax Code^[4]

[4] Published in the Official Gazette, Part I no. 308 of 25/04/2014

The deadline for the submission of applications requesting State aid for the Diesel oil used in agriculture has been extended.

Thus, agricultural producers who have not submitted applications for 2014, according to the statutory term by 31 December 2013, may submit applications between 5 May 2014 and 10 June 2014, inclusive.

Decision no. 319/2014 supplementing article 5 of the Government Decision no. 763/2013 approving the detailed regulations for granting State aid for the Diesel oil used in agriculture^[5]

[5] Published in the Official Gazette, Part I no. 308 of 25/04/2014

The Romanian Classification of Occupations (RCO) has been supplemented with the descriptions and occupations associated with the newly added groups, according to the International Standard Classification of Occupations.

The Order supplementing the Romanian Classification of Occupations – occupation level (six characters), as approved by the Order of the Minister of Labour, Family and Social Protection and the President of the National Institute of Statistics no. 1.832/856/2011^[6]

[6] Published in the Official Gazette, Part I no. 245 of 07/04/2014

For public sector employees, the date of 2 May 2014 is designated as a day off.

For the day designated as a day off, the public institutions will operate normally on 26 April 2014 or will appropriately extend their opening hours, until 31 May 2014, according to the established schedules.

Decision no. 243/2014 designating 2 May 2014 as a day off^[7]

[7] Published in the Official Gazette, Part I no. 245 of 07/04/2014

The mandatory elements that must be included in the initial offers proposed for trading on the Market of Green Certificate Bilateral Agreements have been amended.

Please note that the price proposed in the offer may be fixed for the entire period of validity of the Green Certificate Bilateral Agreement or it may be expressed as a calculation formula that contains only definite or determinable terms based on public data, subject to explaining each term.

Order no. 25/2014^[8]

[8] Published in the Official Gazette, Part I no. 247 of 07/04/2014

Starting from the application period of 24 March – 23 April 2014 the interest rate paid for the minimum mandatory reserves in RON is 0.47% a year and the interest rate paid for the minimum mandatory reserves in U.S. dollars is 0.18% a year.

Circular no. 13/2014^[9]

[9] Published in the Official Gazette, Part I no. 279 of 16/04/2014

The Charter of the rights and obligations of the individual subjected to a tax audit has been approved.

The duration of the verification of the individual’s personal tax situation with respect to the income tax is set by the tax authority and may not be longer than 6 months or 12 months, respectively, in case information from abroad is needed.

Prior to conducting the tax audit, the taxpayer is notified of this action by way of a verification notice submitted in writing by the tax authority at least 15 days before the start of the tax audit. Subsequent to receiving the notice, the taxpayer has 60 days, under penalty of forfeiture, to submit the supporting documents to clarify his/her personal tax situation.

The 60 days’ period during which the taxpayer must submit the documents may be extended only once, with a 30 days’ period.

The taxpayer may postpone the tax audit only once, following a written request, subject to providing the reasons for the request.

Order no. 544/2014 approving the Charter of Rights and Obligations for the Individual subjected to the Tax Audit^[10]

[10] Published in the Official Gazette, Part I no. 270 of 11/04/2014