Amendments and Additions to the Tax Code

Provisions are added relating to the special deduction for restructured loans, a facility granted to individuals.

The special deduction may be granted for a single approved restructuring of an individual for one or several loans, subject to certain conditions, including:

-  Only loans that have no late payments or that are no more than 90 days’ overdue are eligible;

- The Debtor’s monthly obligations may be reduced by up to 35%, but not more than RON 900 or its equivalent, for a period not exceeding two years.

Taxpayers deriving gross income under RON 2,200 a month for the basic function are eligible.

In addition to the foregoing, provisions have also been added on granting special deduction for loans in the case of taxpayers who derive income from pensions or those who derive income from pensions and salaries”.

Emergency Ordinance no. 46/2014 amending and supplementing Law no. 571/2003 on the Tax Code [1]

[1] Published in the Official Journal, Part I no. 475 of 27/06/2014

Regulation for the Implementation of the Green Certificate Promotion System

The new Regulation of accreditation of producers of electricity from renewable energy sources has been published for the application of the green certificate promotion system. This Regulation replaces the one issued under the Order no. 42/2011 of ANRE (National Regulatory Authority for Energy).

Order no. 48/2014 regarding the approval of the Regulation of accreditation of producers of electricity from renewable energy sources for the application of the green certificate promotion system [2]

[2] Published in the Official Journal I no. 477 of 28/06/2014

The Approval of the Form and Content of Certain Forms

The form and content of the following forms have been approved:

• “Application of annulment of tax liabilities”;

• “Tax Certificate";

• “Decision of annulment of the tax liabilities managed by the National Agency for Fiscal Administration”.

The Order no. 1731/2014 for the approval of the models of certain forms issued under the Government Emergency Ordinance no. 25/2014 on certain measures for reducing the budget arrears of certain economic operators from the defence industry and the regulation of other tax and budget measures ^[3]

[3] Published in the Official Journal I no. 489 of 01/07/2014

State Aid Schemes for Companies in the Power Sector

The State aid scheme aims at exempting a percentage of the amount of electricity delivered to electro-intensive industrial consumers by certain suppliers and electricity producers from the purchase of green certificates.

More specifically, according to the electro-intensity of the relevant undertakings, the beneficiaries shall pay the following percentages of the number of green certificates corresponding to the mandatory quota:

a) 15% in the case of an electro-intensity greater than 20%;

b) 40% in the case of an electro-intensity ranging between 10 and 20%;

c) 60% in the case of an electro-intensity ranging between 5 and 10%.

According to the originally issued legislative document, the facilities will be applicable starting from 1 August 2014.

However, based on a subsequent legislative Decision, this term was extended until 1 October 2014.

Decision no. 495/2014 for the establishment of a State aid scheme exempting certain categories of end users from the application of Law no. 220/2008 on establishing the system of promotion of energy production from renewable energy sources ^[4]

[4] Published in the Official Journal, Part I no. 500 of 04/07/2014

Decision no. 620/2014 on the extension of the term of entry into force of the Government Decision no. 495/2014 for the establishment of a State aid scheme exempting certain categories of end users from the application of Law no. 220/2008 on establishing the system of promotion of energy production from renewable energy sources ^[5]

[5] Published in the Official Journal, Part I no. 573 of 31/07/2014

Amendments relating to the Forms used for Tax Payment

Additions have been made to the Instructions for filling in Form 100 “Declaration on the State budget payment liabilities”. The amendments, in particular, cover the introduction of new tax receivables and clarifications on filling in Form 100.

Order no. 1703/2014 amending and supplementing the Order of the President of the National Agency for Fiscal Administration no. 1.950/2012 approving the form and content of the forms used to declare self-assessment or withholding taxes ^[6]

[6] Published in the Official Journal, Part I no. 510 of 09/07/2014

Provisions relating to the VAT Exemption

Adjustments have been made ​​to the Instructions for the application of the VAT exemption for certain operations that fall within the scope of the tax so as to harmonize them with the provisions of the Tax Code. Moreover, the notion of “offshore” used within them has been defined.

Order no. 917/2014 regarding the amendments and additions of the Instructions for the application of the VAT exemption for transactions referred to in article 143, paragraph (1), letters a) – i), article 143, paragraph (2), and article 1441 of Law no. 571/2003 regarding the Tax Code, as subsequently amended and supplemented, approved by the Order of the Minister of Public Finance no. 2.222/2006 ^[7]

[7] Published in the Official Journal, Part I no. 528 of 16/07/2014

The Technical Regulation for the Implementation of the Community/Common Transit Procedure

The new Technical Regulation for the application of the Community/common transit procedure has been published. This Regulation replaces the previous Regulations approved under the Order of the Vice President of the National Agency for Fiscal Administration no. 3.000/2009.

Order no. 1421/2014 approving the Technical Regulations for the application of the Community/common transit procedure ^[8]

[8] Published in the Official Journal, Part I no. 529 of 16/07/2014

Procedures for the Implementation of Certain Provisions of the Tax Procedure Code

Procedures have been published on declaring inactive taxpayers, and reactivating inactive taxpayers, and correcting material errors, the same as the procedure for removing deregistered taxpayers from the records of inactive taxpayers.

The following forms have also been published:

• Inactivity declaring decision,
• Reactivation decision,
• Material error correcting decision,
• Decision to reject the application for reactivation/correction of the material error,
• Notice of fulfilment of the conditions for declaring the inactivity,
• Notice of discrepancies between the provided documents and the tax records,
• Opinion on the proposal for the declaration of inactivity/reactivation/correction of the material error for tax audit bodies,
• Opinion on the proposal for the declaration of inactivity/reactivation/correction of the material error for the Directorate-General for Tax Anti-Fraud.

Order no. 1847/2014 approving the procedures of implementation of article 781 of the Tax Procedure Code, and also approving the form and content of certain forms ^[9]

[9] Published in the Official Journal, Part I no. 535 of 18/07/2014

The Approval of the Accounting Reporting System as at 30 June 2014

The reporting system shall apply to persons who, in the previous financial year, achieved a turnover of more than RON 220,000 and who enforce the Accounting Regulations in line with the International Financial Reporting Standards, as well as those who enforce the Accounting Regulations in line with Directive IV of the European Economic Communities. The provisions shall also apply to entities that have opted for a financial year different from the calendar year.

Compared to the previous applicable reporting system, clarifications have been made in terms of how to report if a legal person established abroad operates in Romania through several permanent establishments.

Moreover, clarifications have also been made on the NACE code declared in the case of subunits without legal personality in Romania belonging to legal entities established abroad. The following have also been published:

• The classification – forms of ownership,
• The structure of the Form “Statement of assets, liabilities and equity”,
• The structure of the Form “Profit and Loss Account”,
• The structure of the Form “Data for information purposes”,
• The structure of the Form “Statement of income and expenses”.

Order no. 936/2014 approving the Accounting Reporting System as at 30 June 2014 for economic operators^[10]

[10] Published in the Official Journal, Part I no. 540 of 21/07/2014

Forms used to certify Excise Duty Payment

Amendments have been added designed to widen the scope of the Certificate attesting the payment of the excise duties for covering the intra-Community acquisition of weapons.

Order no. 2280/2014 amending and supplementing the Order of the President of the National Agency for Fiscal Administration no. 3.361/2013 for the approval of the form and content of certain forms used in the certification of the payment of the excise duties for vehicles purchased within the Community. [11]

[11] Published in the Official Journal, Part I no. 560 of 29/07/2014