FiNNEWS Legislative, no.8, 2017
- Thursday, 3 August 2017
- The stamping of declarations, requests, contracts or other documents submitted to the customs authorities is no longer mandatory
- Modification of the declarations 208 and 209
- Amendments related to the completion of the payment orders for the state treasury
- Order on the completion of the procedure for correcting the errors contained in the financial statements submitted by the economic operators and non-profit legal persons
- Order for approval of form 630
- Law no. 177 for the modification and completion of the Tax Code
- Ordinance no. 4/2017 concerning the modification and completion of the Tax Code
- Ordinance for the extension of the term for the entry into force of the procedure on the insolvency of natural persons
- OCDE guidelines concerning the transfer prices 2017 have been published
The stamping of declarations, requests, contracts or other documents submitted to the customs authorities is no longer mandatory
The Government Emergency Ordinance no. 49/20171 concerning the elimination of the obligation to stamp the declarations, requests, contracts or other documents submitted to the customs authorities.
The stamping of the declarations, requests, contracts or any other documents or acts submitted to institutions or public authorities or issued or concluded in relation to the institutions or public authorities is not mandatory, both for individuals and for legal persons.
Thus, starting from July 30, 2017, the deed of requiring to natural persons, private legal persons and to the entities without legal personality the stamping of declarations, requests, contracts or any other documents or acts committed by a person in an institution or public authority constitutes disciplinary offence and entails its disciplinary liability.
The measure included in this Government Emergency Ordinance shall apply as of July 30, 2017.
Modification of the declarations 208 and 209
Order no. 1886 of 27 June 20172 for the modification of the template, content and instructions for filling in the forms 208 and 209, approved by Minister of Public Finance and the Minister of Justice Order no. 1.022/2.562/2016.
Following the modifications of the Tax code since 2017, it has been necessary to adapt the forms used in the process of administration of the income tax from the transfer of real estate from personal patrimony.
In case of the form 208 "Informative declaration regarding the income tax from the transfer of real estate from personal patrimony", the following changes have been made:
a) removal of the information on the period for owning the real estate;
b) introduction of the information on taxable income at the level of transaction and the beneficiaries of the income;
c) completion of the information on the translative notarial act of the ownership right for all the transactions included in the form;
d) introduction of the information on the share held by the beneficiaries of the income from the real estate transferred.
In case of the form 209 "Declaration concerning the income from the transfer of real estate from the personal patrimony", the following changes have been made:
a) removal of the information on the period for owning the real estate;
b) introduction of the information on the share held by the beneficiary of the income from the real estate transferred;
c) declaration of the transaction value included in the transfer document in order for the tax body to determine the taxable income according to law.
Amendments related to the completion of the payment orders for the state treasury
Order no. 983/20173 for the modification of the Methodological Norms concerning the utilization and completion of the payment order for the State Treasury.
The payment orders issued for payments ordered from accounts opened with the State Treasury will also include the following information:
• Tax Identification Code of the beneficiary of the amount if it is registered for tax purposes in Romania;
• Tax identification code of the credit institution headquartered in Romania to which the beneficiary of the amount has its account opened or the tax identification code assigned to the State Treasury (8609468) in case when the beneficiary of the amount is not registered for tax purposes in Romania;
• In case of payments to beneficiaries who are not fiscally registered in Romania, other information can also be included (for example: their tax identification code in the country where they are fiscally registered).
Order for completing the procedure for the correction of errors contained in the financial statements submitted by the economic operators and non-profit legal persons
Order no. 995 of 12 July 20171 on the completion of the procedure for correcting the errors contained in the annual financial statements and the annual accounting reports submitted by the economic operators and non-profit legal persons, approved by Ministry of Public Finance no. 450/2016.
The order brings a new modification of the procedure for correcting the errors contained in the annual financial statements and the annual accounting reports, a new type of material error subject to correction by this procedure being added. Thus, the preparation and electronic submission of annual financial statements / annual accounting reports using erroneous data determined also by the processes of extraction and presentation of the information in the databases is deemed to be a material error.
Order for approval of form 630
Order no. 1964 of 30 June 20172 for approval of the form 630 "Annual taxation decision for determining the health contribution and social security”.
The Order approves the template and content of the form 630 "Annual taxation decision for determining the health contribution and social security", as well as its annexes "Situation on the finalization of the social security".
It is used to determine the monthly contribution for health insurance on income from independent activities, income from intellectual property, income from agricultural activities, forestry, fisheries, income from rental and leasing, income from investments and/ or other sources, pensions from another state.
Law no. 177 for the modification and completion of the Tax Code
The law approves GEO 3/20172 which had brought changes to the Tax Code and introduces new modifications and additions. You can find below the main modifications.
The owners’ associations established as legal persons and the tenants’ associations recognized as owners’ associations are taken outside the scope of the income tax, except for those which obtain income from the exploitation of the joint property. The amendment applies from 1 January 2018.
They bring completions in the application of the exemption on reinvested profit tax in case of the taxpayers which pass through the option from microenterprise to corporate tax regime, following the share capital increase to 45,000 lei. Thus, for the application of the facility, the cumulated gross accounting profit is taken into consideration from the beginning of the quarter in which the passage to the tax profit was made, invested in the assets referred to in the article on the exemption of the reinvested profit tax put into operation starting from the quarter in which they became income tax payers.
Starting from 1 October 2017, new situations for which the expenses related to the goods such as stocks or depreciable fixed assets discovered as missing in the inventory or damaged, non-attributable and the deductible VAT are introduced:
· The food for human consumption, with the consumption deadline close to expiry if their transfer is made according to the legal provisions on the reduction of food waste;
· The animal by-products not intended for human consumption, if their removal is performed according to the legal provisions concerning the reduction of food waste;
· The food products, which have become unfit for human or animal consumption, if the directing concerns their transformation into compost / biogas or neutralization, according to the legal provisions on the reduction of food waste.
Microenterprise income tax
It is stipulated that the provisions of Title III “Enterprise income tax” prevail over the provisions of Law 170/2016 on the specific tax.
New modifications concerning the application of the enterprise income tax are introduced. Thus, starting from 1 August 2017 the companies which:
· At December 31, 2016 were tax payers and fulfilled the conditions of the specific tax (Law 170/2016);
· At December 31, 2016 produced revenues between 100,001 EUR and 500,000 EUR, also fulfilling the remaining conditions to be a microenterprise.
are obliged to pay the microenterprise income tax.
The taxpayers are required to amend the tax vector by 25 August 2017. By derogation from the normal deadline for the submission of the declaration 100 (25 July 2017) until 25 August 2017 the specific tax and the profit tax for the period 1 January – 31 July 2017 will also be declared.
Starting from 1 October 2017, for the stabilization of the taxable base of the microenterprise income tax, the income from provisions, adjustments for depreciation or impairment constituted in the period in which the Romanian legal entity was subject to the microenterprise income tax are also deducted. Previously the deduction of such income was allowed only if they had been non-deductible expenses in the calculation of the taxable profit.
Non-taxable income from the perspective of the income tax
The medical services provided in the form of subscription and covered by the employer for its employees are non-taxable income provided that they do not exceed the equivalent in lei of the amount of 400 EUR at the level of one year.
Deductions upon the establishment of the tax on income from salaries
In order to deduce from the gross income, within the limit of 400 EUR in one year, of the voluntary health insurance premiums and of the medical services provided in the form of subscription as defined by Law no. 95/2006 borne by the employees, the insurance contract and the subscription may cover medical services for employees and / or any of their dependents, as these persons are defined in the Tax Code.
Exemption from the payment of the tax related to certain income
The procedure for applying the exemption from the payment of the tax on the standard income in case of natural persons, namely self-employed persons, individual enterprises, family businesses, for the production recovered by/to agricultural cooperatives, will be approved by order of the President of ANAF, with the approval of the Ministry of Agriculture and Rural Development.
Definition of the income from other sources
The allowances for age limit granted under Law no. 357/2015 completing the Law no. 96/2006 on the Statute of Deputies and Senators, and the monthly allowances granted to the persons who have had the capacity of head of the Romanian state, according to Law no. 406/2001 on granting rights to the persons who had the capacity of head of the Romanian state are added to the category of income from other sources.
Income from other sources
The revenues obtained by the natural persons who carry out production, trade, services, liberal professions and income from intellectual property rights, from agricultural activities, forestry and fisheries, other than those for which the provisions of the Tax Code on income from independent activities and income from agricultural activities, forestry and fisheries are applicable will not be subject to the obligation of withholding the income tax by the income payers. The provision is applicable if the natural persons prove the tax registration for this activity by submitting the affidavit to the payers of income at the time of their payment.
Rules concerning the associations without legal personality
References to associations formed between a natural person and a legal person which fall under Law no. 170/2016 on the tax specific to activities have been added to the provisions concerning the associations without legal personality. In such situations, the legal entity will distribute to the natural person a net income/a net loss proportional to the corresponding share of participation.
Value added tax
Since 1 October 2017, the rental, leasing, concession, lease of goods, granting by payment for a certain period of real rights such as beneficial interest and superficies over an immovable property will also enter the category of the services to be carried out continuously, in addition to supplies of natural gas, water, electricity, telephone services, etc.
For all these the delivery of goods / services is deemed to be performed every time stipulated in the contract for the payment of goods /provision of services rendered or, in the absence of such contractual provisions, on the invoice issuance date, but the settlement period cannot exceed one year.
VAT adjustment in case of non-payment of invoices
The provisions of the methodological norms are harmonized with that of the Tax Code regarding the VAT adjustment in case of bankruptcy or application of the provisions of insolvency law. Thus, if the value of the goods delivered or services provided cannot be collected due to the bankruptcy of the beneficiary or as a result of the implementation of a reorganization plan accepted and confirmed by a court judgment, by which the claim of the creditor is modified or eliminated, the adjustment is made within five years from January 1 of the year following that in which the judgment for the confirmation of the reorganization plan was pronounced, namely the court judgment for the closure of the procedure set forth by the insolvency law under penalty of preclusion.
Registration for VAT purposes
It is noted that the tax bodies do not register for VAT purposes the taxable person who present a high tax risk according to the criteria for the tax risk assessment which will be established by Order of the ANAF President.
The provision for the cancellation of the VAT code is eliminated if the company does not justify the intention and the ability to carry out the economic activity, being replaced by the phrase "it presents a high tax risk".
Local taxes and duties
The exemptions or reductions from the payment of the tax/tax on buildings, tax/tax on land, of the tax on transport means shall apply from 1 January of the fiscal year to the persons holding supporting documents issued until 31 December of the previous fiscal year and which are submitted to the specialized departments of the local public authorities until 31 March including.
Ordinance no. 4/2017 concerning the modification and completion of the Tax Code
Ordinance no. 4 of July 20, 20173 brings changes to the Tax Code in the field of social contributions related to part-time employment contracts, which are increased from August 1, 2017, starting with the revenues related to the month of August 2017.
In case of gross monthly earning based on a full-time or part-time individual employment contract, whose level is below the minimum gross national wage, the income taken into account in determining the monthly basis for calculating the social contributions due by the employers or similar persons is the gross minimum wage in force in the country per month for which the social contribution is due, corresponding to the number of working days in the month when the contract was active. These provisions shall not apply to the employed persons who are in one of the following situations:
a) Are pupils and students aged up to 26 years in a form of tuition;
b) Are apprentices, under the law, aged up to 18 years;
c) Are people with disabilities who are legally recognized the opportunity to work less than 8 hours per day;
d) Have the capacity of retired people for the age limit in the public pension system, except for the pensioners for the age limit who receive service pensions based on special laws/ statutes, as well as those who cumulate the pension for the age limit from the public pensions system;
e) Achieves during the same month income from wages or similar to salaries based on two or several equivalent individual employment contracts and the related cumulative monthly calculation basis is at least equal to the gross national minimum wage.
To apply any of the exceptions, the employer must request supporting documents to the individuals in the situations referred to in a), c) and d), and in case of the situation referred to in paragraph e), the application procedure is established by order of the minister of public finance.
Ordinance for the extension of the term for entry into force of the procedure concerning the insolvency of the natural persons
Ordinance no. 6 of 27 July 27 20173 for the extension of the term for the entry into force of Law no. 151/2015 on the procedure of insolvency of natural persons
The Ordinance extends the period of entry into force of the law on insolvency of the natural persons until 1 January 2018.
OCDE guideline concerning the transfer prices 2017 was published
The 2017 edition of the Guidelines on Transfer Pricing issued by the Organization for Economic Co-operation and Development ("OECD Guidelines on Transfer Pricing") has been published.
The 2017 edition includes important updates and substantive modifications which transpose the Actions 8-10 and 13 of BEPS Measure Plan, including related to the reporting for each country (Country-by-Country Reporting).
According to article 11 of the Tax Code, the OECD Guidelines on transfer pricing are used to analyze the transactions between affiliated persons in Romania. Thus, in the future tax, the fiscal inspections performed by the tax authorities in Romania which will have as object the verification of transfer pricing will have to take into account the provisions of the 2017 edition of the OECD Guidelines on Transfer Pricing.