Last-minute changes to tax law

The series of changes to the tax legislation seems to never end.  The latest regulations refer to aspects related to mandatory social security contributions.

Monitorul Oficial al Romaniei No 36 / 16 January 2013 has published Order No 17 / 13 January 2013 of the President of the National Tax Administration Agency, which approves the Procedure for the registration of arrangements on the declaration and payment of social security contributions, concluded between non-resident employers and resident or non-resident natural entities carrying on their activity in Romania and obtaining income from salaries, and regulates some procedural aspects.

The Order contains new regulations regarding the fulfilment of obligations in respect to the declaration and payment of social security contributions incumbent on natural entities who:

work in Romania and obtain income from salaries paid by employers established in states that are not subject to European Union regulations regarding the coordination of social security systems, or in states with which Romania has concluded no conventions / agreements in the sphere of social security;

– achieve income from salaries paid by non-resident employers that have no head office or representative office registered in Romania and must pay social contributions for their employees in compliance with international legal instruments to which Romania is a party;

– obtain income from salaries deriving from their activity with diplomatic missions and consulates accredited to Romania.

These provisions have become effective on 16 January 2013 (the date of their publication in Monitorul Oficial).

TAX ALERT by Mazars Consulting / MAZARS ROMANIA

* Note: You may find Romanian, German and French versions of the newsletter in Mazars’ archive

* TAX ALERTcontains a selection of the latest major issues occurred in the Romanian legislative framework, is intended only to provide information and, hence, shall not be deemed to provide professional advice or consultancy.  Therefore, we assume no responsibility in this respect.

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