Fiscal Code. Amending provisions related to independent activities

In the Official Gazette of Romania, Part I, no. 499 / 07.07.2015 was published Law no. 187/2015 approving Government Emergency Ordinance no. 6/2015 for amending and supplementing Law no. 571/2003 regarding the Fiscal Code (Law no. 187/2015).

The main changes concern:

1. Dependent activity

The provisions regarding the criteria by which a business is reclassified as dependent activity are repealed, as well as the provisions related to individuals who owe income tax and mandatory social contributions in the event of such reclassifications.

2. Independent activity

The definition of the independent activity is amended. Under the new provisions, independent activity is the work undertaken by an individual in order to obtain revenue, which meets at least four of the seven criteria. The seven criteria are:
– the freedom to choose the place and the manner in which an activity is going to be performed, as well as the working program;
– freedom to operate for more customers;
– the risks inherent in the business are to be assumed by the individual who undertakes the activity;
– the individual uses his own assets;
– work is performed by the individual through use of intellectual and / or physical performance thereof;
– the individual is part of a professional body / order having a representation, professional regulation and supervision role carried out for that undertaken activity;
– the freedom to conduct the business directly, with employess or in collaboration with third parties.

Other changes relate to:
– art. 11 – transactions without economic purpose;
– art. 127 – quality of individual who is taxable /not taxable from a VAT perspective of public institutions and public international bodies;
– art. 140, para. 2 lit. h) – the application of a reduced VAT rate of 9% for “restaurant and catering services, excluding alcoholic beverages other than beer, falling within CN code 22 03 00 10″(these provisions come into force within 30 days from the publication of Law no. 187/2015 in the Official Gazette);
– art. 206^10 – beer excise duties (these provisions come into force within 30 days from the publication of Law no. 187/2015 in the Official Gazette).

Law no. 187/2015 has entered into force on 10 July 2015, except for the articles mentioned as coming into force at a later date.

:: The Source: JURIDICE.ro

Adina Elena OPREA
Junior Lawyer

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