1. Cancellation of Some Tax Obligations
Monitorul Oficial al Romaniei, Part I, No 540 of 20 July 2015 has published Law No 209/2015, regarding the cancellation of some tax obligations (the “Law”).
The Law cancels the remainders of principal tax obligations and the incidental duties that have not been paid until the date of its entry into force, established by the tax authority under decision communicated to the taxpayer in relation to the tax periods ended 1 July 2015 in consequence of:
– the reconsideration / reclassification of an activity as dependent;
– the restatement of the amounts representing the allowance received by employees posted to another country.
The Law also cancels:
– the remainders of the value added tax (VAT) related to the income obtained from intellectual property rights as well as the incidental charges that have not been paid until the date of entry into force of the Law, established for the periods preceding 1 July 2015 by the tax authority under tax decision communicated to the taxpayer as an outcome of such taxpayer’s failure to observe the ceiling and to register as a VAT payer;
– the social health insurance contribution (CASS) and the incidental duties that have not been paid until the date of entry into force of the Law, established by the tax authority under decision communicated to the taxpayer, which should have been paid by individuals whose monthly CASS calculation basis is lower than the National Minimum Wage, in relation to the tax periods spanning 1 January 2012 and the end of the month preceding the date on which the Law has become effective.
The Law provides as follows:
– the tax authority may neither reconsider/reclassify an activity as dependent, nor may it issue a tax decision on such reconsideration/reclassification in relation to the periods preceding 1 July 2015;
– the tax authority may neither restate the amounts representing the allowance received by employees posted to another country, nor may it issue a tax decision on such restatement in relation to the periods preceding 1 July 2015;
– the tax authority may not issue a tax decision on VAT remainders related to the proceeds obtained from intellectual property rights, as an outcome of taxpayer’s failure to observe the ceiling and to register as a VAT payer, or on incidental charges for the periods preceding 1 July 2015;
– with respect to the categories of taxpayers mentioned above, the tax authority may not issue any decision on CASS and incidental duties in relation to the tax periods spanning 1 January 2012 and the end of the month preceding the date on which the Law has entered into force.
In reference to the income achieved from intellectual property rights, the Law contains special provisions for the taxpayers that have exercised their right to deduct VAT in the first VAT return filed after the issuance of the tax decision.
The provisions relating to CASS shall also apply to the individuals who achieve no income.
The aforementioned tax obligations shall be cancelled under a tax annulment decision. If the tax decision has already been issued but has not yet been communicated to the taxpayer, the tax authority shall no longer communicate it to that taxpayer.
Law 209/2015 enters into full force and effect on 23 July 2015.
2. Other Amendments to the Tax Legislation
Monitorul Oficial al Romaniei, Part I, No 540 of 20 July 2015 has also published Government Ordinance No 17/2015 which regulates tax and budgetary measures and amends some legislative acts (the “Ordinance”).
The major amendments contained by the Ordinance refer to the following legislative acts:
a) Government Ordinance No 92/2003, regarding the Tax Procedure Code
– As regards interstate collaboration between public authorities, the National Tax Administration Authority (ANAF) shall be the authority competent to exchange information for tax purposes.
– The Ordinance supplements the provisions referring to the selection of taxpayers for inspection by extending the application of the relevant rules to the inspections requested by other State institutions as well.
– The Ordinance defines the syntagma “outstanding tax obligation.”
– Rules are provided for the compensation of the tax obligations emerging after the date on which insolvency proceedings have been initiated in the case of debtors falling within the scope of the insolvency law and having filed a VAT return evidencing negative amounts with the option for refund after insolvency proceedings have commenced.
– Art.127 referring to the types of guarantees introduces a new type, i.e. the bond insurance, also known as “financial guarantee insurance,” issued by an insurance company.
– The Ordinance introduces special rules for debt enforcement in the case of debtors that have to receive certain, liquid and payable amounts from public institutions or authorities.
– Art.1481 is so amended as to offer taxpayers the possibility to obtain suspension of enforcement by submitting a letter of guarantee / bond insurance policy during administrative proceedings as well.
– With regard to the provisions of Art.149 referring to enforcement of the amounts due to debtors, the Ordinance provides for a three (3)-day term within which banks should pay the amounts maintained unavailable in the account indicated by the enforcement authority. This provision shall apply to garnishments created after the entry into force of the Ordinance.
– Taxpayers applying to ANAF for the release of certificates or other documents shall be exempted from the payment of extrajudicial stamp duties.
b) Government Emergency Ordinance No 28/1999, regarding economic operators’ obligation to use electronic cash registers
– In order to monitor electronic cash registers, the new deadline which should be observed by ANAF for the publication of the methodological norms relative to the connection of such registers to the national information technology system for tax data surveillance and monitoring is 1 August 2017.
c) Government Emergency Ordinance No 91/2014 on amending and supplementing Government Emergency Ordinance No 28/1999, regarding economic operators’ obligation to use electronic cash registers
The electronic cash registers equipped with paper roll will be replaced by those provided with ledger software, as follows:
– the Commission authorising the distributors of technically approved electronic cash registers will certify, starting 1 April 2016, only the distributors of electronic cash registers provided with ledger software;
– starting 1 July 2016, the sale of electronic cash registers (with paper roll) as defined by Art.3 (1) of Government Emergency Ordinance 28/1999 shall be forbidden, while taxpayers shall use only electronic cash registers provided with ledger software, as defined by Art.3 (2) of the aforesaid Ordinance, with effect from:
• 1 October 2016, in the case of large taxpayers;
• 1 January 2017, in the case of medium-sized taxpayers; and
• 1 May 2017, in the case of small-sized taxpayers.
The provisions of Government Ordinance 17/2015 come into force on 23 July 2015, excepting the provisions mentioned to become effective at subsequent dates.
TAX ALERT by Duncea, Stefanescu & Associates / DS Tax Advisory Services
Member of MARCALLIANCE: www.marcalliance.com
Tax Alert contains 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. Should you require any information related to the foregoing, please do not hesitate to contact us.
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