Form 108 is replacing the former template of the Annual return for regarding the tax for representative offices.
The new form will be filled-in using the assistance program, its submission being mandatory by the last day of February (inclusively) of the tax year. The new form is to be applied starting with the 2018 tax liabilities.
Approving the template and the content of Forms 010, 015, 016, 020, 030, 040, 050, 060, 061, 070, 700, Registration certificate for VAT purposes, Tax registration certificate
Order of the President of the National Agency for Tax Administration no. 3.725/19 December 2017 for the approval of the taxpayers’ tax registration forms and the types of tax liabilities that form the tax vector published in the Official Gazette no. 1027/ 27 December 2017
The Order approves the template and the filling-in instructions of the following forms:
Form 010 – “Tax registration statement / Statement of specifications for legal entities, associations and other entities without legal personality”
Form 015 – “Tax registration statement/ Statement of additional specifications/ Statement of de-registration for non-residents without permanent establishment in Romania”
Form 016 – “Tax registration statement/ Statement of additional specifications / De-registration statement for foreign legal entities having the place of exercise of the actual management in Romania”
Form 020 – “Tax registration statement / Statement of additional specifications for Romanian and foreign natural persons holding a personal identification number”
Form 030 – “Tax registration statement / Statement of additional specifications for natural persons not holding a personal identification number”
Form 040 – “Tax Registration Statement / Statement of additional specifications / Statement of de-registration for public institutions”
Form 050 – “Application for registration / change of the taxpayer’s domicile”
Form 060 – “Tax registration statement / Statement of additional specifications / De-registration statement for the secondary establishments”
Form 061 – “Declaration to register secondary offices”
Form 070 – “Tax Registration Statement / Statement of specifications / De-registration statement for individuals carrying out independent economic activities or liberal professions”
Form 700 – “Statement for registering/changing electronically the categories of tax obligations registered in the fiscal vector”
Registration certificate for VAT purposes
Tax registration certificate
The main amendments were brought to the tax registration forms and refer to the contribution sections due by employee / employer, in order to be aligned with the new provisions brought by GEO no. 79/2017. Namely, sections 4.4 – 4.9 from the old form were removed and were replaced by sections 4.4. ‘Social security contribution (due by the employee)’, 4.5. ‘Health insurance contribution (due by the employee)’ and 4.6. ‘Insurance contribution for work (due by the employer)’.
The amendment of the tax vector is performed, at the initiative of the relevant tax authority, by 15 January 2018.
Approving the template and the content of Form 013
Order of the President of the National Agency for Tax Administration no. 3.769/22 December 2017 regarding the amendment of appendix no. 2 of Order no. 3.140/2016 for the approval of the Procedure for tax registration of non-resident taxpayers that carry out activity in Romania through one or more permanent establishments, as well for the approval of the template and the filling-in instructions of Form 013 “Tax registration statement / Statement of additional specifications / De-registration statement for non-resident taxpayers who carry out activity through one or more permanent establishments” published in the Official Gazette no. 1033/28 December 2017
Amendments brought refer to the contribution sections due by employee / employer, in order to be aligned with the new provisions brought by GEO no. 79/2017. Namely, sections 4.4 – 4.9 from the old form were removed and were replaced by sections 4.4. ‘Social security contribution (due by the employee)’, 4.5. ‘Health insurance contribution (due by the employee)’ and 4.6. ‘Insurance contribution for work (due by the employer)’.
The amendment of the tax vector is performed, at the initiative of the relevant tax authority, by 15 January 2018.
Approving the template and the content of Forms 100 and 710
Order of the President of the National Agency for Tax Administration no. 3.781/22 December 2017 amending and completing Order no. 587/2016 for the approval of the template and content of Forms 100 and 710 published in the Official Gazette no. 1037/28 December 2017
The Order amends the nomenclature of Form 100 regarding the payment obligations towards the State Budget (i.e. five new codes regarding the income tax are introduced).
The Forms approved by the Order (100 and 710) are applicable starting with the 2018 tax liabilities and are to be submitted exclusively by electronic means for transmission at distance.
Income tax
Immigration in Romania
Government’s Decision no. 891/2017 amending Government Ordinance no. 35/2017 related to the work authorization quotas for third country citizens allowed on the Romanian labor market for year 2017
The work authorization quotas for the year 2017 are increased to the following figures:
permanent workers – 5000;
posted workers – 1700.
Government’s Decision no. 946/2017 related to the work authorization quotas for third country citizens allowed on the Romanian labor market for year 2018
The work authorizations quotas for the year 2018 are set as follows:
permanent workers – 4000;
posted workers – 1200;
inter-company posted workers – 700;
highly qualified workers – 500;
seasonal workers – 400;
trainee workers – 100;
cross-border workers – 100.
Government’s Emergency Ordinance no. 32/2017 modifying Law no. 186/2016 introducing certain measures for ensuring certain categories of individuals in the public pension system
The Government’s Emergency Ordinance no. 32/2017 extends the deadline to 31 December 2018 (previously the deadline was 31 December 2017) for individuals who have not been contributing to the Romanian public pension system for the last 5 years to retroactively contribute to the said system and to pay the related pension contribution for the pension coverage history purposes.
The relevant payments can be performed either in full or on a monthly basis, until 31 December 2018.
Orders no. 3.726/2017 and 3.780/2017 of the National Agency for Tax Administration regarding the approval of the templates and filling-in instructions for certain forms used in administration of the individual income tax and social charges
The mentioned Orders approve the templates and filling-in instructions for the following forms: 201, 205, 207, 220, 221, 222, 223, 224, 256, 257 and 260.
Draft of Government’s Emergency Ordinance for modifying Law no. 241/2005 for preventing and fighting tax evasion and for modifying other legal provisions
The mentioned Draft provides that failure to withhold and/or pay certain taxes and social charges can be criminally prosecuted, as tax evasion. Please refer to our Tax Alert no. 39 for additional details.
Order no. 4.140/2017 of the National Agency for Tax Administration regarding the approval of the templates and filling-in instructions of forms concerning the social security and health fund contributions due by certain individual taxpayers
The Order approves the template and filling-in instructions for forms 600 („Statement regarding the income on which social security contribution is due and regarding reaching the income level representing the minimum ceiling for being liable for health fund contribution”) and 610 („Tax decision regarding the assessment of social security contribution and health fund contribution for individuals”).
Starting with the year 2018, form 600 must also be filed for establishing the health fund contribution liabilities for individuals earning the following types of income, cumulatively, during the previous tax year:
self-employment income
income from individuals in joint-ventures with legal entities, taxpayers according to titles II and III or Law no. 170/2016, for which the provision of art. 125 apply
rental income
investment income
income from agricultural, fishery and forestry activities
income from other sources
exceeding 12 minimum gross national wages.
Previously, this form was used solely for the purpose of determining the social security liabilities of self-employed individuals.
The deadline to file this statement, for the current year, is 31 January.
VAT
Decision considering it is essential to strengthen the European Commission’s partnership with EU Member States in identifying the most appropriate approach for creating a common and efficient VAT system.
Decision on the adoption of the opinion on the Commission’s communication to the European Parliament, the Council and the European Economic and Social Committee: Follow-up to the VAT action plan – towards a single VAT area in the EU – COM (2017) 566, published in Official Gazette 990 of 13 December 2017
The decision adopted by the Chamber of Deputies supports the modernization and revision of the current VAT system in the context of efforts to create a single European solid VAT area but considers it is necessary to take a cautious approach as the capacity of national tax administrations is different and the implementation of such a system would require more cooperation between EU Member States tax administrations.
As the VAT system is a major source of revenue for EU Member States, and the current VAT system no longer meets the needs of a modern economy based on the technological advancement mostly based on services, the Romanian state is of the opinion that it is appropriate to modernize the current VAT system.
Among the appropriate measures we mention:
E-invoicing (real-time data collection on VAT transactions)
Unique Office (introduction of an EU-wide portal for on-line VAT payment)
Ensure that VAT is paid in the Member State of the final consumer, giving rise to a fairer distribution of tax revenue between Member States
Recommends identifying proactive solutions against VAT fraud, one way would be to establish an obligation for tax authorities across the Union to alert taxable entities that they are trading in a chain where fraud was discovered.
Decision regarding simplification of certain rules in the field of the VAT system and introduction of a definitive system of trade taxation between Member States.
Decision on the adoption of the opinion on the proposal of the Council Directive amending Directive 2006/112 / EC as regards the harmonization and simplification of certain rules in the field of the VAT system and the introduction of a definitive system of taxation of trade between Member States – (COM 2017) 569, published in the Official Gazette no. 990 of 13 December 2017
The decision supports the modernization and revision of the current VAT system in the context of efforts to create a single European solid VAT area, but considers it is necessary to take a cautious approach as the capacity of national tax administrations is different and the implementation of such a system would require more cooperation between EU Member States’ tax administrations.
It is also noted that the European Commission’s proposal introduces the concept of a certified taxable person and the general criteria for designating it, thereby confirming certain undertakings as trusted taxpayers.
Order that establishes a new form for the implementation of a single fiscal group and also some minor modifications of the previous Order.
The Order of the President of the National Agency for Fiscal Administration for amending and completing the Order of the President of the National Agency for Fiscal Administration no. 3006/2016 approving the procedure for the implementation and administration of the single fiscal group, as well as for approving the model and content of some forms, published in the Official Gazette no.995 of 14 December 2017
The Order amends the old form and establishes a new form for the implementation of a single fiscal group.
Also, a new article, 501 was added, detailing that paragraphs 48 and 49 of the single fiscal group implementation and administration procedure shall not apply when there is a change in the structure of the group, in case one of the members of the group is a large taxpayer.
Senate’s decision which states that the proposal to harmonize and simplify the VAT system respects the subsidiarity and proportionality principles.
Decision adopted by the Senate of Romania on the proposal of the Council Directive amending Directive 2006/112 / EC as regards the harmonization and simplification of certain rules in the VAT tax system and the introduction of the definitive system of taxation of trade between Member States – COM (2017), published in the Official Gazette no. 1003, of 18 December 2017.
The Senate’s decision considers that the proposal to amend Directive 2006/112 / EC regulating the VAT system respects the subsidiarity and proportionality principles because any initiative on the cross-border trade implies an approval from the Commission, and the proposed amendments address a limited and restricted number of norms in VAT matters.
Law approving the split VAT payment system, introducing a series of changes to the initial version
Law 275/2017 for the approval of Government Ordinance 23/2017 regarding the VAT split payment mechanism, published in Official Gazette no.1036 of 28 December 2017.
The main changes to the VAT split payment mechanism are detailed in the tax alert no. 39 as follows:
VAT registered persons falling under one of the following situations are required to open and use at least one VAT account:
On December 31, 2017, tax liabilities amounting to VAT are higher than 15,000 lei for large taxpayers, 10,000 lei for medium taxpayers and 5,000 lei for other taxpayers, if these obligations are not paid until 31 January 2018. Unless the forced execution of the obligations is suspended based on Article 235 of the Tax Procedure Code.
Starting January 1, 2018, the tax liabilities are represented by outstanding VAT, not paid within 60 working days from the due date, of more than 15 000 lei for large taxpayers, 10 000 lei for medium taxpayers and 5 000 lei for the rest of taxpayers. Unless the forced execution of the obligations is suspended based on Article 235 of the Tax Procedure Code.
It is subject to national legislation on insolvency and insolvency prevention procedures.
The law provides rules for exiting the VAT split payment mechanism.
Also, certain operations have been specifically excluded from the applicability of the VAT split payment mechanism such as:
· payments performed on behalf of another person
· financing granted by credit institutions and non-banking financial institutions in case of assignment of receivables
· payments in kind
· compensations
The fine of 50% of the amount erroneously paid to a another account than the VAT account was replaced with a fine of 0,06% / day
Customs
Order approving a series of forms to be submitted through the electronic system
Order of the President of the National Agency for Fiscal Administration on the use of the customs decision system, published in the Official Gazette no. 1014 of 21 December 2017
The Order approves that the transmission and processing of the requests as well as the subsequent issuance and subsequent management of the customs authorizations, such as modification, revocation, cancellation and suspension, shall be carried out through the electronic customs decision system, developed at the level of the European Union and made available to the economic operators and the Customs authorities by the European Commission.
The Order establishes a series of applications for authorizations to be submitted electronically, but also a number of exceptions.
