Amendments brought to the Fiscal Code
Law no.177/2017 for the approval of the Government Emergency Ordinance no. 3/2017 for amending and completing Law no. 227/2015 regarding the Tax Code, published in the Official Gazette no. 584/21 July 2017
Ordinance no. 4/2017 for amending and completing Law no. 227/2015 regarding the Tax Code, published in the Official Gazette no. 598/25 July 2017
Please refer to Tax Alert no. 16/July 2017 for more details.
Income Tax
Approval of the List of independent activities for which the net income can be determined based on annual income quotas
Order of the Ministry of Public Finance no. 925/2017 on the approval of the List of independent activities for which the net income can be determined based on annual income quotas, activities performed by taxpayers who derive income from production, trade and services, published in the Official Gazette no. 519 of 4 July 2017
Order no. 925 of the Minister of Finance approves the List of independent activities for which the net income can be determined based on annual income quotas - activities performed by tax payers who derive income from production,trade and services.
Amendment of Law no. 279/2005 regarding workplace apprenticeshipandLawno.335/2013regarding internship for higher education graduates
Law no.164/2017on the amendment of the Law no.279/2005on workplace apprenticeship and Law no.335/2013 on internship for higher education graduates, published in the Official Gazette no. 544 of 11 July 2017
The Romanian Parliament adopted the Law no. 164/ 2017 which ammends Law no. 279/2005 regarding workplace apprenticeship and Law no. 335/2013 regarding internship for higher education graduates.
Amongs other, the new Law amends the incentives received by employers, as such:
- 1,125 RON/month for the entire period of the apprenticeship contract, granted from the unemployment fund, within the allocated limits for thispurpose;
- 1,350RON/month for the entire period of the internship contract, granted from the unemployment fund, within the allocated limits for this purpose.
The ongoing apprenticeship and internship contracts signed under the provisions of Law no. 279/2005 and Law no.335/2013 will take effect until their termination date, based on the legislation in force upon their conclusion.
Amendment of Law no.76/2002 regarding the unemployment insurance system and employment growth
Law no. 172/ 2017 on the approval of Emergency Ordinance no. 60/2016 for amending Law no. 76/2002 regarding the unemployment insurance system and employment growth, published in the Official Gazette no. 576 of 19 July 2017
The Romanian Parliament adopted the Law no. 172/ 2017 on the approval of Emergency Ordinance no.60/2016 for amending Law no. 76/2002 regarding the unemployment insurance system and employment growth.
The law extends the “NEETyouth”concept to individuals up to 25 years of age law.
Also,the law amends the legal framework interms of the benefits granted by the State for the employment growth,such as the employment allowance granted (one-off) to individuals who domicile in or move to areas included in the National Mobility Plan, including also Romanian nationals who exercised their free movement right as workers within EU and EEA for at least 36 months and return to Romania, intending to establish themselves in suchareas.
International Tax
MLI - Details of Reservations and Notifications of Romania
Following Romania's signing of the Multilateral Convention (MLI) on 7 June 2017, the Government released its list of expected Reservations and Notifications pursuant to Articles 28(7) and 29(4) of the Convention. The Reservations and Notifications will be confirmed upon deposit of the instrument of ratification subject to Articles 28(6) and 29(3) of the Convention.
Please refer to Tax Alert no. 14/July 2017 for more details.
MLI Matching Database
The OECD launched a ’beta version’ of its 'MLI Matching Database'.
The Matching Database uses the stated positions of signatories to the Multilateral Convention(MLI) to project whether a tax treaty between any two signatories will be modified by the Convention.
The MLI Matching Database can be accessed through the following link: http://www.oecd.org/ctp/treaties/mli-matching-database.htm
OECD releases report on neutralising effects of branch mismatch arrangements – Action 2
On 27 July 2017, the OECD published the report on neutralising the effects of branch mismatch arrangement of the Action Planon BEPS (Action 2). This new report sets out recommendations for changes to domestic law that would bring the treatment of these branch mismatch structures in line with outcomes of Action2.
OECD releases the draft contents of the 2017 update to the OECD Model Tax Convention
The OECD Committee on Fiscal Affairs has released the draft contents of the 2017 update to the OECD Model Tax Convention.The update has not yet been approved by the Committee on Fiscal Affairs or by the OECD Council, although significant parts of the 2017 up date were previously approved as part of the BEPS Package(it will be submitted for approval later in 2017).This draft therefore does not necessarily reflect the final view of the OECD and its member countries.
As part of the 2017 update, a number of changes and additions will also be made to the observations, reservations and positions of the OECD member and non-member countries.These changes and additions are in the process of being formulated and will be included in the final version of the 2017 update.
Accounting regulations
Derogation for audit firms to provide non-audit services to EU public interest entities(PIEs)
Law no.162/2017 regarding the statut oryauditofannualfinancial statements and consolidated annual financial statements and for amendingcertainnormativeacts,publishedintheOfficialGazette no. 548 of 12 iulie2017
Law no. 162/2017 transposes the provisions of EU Regulation no. 537/2014 into the national legislation and has entered into force as of 15 July 2017. The new legislation provides, inter-alia, that by way of derogation, audit firms can provide non-audit services (as defined in Article 5 (1) from the EU Regulation no. 537/2014)toEUpublicinterestentities(PIEs),ifcertainconditions (as laid down in Article 5 (3) of the EU Regulation no. 537/2014) aremet.
Miscellaneous
Exam for obtaining the tax consultant or assistant tax consultant position
Decision regarding the amendment of the Regulation for the organizingoftheexamforobtainingthetaxconsultantorassistant tax consultant position, approved by the Decision of the Superior Council of the Tax Consultants Chamberno.7/2014,published in Official Gazette no. 514 of 4 July2017
The Decision introduces the possibility to take the exam for obtaining the taxconsultant or the assistant taxconsultant position under the format of an interview.This is applicable for candidates who have graduated with an average grade of at least 8 an accredited Master degree with an economic profile, organized in partnership with the Tax ConsultantsChamber.
The individuals taking the exam must still comply with the conditions under Art. 5 (for the tax consultant position) and Art 6. (for the assistant taxconsultant position) of the Regulation for the organizing of the exam for obtaining the tax consultantor assistant tax consultant position.
Amendments brought to the Law of waste
Law no. 166/2017 for the approval of Government Emergency Ordinance no. 68/2016 for amending and completing Law no.211/2011regarding the waste regime,published in the Official Gazette no. 554 of 13 July2017
Among the amendments introduced, we note the following:
- Safe vegetable waste from agriculture or forestry are no longer excluded from the scope of thelaw;
- The atributions of the commissioners of the National Environmental Guard regarding the inspection of the accuracy of reporting areextended.
Mandatory e-filing of certain tax returns
NATA published on its website a draft order concerning the mandatory e-filing of certain tax returns (e.g. 100, 101, 120, 205,
207, 300, 394, 390, 710) starting with January 2018 reporting period.
VAT fiscal group
NATA published on their website a draft order amending Order no.3006/2016regardingtheVATfiscalgroup.Themainchanges relatetothecompetenttaxbodyforadministrationofaVATgroup.
Clarifications brought by the National Agency for Tax Administration regarding the tax regime for the taxpayers subject to the specific tax on certain activities
NATA Press Release of 31 July 2017
Please refer to Tax Alert no. 17/July 2017 for more details.
Introduction of the Virtual Private Space for taxable persons with or without legal personality
