EY Romania’s 8th Annual Tax Conference is held on 29 January 2014 in Bucharest. At the event EY Romania’s top tax specialists discuss the recent changes to the Fiscal Code, and other tax and accounting regulations that will be affecting Romanian companies in 2014.
The conference focuses on the impact of recent legislative changes in Corporate Income Tax, VAT, Personal Income Tax and Social Security Contributions, and the amendments to accounting regulations and tax dispute resolution issues in two separate break-out sessions.
Venkatesh Srinivasan, Partner and Head of EY Romania’s Tax Advisory and Legal Services, has opened the conference by pointing out that: “2014 will be significant in tax terms given the introduction of the new tax regime for holding companies. This amendment meets a long pending demand of the industry. On the flip side, introduction of construction taxes will result in pinching the taxpayers pocket.”
Alex Milcev, Tax Partner,Tax Advisory and Compliance Services,has underlined the significant impact of amendments to tax and accounting legislation on business operations. “The rapid and correct understanding of this year’s changes to tax and accounting legislation is more important than ever in the current volatile economic context. Our annual conference is intended for Romanian companies that we assist in keeping pace with the ever changing legislation and reducing potential costs related to misinterpretation or improper enforcement of current tax regulations”.
Gabriel Sincu, Executive Director, Tax Advisory and Compliance Services, has mentioned: "As the day follows the night, tax news is a given in January. The year 2014 is no exception: new taxes, new regulations concerning already existing taxes and a lot of controversy. We try to explore every avenue and clarify as many queries as possible today at our annual tax conference!"
In terms of VAT-related amendments, Ioana Iorgulescu, Senior Manager, Indirect Taxes, has explained: “The amendments to the VAT legislation applicable starting 2014 mainly refer to the VAT cash-in system which, as of 1 January 2014, becomes optional, as well as to the elimination of the 90-day deadline to exert the deduction right by taxable persons choosing to apply this system or those performing acquisitions from persons applying the system. Another mention is to the new provisions on the manner of obtaining the deferred VAT payment certificate by authorized economic operators”.
Stela Andrei, Human Capital Manager, has presented the main changes in force starting with January 2014 in terms of personal income tax and social contributions. “An important change of interest to the taxpayers is also the obligation to pay health fund contributions on income from demise of use of goods even if they have other income subject to such contributions.” Stela has also summarized the changes occurred during 2013 and which should be further considered by the taxpayers.
One of the break-out sessions Amendments to the Order 3055/2009 regarding the accounting regulations, moderated by Radu Tudoran, Tax Executive Director and Diana Lupu, Tax Senior Manager, addresses the main changes to the accounting legislation adopted during the year 2013. The topics include the changes that should be taken into consideration for the preparation of annual financial statements and year-end accounting reports as at 31 December 2013, such as accounting for the green certificates and operations regarding the connection of users to utilities networks. The discussion also includes the amendments to the accounting regulations that enter into force starting January 2014 (accounting for the assigned receivables, capitalization of fixed assets, accounting for projects financed through subsidies, accounting for gift points granted).
Emanuel Bancila, Executive Director for the Tax Controversy and Dispute Resolution practice highlights, in the second break-out session, the increasing role of applying the European principles and case law in the national disputes, as well as the willingness of the Romanian courts of law in requesting the Court of Justice of the European Union to render its interpretation by way of preliminary rulings. Emanuel points out some current issues arising in the fiscal authorities' practice, emphasizing at the same time the taxpayer's ability to obtain interest for deferred reimbursement of the tax receivables due by the State as well as for obtaining damages in case tax deeds that are annulled as unlawful.
At the event is being attended by 220 participants representing major Romanian and multinational companies from all business sectors including the financial and banking, construction, retail, oil and gas, pharmaceuticals and hotels. The annual conference from Bucharest will be soon followed by regional conferences to be held in Cluj-Napoca, Timisoara, Iasi and Chisinau.