Thursday, November 1, 2018

Monthly legislative alert

November 2018

Did you know that: The norms in respect to using simplified custom statements and registering in the evidence of the declarant got modified in respect to unloading...

For more details please find the below:

We present below the main legislative changes from November 2018:

Alongside with other important updates that took place in November 2018, this month there have been significant changes related to excises, social security andfiscal statements..

Excises

There are modified the Norms in respect to using simplified custom statements and registering in the evidence of the declarant, the articles in respect to unloading and receipt of goods.

There are modified themethodoligical norms for applying the Fiscal Code in respect to the exemotion from paying excises of the energy products delivered for using as fuel for aviation, other than touristic aviation for private purpose.

Distribution and comercialization of energy products, alcoholic beverages and/or processed tobacco.

The economic operators that were registered to distribute and comercialize in wholesale system, without depositing, energy products, alcoholic beverages and/ or processed tobacco can submit, until 31 December 2018 included, at the respective authority a new request of registration and the corresponding documents.

The certificates owned by the economic operators mentioned above that submit the authorisation request until 31 December 2018, remain valid until solving the request, but not later than 30 days from submitting the request. The certificates owned by these economic operators, that submit the authorisation request until 8
November 2018, remain valid until solving the request, but no later than 31 December 2018.

The regime of foreigners in Romania

The host entities must inform the General Inspectorate of Immigration with respect to end or suspension of the legal report with the foreigner, in 30 days from the date the event occured. The host entity is any individual or legal entity that is in a legal report with a foreigner that generates rights and obligations for both parties.

In resprect to the foreigners that entered in Romania for work purposes, it is extended the right of temporary stay for work purposes if they present an individual employment contract with full norm, registered in the general register of evidence of employees, from which it results that the salary is at least the minimum gross
salary. In case of highly qualified workers, the salary must be at the level of twice the gross average salary.

In respect to the foreigners that are appointed as directors of a subsidiary, agency or branch from Romania of a comapny that has the headquarter abroad, on the basis of a mandate contract or a document with the same legal value, it is extended the right of temporary stay for work purposes without presenting the employment contract, if the make the proof of means of support, at least at the level of the minimum gross salary.

In respect to the extension of the right of temporary stay for the purpose of secondment and for family reunification, it is necessary to make the proof of having the means of support at least at the level of te minimum gross salary.

Accounting regulations

Accounting regulations in respect to the individual annual financial statements and consolidated annual financial statements, approved through the Order of the ministry of public finance no. 1.802/2014.

Accounting regulations from 29 December 2014 in respect to the individual annual financial statements and consolidated annual financial statements are applied also
to the European comapnies with social headquarter in Romania. These provisions apply starting with the financial statements of the financial exercise of the year
2018, with certain exceptions. Entities that chose a different financial year from the calendar year aplly this provision from the start of the first financial year, that start
after the date of 1 January 2019.

The choice of the depreciation method of assests is not an accounting policy, but it is an estimation.

The entity revises the depreciation method when it finds a significant change of the expected consumption mode of future economic benefits brought by the depreciable assets. The change of method of depreciation represents the change of accounting estimation.

The entities that, at the date of the balance sheet, exceed the criteria of having an average number of 500 employees during the financial exercise include in the administrator report a nonfinancial statement with information about environment, social and personnel, respecting the human rights, fighting corruption and bribes, necessary for understanding the development, performance and position of the entity and the impact of its activity, including:

  • a brief description of the business model of the entity;
  • a description of the policies adopted with respect to these issues, including the necessary diligence procedures applied;
  • the results of the respective policies;
  • the main risks connected to these aspects that derive for the entity’s operations, including, when it is relevant and proportional, the business relationships, products or services that could have a negative impact on the respective areas and the way the entity manage the respective risks;
  • key indicators of non-financial performance relevant for the specific activity of the entity.

The public interest entities, that are parent company of a group, that, at the date of the balance sheet on a consolidated basis, exceed the criteria of having an average number of employees of 500 employees during the financial exercise, include in the consolidated administrator report of a consolidated nonfinancial statement with the information mentioned above.

Accounting regulations according to the International Standards of Financial Reporting, approved through the Order of the Ministry of Public Finance no. 2.844/2016.

There are introduced certain provisions resulted from the new IFRS 16 „Leases” with respect to the way of accounting registration of the assets representing the rights of use of the support-assets leased, specific accounts and function.

Accounting regulations for legal entities without patrimonial purpose, approved through the Order of the public finance minister no. 3.103/2017.

As a result of the uncertainty inherent in the activity, certain elements of the annual financial statements cannot be evaluated with precision. They can be only estimated. There can be requested, for example, estimation of the following: the moral wear and tear of the inventory; the useful life, as well as the expected consumption mode of the future economic benefits embedded in depreciable assets (depreciation method) etc.

The entity revises the depreciation method when it is found a significant change of the way expected of consumption of the future economic benefits brought by depreciable assets. The change of depreciation method represents the change of accounting estimation.

Apprenticeship at the work place

The duration of the apprenticeship contract is esatblished depending on the level of qualification for which the apprentice needs to prepare, without being shorter than:

  • 6 months in case the apprenticeship at the work place is organised through acquiring abilities corresponding to a qualification of level 1;
  • 12 months in case the apprenticeship at the work place is organised through acquiring abilities corresponding to a qualification of level 2;
  • 24 months in case the apprenticeship at the workplace is organised through acquiring abilities corresponding to a qualification of level 3;
  • 36 months, in case the apprenticeship at the workplace is organised through acquiring the abilities corresponding to a qualification of level 4.

The apprenticeship at the workplace is organised for the levels of qualification 1,2, 3 and 4 established according to the provisions of the Government Decision no. 918/2013 in respect to approving the National framework of qualifications, with subsequent changes and additions.

There are added new cases in which the employers cannot benefit from the financial support of apprenticeship at the workplace.

Social security

The parliament of Romania ratifies the Agreement of social security between Romania and the Oriental Republic of Uruguay, signed at Montevideo at 13 September 2017.

Fiscal statements

It is updated the statement A4203 – application for validating the files XML created by fiscal electronic cash registers other than the ones used in the exchange rate or in the taxi activity (including the ones used in airports), including receipts (section II.3) and Z report (section II.7) for a fiscal day, according to the annex no. 2 at the Order no. 146 from 2018.

Other provisions

There were published the outstanding obligationd at 30.09. 2018 on the tax authorities sites. There were brought changes in respect to the administration of the middle-size taxpayers. For more details, please consult the flash alert from 8 November 2018.

It is published the list of operations for which it is mandatory performing an evaluation of the impact over the protection of private data.

It is republished the Law no. 102 from 3 May 2018 in respect to founding, organising and functioning of the National Authority of Surveillance of Processing Private Data.

The European Comission requests Romania to end the mechanism of split-VAT payment.

It is published the Procedure of invoicing the green certificates.

It is changed the Labour Code in order to insure the necessary framework for establishing the minimum gross salary, corresponding to the normal work shedule, differentiated by criteria of level of studies and work experience.

It is published the Procedure for applying the annual visa of the environment authorisation and the integrated environment authorisation.

It is approved the Government Emergency Ordinance no. 15/2018 for amending and completing certain normative acts.

It is approved the Government Emergency Ordinance no. 54/2010 in respect to certain measures for fighting fiscal evasion.

The National Administration of Public Finance further clarrifies establishing the fiscal residence and declaring the income from abroad.

Reminder

Starting 1 November 2018, it is applied the reduced rate of 5% on the taxation basis for the following deliveries of goods and rendering of services:

  • The accommodation from the hotel sector or the sector with a similar function, including land for camping;
  • Restaurant and catering services, with the exceptions mentioned by the Fiscal Code;
  • The right to use sport facilities, in the conditions specified by the Fiscal Code.

The Ministry of Public Finance mentions the following with respect to the sole statement:

  • Individuals that submitted the sole statement until 31 July 2018 and that pay entirely the estimated fiscal obligations for the year 2018, until 15 December, will receive a bonus of 5% from the total amount due.
  • For taxpayers that pay the fiscal obligations until 15 March 2019, the reduction is of 5% from the total amount due, if the sole statement was submitted through electronic means of transmission at distance.
  • Individuals that receive the tax assessments for finalizing the income tax or the pension contribution for previous years, have as payment deadline 30 June 2019 and they will benefit of a bonus of 10% if they pay the obligations until 15 December 2018.
  • The taxpayers that receive tax assessments for finalising the health contribution corresponding to previous years, at the start of the year 2019, have the same payment deadline – 30 June 2019- and they will benefit of a bonus of 10% if they pay entirely the obligations until 31 March 2019.

Legal basis:

Decision no. 174 from 18 October 2018 in respect to the list of operations for which it is mandatory the evaluation of the impact on the protection of private data (published in the Official Gazzette no. 919 from 31 October 2018)

Order no. 2601 from 24 October 2018 for modifying the Norms for using the simplified custom statements and registering in the evidence of the declarant, approved
through the Order of the president of the National Agency of Fiscal Administration no. 1.887/2016 (published in the Official Gazzette no. 935 from 6 November 2018)

Order no. 2716 from 5 November 2018 for modifying the Order of the president of the National Agency of Fiscal Administration no. 3.610/2016 in respect to organising the activity of administration of middle-size taxpayers (published in the Official Gazzette no. 937 from 6 November 2018)

Law no. 247 from 5 November 2018 for modifying and completing certain normative acts in respect to the foreigners regim in Romania (published in the Official Gazzette no. 941 from 7 November 2018)

Oder no. 3456 from 1 Novbember 2018 for modifying and completing certain accounting regulations (published in the Official Gazzette no. 942 from 7 November 2018)

Order no. 2761 from 7 November 2018 for modifying the Order of the president of the National Agency of Fiscal Admimistration no. 1.960/2018 for modifying the Order of the president of the National Agency of Fiscal Administration no. 1.849/2016 for approving the Procedure of registration of the economic operators that comercialise in wholesale or retail system energy products:

gasoline, diesel, lamp oil, liquefied petroleum gas and biofuels, as well as for approving the model and content of certain forms, as well as for modifying the Order of the president of the National Agency of Fiscal Administration no. 1850/2016 for approving the Procedure of registration of the activity of distribution and comercialisation wholesale of alcoholic beverages and/ or processed tobacco, as well as for approving the model and content of certain forms (published in the Official Gazzette no. 943 from 8 November 2018)

Law no. 102 from 3 may 2018 in respect to founding, organising and functioning of the National Authority of Surveillance of Processing Private Data (republished) (published in the Official Gazzette no. 947 from 9 November 2018)

Order no. 187 from 7 November 2018 for approving the Procedure of invoicing the green certificates (published in the Official Gazzette no. 953 from 12 November 2018)

Decision no. 874 from 9 November 2018 for modifying and completing title VIII „Excises and other special taxes” from the Methodological Norms of application of the Law no. 227/2015 in respect to the Fiscal Code, approved through Government Decision no. 1/2016 (published in the Official Gazzette no. 954 from 12 November 2018)

Emergency Ordinance no. 96 from 9 November 2018 for postponing certain deadlines, as well as for modifying and completing certain normative acts (published in the Official Gazzette no. 963 from 14 November 2018)

Order no. 1171 from 5 November 2018 in respect to approving the Procedure for applying the annual visa of the environment authorisation and integrated environment authoriation (published in the Official Gazzette no. 967 from 15 November 2018)

Law no. 262 from 14 November 2018 for ratification of the Agreement of social security between Romania and the Oriental Republic of Uruguay, signed at Montevideo at 13 September 2017 (published in the Official Gazzette no. 984 from 21 November 2018)

Agreement from 13 September 2017 of social security between Romania and the Oriental Republic of Uruguay (published in the Official Gazzette no. 984 from 21 November 2018)

Law no. 266 from 19 November 2018 in respect to approval of the Government Emergency Ordinance no. 15/2018 for modifying and completing certain normative acts (published in the Official Gazzette no. 984 from 21 November 2018)

Law no. 271 from 19 November 2018 for approving the Government Emergency Ordinance no. 54/2010 in respect to certain measures for fighting fiscal evasion (published in the Official Gazzette no. 984 from 21 November 2018)

Don’t hesitate to contact us if there is any related aspect you would like to discuss.

Address
4B, Gara Herastrau Street
T: +40 21 3156100
F: +40 21 3156102

020334, Bucharest, Romania
info@bakertilly.ro
www.bakertilly.ro

Contact persons
Camelia Horlaci
Country Managing Partner, Romania and Moldova
c.horlaci@bakertilly.ro

Ana-Maria Graure
Tax Manager
a.graure@bakertilly.ro

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