Newsletter no. 1 – May 2022

Access the magazine version of this Newsletter in pdf format: Romanian English

Summary

1. New fiscal facilities for employees in agriculture and food industry, similar to those existing in the field of construction, while the minimum gross salary for these fields becomes RON 3,000 starting June 1st (L135/2022)
2. Employees who are paid at the minimum wage level of RON 2,550 may benefit from a non-taxable amount of RON 200 if the employer opts to increase base salary by this amount (GEO67/2022)
3. Electronic invoicing mandatory in B2G relationship starting July 1st (L139/2022)
4. Taxation of capital gains on transfer of securities and operations with derivative financial instruments is changed effective January 1st, 2023. Thus, the tax rate decreases from 10% to 1% or 3%, depending on the period for which the securities or derivative financial instruments were held by the taxpayer (L142/2022)
5. Major implications brought by implementation of EU Directive 2019/633 on unfair trading practices in business-to-business relationships in the agriculture and food supply chain (L81/2022)
6. Consumer protection legislation is also complemented by the incorporation of European provisions in Romanian law, bringing important implications and changes (GEO 58/2022)
7. The activity of settling appeals was transferred to the Ministry of Finance and new elements are introduced regarding the settlement procedure (Order 1021/2022)
8. Economic activities carried out by individuals as an Authorized Natural Person (PFA) represent work and, depending on the case, specialization seniority (L125/2022)
9. Electronic Staff Register (REVISAL) will also include the level and specialty of graduated studies and will soon be accessible online for employees/former employees, who can access their own information and generate an extract from the register (L144/2022)
10. Application of measures to subsidize reduction in work time for economic operators affected by the pandemic/economic crisis has been extended for 2022 (GEO 73/2022)
11. Regulation of household provider activity, meaning the way individuals can carry out household activities in exchange for remuneration granted as household activity vouchers. The provisions will come into force on January 1st, 2024, aiming to tax this income at a low level (17.5% taxes), without labour contracts and with the possibility for beneficiaries to be insured in the health and public pension systems (L111/2022)
12. Procedure to refund tax on dividends resulting from the annual regularization of dividends partially distributed during the year has been published (Order 765/2022)
13. List of goods transported by road having high fiscal risk that are subject to monitoring through the RO e-Transport System beginning July 1st, 2022 has been published (Order 802/2022)
14. New aspects introduced regarding employment and posting of foreigners on the Romanian territory (GEO 59/2022)
15. Public authorities are obliged to accept debit, credit or prepaid cards as means of payment, and to collect amounts through an electronic remote payment system/online. It also defines the turnover threshold of EUR 50,000 above which legal entities carrying out retail activities have the obligation to accept debit, credit or prepaid cards, through a POS (terminal and/or other modern payment solutions) (L128/2022)
16. Extension to apply the measures to also restructure outstanding budget obligations on VAT due until December 31st, 2020, and resulting from the entry on the settlement section of the VAT return, as well as deductible tax through which the VAT due on or before December 1st, 2020 is corrected (Order 1113/2022)
17. Occasional activities by day labourers may be carried out in a new field: market research and public opinion polling – class 7320 (L118/2022)
18. Procedure to communicate enforcement documents to credit institutions through remote electronic means has been published (Order 878/2022)
19. New level of NBR reference interest rate is 3.75% per year (Instruction 11/2022)

Nowium Newsletter

Nowium is a new business concept that defines its values ​​in ambition, creativity, quality, excellence, trust and responsibility. We are a new brand of an old, strong team, created throughout 20 years of activity. Many of you already know us!

We are connected by many successful projects and experiences. We learned a lot together and we welded together as a group. The unity of this team challenges us to take the story to a new level.

Our newsletter is a tool through which we want to keep you up to date with the most important legislative news in the fields of taxation, accounting, HR and others. There are many formats on the market, many tax alerts. We want ours to be among the most appreciated, that’s why we make continuous efforts to understand what our readers want and to present the main news in a synthesized and consolidated form each month.

This is our first issue using the new format. In order to cover the preferences of as many readers as possible, Nowium Newsletter will be published both in pdf magazine format, and also in an online, web version. You can find all the issues in the Newsletter section of our website: https://nowium.com/newsletters/. To receive it monthly, free of charge, please subscribe to our distribution list by completing the form on our website.

Starting from the idea of ​​legislative synthesis, we also developed the Tax Group project, which enjoys real success and where we discuss a lot of interesting current fiscal information. From the beginning, we wanted it to be a continuous professional development programme and we believe we managed to do so. For those who want more details, we invite you to visit www.taxgroup.ro and you are always welcome at the Tax Group professionals’ community.

We look forward to receiving your messages containing appreciations, criticisms, suggestions, or any comments you may have on our Newsletter or Tax Group project. All this makes us better and closer to your expectations.

Law 135/2022 to amend and complement certain normative acts (Official Gazette 489/2022)

Summary

The Law introduces a number of fiscal facilities for employees in the agriculture and food industry, similar to those existing in the field of construction, and imposes a new level of the minimum salary for these areas.

Details

Minimum salary

Between June 1^st, 2022 and December 31^st, 2028, for the agriculture and food industry, minimum gross base salary in the country guaranteed in payment will be at least RON 3,000 per month, without including bonuses and other supplements. This applies to a regular work schedule, 167.333 hours per month on average, representing approximately RON 17.928/hour.

Companies failing to comply with the minimum level of gross salary represents a contravention, is sanctioned with a fine of between RON 300 and RON 2,000 and entails cancellation of the opportunity to be granted fiscal facilities.

Fiscal facilities

Employees working in the agriculture and food industry, receiving a gross salary of at least RON 3,000 per month for a full-time job (8 hours/day), will benefit from exemptions to/reductions in salary taxes between June 1^st, 2022 and December 31^st, 2028, as follows:

• income tax exemption, representing 10%;
• exemption from health insurance contribution (CASS), representing 10%;
• reduction in social insurance contribution (CAS), from 25% to 21.25%;
• reduction in work insurance contribution, from 2.25% to 0.3375% (applicable when the reduction is approved as state aid).

Cumulative conditions

In order to benefit from the fiscal facilities, the following cumulative conditions should be met:

a) employers carry out activities in the agriculture and food industry in Romania, defined as follows:

• NACE code 01: crop and animal production, hunting and related service activities:
  • 011 growing non-perennial crops;
  • 012 growing perennial crops;
  • 013 plant propagation;
  • 014 animal production;
  • 015 mixed farming (growing crops combined with animal production);
  • 016 support activities for agriculture and post-harvest crop activities;
• NACE code 10: manufacture of food products.

b) employers receive at least 80% of the total turnover from activities mentioned in letter a) above.

For newly established employers (registered at Trade Register or fiscally registered) starting June 2022, turnover is calculated cumulatively from the date of registration, including the month when the exemption applies.

For employers existing on June 1^st, 2022, the calculation basis is turnover cumulatively obtained from the beginning of the year, meaning accumulated from the date of registration (in the case of those set up/registered during the period between the beginning of the year and June 1^st, 2022), including the month when the exemption applies.

For employers existing on January 1^st of each year subsequent to June 1^st, 2022, turnover from the activities mentioned in letter a) will be cumulatively calculated for the related period of the current year, including the month in which the exemption applies.

Turnover will even include completed, but not invoiced, production.

c) gross monthly income from salaries provided by art. 76 para. (1) – (3) earned by individuals for whom the exemption is applied, is calculated at a gross salary of at least RON 3,000 per month for a full-time job.

An exemption applies for amounts from monthly gross income of up to RON 30,000, received as salaries and other income similar to salaries provided by art. 76 para. (1) – (3), earned by individuals. The portion of gross monthly income exceeding RON 30,000 will not benefit from fiscal facilities.

The Ministry of Finance will elaborate the procedure to apply these fiscal facilities. Form 112 – Tax return regarding obligations to pay social contributions, income tax and nominal record of the insured persons (D112), represents a declaration on one’s own responsibility that conditions to apply the exemption are met.

Day labourers will also benefit from the new level of the minimum wage in the agriculture and food industry. Their daily compensation must be related to the new minimum wage level for activities carried out in these sectors.

back to summary ⇑

Emergency Ordinance 67/2022 on certain fiscal measures, as well as to amend and complement art. 59 of Law 207/2015 on the Fiscal Procedure Code (Official Gazette 494/2022)

Summary

The Ordinance amends the Fiscal Code and Fiscal Procedure Code:

• Introduction of a fiscal facility seen as a measure to compensate the negative effects of the economic crisis and rising prices. Thus, employees who receive the minimum wage of RON 2,550 can benefit from a non-taxable amount of RON 200 if the employer opts to increase base salary by this amount.
• In order to combat tax evasion in the field of e-commerce, the Fiscal Procedure Code is complemented with the obligation of postal/delivery service providers to report certain information on deliveries for which the recipient pays the sender with cash, to fiscal authorities on a monthly basis.

Details

Fiscal Code

Starting June 1^st, 2022, employees who carry out activity based on a full-time labour contract, at the place where the base position is located, do not owe any income tax and mandatory social contributions for an amount of RON 200 representing salary income in the following situations:

• employers voluntarily increase, at any time between June 1^st and December 31^st, 2022, the level of gross salary by RON 200, meaning from RON 2,550 to RON 2,750, for employees working according to labour contracts, that are valid on June 1^st, 2022, and which provide a level of the gross monthly salary on the same date, without including bonuses and other additions, equal to the level of the minimum gross salary in the country guaranteed in payment;
• in the case of individuals newly employed between June 1^st and December 31^st, 2022, the level of the gross monthly base salary according to labour contract, without including bonuses and other additions, is RON 2,750.

The amount of RON 200 is not taken into account for application of personal deductions.

The fiscal regime provided above only applies to employees in the private sector during the period when the increased employment salary is maintained/set at the level of RON 2,750, for salary income obtained between June 1^st and 31^st December 2022.

The amount of RON 200 provided above decreases depending on:

• period of the month for which the salary increase was granted;
• date from which the new employees are employed at a level of salary set according to letter b) in the previous paragraph;
• fraction of the month for which salary income is determined;
• date when the labour contract ends.

Fiscal Procedure Code

In order to combat tax evasion in the field of e-commerce, postal service providers are required to report monthly information on deliveries for which the recipient pays the sender, through a postal network, the value of goods delivered in cash. Information is reported to fiscal authorities.

The information will refer to:

• registration number and date of mail/package;
• identification data for the sender;
• name and first name of individuals receiving mail/package;
• name of legal entities receiving mail/package;
• shipping and delivery addresses;
• value of the delivered good.

Data is stored by the fiscal authority for five years from the date when the information was received by the central fiscal authority and will be automatically deleted after this period.

The postal service provider will inform the persons whose personal data are transmitted to the central fiscal authority. Persons whose personal data are processed receive all rights provided by the General Regulation on Data Protection.

back to summary ⇑

Law 139/2022 to approve GEO 120/2021 on administration, operation and implementation of national RO e-Invoice system and electronic invoicing in Romania, as well as complementing Government Ordinance 78/2000 on  vehicle approval process, issuance of vehicle identity cards and certification of authenticity of road vehicles with the scope of introduction to the market, making available on the market, registration in Romania, as well as market surveillance of these vehicles (Official Gazette 490/2022)

Summary

Starting July 1^st, 2022, economic operators established in Romania have the obligation to issue electronic invoices in relation to public authorities – B2G (Business to Government) – and to send invoices through the national electronic RO e-Invoice system.

Details

The Law approves, with amendments, GEO 120/2021 which regulates administration, operation and implementation of the national system regarding the electronic RO e-Invoice.

Thus, starting July 1^st, 2022, economic operators established in Romania according to art. 266 para. (2) of the Fiscal Code, have the obligation to issue electronic invoices in relation to public authorities – B2G (Business to Government) and to send them through the national system regarding electronic RO e-Invoices.

Regarding invoicing between economic operators (B2B), the Law states that Romania has requested a derogation from articles 178, 218 and 232 of the Directive on VAT to introduce the obligation to issue electronic invoices and send them through the national RO e-Invoice system. Thus, within 30 days from the date when the derogation will be adopted, an ANAF Presidential Order will set the categories of economic operators which have the obligation to issue electronic invoices in the B2B transactions and send them by RO e-Invoice, as well as the start date of this obligation.

back to summary ⇑

Law 142/2022 to amend and complement Law 227/2015 on the Fiscal Code (Official Gazette 502/2022)

Summary

The Law brings important amendments to the Fiscal Code on taxation of capital gains from transfer of securities and operations with derivative financial instruments starting January 1^st, 2023.

The tax rate on income representing capital gains from the transfer of securities and operations with derivative financial instruments carried out through intermediary entities is reduced from 10% to 1% or 3%, depending on the period in which the securities or derivative financial instruments were held by the taxpayer.

Details

Intermediary entities can be investment management companies, self-managed investment companies, alternative investment funds managers, Romanian fiscal residents or non-residents having a permanent establishment in Romania. These entities have the following obligations:

• calculation of the gain/loss for each transfer/transaction made for the taxpayer;
• calculation, withholding and payment of income tax;
• transmission of information on total gain/loss and on the resulting and withheld tax to each taxpayer, in written form or by electronic means. Deadline to submit this information is by the end of February of the current year for the previous year;
• annual submission of the declaration provided by art. 132, para. (2).

Capital gains from transfer of securities and operations with derivative financial instruments carried out through intermediary entities are taxed by withholding a share of:

• 1% applied to each gain from transfer of securities; that is, operations with derivative financial instruments, which have been acquired and held for a period of more than 365 days from acquisition date.
• 3% if the period held was less than 365 days.

The calculation, withholding and payment of tax is performed by the entities intermediating these transfers/operations.

The period held is determined using the FIFO method (first in – first out), in the order in which they were acquired/redeemed, for each security holding or fund.

In order to calculate the gain from transfer of securities/operations with derivative financial instruments, the fiscal value is determined by applying the weighted average price method, including costs related to the transfer/operation, on each share or fund, regardless of the holding period.

The income tax calculated and withheld is declared and transferred to the State Budget by the intermediary entities by the 25^th of the month subsequent to the month when it was withheld and is final.

Losses on the transfer of securities and operations with derivative financial instruments, carried out through intermediary entities, are not carried forward or compensated, representing permanent losses to the taxpayer.

In order to determine income tax due in case of transfer of securities/operations with derivative financial instruments, the following rules apply:

Processed as follows for the fiscal year January 1^st, 2022 to December 31^st, 2022:

• for gains/losses related to the period, fiscal liabilities are those in force on the date when the gain or loss was incurred;
• net loss resulting from transfer of securities and operations with derivative financial instruments that were not carried out by intermediary entities and are related to the fiscal year of 2022, is carried forward and subject to carry forward rules;
• in case of transfer of securities and operations with derivative financial instruments, carried out through intermediary entities, acquired prior to January 1^st, 2023, the tax is calculated as follows:
• by applying a rate of 3% on gains starting January 1^st, 2023 for those held for a period of less than 365 days from acquisition date;
• by applying a rate of 1% on gains calculated according to law, recognized starting January 1^st, 2023, for those held for a period longer than 365 days from the date of acquisition;
• losses incurred but not used by January 1^st, 2023 from the transfer of securities and operations with derivative financial instruments performed through intermediary entities are not carried forward, these representing permanent losses of the taxpayer regardless of the date when they were registered.

Intermediary entities through which non-resident individuals receive income from the transfer of securities issued by Romanian residents have the following obligations:

• to request from Romanian fiscal authorities the fiscal identification number for the non-resident individual who does not have this number;
• to keep the original or a certified copy of the tax residence certificate or another document issued by an authority other than the fiscal authority, which has responsibilities in the field of residence certification according to the domestic law of the respective state, along with an authorized Romanian translation;
• to calculate the gain/loss for each transfer/operation performed for the non-resident individual taxpayer;
• to calculate, withhold, declare and pay income tax for the non-resident individual who does not provide proof of residence in a state with which Romania has concluded a convention to avoid double taxation;
• to transmit information on total gains/losses and the tax calculated and withheld to each non-resident individual taxpayer, in written form or by electronic means, for transactions carried out during the fiscal year, by the last day of February of the current year for the previous year;
• to submit the declaration provided by art. 132, para. (2) annually, both for non-resident individual taxpayers who do not provide proof of residence in a state with which Romania has concluded a convention to avoid double taxation and for non-resident individual taxpayers who prove residence in a state with which Romania has a convention to avoid double taxation.

back to summary ⇑

Law 81/2022 on unfair commercial practices between companies within the agriculture and food supply chain (Official Gazette 363/2022)

Summary

The Law adopts provisions of EU Directive 2019/633 on unfair trading practices in business-to-business relationships in the agriculture and food supply chain.

Law 81/2022 is exclusively applied to commercial relations between suppliers and buyers within the supply chain, in connection with the sale of agriculture and/or food products.

Sanctions for non-compliance with the Law are high, the fines being between RON 250,000 and RON 600,000, and can go up to 1% the turnover for recurring cases.

The new provisions apply effective April 12^th, 2022 for new contracts, and in the case of existing contracts, they should be brought into line by the end of 2022, at the latest.

Details

The Law defines two types of unfair commercial practices within trade relations between suppliers and buyers. The first type of commercial practices is prohibited regardless of the agreement between parties. The second type of commercial practices is prohibited, unless, upon the request of the supplier, the practices have been previously agreed in clear and unambiguous terms between the supplier and buyer.

Among the unfair commercial practices forbidden to buyers:

• use of self-invoicing for agriculture and/or food products, except for cases provided by art. 320 of the Fiscal Code;
• applying cumulative financial and commercial discounts which do not exceed 20%, applied according to the invoiced amount, by derogation from provisions of the Fiscal Code;
• return of unsold agriculture and/or food products to the supplier;
• invoicing of services provided for advertising agriculture and/or food products, marketing services, payments for secondary placement and the costs of discounts for agriculture and/or food products sold by the buyer as promotions, exceeding a maximum of 5% of the amount collected by the supplier based the contract concluded between parties;
• imposing a payment obligation on the supplier for listing its agriculture and food products, as well as for their display for sale;
• application of different trade conditions for private label products of the producers compared to own brand products of the trader, for listing/display on shelves.

Another set of commercial practices is prohibited for the buyer, unless, upon the request of the supplier, they have been previously agreed to in clear and unambiguous terms, such as:

• supplier’s request to pay for marketing services provided by the buyer for agriculture and/or food products;
• refusal of a price renegotiation with the supplier, within a period of more than ten days from the date of the request;
• supplier’s request to pay for the staff in charge of organising areas used for the sale of the supplier’s products or the supplier’s obligation to provide staff for the sale of products or any other activity related to the sale-promotion process;
• supplier’s request to fully or partly bear the cost of any discounts for agriculture and/or food products sold by the buyer on promotion.

Identification of and sanctioning contraventions is carried out by the Competition Council, the fines being RON 250,000 to RON 600,000. In case of repeated violations, such as finding an unfair commercial practice within two years from the issuance of a decision that found and sanctioned a contravention, regardless of the nature of the new violation, the fine is 1% of total turnover obtained in the previous financial year.

The Law entered into force on April 12^th, 2022, and applies to all commercial contracts concluded subsequent to this date. For contracts concluded prior to this date, suppliers and buyers will have the obligation to change them in accordance with the provisions of the Law by December 31^st, 2022.

back to summary ⇑

Emergency Ordinance 58/2022 to amend and complement certain normative acts in the field of consumer protection (Official Gazette 456/2022)

Summary

The Ordinance incorporates several European provisions in the field of consumer protection into domestic law and amends the following normative acts:

• Law 193/2000 on unfair contracts between professionals and consumers;
• Law 363/2007 to combat unfair practices from traders in relation to consumers and to incorporate European legislation on consumer protection into domestic regulation;
• Government Emergency Ordinance 34/2014 on consumer rights within contracts concluded with professionals, as well as to amend and complement certain normative acts.

Details

There are multiple amendments, and it is necessary to have them analysed by all economic operators affected by provisions of these normative acts.

Among the amendments we mention:

• measures in case of marketing/selling products with a double standard of quality;
• express obligation to provide consumers with access to all product reviews;
• introduction of additional remediation measures available to affected consumers;
• introduction of specific information requirements applied to contracts concluded on online markets;
• regulation of specific conditions to apply the right of withdrawal in the case of contracts having as their object the provision of digital content/digital services;
• increase in fines for cases of unfair commercial practices;
• sanction of violations having cross-border effects with fines ranging from 0.1% to 4% of annual turnover;
• introduction of the commercial record.

back to summary ⇑

Order 1021/2022 to approve Instruction to apply Title VIII of Law 207/2015 to the Fiscal Procedure Code (Official Gazette 482/2022)

Summary

The Order approves Instructions to apply Title VIII of Law 207/2015 to the Fiscal Procedure Code regarding settlement of appeals filed against fiscal administrative acts, an activity transferred from ANAF to the Ministry of Finance.

Details

The instructions detail the following sections:

• Possibility to appeal;
• Template and content of appeal;
• Deadline to submit appeal;
• Withdrawal of appeal;
• Competent body;
• Template and content of decision to settle appeal;
• Introducing other people in the settlement procedure;
• Settlement of appeal;
• Suspension of procedure to settle appeal through administrative means;
• Rejection of appeal for non-compliance with procedural conditions;
• Communication of decision and appeal procedures;
• Correction of material errors from decisions upon appeal settlement;
• Publication of decisions upon appeal settlement on website.

An appeal may only be formulated by a taxpayer who considers that its, his or her rights have been violated by a receivable or by another fiscal administrative act. In the absence of a fiscal administrative act, the taxpayer will directly address the applicable administrative court.

As a general rule, the appeal is submitted to the fiscal authority issuing the receivable or fiscal administrative act within 45 days from the date of their communication. The appeal is filed within three months if the receivable or administrative act does not disclose the possibility of appeal, the deadline to be appealed or the fiscal authority to which it is submitted.

It is important to specify that the Fiscal Inspection Report and Minutes issued by fiscal/custom bodies do not constitute a receivable, these being the basis for issuing the fiscal administrative act. Both the Report and Minutes may be appealed together. If, however, there is an appeal, the issuing fiscal authority will ask the appellant to specify within five business days whether the entity or individual also appeals the receivable. Otherwise, the appeal will be rejected as inadmissible.

The structure responsible for settling appeals may request points of view from the issuer of the receivable and from specialized departments within the Ministry of Finance, ANAF or other institutions and authorities. The decision to settle the appeal may not impose on the appellant fiscal liabilities higher than those in the act being appealed and the fiscal loss may not be reduced by an amount higher than that recorded in the act being appealed.

The taxpayer has the right to request oral support for the appeal in the content of the appeal or with a separate request within a maximum of 30 days from registration date of the appeal, under the sanction of revocation. The appellant has the right to provide additional clarification regarding arguments contained in the appeal and documents by which the entity or individual intends to prove the allegations.

Settlement of the appeal may be suspended upon appellant request, or ex officio.

The decision issued to settle the appeal may be re-examined by the structure responsible for settling appeals, upon taxpayer request, according to art. 281¹ of the Fiscal Procedure Code. The review will be carried out by the structure to settle appeals that issued the initial settlement decision.

Appeals filed by taxpayers classified in a size category (large, medium or small) and which subsequently no longer meet the conditions provided by law for that category will be settled by the competent structure at the time the appeal is filed. The same rule applies in case of change in fiscal domicile after the submission of the appeal.

Decisions considered relevant are anonymized and are published on the Ministry of Finance website.

back to summary ⇑

Law 125/2022 to complement GEO 44/2008 to carry out economic activities by Authorized Natural Persons, individual and family companies (Official Gazette 456/2022)

Summary

Economic activities carried out by individuals as authorized natural persons (PFA) represent work and, depending on the case, specialization seniority. The provision is important because the period of activity carried out as a PFA is included when determining work seniority, an element in establishing pension benefits.

Details

The period when an authorized natural person (PFA) carries out economic activities constitutes specialization seniority, only if the following conditions are met:

• the economic activity carried out results in income during the year subject to recognition of seniority, and the value is at least 12 times the minimum gross salary set according to law that year;
• is registered at the Trade Register with a unique NACE code or with the main NACE for the purpose of determining seniority.

Time worked and, depending on the case, specialization seniority is the period when the PFA carried out economic activity and paid all legal contributions and taxes, not taking into account the period when the PFA did not generate income or had its activity suspended.

back to summary ⇑

Law 144/2022 to amend and complement art. 34 of Law 53/2003 – Labour Code (Official Gazette 502/2022)

Summary

The Electronic Staff Register (REVISAL) will also include the level and specialty of graduated studies and will soon be accessible online for employees/former employees, who can access their own information and generate an extract from the register.

Details

The Law amends the Labour Code regarding the Electronic Staff Register (REVISAL).

The Electronic Staff Register will additionally include the level and specialty of graduated studies.

The Electronic Staff Register will be accessible online for employees/former employees regarding their own data. The right is limited to viewing, downloading and printing this data, as well as to generate and download an extract from the register.

Work and/or specialization seniority may be proved with this extract from the Register.

Application norms for the new regulations will be published by the Government.

New provisions came into force on May 26^th, 2022.

back to summary ⇑

Emergency Ordinance 73/2022 to complement GEO 132/2020 on support measures for employees and employers in the context of the SARS-CoV-2 pandemic, as well as for stimulating employment growth (Official Gazette 536/2022)

Summary

The Ordinance extends for 2022 the application of measures provided by art. 1 and art. 3 of GEO 132/2020 on support measures for employees and employers in the context of the SARS-CoV-2 pandemic, as well as for stimulating employment growth.

The fiscal facilities to subsidize reduction in work time could be applied during the state of emergency/alert and for another 3 months after its end, meaning by June 8^th, 2022. The ordinance extends the application of these forms of aid to economic operators throughout 2022 and justified by the current economic crisis.

Details

In case of temporary reduction in work time, employers have the possibility to reduce work time of employees by no more than 80% of the daily, weekly or monthly duration provided by the individual labour contract. The reduction of work time applies both in the case of shifts, as well as in the case of an unequal work schedule.

During reduced work hours, employees affected by the measure receive compensation of 75% of the difference between gross monthly basic salary provided by the individual labour contract and gross monthly base salary for hours actually worked as a result of the reduced work time, in addition to the due salary rights, calculated using the time actually worked.

This compensation is borne by the employer and is paid on the date of salary payment for that month and will be deducted from the work insurance budget after the employer has fulfilled the declarative and payment obligations related to income from salaries.

The employer may apply for the reduction in work time and request reimbursement of compensation only if the following conditions are cumulatively met:

• the measure affects at least 10% of the unit’s employees;
• the reduction in activity is justified by a decrease in turnover for the month prior to application of the measure or, at most, from the month before the previous month, by at least 10% compared to a similar month or compared to monthly average turnover from the year prior to declaring the state of emergency/alert/ siege; that is, 2019;

In the case of NGOs, as well as PFAs, individual and family companies, the decrease is related to income. In the case of newly established companies between January 1^st and March 15^th, 2020, and which have at least one employee, the decrease is related to turnover achieved in the month prior to  application of the measure.

The following categories may also benefit:

• professionals provided by art. 3 para. (2) of the Civil Code;
• individuals who obtain income from copyright and related rights;
• individuals who have concluded individual labour conventions based on Law 1/2005 on the organization and function of the Cooperation.

The above-mentioned categories can benefit from compensation of 41.5% of average gross salary provided by the Law for the social security budget in case of reduction in work time and/or income, caused by the state of emergency/alert/siege, as in the case of employees. This is equivalent to compensation of RON 2,529 (41.5% of RON 6,095 in 2022). For this compensation, they must declare their income in 2023 through the Sole Tax Return and pay related taxes.

back to summary ⇑

Law 111/2022 to regulate the activity of household provider (Official Gazette 402/2022)

Summary

The Law regulates activity of household provider, meaning the way in which individuals can carry out household activities in exchange for remuneration granted as household activity vouchers. These provisions will enter into force on January 1^st, 2024.

Household activity vouchers are subject to income tax and social insurance contributions, which are withheld from the value of vouchers that are exchanged for cash. Total taxes withheld from the value of a voucher is 17.5%.

The main purpose of these regulations is taxation of this type of income without concluding labour contracts or other complicated formalities and to introduce the possibility for beneficiaries to be insured in the health and public pension system.

Details

Household activity

Household activity is the occasional, unqualified activity carried out by a household provider in connection with the household(s) of a family or of a single person as the household beneficiary. The household activity is not carried out for commercial purposes and is not carried out for the benefit of third parties.

Household activity includes cleaning/sanitation services, laundry/ironing, tailor services, meal preparation services, body care services, feeding and supervision of any dependent household beneficiary.

Household provider

The household provider can be an individual who can carry out occasional household activities in one or more households, in exchange for remuneration granted exclusively as household activity vouchers. The household provider cannot be a family member of the household beneficiary.

Household activity voucher

The household activity voucher is a voucher intended to remunerate the household provider for the household activities carried out.

They can be purchased from employment agencies, universal service provider (postal service providers) or the Electronic Platform for Household Activities.

The household activity voucher has a unit value of RON 15 and can be exchanged for cash by the household provider within 12 months from the date of receipt. They are not transferable and cannot be used to purchase other goods and services.

Vouchers may also be used to pay persons who occasionally have the profession of nanny/child carer, a situation in which the household beneficiary is the legal representative of the child, the latter being the beneficiary of the services provided.

Taxation

Household activity vouchers are taxed. Income tax (10%) and social insurance contribution (25%) are withheld at the time of their exchange into cash. The calculation basis for the income tax and social insurance contribution rates is 50% of the nominal value of the household activity voucher. Thus, we can say that 17.5% is withheld from the nominal value of the household activity voucher.

If the household provider is not insured in the social health insurance system, he or she acquires the quality of insured, without paying the contribution, and is entitled to the basic medical services package from the date when he or she requested the exchange of at least 85 household activity vouchers. To maintain the quality of insured in the social health insurance system, the provider should exchange at least 85 household activity vouchers, monthly.

The payment of social insurance contributions confers the quality of insured in the public pension system for the household provider.

Fiscal facilities

Household beneficiaries, who, during a calendar year have purchased and used at least 600 household activity vouchers, may receive, upon request, 75 household activity vouchers free of charge to be used the following year. Free vouchers are not taxable income to household beneficiaries and are not included in the calculation basis for checking the health contribution threshold (CASS).

Employers may grant their employees a bonus in addition to the established base salary, also paid with household activity vouchers, bearing their nominal value, within the limits of amounts provided for this purpose in the budget.

Employers who purchase and grant at least 600 household activity vouchers for the same employee during a calendar year may receive, upon request, for the following year and free of charge, a number of 50 household activity vouchers multiplied by the number of employees who received at least 600 vouchers.

Household activity vouchers granted by employers to employees will be subject to income tax (10%), without payment of social insurance contributions (CAS, CASS or CAM), similar to the current meal voucher scheme.

Other provisions

A person can be a household provider only if he or she is at least 16 years old.

A legal relationship is established between the household provider and household beneficiary by the agreement of parties, without being in writing, in order to perform household activities. The household beneficiary and household provider agree on the activities and number of hours or workload, payment of the household provider made with household activity vouchers.

The daily duration of the household activities for a household beneficiary may not exceed 12 hours, and 6 hours for household providers between 16 and 18 years of age.

The minimum amount of the monthly contribution, calculated according to provisions of this law, for a household provider to benefit from the quality of insured in the state social insurance system, is the contribution related to at least 85 household activity vouchers. The minimum value of the monthly contribution cannot be less than 25% of the value of minimum gross salary (which would currently be RON 637.50).

The Ministry of Labour and Social Solidarity establishes, by January 1^st, 2024, an Electronic Platform for Household Activities.

back to summary ⇑

Order 765/2022 on Procedure to refund tax on dividends resulting from annual regularization of dividends partially distributed during the year (Official Gazette 402)

Summary

The Order approves Procedure to refund dividend tax resulting from the annual regulation of dividends partially distributed during the year and also a template for the Regularization Form/Claim to request the refund.

Details

The procedure applies when there are amounts to be refunded from the State Budget, as a result of the annual regularization of dividends paid following partial distribution during the year. The refund may also be requested when, subsequent to approval of annual financial statements, in the case of interim dividends distributed and unpaid to shareholders or associates, results in excess taxes paid to the State Budget.

The following procedural steps should be followed:

• submission of an adjusting tax return showing the value of dividends paid in excess, as a result of the annual regularization of dividends, following the return of dividends by the shareholder/shareholders;
• submission of a Regularization Form/Claim to file for refund of tax on dividends.

The Claim to refund tax on dividends may be submitted by the end of the prescription period, respectively 5 years from the 1^st of January of the year following the year when the right to refund appeared.

back to summary ⇑

Order 802/2022 to set list of goods transported by road having high fiscal risk that are subject to monitoring through the RO e-Transport System (Official Gazette 430/2022)

Summary

The Order sets the list of goods transported by road having high fiscal risk that are subject to monitoring through the RO e-Transport System.

Details

The list of goods with high fiscal risk for the RO e-Transport system is:

• Vegetables, plants, roots and tubers, food, NC 0701 – 0714;
• Edible fruit; citrus fruit or melon peels, NC 0801 to 0814;
• Beverages, alcoholic liquids and vinegar*, NC 2201 – 2208;
• Salt; sulphur; soil and stone; plaster, chalk and cement, NC 2505 and 2517;
• Clothing and clothing accessories, knitted or crocheted, NC 6101 – 6117;
• Clothing and clothing accessories, other than knitted or crocheted, NC 6201 to 6212 and NC 6214 to 6217;
• Footwear, boots and similar articles; parts of these articles, NC 6401 to 6405;
• Cast iron, iron and steel, NC 7213 and 7214.

* Excisable circulating goods suspended from excise regime are exempted

back to summary ⇑

Emergency Ordinance 59/2022 to amend certain normative acts for foreigners (Official Gazette 450/2022)

Summary

The Ordinance amends Government Ordinance 25/2014 on employment and posting of foreign workers in Romania and to amend and complement certain normative acts on the regime for foreigners in Romania.

Details

The main amendments are:

• employers may submit applications to issue work permits/posting permits to any territorial immigration unit;
• extension from 60 to 180 days of the period within which foreign citizens can apply for the issuance of the long-stay employment visa, from the date when the employer obtains the work permit;
• work permits issued 60 days prior to the entry into force of the normative act at most can be used, within 180 days from the issuance date, to obtain long-stay visas for employment.

The new provisions came into force on May 5^th, 2022.

Given the above information, the General Inspectorate for the Immigration Portal has been modified as follows:

• in order to facilitate online submission of applications for work/posting permits, the online application portal has been updated so that the place where the application is to be taken was added as a mandatory step;
• the aforementioned step is called “Submission of application” and is only integrated for the flow of “Granting work/posting permits”;
• users who wish to submit applications for a work permit should know that there is no longer any limitation regarding the county where the company for which the application is submitted has its registered headquarters or user’s profile. The only place that matters is the location where the application will be submitted in paper format;
• a table was created to inform employers/beneficiaries about the volume of pending applications for work permits at the national level, divided by colour: green – low degree, yellow – medium, and red – high.

back to summary ⇑

Law 128/2022 to amend and complement GEO 193/2002 to introduce modern payment systems (Official Gazette 456/2022)

Summary

Introduction of new obligations for public authorities to accept debit, credit or prepaid cards as a method of payment and to collect amounts through an electronic remote payment system/online.

The Law sets a turnover threshold of EUR 50,000 above which legal entities carrying out retail activities have the obligation to accept debit, credit or prepaid cards through a POS terminal and/or other modern payment solutions.

Details

The Law makes the following changes to the obligation to accept electronic payments:

It becomes mandatory for public authorities to accept debit, credit, or prepaid cards as a means of payment through a POS terminal and/or other accepted modern solutions, including applications that facilitate the acceptance of electronic payments.

Previously, this obligation only existed for economic operators of public utility services and public institutions.

It introduces the obligation for economic operators providing public utility services, as well as for public institutions and authorities to accept the collection of amounts through an electronic remote payment system/online. Implementation of the modern electronic remote payment system should be completed within 6 months from the date this Law enters into force.

As an exception, entities that have their collection points located in areas not served by electronic communication networks. They do not have the obligations set out above, but are required to comply with the requirements within 12 months from the date when the area in which they are located is served by electronic communication networks.

At the same time, the Law clarifies that the obligation of legal entities carrying out retail activities to accept debit, credit, or prepaid cards, through a POS terminal and/or other modern solutions, appears starting with the quarter following the one in which turnover during the respective year exceeds the threshold of EUR 50,000. If, for 2 consecutive years, the threshold has not been exceeded, the legal entities no longer have this obligation.

back to summary ⇑

Order 1113/2022 to complement Procedure to apply measures to restructure outstanding fiscal liabilities, approved by Order of the Minister of Public Finance 2810/2019 (Official Gazette 483/2022)

Summary

An extension is introduced to restructure outstanding fiscal liabilities on VAT, having its due date up to December 31^st, 2020 and resulting from entry on the settlement rows of the VAT return, as well as deductible tax through which the VAT due is corrected on or before December 1^st, 2020.

Details

The Order extends the applicability of the measures to restructure outstanding fiscal liabilities to VAT, having its due date up to December 31^st, 2020, and resulting from entry on settlement rows of the VAT return, as well as deductible tax through which VAT due is corrected on or before December 1st, 2020.

In case of a regularization with the purpose of setting additional obligations that may be subject to restructuring, debtors must detail information regarding VAT registered on the settlement row, mentioning the fiscal period, due date, as well as the related amount in their restructuring plan.

back to summary ⇑

Law 118/2022 to complement art. 13 para. (1) of Law 52/2011 on carrying out occasional activities by day laborers (Official Gazette 411/2022)

The Law states that occasional activities by day laborers can be carried out in a new field: market research and public opinion polling – class 7320.

back to summary ⇑

Order 878/2022 to set electronic means to remotely communicate enforcement documents and the procedure to communicate them (Official Gazette 466)

The Order approves procedure to communicate enforcement documents to credit institutions by electronic remote communication means, in order to automate the process of setting and cancelling bank garnishments by forced execution bodies under ANAF, within the limit of amounts mentioned on the enforcement document. In this sense, ANAF makes, in the virtual private space, an information system called e-Popriri available to credit institutions.

back to summary ⇑

Instruction 11/2022 on NBR reference interest rate (Official Gazette 468/2022)

Starting May 11^th, 2022, the NBR reference interest rate is 3.75% per year.

back to summary ⇑

Order 776/2022 to amend ANAF Presidential Order 3845/2015 to approve procedure to register/change fiscal domicile, as well as to approve template and content of certain forms, as well as to amend other normative acts (Official Gazette 477/2022)

The Order updates procedure to register/change the fiscal domicile of taxpayers, as well as instructions to prepare Fiscal Registration Form 070, Application for fiscal registration/Application with mentions/Application to de-register for individuals carrying out independent economic activities or freelancer professions, according to new provisions on competence to manage fiscal liabilities owed by individuals carrying out independent economic activities or certain professions.

Order 1000/2022 to approve Procedures to cancel fiscal liabilities subject to provisions of art. I of Law 72/2022 to cancel certain fiscal liabilities and to amend certain normative acts (Official Gazette 517/2022)

The Order approves application procedures and the form, Decision to cancel fiscal liabilities, to apply provisions of Law 72/2022 regarding fiscal amnesty related to fiscal liabilities generated by re-qualification for the daily allowance.

Valuation of monetary items in foreign currency

The May 2022 closing NBR exchange rates to use for valuation of monetary items (cash on hand, receivables, payables) denominated in foreign currency, as well as receivables and payables denominated in RON but pegged to a foreign currency for collection/disbursement are:

1 EUR = 4,9430 RON; 1 USD =  4,6037 RON; 1 CHF =  4,8016 RON; 1 GBP = 5,8057 RON

back to summary ⇑