Newsletter no. 2 – June 2022
Access the magazine version of this Newsletter in pdf format: Romanian – English
Summary
- RO e-Transport system remains mandatory from the 1st of July 2022, but application of fines for non-compliance is postponed until the 1st of October 2022 (GEO 106/2022).
- Procedure to use and operate RO e-Transport system has been approved. The obligation to declare using the system applies to transports carried out with vehicles with a maximum authorized mass of at least 3.5 tons, loaded with goods with high fiscal risk, with total gross mass exceeding 500 kg or total value exceeding RON 10,000, related to at least one commercial relation that is the subject of transport (Order 1190/2022)
- The regime to prescribe fiscal fines is changed, with an exception to the general 6-month limitation rule. Thus, tax inspectors will be able to apply fines provided by the Fiscal Procedure Code for up to 5 years from the date of the deed (GEO 102/2022).
- The financial restructuring mechanism is also extended to include 2021, previously being applied to fiscal liabilities outstanding as of the 31st of December 2020. The VAT reverse charge mechanism for domestic operations is extended through the 31st of December 2026. (GEO 85/2022).
- Changes to voucher regime: maximum value of a meal ticket will be RON 30/day. An exception is introduced regarding the limitation to grant gift vouchers to employees only, and holiday vouchers can also be used to pay for school camps. (L187/2022).
- Provisions of Regulation (EU) 2019/1157 have been transposed into domestic legislation, amending the template and content of registration certificates and permanent residence cards issued to citizens of EU Member States, the EEA and the Swiss Confederation, as well as residence and permanent residence cards, which are released to their family members, third-country nationals (GD743/2022).
- Procedure and conditions under which authorization of fiscal warehouses, registered consignees, registered consignors and authorized importers are processed has been published. (Order 1329/2022).
- The affidavit/statement under own responsibility used to apply the fiscal facilities to subsidize a reduction in working time has been updated (Order 964/2022).
- Digital form D208 on income tax from transfer of real estate from personal patrimony has been updated (Order 1081/2022).
- Norms to apply regulations regarding the activity of household provider have been published (GD 822/2022).
- Statements to the Environment Fund can only be submitted online. (Order 1642/2022).
- Procedure on communication between ANAF and taxpayers via private virtual space (SPV) has been published (Order 1090/2022).
- Projects: The tax amnesty for the reclassification of gift vouchers has been approved by the Parliament and it is to be promulgated and published in the Official Gazette / Accounting reports as at 30 June 2022/ Important changes envisaged for the Fiscal Code (Projects).
- Valuation of monetary items in foreign currency for June 2022
Emergency Ordinance 106/2022 to support the grant of price discounts for fuel and diesel fuel and to amend art. 18 of GEO 41/2022 to establish National System to monitor vehicle transport of goods with high fiscal risk – RO e-Transport and to repeal art. XXVIII of GEO 130/2021 on certain fiscal budgetary measures, prorogation of certain deadlines, as well as to amend and complement certain normative acts (Official Gazette 657/2022)
Summary
The Ordinance introduces a scheme to compensate fuel prices with RON 0.50/litre, a scheme valid for the sale of fuel to final customers (individuals and legal entities), applicable between the 1st of July and 30th of September 2022.
The Ordinance postpones application of sanctions related to the RO e-Transport system to the 1st of October 2022, but the system remains mandatory starting the 1st of July 2022.
Details
RO e-Transport
The Ordinance postpones application of provisions regarding identification and sanction of violations of requirements of RO e-Transport until the 1st of October 2022. We specify that fines provided for non-compliance with provisions of the RO e-Transport system are between RON 5,000 and RON 100,000.
The RO e-Transport system becomes mandatory for products with high fiscal risk starting the 1st of July 2022.
The authorities refused to postpone application of the system, although postponed application of sanctions until the 1st of October 2022 was intensely demanded by economic operators.
ANAF (National Agency of Fiscal Administration) has delayed publication of the Procedure to use and operate the RO e-Transport system, which has been in draft stage for some time, although the system becomes mandatory starting the 1st of July. Thus, the Procedure to use and operate the system was published on the evening of the 30th of June, after 10 p.m., with an effective date of the 1st of July 2022.
For details on products with high fiscal risk that are subject to this system, see Order 802/2022 presented in the May 2022 edition of the NOWIUM Newsletter.
Scheme to compensate fuel prices
The Ordinance introduces a compensation scheme for a small part of the fuel price. Thus, between the 1st of July and the 30th of September 2022, economic operators selling gasoline and diesel to final customers (individuals and legal entities that purchase fuel for their own consumption) and which grant a price reduction of RON 0.50/litre, including VAT, from sales price benefit from compensation of RON 0.25/litre, including VAT, granted from the State budget.
Order 1190/2022 to approve Procedure to use and operate National RO e-Transport System to monitor transport of goods with high fiscal risk (Official Gazette 656/2022)
Summary
The Order approves Procedure to use and operate the National RO e-Transport System to monitor transport of goods with high fiscal risk and categories of road vehicles used to transport these types of goods. Thus, criteria for eliminating shipments considered small in terms of quantity or value are introduced.
Details
Categories of road vehicles subject to monitoring by RO e-Transport system
These are vehicles that have a maximum authorized mass of at least 3.5 tons, loaded with goods with high fiscal risk with total gross mass exceeding 500 kg or total value exceeding RON 10,000, related to at least one commercial relation that is the subject of transport.
The IT application for high fiscal risk transport management, part of the national RO e-Transport system, is available in the Virtual Private Space (SPV).
To use the RO e-Transport system, economic operators should be registered in SPV, in their own name or through a legal representative, a designated representative or a proxy/empowered person.
Declaration within RO e-Transport system of transports with high fiscal risk goods
The categories of transport operations of goods with high fiscal risk on the national territory are those provided by art. 2 point 9 of GEO 41/2022, meaning:
- transport of goods from intra-Community acquisitions by crossing the border by roadway at the entrance into Romania;
- transport of goods subject to intra-Community deliveries by crossing the border by roadway at the exit from Romania;
- transport of goods through import from departure location to unloading location on national territory;
- transport of goods subject to export from the loading location on national territory to customs offices for exports located on national territory;
- transport of goods belonging to different economic operators between two locations on national territory from loading location to unloading location;
- transport of goods belonging to the same economic operator between two locations on national territory from loading location to unloading location;
- transport of goods that are intra-Community transactions in transit on the Romanian territory, from the road crossing border at the entrance into Romania to the unloading location for storage or for formation of a new transport on national territory, from one or more shipment of goods;
- transport of goods subject to intra-Community transactions in transit through Romania, from the loading site on national territory, after storage or formation of a new transport from one or more consignment of goods, to the road crossing border at the exit from Romania.
From the above we note that the reporting obligation refers to all movements of goods subject to high fiscal risk on national territory, which meet the conditions set out above.
For declaration of shipment of goods with high fiscal risk, the declarant may use the means of electronic identification to access the SPV, for:
a) interconnection of the application available at the level of the issuer to the RO e-Transport System, using a series of microservices exposed in the form of an API (Application Programming Interface);
b) use of the application provided free of charge by the Ministry of Finance.
Technical documentation for microservices and applications provided above is available at the web address: http://etransport.mfinante.ro.
Following the transmission of data related to a transport of goods with high fiscal risk, the RO e-Transport System automatically assigns a unique identification number (UIT), used as a reference in system-specific processes and operations.
Data declared in RO e-Transport system
The RO e-Transport System records data on the consignor, beneficiary or consignee, the name, characteristics, quantities and value of goods transported, where loaded and unloaded, details of the means of transport used and carrier, date declared for the start of transport, as well as the UIT code generated.
If both high fiscal risk goods and other goods are transported within the same commercial relation, all categories of goods will be declared in the RO e-Transport System, for which the system will generate a single UIT code.
In the case of a group transport, the UIT codes assigned by declaring the data in the RO e-Transport system will be reflected on the transport documents related to each commercial relation that includes goods with high fiscal risk.
Data transmission within RO e-Transport system
The declaration on shipment of goods with high fiscal risk is made by submitting an XML file.
After transmitting the XML file, the RO e-Transport system automatically performs the following operations:
a) verification and validation regarding structure and syntax;
b) semantic verification.
If no errors are identified, the electronic signature of the Ministry of Finance is applied, which certifies the receipt of the declaration by the RO e-Transport System. The original statement is considered the XML file accompanied by an electronic signature of the Ministry of Finance, which is made available to the declarant in the form of a zip archive file.
If errors are identified, the statement is not considered transmitted, the declarant receiving an XML file containing the identified errors, accompanied by the electronic signature of the Ministry of Finance, in the form of a zip archive file.
After performing automatic verification, the files mentioned above will be available for download for a period of 60 days from the date and time generated, and subsequently will be electronically archived in accordance with legal provisions in force and released upon request.
Notification of concerned parties
The RO e-Transport system sends notifications to parties involved in transport of goods with high fiscal risk on the national territory.
The notification is made via SPV to persons in Romania other than the declarant, and contains the following data: the declarant, carrier, beneficiary, date declared for the start of the transport, registration number of vehicle and UIT.
Setting the value of goods to be confiscated for not being declared
If a sales invoice is presented when the contravention is discovered, then the value of goods to be confiscated will be equal to the value of the goods with high fiscal risk not declared in the RO e-Transport system as established on the sales invoice.
If the sales invoice is not presented when the contravention is discovered, then the value of the goods to be confiscated will be equal to the value of goods with high fiscal risk of a previous purchase of similar products.
If the sales invoice is not presented and there are no purchases of similar products, when the contravention is discovered, the value of the goods will be automatically determined as the average value of goods with high fiscal risk from the same category declared during the previous week within the RO e-Transport system for goods with high fiscal risk.
If the above conditions are not met, the value of the goods to be confiscated will be equal to the market value of similar goods with high fiscal risk. The determination of the equivalent value of undeclared goods to be confiscated is made in the order mentioned above.
Transport of goods with high fiscal risk performed by individuals who are agricultural producers
Transport of goods with high fiscal risk representing agricultural products, carried out by agricultural producers who are individuals, from the storage location to sales location, are not subject to declaration within the RO e-Transport system.
Emergency Ordinance 102/2022 to amend and complement Law 207/2015 on Fiscal Procedure Code (Official Gazette 654/2022)
Summary
The Ordinance transposes provisions of Directive 2014/107/EU amending Directive 2011/16/EU regarding mandatory automatic exchange of information in the field of taxation.
In addition to these provisions, the Ordinance also includes amendments regarding the prescription of tax fines. Thus, an exception is introduced from the general limitation rule of 6 months, the fiscal fines being prescribed after 5 years from the date of the deed.
Details
Amendment to the prescription regime for fiscal fines comes due to decisions given by Romanian courts through which it was established that non-compliance with the obligation to declare and pay a tax is prescribed within 6 months from the deadline, being an instant contravention. Therefore, after those 6 months, the fine can no longer be applied. Fiscal inspectors considered these facts to be of a continuous nature and applied fines long after the 6 month prescription period.
With the new amendment, the legislation establishes an exception to the general limitation rule, fiscal inspectors being able to apply fines provided by the Fiscal Procedure Code for up to 5 years from the date of the deed.
Emergency Ordinance 85/2022 to amend and complement certain normative acts in the taxation and customs field (Official Gazette 594/2022)
Summary
The Ordinance extends application of the financial restructuring mechanism for outstanding fiscal liabilities up to the 31st of December 2021 (previously the 31st of December 2020).
Also, the application of simplification measures in the field of VAT (reverse charge for certain internal operations) provided by art. 331 of the Fiscal Code is extended through the 31st of December 2026.
Details
Restructuring fiscal liabilities
The application of the financial restructuring mechanism for fiscal liabilities provided by GO 6/2019 is extended. Thus, the main fiscal liabilities are now due on the 31st of December 2021 (previously the 31st of December 2020) and unpaid by the date of issuance of the fiscal attestation certificate.
Main fiscal liabilities due on the 31st of December 2021 are also considered budgetary obligations declared by the debtor or established by the competent fiscal authority through decisions subsequent to the 1st of January 2022 but related to fiscal periods prior to the 31st of December 2021.
The financial restructuring mechanism is also applicable to main and additional fiscal liabilities established by authorities other than fiscal authorities, as well as fines of any kind, sent for recovery to the central fiscal authority subsequent to the 1st of January 2022 until the issuance date of the fiscal attestation certificate. Fiscal liabilities existing on the record of the local fiscal authority are also subject to restructuring.
Restructuring cannot be applied to entities which attempted restructuring, but the plan subsequently failed.
The deadline to submit the notification regarding intention to restructure fiscal liabilities is extended to the 31st of January 2023 (previously the 31st of December 2022), and the deadline to submit the restructuring application is extended to the 31st of July 2023 (previously the 31st of July 2022), under penalty of preclusion.
Applications pending on the 17th of June 2022 will be solved according to legislation in force on the submission date, or debtors may opt to remake the restructuring plan and include outstanding fiscal liabilities on the 31st of December 2021. Fiscal authority will issue a new fiscal attestation certificate, which includes fiscal liabilities due by the 31st of December 2021 and unpaid by the date of its issuance.
For debtors that submit the notification regarding an intention to restructure fiscal liabilities subsequent to the 17th of June 2022, but do not submit the application for restructuring within six months from submission date of the notification, enforcement begins or continues, as appropriate. Submission of a new notification within six months or after this period will have no effects. If the application for restructuring is submitted after the start of enforcement procedures, it will be suspended effective on submission date of the application
Extension to apply VAT simplification measures in the field of VAT (reverse charge for internal operations)
The application of simplification measures in the field of VAT (reverse charge for certain internal operations) provided by art. 331 of the Fiscal Code is extended.
The operations for which the reverse charge mechanism applies are:
- supply of cereal and technical plants, including oilseed and sugar beets, which are not, in principle, intended as such for the final consumer;
- transfer of assignable greenhouse gas emission certificates;
- transfer of green certificates;
- delivery of electricity to a trader which is a taxable entity established in Romania;
- delivery of natural gas to a trader which is a taxable entity established in Romania;
- supply of mobile phones (devices manufactured or adapted for use in connection with an authorized network and operate on certain frequencies, whether or not they have any other use);
- supply of integrated circuit devices, such as microprocessors and central processing units, before their integration into end-user products;
- supply of game consoles, PC tablets and laptops.
Application of this regime was initially due by the 30th of June 2022, but by EU Directive 890/2022 the possibility to apply the regime was extended until the 31st of December 2026. Thus, GEO 85/2022 extends the application of the reverse charge regime until the 31st of December 2026.
As a reminder, the reverse charge is only applied to domestic transactions between persons registered under the scope of VAT in Romania, its application being mandatory. For the last three types of operations mentioned above, there is an additional condition, the reverse charge being applicable only if the value of goods (without VAT), stated on an invoice, is at least RON 22,500.
On the invoices issued for delivery of goods and provision of services to which this regime applies, suppliers or providers will not mention the related tax collected. Beneficiaries are those which determine the value of VAT, the tax being highlighted on the associated tax return as a deductible and collected tax.
The purpose of simplification measures (reverse charge) in domestic operations is to prevent VAT fraud.
Law 187/2022 to amend and complement Law 165/2018 on granting vouchers (Official Gazette 613/2022)
Summary
The law increases the maximum value of a meal ticket to RON 30/day starting the 1st of July 2022.
A new exception is introduced for gift vouchers, and holiday vouchers can also be used to pay for school camps.
Details
The Law amends regulations on vouchers.
Meal tickets
Starting the 1st of July, the maximum value of a meal ticket increases from RON 20.17 to RON 30/day. The new threshold is applicable until the 31st of March 2023. Application of the maximum value is not mandatory for employers.
Employers may additionally grant, in July 2022, meal vouchers with the value corresponding to the difference between the established value of a meal ticket up to RON 30/meal ticket/day, and the value granted in June 2022 corresponding to days worked that month.
As a reminder, meal tickets are only taxed with income tax (10%), and an ongoing draft law proposes to exempt them from taxation. We will keep you informed in case of any changes.
Gift vouchers
An exception is introduced regarding the ban of gift voucher grants to categories of beneficiary other than own employees. Thus, legally constituted trade unions can occasionally grant from their own funds gift vouchers to their own members who do not have the quality of employees of the trade union organization. The frequency of gift vouchers and their value are decided by management of the trade union organization. Provisions regarding the purchase and issuance of gift vouchers apply accordingly.
Not much has changed since the attempt to standardize gift voucher distributions. We have a new exception provided by law and obviously new debates and interpretations. For example, what happens to gift vouchers given to union members who are not employees of that union? Up until now we had the limitation of granting gift vouchers to our own employees, but now what happens with the taxation of gift vouchers in case of these exceptions? Who declares, withholds and pays the income tax?
Holiday vouchers
The use area of holiday vouchers is extended, and they can also be used to cover expenses with school camps, national or thematic, organized in Romania, in which the child of the holder participates. The procedure to pay for camps will be set by joint order of the Minister of Education and the Minister of Finance.
Decision 743/2022 to amend and complement certain normative acts regarding residence documents issued for citizens of the European Union and members of their families, as well as in the field of foreigners (Official Gazette 555/2022)
Summary
The Decision transposes into domestic law provisions of Regulation (EU) 2019/1157 to enhance the security of identity cards for European Union citizens and residence documents issued to European Union citizens and their family members exercising their right to freedom of movement.
Details
The Decision approves the template and content of registration certificate and permanent residence card issued to citizens of Member States of the European Union, the European Economic Area and citizens of the Swiss Confederation, as well as residence and permanent residence cards issued to their family members, nationals of third country citizens.
Family members who are not citizens of the European Union, who exercise their right of residence in Romania, holders of residence cards obtained prior the effective date of Regulation (EU) 2019/1157, are required to present themselves to the territorial unit of the General Inspectorate for Immigration in order to change their cards, by the 3rd of August 2023, if validity of the documents extends beyond this date.
Depending on the applicant’s option, residence and permanent residence cards can be sent by the General Inspectorate for Immigration, via courier services, to the domicile or residence of the holders in Romania, with recipients bearing the shipping costs.
Order 1329/2022 on procedure and conditions to authorize fiscal warehouses, registered consignees, registered consignors and authorized importers (Official Gazette 559/2022)
Summary
The Order approves the Procedure and conditions according to which authorization of fiscal warehouses, registered consignees, registered consignors and authorized importers is carried out.
Details
Authorization of fiscal warehouses, registered consignees, registered consignors and authorized importers is by regional customs directorates in whose area of competence the applicant has its headquarters/domicile. As an exception, in the case of large-size taxpayers, the authorization is made by the Regional Customs Directorate of Bucharest.
Order 964/2022 to approve template of statement under own responsibility provided by art. 31 para. (3) of GEO 132/2020 regarding support measures for employees and employers in the context of the epidemiological situation caused by the spread of the SARS-CoV-2 coronavirus, as well as to stimulate employment (Official Gazette 596/2022)
The Order approves template of the statement under own responsibility used for the application of fiscal facilities to subsidize a reduction in working time, facilities that were extended through the 31st of December 2022 by GEO 73/2022 – see more details in the May 2022 edition of the Nowium Newsletter.
Order 1081/2022 to amend template, content and instructions to file form 208 – “Informative statement regarding income obtained from transfer of real estate from personal patrimony”, approved by Order of the Minister of Public Finance and the Minister of Justice 1022/2562/2016 to approve procedures to set, pay and adjust tax on income obtained from transfer of real estate from personal patrimony, as well as to approve template and content of certain forms used to administer tax (Official Gazette 591/2022)
Summary
The Order updates Informative statement on tax on income obtained from transfer of real estate from personal patrimony (form 208).
Details
Form 208 is used by public notaries to declare information on transactions with real estate from personal patrimony through procedure performed by notaries concluded starting the 1st half of 2022.
The statement will be transmitted via SPV.
Decision 822/2022 to approve Methodological norms to apply provisions of Law 111/2022 to regulate activity of household provider (Official Gazette 631/2022)
The Decision approves Methodological norms to apply provisions of Law 111/2022 to regulate activity of the household provider, which will enter into force on the 1st of January 2024.
You may read more details on the regulation of the household provider’s activity in the May 2022 edition of the Nowium Newsletter.
Order 1642/2022 to amend and complement Order 572/2019 of deputy Prime Minister, Ministry of the Environment, on submission of forms regarding obligations to Environment Fund through digital means (Official Gazette 626/2022)
Summary
The Order amends and complement legislation on submission of forms regarding obligations to the Environment Fund.
Details
Beginning the 1st of July 2022, forms filed for the Environment Fund may only be submitted by means of remote transmission (online). Submission in printed, hard-copy format, is no longer accepted.
An online application is required to obtain an access account in the application where forms are submitted online.
Using the application, a fiscal attestation certificate regarding obligations to the Environment Fund may be issued (in electronic format). The document will be digitally signed by the Administration of the Environment Fund and will be available in the application to view and download.
The adjusting tax return on obligations to the Environment Fund will be submitted digitally, through the Submission of Online Tax Returns service, only along with justifying documents showing the accuracy of the data entered in the adjusting tax return. The justifying documents, signed with a qualified digital signature by the person at the entity authorized to do so, will be uploaded to the platform in the Submission of Online Tax Returns section together with the adjusting tax returns.
Order 1090/2022 to approve Procedure to communicate through remote electronic means between central fiscal authority and individuals, legal entities and other entities without legal personality (Official Gazette 585/2022)
Summary
The Order approves Procedure to communicate between the central fiscal authority and individuals, legal entities and other entities without legal personality through SPV.
Details
The Procedure to communicate refers to:
a) means of electronic/digital identification of individuals, legal entities and other entities without legal personality within digital area;
b) communication of information and documents via SPV service;
c) communication of information and documents, depending on the case, through the following services: Newsletter (Buletin informativ), Online appointment (Programare Online) and Contact form (Formular de contact);
d) conditions to communicate through services provided by letters b) and c).
The procedure contains as annexes the list of documents that can be communicated via SPV for each category of taxpayer, both those issued by the Ministry of Finance/ANAF and communicated to the taxpayer, as well as those issued by the taxpayer and communicated to fiscal authorities.
Draft laws approve, but still unpublished when our Newsletter was finalized (the 30th of June 2022)
Fiscal amnesty for reclassification of gift vouchers
A new and expected fiscal amnesty programme was passed in Parliament and will be promulgated by the President and published in the Official Gazette.
The law cancels any differences in main fiscal liabilities, as well as additional related fiscal liabilities, established by the fiscal authority through a tax decision issued and communicated to the taxpayer, as a result of reclassification of gift vouchers obtained by individuals from persons other than employers. The reclassification is made from the category of income from other sources to the category of salary income, related to fiscal periods up to and including the 31st of December 2020, and not paid by the date the law entered into force.
Cancellation even applies if the gift vouchers have been granted by the payer of income to the employer of individuals to be distributed to their employees on behalf of the payer of income.
Amnesty will apply to both tax decisions already issued, regardless of whether or not the amounts set have been paid, as well as by the fact that fiscal inspectors will not be able to reclassify the grant of gift vouchers which were distributed starting the 31st of December 2020.
Within 30 days from publication of the law, ANAF should issue the procedure for its application.
Remember that this law is not published. We will keep you updated with its evolution!
Submission of half-yearly accounting reports
According to an Order under debate, the half-yearly accounting reports (as of June 30, 2022) will be submitted online by the 16th of August 2022.
As last year, the obligation to submit half-yearly accounting reports only applies to taxpayers that had a turnover of over EUR 1 million in 2021.
Important amendments taken into consideration for the Fiscal Code
During this period, there are political debates regarding important legislative changes that will be brought to the Fiscal Code with immediate application or will start in 2023.
Among the proposals taken into consideration are the following:
- Micro-enterprise regime – change of conditions and, practically, restrict application of the regime, as follows:
- threshold to apply micro-enterprise regime would decrease from EUR 1 million to EUR 500,000.
- micro-enterprises would have at least 1 employee;
- an individual could hold up to 3 companies, at most, classified as micro-enterprises.
- VAT
- increase in VAT rate from 5% to 9% is taken into consideration for the Horeca (hotel, restaurant and café) sector and from 9% to 19% for carbonated beverages containing sugar.
- Tax on dividends
- increase in tax on dividends from 5% to 8% is taken into consideration.
- Tax on income and social contributions
- Fiscal facilities in the construction, agricultural and food sectors would only apply up to a maximum threshold of RON 10,000 (currently RON 30,000).
- Introduction of additional income tax deductions for low-income earners, young people up to the age of 26 or families with children.
- Persons earning income from a single part-time contract will pay contributions similar to those paid in the case of the minimum wage. Exceptions to this rule will be represented by pupils and students up to 26 years of age, apprentices, retirees in the public system, those who have more part-time or full-time employment contracts, and the value of income exceeds the value of the national minimum wage and people with disabilities.
- Tax on income from real estate transactions carried out by individuals would increase from 1% to 3% in the case of real estate owned for less than 3 years, remaining 1% for real estate owned for more than 3 years. Inherited real estate properties will be exempt.
- Income from independent activities (PFA) – threshold for taxation based on income quota would decrease from EUR 100,000 to EUR 25,000 per year. Exceeding the threshold implies taxation on real basis.
- Local taxes
- tax on buildings will be uniformly calculated for both individuals and legal entities.
- Other
- Increase in excise duties for tobacco and alcohol.
- Significant increase in tax on gambling (proposed to be 40%).
We remind you that the above are draft laws or intentions with political influence and are currently not applicable. Our aim is to keep you up to date with the trends and intentions of changes envisioned for fiscal legislation. Once the information becomes certain and is published in the Official Gazette, we will inform you through the Nowium Newsletter and other materials published by Nowium.
Don’t forget about our Tax Group, a way to join the professionals in the fiscal and accounting area and to always be up to date with developments in the field. More details on www.taxgroup.ro
Valuation of monetary items in foreign currency
The June 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 = 4.9454 RON; 1 USD = 4.7424 RON; 1 CHF = 4.9466 RON; 1 GBP = 5.7525 RON