Newsletter no. 5 – September 2022

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

Summary

• Amendments and complements to RO e-Transport system (GEO 132/2022)
• Amendments and complements to Fiscal Procedure Code, among which regulations on anticipated individual fiscal solution (“SFIA”), publication of list with taxpayers that do not have fiscal obligations, extension of period of fiscal inspection for non-resident taxpayers and others (GO 31/2022)
• Procedure to redirect amounts designated for sponsorship deduction from corporate tax/tax on micro-enterprise income, which remained unused during the previous year (Order 1679/2022)
• New reporting obligations on corporate tax introduced in accounting regulations applicable to a large group of enterprises (Order 2048/2022)
• Contribution to Energy Transition Fund – procedure to register non-residents and/or to report obligation in tax returns (Order 1636/2022 and Order 1635/2022)
• Procedure to issue VAT certificate in the case of intra-community purchase of transportation services made by entities/individuals that are not registered and should not register under the scope of VAT in Romania (Order 1611/2022)
• Procedure to apply court decisions to suspend execution of decision to declare a taxpayer’s inactivity (Order 1587/2022)
• Procedure to grant online access to data recorded in the General Registry of Employees by employees and former employees (GD 1164/2022)
• Amendments to regulations regarding declaration of real beneficiaries and extension of their area of application (GEO 123/2022)
• Amendments and complements to application norms of the Fiscal Code in the area of excise duties (GD 1106/2022)
• Update in value of cultural tickets (Order 2061/3318/2022) and nursery vouchers (Order 1306/2062/2022)
• Update list of positions in Romania (Order 1348/784/2022 and Order 1364/1383/2022)
• Other legislative news
• Application of fiscal consolidation system in the area of corporate tax starting 2023
• Online submission of files to Bucharest Health Insurance House (“CASMB”) for recovery of amounts related to medical leave
• Closing exchange rates for September 2022.

Emergency Ordinance 132/2022 to amend and complement certain normative acts (Official Gazette 957/2022)

Summary

This normative act amends the RO e-Transport National System for monitoring road transport of goods with high fiscal risk, the competence of the Development Bank of Romania and the organisation and operation of EXIMBANK.

Contraventions and sanctions related to application of RO e-Transport provisions are still suspended and will be applicable starting the 1^st of January 2023 (previously the suspension was by the 1^st of October 2022).

Details

Amendments brought by GEO 41/2022, regulating the RO e-Transport system, targets the following:

• Regulation of obligation to publish information regarding protocols concluded by ANAF with institutions/authorities to which GEO 41/2022 assigns duties and responsibilities online.
• Declaration obligation for new users, regarding type of operations that may occur in practice.
• Obligation of transport organizer or transport operator to update, during validity period of UIT code (unique identification number generated by RO e-Transport system through which goods related to each commercial relation that are the subject of the transport of goods with high fiscal risk are identified), changes in identification information of road vehicles, prior to being in motion again.
• Setting a mechanism to declare or update data, depending on the case, if the RO e-Transport System is not operational.
• Periods when the system is down will be published on ANAF and Ministry of Finance websites.
• Validity period of UIT code is extended from 5 to 10 calendar days in the case of intra-community acquisition of goods, as well as in the case of commercial operations representing a non-transfer and the transport of goods representing inventory at customer disposal.
• Sanctions for failure to meet obligation to declare and/or update data, after the RO e-Transport system becomes operational.
• The competence to find/discover offenses and to apply sanctions is also extended to staff within the structures subordinated to the Ministry of Internal Affairs.
• Contraventions and sanctions will be applicable effective 1^st of January 2023.

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Ordinance 31/2022 to amend and complement Law 207/2015 on Fiscal Procedure Code (MO 857/2022)

Summary

The Ordinance brings several amendments and complements to the Fiscal Procedure Code, including regulations on the anticipated individual fiscal solution (SFIA), publication of the list of taxpayers that do not have fiscal obligations, extension of period of fiscal inspection for non-resident taxpayers and others.

Details

Anticipated individual fiscal solution (SFIA)

Clarifications are made regarding SFIA by specifically mentioning that the submission of an application by the taxpayer refers to clarifying a single future fiscal situation and a single main fiscal obligation. For several future fiscal situations, the taxpayer should submit several applications for SFIA. Obviously, this also generates the payment of a fee for each application submitted.

As a reminder, the issuance of SFIA for small and medium-sized taxpayers is charged EUR 3,000. The fee is EUR 5,000 in the case of large-sized taxpayers.

The Ordinance also clarifies the fee for issuance of a SFIA for non-resident taxpayers, which is EUR 5,000.

New provisions are introduced regarding a refund of the fee paid for issuing the SFIA. Thus, if previously the fee was refunded when the competent fiscal authority rejected the issuance/modification of the SFIA, according to the new provisions it is only refunded to the payer/taxpayer in the following situations:

• the payer/taxpayer discards the application within 15 days from submission date, the period allocated for a preliminary analysis;
• the payer/taxpayer notified by the competent fiscal authority that the application was not taken into consideration as a result of the preliminary analysis, communicates the option to discard the application and the payer/taxpayer a refund of the fee.

Taxpayers which submitted applications prior to the date the Ordinance entered into force (September 3^rd, 2022), have the right to obtain the refund when the competent fiscal authority rejects issuance of a SFIA.

Communication of administrative fiscal act

The electronically issued fiscal administrative act is communicated by electronic means of remote transmission regardless of whether the payer/taxpayer opted for this type of issuance and communication. Thus, the act is considered communicated on the date when it is made available to the payer/taxpayer, and not within 15 days from the date of transmission to the payer/taxpayer, as previously mentioned.

Interruption and suspension of limitation period for the right to set fiscal receivables

The 5 -year limitation period may also be suspended between the date of death of the individual who was under a fiscal inspection action/verification and the date the inspection/verification authority became aware of whether or not there are or are not any successors.

Period of fiscal inspection

The period of fiscal inspection for non-resident taxpayers is extended from 45 to 180 days.

Notification of/reporting to criminal investigation authorities

Fiscal inspections cease after the criminal investigation authority is notified, only for the fiscal obligations and fiscal periods that were subject to notification.

The fiscal inspection authority may resume the inspection by sending a new inspection notice when, in the case of a criminal complaint, the prosecutor orders the classification or disclaimer of criminal prosecution or if, subsequent to being sent to court, the court leaves the civil action unsolved.

Anti-fraud inspection

At the end of the operational and unexpected inspection, the taxpayer may declare its point of view regarding findings mentioned in the report/inspection act within 5 working days from the communication date, and it will be analysed at the level of the Fiscal Anti-Fraud General Directorate.

Publication of list of taxpayers having no outstanding obligations

A list of legal entities – taxpayers that have declared and paid their fiscal obligations in due time will be published quarterly on the fiscal authority’s website.

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Order 1679/2022 to approve Procedure to redirect corporate tax/tax on micro-enterprise income, according to law, to perform sponsorship and/or patronage acts or grant of private scholarships, as well as template and content of certain forms (Official Gazette 923/2022)

Summary

The Order approves the Procedure regarding the redirection of corporate tax/tax on micro-enterprise income in order to perform sponsorship and/or patronage acts or to grant private scholarships, in the situation where, following the final calculation of the corporate tax/tax on micro-enterprise income for the previous year and the limits for sponsorship, patronage acts and/or private scholarships, unused amounts are discovered.

Details

The Order approves the necessary forms, as follows:

• Form 177, Application to redirect corporate tax/tax on micro-enterprise income.
• Notification on redirection of corporate tax/tax on micro-enterprise income.

Payers of corporate tax or tax of micro-enterprise income, depending on the case, may decide the redirection of unused amounts of the tax due, within 6 months from the legal deadline for submitting annual its corporate tax or tax on micro-enterprise income return related to the 4^th quarter.

Corporate tax

The amount of corporate tax or corporate tax difference that may be redirected is calculated by subtracting amounts representing sponsorship and/or patronage, private scholarships, granted to beneficiary entities in the year for which the annual corporate tax return was submitted from amounts carried forward, as registered on form 101, “Corporate Tax Return,” up to the maximum ceiling established according to art. 25 para. (4) letter i) of the Fiscal Code.

Deduction of amounts related to the tax credit and exempted/reduced corporate tax should be taken into account when establishing the ceiling for corporate tax redirection provided by art. 25 para. (4) letter i) point 2 of the Fiscal Code.

Tax on micro-enterprise income

The micro-enterprise tax or the difference in micro-enterprise tax that may be redirected is calculated by subtracting amounts granted to the beneficiary entities during that year, according to art. 56 para. (11), (15) and (22) of the Fiscal Code from amounts carried forward up to the maximum ceiling established according to art. 56 para. (11) of the Fiscal Code, calculated for the entire fiscal year.

Payment of redirected amount

The obligation to pay the amount redirected from corporate tax or tax on micro-enterprise income rests with the competent fiscal authority.

Redirection of the corporate tax or tax on micro-enterprise income for sponsorship of non-profit legal entities, including cult units, may only be carried out if the beneficiary of the sponsorship is registered on the date of payment by the fiscal authority in the Register of entities/cult units for which tax deductions are granted.

In the case of redirecting corporate tax or tax on micro-enterprise income to the United Nations International Children Emergency Fund (UNICEF) and to other international organisations that operate according to provisions of special agreements to which Romania is a part, there is no obligation to register the respective beneficiary entity in the Register of entities/cult units for which tax deductions are granted

The beneficiary entity may be a non-profit legal entity, religious unit, UNICEF, any international organisation that operates according to provisions of special agreements to which Romania is a part, other beneficiaries provided by Law 32/1994 on sponsorship, Law 334/2002 on libraries and art. 25 para. (4) letter c) of National Education Law 1/2011, as well as the beneficiaries of private scholarships.

Application to redirect corporate tax/tax on micro-enterprise income

Taxpayers exercise their option to redirect corporate tax/tax on micro-enterprise income by filing and submitting form 177, Application to redirect corporate tax/tax on micro-enterprise income.

The application is submitted by electronic means of remote transmission.

The redirection option may be exercised for one or more entities, within the limit of the established amount.

The taxpayer may submit, within the legal submission deadline, a new form 177, Application to redirect corporate tax/tax on micro-enterprise income.

Adjusting the information in the application is performed by submitting a rectification form 177, which will include the corrected information requested in the notification, as well as all the correct information entered in the original application.

In the cases where taxpayers are members of a fiscal group, the redirection may only be ordered by the responsible legal entity.

The deadline to process applications to redirect corporate tax/tax on micro-enterprise income is 45 days from submission.

For taxpayers which, on the submission date of the application, have not settled debts representing corporate tax or tax on micro-enterprise income, the 45-day term begins from the date of debt settlement.

Deadline to submit:

a) within 6 months from legal deadline to submit the annual corporate tax return, in case of taxpayers paying corporate tax;

b) within 6 months from legal deadline to submit tax return related to the 4^th quarter, in the case of taxpayers paying tax on micro-enterprise income.

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Order 2048/2022 to complement accounting regulations applied to economic operators (Official Gazette 878/2022)

Summary

The Order complements accounting regulations in force (OMPF 1802/2014 and OMPF 2844/2016) by incorporating into domestic law provisions of EU Directive 2021/2.101 to amend Directive 2013/34/EU on presentation of information regarding corporate tax by certain companies and branches.

Details

New obligations are introduced in accounting regulations for certain entities to prepare, publish and provide access to a report with information on corporate tax for the most recent financial year in which they exceeded the turnover criterion mentioned below.

Which entities are affected by the changes?

New obligations apply starting the 1^st of January 2023 for the following entities:

• The final parent companies, whose consolidated net turnover exceeded on their financial statements date, for each of the last two consecutive financial years, the amount of RON 3,700,000,000, as reflected in their consolidated annual financial statements.
• Autonomous entities whose net turnover on their financial statements date exceeded, for each of the last two consecutive financial years, the amount of RON 3,700,000,000, as reflected in their individual annual financial statements.

A final parent company, meaning an autonomous entity, is no longer subject to the above-mentioned reporting obligations when its consolidated net turnover at the financial statement date falls below the amount of RON 3,700,000,000 for each of the previous two consecutive financial years.

Final parent company means an entity that prepares consolidated annual financial statements of the largest group of entities.

Autonomous entity means an entity that is not part of a group.

The above-mentioned provisions do not apply to autonomous entities or final parent companies and their affiliated entities when these entities, including their branches, are established or have their fixed commercial establishment or have a permanent economic activity in the territory of a single Member State and in no other tax jurisdiction.

Obligations of medium and large-sized subsidiaries

Medium and large-sized subsidiaries that are controlled by a final parent company that is not subject to these regulations, are required to publish and provide access to a report with information on corporate tax regarding the respective final parent company for the most recent two consecutive financial years, when the consolidated net turnover on its financial statement date exceeded, for each of the last two consecutive financial years, the amount of RON 3,700,000,000, as reflected in its consolidated financial statements.

When such information or report is not available, the subsidiary shall ask its final parent company to provide all information necessary to fulfil the above obligations. If the final parent company does not provide all the requested information, the subsidiary prepares, publishes and provides access to a report on information related to corporate tax, which contains all information, obtained or acquired, that it holds, as well as a statement indicating that its final parent company has not made the necessary information available.

Medium and large-sized subsidiaries are no longer subject to reporting obligations when total consolidated net turnover of the final parent company on its financial statement date falls below the amount of RON 3,700,000,000 for each of the previous two consecutive financial years, as reflected in its annual consolidated financial statements.

Medium and large-sized entities are entities that, on the financial statement date, exceed the limits of at least two of the following three criteria:

• total assets: RON 17,500,000 (equivalent of EUR 3,946,953);
• net turnover: RON 35,000,000 (equivalent of EUR 7,893,906);
• average headcount during financial year: 50.

Obligations for branches set in Romania

Branches in Romania, established by entities that do not fall under the legislation of another Member State, have the obligation to publish and ensure access to a report on information related to corporate tax on the final parent company or the autonomous entity, regarding the most recent financial year between the last two consecutive financial years.

If the respective information or report is not available, the person or persons designated to fulfil publication formalities ask the final parent company or autonomous entity to provide them with all the information necessary to fulfil their obligations.

If all the requested information is not provided, the branch prepares, publishes and provides access to a report on the information related to corporate tax, which contains all information it holds, obtained or acquired, as well as a statement indicating that the final parent company or autonomous entity did not make the required information available.

The reporting obligations only apply to branches whose net turnover has exceeded the threshold of RON 35,000,000 (equivalent of EUR 7,893,906) – criterion indicated for medium and large-sized entities – for each of the prior two consecutive financial years.

The rules set out in this section apply to a branch only if the following criteria are met:

• the entity that opened the branch is either an entity affiliated to a group whose final parent company is not regulated by the legislation of a Member State and whose consolidated net turnover exceeded on its financial statement date, for each of the last two consecutive financial years, the amount of RON 3,700,000,000, as reflected in its annual consolidated financial statements, or an autonomous entity whose net turnover at the date of its financial statements, for each of the last two consecutive financial years, exceeded the amount of RON 3,700,000,000, as reflected in its financial statements; and
• the final parent company mentioned at letter a) does not have a medium or large-sized subsidiary.

A branch is no longer subject to reporting obligations if the above criterion or the turnover criterion are no longer met for two consecutive financial years.

Exemptions from reporting obligations for medium and large-sized subsidiaries and branches

The aforementioned obligations for medium and large-sized subsidiaries and branches do not apply if a report on corporate tax information is prepared by a final parent company or an autonomous entity that is not subject to legislation of a Member State and meets the following criteria:

a) is made available to the public, free of charge, and in an electronic automatic reading format:

• on the website of the respective final parent company or autonomous entity;
• in at least one of the official languages of the European Union;
• within 12 months from the financial statement date of the financial year for which the report is prepared; and

b) identifies the name and headquarters of a single subsidiary or the name and address of a single branch subject to the legislation of a Member State and which has published a report.

Content of report on information regarding corporate tax

The report on information regarding corporate tax includes information on all the activities of the autonomous entity or the final parent company, including the activities of all affiliated entities, consolidated in the financial statements for the financial year in question.

The information includes:

a) name of the final parent company or autonomous entity, financial year in question, currency used for report presentation and, where appropriate, a list of all subsidiaries consolidated in financial statements of the final parent company, for the relevant financial year, established in the European Union or in tax jurisdictions included in annexes I and II to Conclusions of the Council on the revised EU list of non-cooperative jurisdictions for tax purposes;

b) a brief description of the nature of their activity;

c) full-time headcount;

d) income, which represents the sum of net turnover, other operating income, income from participation interests, with the exception of dividends received from affiliated entities, income from other investments and loans that are part of fixed assets, other interest to be collected and other similar income;

e) amount of gross profit or loss;

f) the amount of corporate tax accumulated during the financial year in question, which represents current tax expenses recognized regarding taxable profits or losses of the financial year in question by the entities and branches, in the relevant tax jurisdiction;

g) the amount of corporate tax paid in cash, which represents the amount of corporate tax paid during the relevant financial year by entities and branches in the relevant tax jurisdiction; and

h) the amount of accumulated earnings at the end of the financial year in question.

Publication and accessibility

The report on information regarding corporate tax is published within 12 months from the financial statements date of the financial year for which the report is prepared, being made available to the public free of charge, in Romanian, on the website of the entity/subsidiary/affiliated entity/branch or is made available to the public in an electronic reporting format with automatic reading display, on the website of the Registry mentioned by the Directive (EU) 2017/1,132 and free of charge for any third party located in the European Union.

Statement of statutory auditor

If there is an obligation to audit annual financial statements, the audit report establishes whether, for the financial year prior to the financial year for which the financial statements that are the subject of the audit were prepared, the entity had the obligation to publish a report on information regarding corporate tax and, if so, whether the report was published in accordance with legal provisions.

Entrance into force

The new reporting requirements enter into force on the 1^st of January 2023.

Entities that have chosen a financial year different from the calendar year apply these provisions from the beginning of the first financial year thus chosen, which starts subsequent to the 1^st of January 2023.

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Order 1636/2022 to approve Procedure and conditions to register representatives of non-resident entities that are obligated to calculate, declare and pay Contribution to Energy Transition Fund, as well as to set certain administration competences (Official Gazette 897/2022)

Summary

The Order approves Procedure and conditions to register representatives of non-resident entities that are obligated to calculate, declare and pay Contribution to Energy Transition Fund.

Details

The Procedure applies if non-residents, carrying out transactions on the energy market in Romania and having the obligation to calculate, declare and pay contribution to the Energy Transition Fund, opt to appoint a representative to fulfil these obligations.

Any entity/individual fiscally registered in Romania, having the domicile/headquarters in Romania, may be designated as a representative. The application to appoint a representative is submitted along with the following acts/documents:

• power of attorney, clearly stating the quality of representative to fulfil obligations of the non-resident entity according to GEO 119/2022;
• written acceptance of the person proposed as a representative, by which the entity/individual undertakes to fulfil its obligations according to GEO 119/2022 and to answer jointly with the non-resident entity, for declaration and payment of the contribution;
• proof of establishing a guarantee in the form of a bank guarantee or collateral cash letter, in the RON equivalent of EUR 1 million.

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Order 1635/2022 to amend and complement ANAF Presidential Order 587/2016 to approve template and content of forms used to declare taxes and fees for self-taxation and withholding tax regimes (Official Gazette 897/2022)

Summary

The Order regulates reporting on the Contribution to Energy Transition Fund, form 100 and form 710.

Details

The Order introduces a new position on the List of payment obligations to the State Budget: position 87, Contribution to Energy Transition Fund.

This fiscal obligation is declared monthly through form 100 by energy producers, entities agreeing to produce electric energy, traders, providers carrying out trading activity and those who trade, starting the 1^st of September 2022, quantities of electric energy and/or natural gas on bulk product market, according to provisions of GEO 27/2022 on measures applied to final customers in the electric energy and natural gas market during the period of 1 April 2022 to 31 March 2023.

The Order amends instructions to complete/file form 100 (Statement on payment obligations towards the State Budget) and form 710 (Adjusting tax return).

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Order 1611/2022 to approve Procedure to issue VAT certificates in the case of intra-community purchase of transportation, as well as to approve certain forms (Official Gazette 891/2022)

Summary

The Order approves Procedure to issue VAT certificates in the case of intra-community purchase of transportation services performed by individuals/entities that are not registered and should not register under the scope of VAT in Romania.

Details

The Order also approves the required forms:

• Template of application to issue VAT certificate, in the case of intra-community purchase of transportation;
• Report on analysis of Application to issue VAT certificate;
• VAT certificate issued in the case of intra-community purchase of transportation.

The certificates are necessary for registration of transportation services in Romania purchased from European Union Member States by persons who are not registered and who should not register under the scope of VAT in Romania.

The certificate should either prove the payment of VAT or that no VAT is due in Romania, and it is obtained based on an application submitted to the competent fiscal authority. In the situation where VAT is due, the application to issue the certificate is made after submitting the special VAT Return (D301) and paying the VAT. As a reminder, the special VAT Return (D301) is submitted prior to registration of the transportation services in Romania, but prior to or on the 25^th of the month following the one when VAT chargeability related to the intra-community purchase appears.

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Order 1587/2022 to approve Procedure to apply court decisions through which it was decided to suspend execution of decision to declare inactivity, based on provisions of Law 554/2004 on administrative disputes, as well as to approve template and content of certain forms (Official Gazette 885/2022)

Summary

The Order approves Procedure to apply court decisions through which execution of the decision to declare inactivity of a taxpayer is suspended.

Details

To re-activate a taxpayer, the specialized department prepares a justifying report in which it ticks the appropriate box for situations corresponding to suspension of executing the decision to declare inactivity. In the case of taxable entities for whom, based on the decision to declare inactivity, registration under the scope of VAT was cancelled ex officio, the specialized department also checks whether the taxable entity falls under another situation, cancellation of VAT registration, as follows:

• if, according to information held, the specialized department finds that the taxable entity does not fulfil another condition for cancelling VAT registration, re-registration is also proposed through the report.

The date from which registration under the scope of VAT purposes becomes valid and the date of issuance of the VAT registration certificate are the same as the date of pronouncement of the court decision by which suspension of execution of decision to declare inactivity was ordered for the respective taxpayer.

• if, according to information held, the specialized department finds that the taxable entity fulfils another condition for cancelling the registration under the scope of VAT, then it proposes to maintain that the VAT de-registration is valid.

If, within 60 days from suspension to execute the decision to declare inactivity, the taxpayer does not take any action in court to cancel the act, the suspension of the execution of the decision to declare inactivity is legally terminated.

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Decision 1164/2022 to approve Procedure to grant online access to employees and former employees to data recorded in the General Registry of Employees, modalities to generate and download an employment certificate/extract, as well as conditions under which the certificate may prove work and/or specialization seniority (Official Gazette 937/2022)

Summary

The Decision approves the Procedure to grant online access to employees or former employees to data recorded in the General Registry of Employees (“REGES”), modality to generate and download employment certificate, as well as conditions under which the certificate may prove work and/or specialization seniority.

Details

The Procedure will enter into force on the 31^st of December 2024. Law 144/2022 introduced in the Labour Code, starting in May, the possibility for employees to access their own data in REGES. Unfortunately, effective access may only be achieved after implementation of a new computer system at the Territorial Labour Inspectorate (“ITM”) that will allow access to employees or former employees on their situation related to labour relations. For the update of the online registry to be possible, as may be seen from the substantiation note of the Government Decision, it is mandatory to access European funds within the Recovery and Resilience Plan for Romania mentioned for this branch, specifically the operation of the REGES online system, whose deadline is the 31^st of December 2024.

How to get online access?

In order to obtain online access to REGES for the employee or former employee, regarding activity carried out based on individual employment contract(s), as well as to generate and download a certificate from the register, the employee or former employee or his/her proxy may present him/herself in order to obtain a username and password, depending on the case, to:

• ITM headquarters in whose territorial jurisdiction the employer has its headquarters or domicile;
• ITM headquarters in whose territorial jurisdiction the employees of the units without legal personality (working points/branches) that have received delegation of competence for the establishment, completion and transmission of the register carry/carried out their activities;
• ITM headquarters in whose territorial jurisdiction the employee/former employee is domiciled, if the employer’s headquarters was/is located in a different locality than the domicile of the employee/former employee.

Employees/former employees with a certified electronic signature may obtain a username and password via email, using this signature, to the above-mentioned territorial labour inspectorates.

The following documents are required to obtain a username and password:

• written request for release of username and password, according to the template found in annex to this procedure.
• identity card, in original or scanned, for the situation where the employee has an electronic signature and addresses the request via email.
• special power of attorney, for requests made by proxy, in original or a duplicate of the original document.

Use of REGES online certificate

Work or specialization seniority may be proven with the certificate generated online in REGES, full responsibility by the employer confirmed by holographic signature or, depending on the case, a certified electronic signature, which certifies the activity carried out, duration of the activity, salary, work and specialization seniority, according to documents held by employer.

We do not understand why the online certificate issued in REGES still needs to be signed by the employer to prove work seniority. Practically, the data from REGES is based on reports submitted and confirmed under own responsibility by employers. The question remains: why should an employee create an online account, with all necessary formalities, if the result it provides will require traveling (or contacting) the employer or employers to holographically or electronically sign the certificate. The approach seems completely absurd, especially since some employers may no longer exist at the time the data is accessed. In conclusion, the system only seems useful for data consultation, the actual use of the certificates generated by it cannot be performed directly, most likely for fear of being responsible for stability of the system and accuracy of the data it manages.

What options do employees have by the date when the system is implemented?

By the date when the online system may be operational (at least by the end of 2024), ITM will issue, upon written request of employees, an extract from the register within 15 days, after paying a fee of RON 20/document.

According to Government Decision 905/2017 on the General Registry of Employees, employers are obliged to provide employees or former employees with data regarding their own employment contract within 15 days from receiving a written request in this regard.

The data may be written on an extract from the register, dated and certified for compliance, or on a certificate mentioning activity carried out by the employee, duration of activity, salary level or work and specialization seniority.

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Emergency Ordinance 123/2022 to amend Law 129/2019 to prevent and combat money laundering and terrorist financing, as well as to amend and complement certain normative acts (Official Gazette 906/2022)

Summary

The Ordinance amends regulations on declaring real beneficiaries and extends their area of application.

Details

Starting the 14^th of September 2022, autonomous state companies, national companies and companies wholly or majority owned by the state also have the obligation to submit a declaration regarding the real beneficiary of the legal entity upon registration and whenever there is a change, in order to be registered in the Register of real beneficiaries of companies.

Within 90 days from the date the Ordinance entered into force (by the 13^th of December 2022), autonomous state companies, national companies and companies wholly or majority owned by the state, registered before the 14^th of September 2022, will submit a declaration regarding the real beneficiary of the legal entity, in order to be registered in the Register of real beneficiaries of companies.

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Decision 1106/2022 to amend and complement Title VIII, Excise duties and other special taxes of Methodological Norms to apply Law 227/2015 on the Fiscal Code, approved by Government Decision 1/2016 (Official Gazette 887/2022)

Summary

The Decision amends and complements Methodological Norms to apply Title VIII, Excise duties and other special taxes, of the Fiscal Code.

Details

We mention the main changes below.

Certain tax returns related to excise duties will be submitted online:

• Statement on retail sale price for various selections of cigarettes.
• Situation of releases for consumption of cigarettes, fine-cut tobacco intended for rolling cigarettes, other smoking tobacco.

Starting the 9^th of September 2022, individuals producing beer, wine, fermented beverages, fermented beverages other than beer and wine, still or sparkling and alcoholic fruit beverages for their own consumption have the obligation to submit a declaration to the territorial custom authority where they have their domicile, by the 15^th of January of the year following the one when these products are produced.

Starting the 1^st of January 2023, the individual who releases for consumption or imports cigarettes in Romania will have the obligation to submit a statement regarding the retail sale prices of various selections of cigarettes, in electronic format, at least two working days before the date when the prices are applied. Prior to submitting this statement, he/she is obliged to declare the cigarette selections in order to assign the product code used to complete the statement regarding their price.

New rules are introduced on how to obtain exemption from excise duties for production of flavours, as well as their subsequent use in order to prepare food or non-alcoholic beverages that have an alcohol concentration of below 1.2% by volume.

Economic operators, holders of final user authorizations, procuring energy products, coal and coke, used for the combined production of electricity and thermal energy, from producers, importers, registered recipients, as well as from other economic operators which purchase such products to be delivered to power plants or combined electric and thermal production will be able to benefit from direct exemption from excise duties.

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Order 2061/3318/2022 to set value of the indexed monthly amount to be granted in the form of cultural tickets for the second half of 2022 (Official Gazette 923/2022)

For the second half of 2022, the amount granted in the form of cultural tickets, monthly or occasionally, is a maximum of RON 190/month or maximum of RON 380/event.

The value set above applies starting the 31^st of March 2023.

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Order 1306/2062/2022 to set value of the indexed monthly amount to be granted in the form of nursery vouchers for the second half of 2022 (Official Gazette 948/2022)

For the second half of 2022, starting the month of October 2022, the monthly value of nursery vouchers is RON 570.

The value set above applies by the 31^st of March 2023.

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Order 1348/784/2022 to amend and complement Classification of positions in Romania – occupational level (six characters) approved by Order of the Minister of Labour, Family, Social Protection and Elderly and of the President of the National Institute of Statistics 1832/856/2011 (Official Gazette 880/2022)

The Order updates the list of positions in Romania (COR code) with new positions performed within the national economy. New positions added refer to:

• blockchain technology architect
• digital game designer
• user interface developer
• blockchain technology developer
• digital game developer
• expert in search engine optimization
• big data engineer
• integration engineer
• cloud technologies engineer
• computer vision engineer
• web content manager
• designer of intelligent information systems for ICT
• ICT technician.

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Order 1364/1383/2022 to amend and complement Classification of positions in Romania – occupational level (six characters) approved by Order of the Minister of Labour, Family, Social Protection and Elderly and of the President of the National Institute of Statistics 1832/856/2011 (Official Gazette 944/2022)

The Order updates the list of positions in Romania (COR code) by adding new positions:

• garment worker
• structure locksmith
• thanatopractor (embalmer)
• therapist in animal assisted therapy

Also, there are movements operated for certain positions between base groups within the COR list.

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Other legislative news

Order 1610/2022 to amend and complement ANAF Presidential Order 2809/2016 to approve Procedure to solve VAT reimbursement applications submitted by taxable entities that are non-residents in Romania, set in another EU Member State (Official Gazette 888/2022)

The Order amends Procedure to solve VAT reimbursement applications submitted by taxable entities that are not set in Romania, but in another EU Member State. The amendments specifically refer to the internal route to approve documents issued by the fiscal authority to solve VAT reimbursement applications.

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Order 1711/2022 to approve template and content of forms used by reporting financial institutions in order to meet obligations provided by art. 62 para. (1) and art. 291 para. (4) of Law 207/2015 on the Fiscal Procedure Code (Official Gazette 951/2022)

The Order approves template of forms used by reporting financial institutions, named F3000 DAC2/CRS and F3000 FATCA, containing information reported in order to meet obligations provided by art. 62 para. (1) and art. 291 para. (4) of the Fiscal Procedure Code.

Reporting financial institutions submit the above-mentioned forms even if they do not contain any transactions, in cases where there was nothing to report throughout the year.

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Emergency Ordinance 125/2022 to amend and complement Government Emergency Ordinance 196/2005 on the Environment Fund (Official Gazette 922/2022)

Order 4/2022 to approve Methodological Norms to prepare individual periodic financial statements, in accordance with IFRS, applicable to non-banking financial institutions for prudent monitoring/supervision purposes (Official Gazette 896/2022)

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Application of fiscal consolidation system in the area of corporate tax starting 2023

As a reminder, starting the 1^st of January 2021, the possibility to opt for the application of a fiscal consolidation system in the area of corporate tax was introduced.

Among the conditions is to submit the application to create a fiscal group (form 173) and the attached documents online at least 60 days prior to the beginning of the period for which the application of the fiscal consolidation is requested. The application is solved within 45 days.

Thus, the deadline to submit documents in order to create a fiscal group in the area of corporate tax starting the 1^st of January 2023, for taxpayers having the same fiscal year as the calendar year, is the 2^nd of November 2022 at the latest.

Additional information about the fiscal group in the area of corporate tax may be read in our article here: https://nowium.com/grupul-fiscal-in-domeniul-impozitului-pe-profit/ (in Romanian).

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INFORMATION – starting the 1^st of October, all applications/files to recover amounts due for medical leave are submitted online to the Bucharest Health Insurance House (“CASMB”)

Starting the 1^st of October 2022, the files to recover amounts due for medical leave from the Unique National Fund for Social Health Insurance (“FNUASS”) are submitted online, via an online platform, following digitalization and improvement of the process to recover amounts related to medical leave.

Within the digital platform, legal entities upload the following electronic documents according to Procedure to transmit documents:

• Claim to recover amounts – download template
• List of medical leave holders – download template
• Second copy of the medical leave approval (maximum admitted resolution 150dpi).

Documents uploaded through remote means, via digital platform, will not be sent physically (on paper).

In case there are inconsistencies between the documents uploaded in the platform and those reported on Form 112 send to ANAF by the company, then CASMB may also request the documents in hard copy, according to art. 6 para. (4) of the GEO 158/2005.

Documents sent by employers in hard copy, by submitting it at the register office of CASMB or via postal/fast delivery mail, will NOT be uploaded to the digital platform.

Additional information may be found in the CASMB release which is available here (in Romanian).

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Valuation of monetary items in foreign currency

The September 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 = 4.9490 RON; 1 USD =  5.0469 RON; 1 CHF =  5.1652 RON; 1 GBP = 5.6367 RON.

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