Legislative summary – July 2018

•             Amendments brought to the Tax Code

Law no. 175 for modifying and completing the art. 291 par (2) of the Law no. 227/2015 regarding the Tax Code,  published in the Official Gazette, part I, no. 611 of 17 July 2018

Starting with 1 January 2019, the reduced VAT quota of 9% stated at art. 291 par (2) from the Law no. 227/2015 regarding the Tax Code, as subsequently amended, is also applicable for the supply of sewerage.

•             State aid schemes

Government Decision amending and completing of the Government Decision no. 807/2014 regarding state aid schemes supporting investments with major impact on the economy,  published in the Official Gazette, part I, no. 580 of 09 July 2018

Government Decision no. 476/2018 amends and completes the provisions of the state aid scheme approved through Government Decision no. 807/2014, as subsequently amended.

For more details, you may consult the Tax Alert no. 21 of 16 July 2018.

Order for the approval of  Applicant’s Guide and the Payment’s Guide elaborated under the Government Decision no. 807/2014 regarding state aid schemes supporting investments with major impact on the economy,  published in the Official Gazette, part I, no. 666 of 31 July 2018

The Order no. 2.629 for the approval of Applicant’s Guide and the Payment’s Guide elaborated under the Government Decision no. 807/2014 regarding state aid schemes supporting investments with major impact on the economy

For more details, you may consult the Tax Alert no. 22 of 6 August 2018.

Government Decision in relation to the conditions, procedures and due dates for the reimbursement of the state aid for supporting a part of the excise duty computed for diesel used as fuel,   published in the Official Gazette, part I, no. 651 of 26 July 2018

The decision  no. 549/ 17 July 2018  implements the state aid scheme for reimbursement of excise duty computed as the difference between the standard level and the reduced one to be applied for the diesel used as fuel by certain transport companies. The estimated budget of the state aid scheme is in amount of RON 60 mil. and it can be accessed during the period 2018-2020.

Order on the approval of the Implementation Procedure for the de minimis aid scheme provided under the Program for the development of market activities for market products and services,  published in the Official Gazette, part I, no. 605 of 16 July 2018

Order no. 978/2 July 2018 approves the Procedure for the implementation of the State aid scheme aimed at developing the marketing activities of market products and services.

Decision no. 519/12 July 2018  to amend the Government Decision no. 9 / 2018 for the approval of the „De minimis aid for the application of the support program for pigs breeders from Bazna and / or Mangalita breeds for pig production” scheme, as well as for establishing some measures for its implementation, published in the Official Gazette, part I, no. 607 of 16 July 2018

Decision no. 519/12 July 2018 introduces certain changes to the state aid scheme for the application of the pig breeders support program. Among the main changes we mention, the introduction of the scheme’s eligibility criteria, and the modification of the list of documents required for the Program’s registration process.

Order of the minister for the business, commerce and entrepreneurship on the approval of the procedure for the implementation of the de minimis aid scheme provided for under the multi-annual national program of microindustrialisation,  published in the Official Gazette, part I, no. 571 of 06 July 2018

Order no. 955/26 June 2018 approves the Procedure for the implementation of the State aid scheme provided under the multiannual National Program for microindustrialisation.

•             Environment Fund

Emergency Ordinance amending and completing of the Law no. 211/2011 regarding waste regime, Law no. 249/2011 regarding  the management of packaging and packaging waste and Government Emergency Ordinance no. 196/2005 on the Environment Fund,  published in the Official Gazette, part I, no. 630 of 19 July 2018

The Ordinance no. 74/17 July 2018 introduces certain changes for the implementation of the economic instruments „pay as you throw”, „extended producer liability” and „storage fee”.

Among the main changes we mention: the introduction of the minimum conditions for manufacturers or organizations implementing the extended liability obligations (e.g. to carry out their activity in urban and rural areas, at least at the level of a county, to establish an internal audit mechanism, etc.); defining the performance criteria for the sanitation service activity;  introducing an annual average  percentage of the reusable packaging of at least 5% out of the number of packaging used when entering the market; modifying the value of the money guarantee in the case of primary packaging at RON 0.5/packaging, introducing implementation instructions on  the obligations regarding the extended liability of the producer starting with 1 January 2019.

•             Miscellaneous

Law no. 163/ 2018 for amending the Accounting law no. 82/1991, amending the Companies law no. 31/1990, as well as Law no. 1/2005 on the organization and functioning of the cooperative companies, published in the Official Gazette, part I, no. 595 of 12 July 2018

The Law amends the Companies Law in order to allow for the quarterly distribution (not only annual distribution) of dividends. The Accounting Law is also amended in order to allow for the new provisions of the Companies Law to be put in practice.

For more details, you may consult the Legal Alert no. 4 of 16 July 2018

Order of the president of the National Agency for Tax Administration approving the model and content of Form 107 -– “Informative Statement on Sponsorship / Patronage / Private Scholarships Beneficiaries”,  published in the Official Gazette, part I, no. 646  of 25 July 2018

The Order no. 1.825/20 July 2018 approves the template and the filling-in instructions of the Form 107 -– “Informative Statement on Sponsorship/ Patronage/ Private Scholarships Beneficiaries”.

Order of the National Agency for Tax Administration regarding the refund procedure of the overpaid withholding tax,  published in the Official Gazette, part I, no. 667  of 31 July 2018

The Order no. 1.760/9 July 2018 approves the refund procedure of the overpaid withholding tax by the income payer cuantum higher than the legally due.

The refund is performed on the request of the taxpayer and it has to be approved through a decision issued by the tax authorities. The Order includes the application form and the decision templates.

The Order includes the separate details of the refund procedure for situations where the payer of the withholding tax does no longer exist or it is under the insolvency procedure.

Order no. 2.531 / 11.07.2018 of the Minister of Public Finance for the approval of the Accounting Reporting System as of 30 June 2018 by the economic operators, as well as the amendment of certain accounting regulations,  published in the Official Gazette, part I, no. 623  of 18 July 2018

The Order approves the Accounting Reporting System as of 30 June 2018 by the economic operators, containing the methodological norms for drafting and filing the accounting reports, the nomenclature, and the content of the accounting reporting forms drawn up by the entities to which the Accounting Regulations regarding the individual annual financial statements and the consolidated annual financial statements applies and which in the previous financial year had a turnover exceeding RON 220,000.

Also, the Order brings certain amendments to the accounting legislation (to Order no. 1802/2014, Order no. 2844/2016 and Order no. 3103/2017), mainly introducing new accounts to the chart of accounts.

Norm of the Financial Supervisory Authority for implementing the accounting reporting system as at 30 June 2018 of the insurance entities, published in the Official Gazette, part I, no. 664  of 31 July 2018

The Norm no. 12/2018 provides the implementation of the accounting reporting system as at 30 June 2018 for the entities carrying out insurance and/or reinsurance activities, to which the provisions of the Norm of the Financial Supervisory Authority no. 41/2015 apply. The accounting reports should be submitted to the Financial Supervisory Authority and the territorial offices of the Ministry of Public Finance until 16 August 2018.

Law amending Government Emergency Ordinance no. 193/2002 on the introduction of modern payment systems,  published in the Official Gazette, part I, no. 642  of 24 July 2018

Law no. 191/19 July 2018 brings a series of changes regarding the modern payment systems. Among the main changes we mention the introduction of the obligation for the economic operators who carry out service supply activities, to accept payments through debit and credit cards, if they have a turnover higher than EUR 50,000. Additionally, a 30-day deadline is introduced for the installation of payment terminals by the credit institutions. The 30 day period begins with the date of the economic operators’ installation request.

Decision regarding the approval of the Power of Attorney model for tax consultants / tax consultancy companies,  published in the Official Gazette, part I, no. 588  of 11 July 2018

The Decision no. 6 / 27 June 2018 approves the new model of Power of Attorney for tax consultants / tax consultancy companies. The new model is applicable starting with 1 September 2018.

Law for the amendment and completion of the Electricity and Natural Gas Law  no. 123/2012,  published in the Official Gazette, part I, no. 604 of 16 July 2018

Law no. 167/10 July 2018 for the amendment and completion of the Electricity and Natural Gas Law no. 123/2012 brings a number of changes.  Among the main changes, we mention the introduction of a mandatory percentage quota on the sale of natural gas on the wholesale market, the amendmends of the articles on fines and contraventions on the sale of natural gas, and the amdendments of certain definitions (i.e. direct railways, operator of the natural gas market, etc.).

Law no. 176/ 2018 regarding the internship, published in the Official Gazette, part I, no. 626 of 19 July 2018

This Law regulates, inter alia: (i) the requirements for organizing internship programs; (ii) the evaluation procedure of the activities performed by the intern; (iii) the internship contract; (iv) certain rights granted specifically to interns; (v) certain benefits for companies; (vi) sanctions.

For more details, you may consult the Legal Alert no. 5 of 26 July 2018.

Emergency Ordinance no. 60/5 July 2018 for amending and completing several normative acts labor force related, published in the Official Gazette, part I, no. 577 of 9 July 2018

The Emergency Ordinance provides amendmends to several laws in labor force domain for stimulating labor force employment and integration of the long-term unemployed in the labor market

The Emergency Ordinance provides changes to several normative acts (Law no. 76/2002 on unemployment, Law no. 279/2005 on apprenticeship, Law no. 335/2013 for internship of higher education graduates) with regard to the incentives granted from the State Budget to the employers hiring certain categories of individuals, as for instance: unemployed over 45 years, sole family supporter, long term unemployed, recent graduates, students, apprentices, trainees, etc. The incentive has been increased to RON 2,250/month for each employed individual and it is granted under certain conditions provided by the respective laws. The eligibility criteria provided by the respective laws have not been changed.

 Since no funds have been allocated for such incentives during 2018 (at least up to date) and also, as the internal procedures of the National Unemployment Agency for the eligibility conditions may contain some practical differences to those provided by the legal provisions in force, we recommend the companies to consider a detailed analysis and verification before starting any procedure in this respect.

Order no. 1494/18.06.2018 issued by the National Agency of Tax Administration for the approval of the Procedure regarding the ex-officio assessment of the social security (pension) and health insurance contributions due from individuals, as well as the forms to be used, published in the  Official Gazette, part I, no. 553 of 3 July 2018 

The Order provides the procedure for the tax authorities to assess ex officio the social security (pension) and health insurance contributions due, as provided by the Tax Code, from individuals for tax years 2016 and 2017.

Law no. 165/10 July 2018 on granting value tickets, published in the Official Gazette, part I,  no. 599 of 13 July 2018

The Law enters into force starting with 1 January 2019, replacing the current normative acts in place: Law no. 142/ 1998 on meal tickets, Law no. 193/2006 on gift and childcare vouchers, Emergency Ordinance no. 8/2009 on holiday vouchers), which will all be repealed as of this date.

The Law no. 165/2018 will compile under a single normative act the legal provisions of those indicated above currently in force.

The value tickets may be granted by employers to its own employees under the conditions provided by the law.

The new law provides for mostly the same legal provisions as the above mentioned normative acts, bringing though several important updates and new provisions, as for instance:

•             Increase of the maximum amount granted for a childcare voucher per child enrolled in a nursery school from RON 300/ month to RON 450/month;

•             Introducing a new value ticket, specifically the cultural ticket that may be granted by an employer to its employees on a monthly or occasional basis. The cultural tickets are aimed to cover the acquisition of various cultural products and services, such as:

(a)          tickets or subscriptions to cultural events,  concerts, movies, theatres, museums, expositions, fair trades, etc.;

(b)          books, school books, movies, music albums, etc.

The value of the cultural tickets cannot exceed RON 150 if granted on a monthly basis, respectively RON 300/event if granted occasionally.

The law provides that the value tickets granted by the employer (within the nominal limits provided by the law) are deductible for corporate tax purposes. Also, the law stipulates that the value tickets shall not be taken into account either for the employer or employee, when determining the rights and obligations that are assessed in relation to the salary income. Thus, it could be interpreted that the value tickets shall not be subject to income tax and social charges as of 1 January 2019.  Nevertheless, it is important to have the Tax Code provisions aligned with such changes to avoid any different interpretations. The alignment of this law with the Tax Code is important especially that the currently provided vouchers, as per the current tax provisions, are subject to income tax (except for gift tickets which are tax exempt under certain conditions).

The authorization conditions for the entities issuing the value tickets and the Applications Norms for the new law are expected to be elaborated by mid of September 2018.

For additional information, please contact:

Alex Milcev, Partner – Head of Tax & Legal

Email: office@ro.ey.com



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