Legislative summary – June 2018

Amendments brought to the Tax Code

Amendments to the methodology for the distribution of the amounts representing the work insurance contribution paid by the taxpayers in the distinct account.

Order no. 1.281/18 May 2018 for the amendment of art. 220 of Law no.227/2015 regarding the Tax Code.

Law no. 145 / 22 June 2018 for the approval of the Government Emergency Ordinance no. 18/2018 regarding the adoption of certain tax and budgetary measures and for the amendment and completion of certain normative acts.

The Law introduces certain tax exemptions in view of organising and carrying out the final Tournament of 2020 European Football Championship, such as:

  • exemption from payment of withholding tax on income obtained by non-residents from Romania by non-resident individuals, foreign legal entities and any non-resident entities involved in organising and carrying out the final Tournament of 2020 European Football Championship;
  • exemption from payment of tax on advertising and publicity and of display tax, for advertising and publicity made while organising and carrying out in Romania of the final Tournament of 2020 European Football Championship;
  • exemption from payment of show tax for sport events taking place as part of organising and carrying out in Romania of the final Tournament of 2020 European Football Championship.

Environment Fund

Law approving Government Emergency Ordinance no. 48/2017 for the amendment of Government Emergency Ordinance no. 196/2005 regarding the Environment Fund

The Law brings a number of changes to the Ordinance, among which, the most important are:

  • amendments regarding the computation method of the RON 2/kg contribution owed by economic operators for sales packaging introduced on the national market and for waste packaging respectively, by considering in the computation formula the quantities delivered for recovery, instead of quantities actually recovered;
  • the entry into force of the new method of computation for the contribution due by economic operators introducing on the national market electrical and electronic equipment, batteries and  portable accumulators, shall be postponed until 1st of January 2020. According to the current provisions, these contributions are computed based on the differences between the quantities declared as being introduced on the national market and those identified by the Environment Fund Administration. The new method of computation will be based on the differences between the waste quantities generated by these categories, corresponding to the annual collection obligations, and the quantities effectively collected;
  • fees due by landlords or storage managers for inert and non-hazardous waste will be declared and paid quarterly. Previously, this obligation had to be fulfilled on a monthly basis.

Excise duty

Order no. 1.263/17 May 2018 of the President of the National Agency for Fiscal Administration to modify the instructions for completing the administrative document in electronic format (e-DA) using the application EMCS-RO-Motion to control movements of excise goods under suspension / exemption / not subject to excise duty approved by the Order of the President of the National Agency for Fiscal Administration no. 2.901/2016

The amendments include, amongst others, the deadline within which the excise products that are transported under an excise duty suspension procedure shall be presented to the destination. The same deadline shall be observed also in case the change of the destination or division of the transport of the above mentioned excise products. The deadline is established considering the mode of transportation used.

International taxation

Administrative arrangement for the application of the Agreement between Romania and the Serbian Republic in the field of social security

Decison for the approval of the Administrative arrangement, signed in Belgrad on 28th of October 2018, for the application of the Agreement between Romania and Serbian Republic in the social security field, signed in Belgrad on 28th of October 2018.

Please refer to Tax Alert no. 20/2 July 2018 for more details

Miscellaneous

Decree no. 498/22 June 2018 for submitting for ratification by the Parliament of the Convention between Romania and Spain for the avoidance of double taxation with respect to income taxes and prevention of tax evasion and tax avoidance and of the related Protocol

The Decree submits for ratification the Convention between Romania and Spain for the avoidance of double taxation and prevention of tax avoidance and tax evasion with respect to income taxes and of the Protocol to the Convention, signed in Bucharest on 18th of October 2017.

Order no. 1612/28.06.2018 for the approval of the Nomenclature of the tax liabilities to be paid in the sole account

The Nomenclature includes new tax liabilities to be paid in the sole account, such as the ones regarding tax on specific activities, certain social contributions etc.

Order no. 1.613/28.06.2018 for the approval of the Methodology for distribution of the amounts paid by the taxpayers in the sole account and for the offset of the tax liabilities

The Order approves the Methodology for distribution of the amounts paid by the taxpayers in the sole account and for the offset of the tax liabilities and repeals the Order 3.637/2015, regarding the previous methodology.

Approving the Norms for the application of the provisions of art. I and III of Government Emergency Ordinance no. 3/2018 on tax and budgetary measures

The implementing norms published by Order no. 1.450/ 2018 regarding include the definition of the competent central tax authority and contain details regarding the persons to whom the provisions apply.

Please refer to Tax Alert no. 19/ 2 July 2018 for more details

Government Decision no. 387 / 31 May 2018 for the approval of the Multilateral Competent Authority Agreement on the exchange of country-by-country reports

The Decision approves the Multilateral Competent Authority Agreement on the exchange of country-by-country reports, signed in Bucharest on 19 December 2017.

A Tax Alert on this topic will follow shortly

 

For additional information, please contact:

Alex Milcev, Partner – Head of Tax & Legal

Email: office@ro.ey.com



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