Fiscal Code-  Amendments to the Fiscal Code

(Government Ordinance no. 15/23 August 2012 published in the Official Gazette 621/29 August 2012)

Government Ordinance (“GO”) no. 15/23 August 2012 introduces certain amendments concerning profits tax, income tax, VAT, excise duties and social charges.

The GO provisions enter into force as of 1 January 2013 (with certain exceptions).

For more details, please refer to our Tax Alert no. 24 of September 2012.

Fiscal Procedure Code-  Amendments to the Fiscal Procedure Code

(Government Ordinance no. 16/23 August 2012 published in the Official Gazette 618/28 August 2012)

The main amendments brought to the Fiscal Procedure Code refer to the electronic submittal of tax returns, order of debt settlement and suspension of compulsory enforcement.

For more details, please refer to our Tax Alert no. 23 of September 2012.

VAT

VAT registration procedure for taxable person having their seat of activities in Romania

(Order no. 1100 / 20 July 2012, published in the Official Gazette of Romania no. 569 / 10 August 2012)

The Order provides for amendments in terms of the date since the VAT registration is deemed valid, being the date when the VAT decision is communicated. Furthermore, certain clarifications are brought in respect of the documents which are to be filed with competent tax authorities (registration application, registration statement or certificate of recorded amendments), documentation required for filing purposes depending on the registration regime with the trade register of the person applying for VAT registration.

Procedure for registration with the Register of intra-Community Operators

(Order no. 1180 / 8 August 2012, published in the Official Gazette of Romania no. 587 / 17 August 2012) 

Main amendments refer to a number of clarifications brought to the concepts of „associates” or „administrators” used within the context of the procedure for registration with the Register of intra-Community Operators or documents which are to be filed with competent tax authorities for purposes of such registration. Moreover, the provision concerning the settlement of the application for registration with the Register of intra-Community operators within 10 calendar days as of the registration date of the application with competent tax authorities was repealed. Furthermore, various amendments and clarifications are brought to the procedure for ex officio deregistration of taxpayers from the Register of intra-Community Operators.

Miscellaneous

State aid schemes to support investments promoting regional development through new technologies and new jobs

(Government Decision no. 797 / 31 July 2012, published in the Official Gazette of Romania 563 / 9 August 2012)

This Decision refers to a state aid scheme aimed at promoting regional development through investments which use new technologies and creates jobs.

The validity period is 2 years (2012 – 2013), with a budget of Lei 440 mil., the equivalent of EUR 100 mil., and having up to 10 enterprises which may benefit from such state aid.

Convention for avoidance of double taxation

(Order no. 1276 / 23 August 2012, published in the Official Gazette of Romania no. 626 / 31 August 2012)

The Order refers inter alia to the entry into force of the Conventions for the avoidance of double taxation and prevention of tax evasion entered into Romania and the Republic of Tadjikistan and Romania and the Kingdom of Saudi Arabia.

Social Security Totalization Agreements

(Law no. 150 / 23 July 2012, published in the Official Gazette no. 548 / 6 August 2012 and the Government Decision no. 752 / 25 July 2012, published in the Official Gazette no. 562 / 8 August 2012)

The Law no. 150 / 23 July 2012 ratifying the Social Security Totalization Agreement between Romania and Israel and the Government Decision no. 752 / 25 July 2012 refers to the application of the Adminstrative Arrangement regarding the Social Security Totalization Agreement between Romania and the Republic of Moldova.

For more details, please refer to our Human Capital Alert no. 8 of 14 August 2012.

Amendments to the instructions for completing Form 100

(Order no. 1.135 / 30 July 2012, published in the Official Gazette no. 582 / 14 August 2012)

The Order refers to the amendments regarding the completion of the Form 100

For more details, please refer to our Human Capital Alert no. 9 of 31 August 2012.

Approval of the model for “Declaration of payment obligations of social contributions, income tax and nominal records of insured individuals"

(Order No. 1.045/2.084/793/8.08.2012 for the approval of the model, content and method of submission for “Declaration of payment obligations of social contributions, income tax and nominal records of insured individuals " , published in Official Gazette No. 600/21 August 2012)

Certain changes were made to the model of Form 112 previously regulated by Government Decision No. 1397/2010, taking into account the entry into force of Title IX2, Chapter II of the Fiscal Code on 1 July 2012, regarding mandatory social contributions due from individuals for realized income, except for income from salary or pension.

Amendment of accounting regulations

(The Order of the Minister of Public Finances no. 1.118/20 August 2012 regarding the amendment and completion of the Accounting regulations approved by the Order of the Minister of Public Finance no. 3055/2009 - published in the Official Gazette no. 603/22 August 2012)

The Order provides further clarification on the accounting of green certificates and the presentation in the accounting records of the certificates for greenhouse gases emissions. Also, the Order includes amendments regarding the accounting of the assignment of receivables.

The provisions of the Order are applicable starting with the 2012 annual financial statements, except for the provisions in respect of assignment of receivables, which should be applied for the receivables assigned and recognized in the accounting books of the assignee starting with 1 July 2012.

 By Venkatesh Srinivasan, Partner – Head of Tax and Legal, Ernst & Young Romania 

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