Amendments to the Fiscal Code

VAT cash-in system

(Emergency Ordinance no. 111/2013 regulating certain tax measures and amending certain normative acts– published in Official Gazette no. 809/2013)

Starting with 1 January 2014 the VAT cash-in system becomes optional.

Thus, taxable persons registered for VAT purposes, having the seat of their economic activity in Romania and a turnover of the previous calendar year below the threshold of RON 2,250,000 may opt to apply the VAT cash-in system.

Please refer to our Tax Alert no. 32/December 2013 for further details.

Human Capital

(Law 340/2013 regarding national social insurance state budget for 2014 – published in Official Gazette no. 776/2013)

Among other provisions, the Law establishes the level of the average gross earnings for 2014 to RON 2,298 and the pension point amount to RON 790.7.

(Law 356/2013 regarding state budget for 2014 – published in Official Gazette no. 805/2013)

The Law approves the state budget for the year 2014. Among other provisions, the Law stipulates that for 2014, health fund contribution rates remain the same as for 2013.

Excise duty

Level of excise

(Emergency Ordinance no. 111/2013 amending Law 571/2003 regarding the Fiscal Code and certain fiscal-financial measures – published in Official Gazette no. 809/2013)

The ordinance stipulates the increase of the level of excise duties starting with 1 April 2014 (previously, it was 1 January 2014) for certain categories of energy products.

Please refer to our Tax Alert no. 32/December 2013 for further details.

Procedure for updating the level of guarantees according to art. 20654 alin. (42) of Law no. 571/2003 regarding the Fiscal code

(Order no. 1920/2013, published in the Official Gazette no. 748/2013)

The Order lays down the procedure whereby authorized warehousekeepers could reduce the value of the guarantee set up for ethyl alcohol, alcoholic beverages, manufactured tobacco and energy products, if such guarantee exceeds the maximum level provided for in the Fiscal Code.

Please refer to our Tax Alert no. 30/December 2013 for further details.

State aid schemes

State aid scheme supporting investments promoting regional development by means of using new technologies and creation of new jobs

(Government Decision no. 955/2013 published in the Official Gazette no. 764/2013)

The new Government Decision amends Government Decision no. 797/2012, mainly by extending the scheme’s availability period until 30 June 2014 and supplementing the scheme’s budget with EUR 35 million.

State aid scheme for ensuring sustainable economic growth

(Government Decision no. 956/2013 published in the Official Gazette no. 768/2013)

The new Government Decision amends Government Decision no. 1680/2008, mainly by extending the scheme’s availability period until 30 June 2014.

State aid scheme regarding regional development by means of investment stimulation

(Government Decision no. 1160/2013 published in the Official Gazette no. 842/2013)

The new Government Decision amends Government Decision no. 753/2008, mainly by extending the scheme’s availability period until 30 June 2014.

Please refer to our Tax Alert no. 1/January 2014 for further details.

De minimis state aid scheme

(Order no. 1357/2013, published in the Official Gazette no. 745/2013)

The Order extends the period for which the de minimis state aid "Support of the economic activities for the development of diversity in the rural economy and for the increase of the life quality in rural areas” is granted, up to 30 June 2014.

Miscellaneous

Form 394

(Order no. 3806/2013, published in the Official Gazette no. 833/2013)

The Order amends the content of form 394 - Informative statement regarding supplies and acquisitions of goods and/or services performed within the national territory, which should be used for declaring the tax liabilities starting with December 2013. The new provisions introduce the liability to report in the form, apart from the previously mandatory information, the total number of invoices issued/received per business partner (i.e. supplier/client).

Please refer to our Tax Alert no. 2/January 2014 for further details.

Form 089

(Order no. 3713/2013, published in the Official Gazette no. 753/2013)

The Order approves the model and content of form 089 - Affidavit for fulfilling the condition mentioned under art. 160, par. 2, letter e), point 2 of the Romanian Fiscal Code, which should be submitted by energy traders to the relevant tax authorities by 10 December of each year.

Form 208

(Order no. 3763/2013, published in the Official Gazette no. 799/2013)

The Order approves the updated templates and content of form 208 – Informative statement regarding the income tax of related to real estate transfers from the personal patrimony which should be used for declaring any transfers of real estate properties from the personal patrimony starting with the first semester of 2014.

Intrastat Statement

(Order no. 1042/2013 approving the Intrastat thresholds for 2014 published in Official Gazette no. 809/2013)

The Order approves the following Intrastat thresholds for the year 2014: RON 900,000 for intra-Community dispatches of goods and, respectively, RON 500,000 for intra-Community introduction of goods. The values are not changed compared to the previous year.

Double Tax Treaty between Romania and India

(Law no. 329/2013, published in the Official Gazette no. 769/2013)

The law ratifies the treaty concluded between Romania and India for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income. The Treaty was signed on 8 March 2013, but it has not entered into force yet.

For additional information, please contact:

Venkatesh Srinivasan, Partner – Head of Tax and Legal

Ernst & Young SRL and E. Platis, C. Bazilescu LLLP

15-17 Ion Mihalache Blvd.

Bucharest Tower Center Building, 22nd Floor

Sector 1, 011171, Bucharest, Romania

Tel: (40-21) 402 4000, Fax: (40-21) 310 7124

Email: office@ro.ey.com

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