Bucharest Tower Center, etaj 22 B-dul Ion Mihalache
nr. 15-17 011171 Bucuresti, sector 1, Romania
+40 21 402 4000

Legislative Summary June 2019

In this issue:

·        Personal income tax and social security charges

·        Others

·        Emergency Ordinance no. 75/2018 was declared unconstitutional in its entirety

·        Up to 30 % - 50 % Additional duties upon import in Turkey

·        Car multimedia devices reclassifies from custom perspective – custom duties decreased from 14% to 0%

Personal income tax and social security

·        The procedure for granting tax incentives for the electronic submission of the annual tax return and for the anticipated payment of the tax obligations declared in 2018

Order no. 1369/2019 for the approval of the procedure of granting tax incentives for the submission of the annual tax return in 2018 regarding income tax and social contributions due by individuals as well as for the anticipated payment of tax liabilities declared in 2018 through the annual tax return.

The ANAF Order mentioned above provides for ex-officio grant by the tax authority of the bonuses for the submission of the annual tax return for 2018 and for the anticipated payment of the tax obligations declared in 2018.

 For more details, you can consult the Tax Alert no. 21 and Official gazette number 479 / 12 June 2019.

 

·        Amendment of model, content, submission and management of the annual tax return

Order no. 1437/2019 regarding the amendment of the Order of the President of the National Agency for Fiscal Administration no. 49/2019 for the approval of the model, content, submission and management of the form "Annual Tax return regarding the income tax and social contributions payable by individuals"

Order 1437/2019 establishes in the annual tax return the option for persons who realize income of the nature provided in art. 155 of the Tax Code, for which the social health insurance contribution is not due to insure themselves for health insurance purposes.

For more details, you can consult Official gazette number 452 / 5 June 2019.

 

·        Changes in special provisions for tax facilities in construction field

Emergency Ordinance no. 43/21 June 2019 for the amendment and completion of some normative acts regarding the establishment of some measures in the field of investments

By the Emergency Ordinance no. 43 amendments and clarifications have been brought to the special provisions for the construction industry on the tax facilities introduced for this field of activity from 1 January 2019.

For more details, you can consult the Tax Alert no. 22 of and Official gazette number 507 / 21 June 2019.

 

Others

·        Forms used in the collection of tax receivables

Order no. 1699/2019 for the modification of some orders of the president of the National Agency for Fiscal Administration regarding the approval of the models of forms used in the collection of fiscal receivables

The Order approves the amendment and introduction of the forms to be used for the collection of tax receivables as well as forced execution in the case of debtors who have collected uncontested amounts from public authorities or institutions. Among the amended tax forms, we mention the summon, which now reflects the option of fiscal mediation.

For more details, Official gazette number 529 / 28 June 2019.

 

•        New regulations on apprenticeship at workplace

Government Decision no. 423/2019 for amending and completing the Methodological Norms for the application of the provisions of Law no. 279/2005 on apprenticeship at the workplace

The above Decision has in view aspects related to the probation period, the convention concluded for the receipt of state subsidies and the documents necessary for the conclusion of the apprenticeship contract.

For more details, Official gazette number 531 / 28 June 2019.

 

·        Emergency Ordinance no. 75/2018 was declared unconstitutional in its entirety

The publication of the Constitutional Court's decision in the Official Gazette of Romania produces the following effects:

-         suspension effect: the provisions of GEO no. 75/2018 are legally suspended for a period of 45 days from the moment of its publication in the Official Gazette. Thus, within 45 days:

(i)                the obligations established by GEO no. 75/2018 (e.g. the procedure for the application of the annual permit for an environmental permit / authorization) are not applicable;

(ii)              The Government, as the issuer of GEO no. 75/2018 is obliged to reconcile the provisions declared unconstitutional with the provisions of the Constitution;

-        repeal effect: if the Government fails to harmonize the provisions declared unconstitutional within 45 days, GEO no. 75/2018 ceases its effects, being indirectly abrogated.

For more details, you can consult the Tax Alert no. 19.

 

Up to 30 % - 50 % Additional duties upon import in Turkey

In Turkey, additional customs duties (e.g. 30% to 50%) are applied upon imports of certain product categories depending on their country of origin. For example, footwear, furniture, electrical products, bicycles which are not of EU or EFTA countries origin are subject to such additional duties.

Goods coming to Turkey via the EU followed by an A.TR movement certificate are also subject to such additional duties in lack of an EU origin certificate proving that they are indeed EU goods.

Starting with 24th of May 2019, the exporter’s declaration is no longer accepted by Turkish customs authorities for granting exemption from such additional customs duties.  The use of supplier’s declaration is now limited.

New provisions state that a Certificate of Origin needs to be submitted along with the import declaration at the time of releasing the goods for free circulation in Turkey.

For more details, you can consult the Tax Alert no. 20.

 

Car multimedia devices reclassifies from custom perspective – custom duties decreased from 14% to 0%

Case C-268/18 (SC Onlineshop SRL against the Tax Administration Agency - General Customs Directorate of Romania), multifunctional devices of a kind used in motor vehicles, which:

- combine, in the same housing, as the main function, a radio navigation monitor via pre-installed GPS navigation applications as well as,

- as an accessory, a radio broadcasting apparatus, an audio and video playback device and a diagonal screen of about 5 inches (12.7 cm).

are classified under subheading 8526 91 20 (0% customs duty) of the Combined Nomenclature and not under subheading 8528 59 00 (14% duty) of that nomenclature.

For more details, you can consult the Tax Alert no. 23.

 

New provisions regarding the contributions to the environment fund

- The contribution of 3% for the revenues obtained from selling ferrous and non-ferrous waste has been replaced by a 2% contribution for the revenues obtained from the sale of any waste, the amounts being retained at source by the collectors and / or recovery operators, who are required to pay them to the Environmental Fund

- The ecotax value, which applies to all plastic bags, except for those made from non-regenerative resources, increased from 0.10 lei / piece to 0.15 lei / piece

- a contribution of 2 lei / kg is introduced for economic operators carrying out collection / recovery / sanitation activities and which report waste for economic operators authorized to take responsibility for waste packaging / used tires / waste electrical and electronic equipment / waste portable batteries and accumulators

For more details, you can consult the Tax Alert no. 24.

 

Prepared by:
Corina Mîndoiu, Director, Income tax and social charges
Daniela Neagoe, Senior Manager, Indirect Tax
Laura Ciobanu, Manager, Environmental Advisory & Compliance

 

For additional information, please contact:

Alex Milcev, Partner – Head of Tax&Legal

 

Ernst & Young SRL

Bucharest Tower Center Building,

22nd Floor, 15-17 Ion Mihalache Blvd.,

Sector 1, 011171, Bucharest, Romania

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

Email: office@ro.ey.com

Abonează-te la noutățile EY România și fii la curent cu ultimele studii și articole, evenimente și comunicate de presă lansate de experții noștri.
Abonează-te