Government Emergency Ordinance (GEO) no. 8/2014 of February 26, 2014 for amending and supplementing certain normative acts and other fiscal measures was published in the Romanian Official Gazette no. 151 of February 28, 2014.
The Ordinance brings amendments to the following: the Fiscal Code, the Tax Procedure Code, the GEO no. 29/2011 regarding the deferral of payment, the Government Ordinance no. 71/2001 on organizing and exercising the tax consultancy activity, the Government Ordinance no. 26/2013 on strengthening the financial discipline at the level of some economic operators, the GEO no. 113/2006 on the establishment of the National Fund for Development, the GEO no. 74/2013 regarding certain measures for the improvement and reorganization of the activity of the National Agency for Fiscal Administration (ANAF), as well as the amendment and supplementing of certain legislative acts.
Of the numerous amendments and supplements brought by the Ordinance, we mention the following:
Amendments to the Fiscal Code:
- The following income are excluded from the scope of non-taxable income: the income obtained from the sale/disposal of shares held on a Romanian legal person, by a legal entity resident in a state with which Romania has not concluded a double taxation agreement, even if the beneficiary of the income holds for a continuous period of one year at least 10% of the share capital of the company whose securities are traded;
- The procedure regarding the refund for withholding tax has been removed from the Fiscal Code, but it is now highly detailed in the Tax Procedure Code. The amendment brought to the procedure consists of the fact that the payer of the income does not have the obligation to submit anymore a rectifying statement for the income tax reimbursed to the nonresident(s).
- As of January 1, 2015, is regulated the application of the special tax regime regarding the value added tax for electronically supplied services, telecommunications, broadcasting and television rendered both by non-taxable persons not established in the European Union (EU), and taxable persons established in the EU, but not established in the Member State of consumption. According to this taxation regime, the place for rendering the abovementioned services is considered the state where the beneficiary is established.
- The deadline for the electricity consumers to submit the notifications to ANAF, according to art. 160 of the Fiscal Code, for the application of the reverse charge mechanism for delivery of electricity is extended to March 31, 2014. However, in the case of submitting the notifications late, the supplier of electricity may issue, at the beneficiary’s request, the credit note to apply the reverse charge mechanism.
- Amendments regarding the issuance of a new tax warehouse license, as a result of revoking the existing license;
- The procedure regarding the selling of the excisable products belonging to the economic operators in bankruptcy is regulated.
Amendments to the Tax Procedure Code:
- Fiscal secret – the amendments refer to the possibility of issuing by the fiscal authorities to any applicant, information related to the fiscal status of a taxpayer based on the written consent of the taxpayer.
- Any element which serves to ascertain a fiscal state of fact is considered means of evidence, including audio and video recordings, data and information present on any storage media.
- A series of declarative obligations are established in order to ensure the automatic exchange of information with the fiscal administrations within the EU member states. The taxpayers which are residents in other EU member states and who derive income from immovable properties situated in Romania are required to submit an informative statement regarding such income by May 25 of the current year for the previous year. The residents of the EU member states who have acquired immovable properties in Romania by February 28, 2014, are required to submit the declarative statement by June 30, 2014.
- It is mandatory to mention the identification data of the tax consultants, financial auditors, experts on the documents signed by them and submitted to the tax authorities.
- As of February 28, 2014, the certification of the tax returns becomes optional. However, the submitting of the tax returns certified by the fiscal consultant represented an evaluation criterion for the risk assessment for the purpose of selecting the taxpayers subject to tax audits.
- A new article is introduced, VI2 “anti-fraud control”, which sets forth the rules regarding the carrying out of the operative and unforeseen control. The risk assessment represents an evaluation criterion for the purpose of selecting the taxpayers subject to tax audits.
- Amendments are brought in relation to the settlement by payment or compensation of the tax liabilities arising from the suspension of the enforcement deeds. Thus, payments made during the suspension of the enforcement deeds will settle the tax liabilities recorded in the enforceable title only at the express request of the taxpayer.
- New special provisions are introduced in respect of the VAT reimbursement. Thus, for VAT returns with negative amounts of VAT with reimbursement option for which the amount requested for reimbursement is lower than RON 45,000, the tax authority will reimburse the requested amount on condition that a subsequent tax audit is performed. The exceptions to this rule are established, as well as the time period when such provisions are enforced, i.e.: starting with the returns with negative amounts of VAT with reimbursement option afferent to the tax period which ends after March 1, 2014.
- Starting with 1 March, 2014, the interest level for the late payment of the tax obligations was reduced from 0.04% to 0.03% per each day of delay.
- Starting February 28, 2014 for settling the tax liability, the garnishment of the debtor’s bank accounts is no longer to be executed at the same time as when the subpoena is sent, but only after a 30 days term from the date when the subpoena was communicated.
- The tax authorities which are competent in settlement of appeals against decisions/notice of assessment which regard bigger tax receivables respectively lower than RON 5 million.
The Romanian Parliament Law no. 13/2014 of February 28, 2014 for ratifying the Convention on Mutual Administrative Assistance in Tax Matters, adopted in Strasbourg on January 25, 1988 and the Protocol amending the Convention on Mutual Administrative Assistance in Tax Matters, adopted in Paris on May 27, 2010, signed by the Romanian part on October 15, 2012 was published in the Romanian Official Gazette no. 155 on March 4, 2014.
The Law ratifies the Convention on Mutual Administrative Assistance in Tax Matters and the Protocol amending the Convention on Mutual Administrative Assistance in Tax Matters.
ANAF Order no. 353/2014 of February 28, 2014 for amending the Order of the ANAF President no. 1.156/2009 on the tax audit identity cards was published in the Romanian Official Gazette no. 172 on March 11, 2014.
The model of the new tax inspection badge used in tax audits is presented and clarifications are brought in relation to the notion of the tax authority who will issue such badges to the personnel with tax audit attributions.
Decision no. 4/2014 of the Romanian Chamber of Tax Consultants of February 21, 2014 regarding the convocation of the Annual Ordinary Conference of the Romanian Chamber of Tax Consultants was published in the Romanian Official Gazette no. 182 on March 13, 2014.
The Decision convenes on April 26, 2014 the Annual Ordinary Conference of the Romanian Chamber of Tax Consultants where tax consultants registered in the records of the Chamber of Tax Consultants who paid in time all their obligation to the Chamber may participate. Attendance must be confirmed until April 18, 2014.
Government Decision no. 196/2014 of March 19, 2014 on approving the specific excise expressed in Euro on 1,000 cigarettes equivalent and on amending the Methodological Norms for applying the Law no. 571/2003 on the Tax Code, approved by Government Decision no. 44/2004 was published in the Romanian Official Gazette no. 208 on March 24, 2014.
According to the provision of the Decision, starting with April 1, 2014, the level of the specific excise expressed in Euro on 1,000 cigarettes is 59.77 Euro/1,000 cigarettes.
The Decision is supplementing the Methodological Norms for applying the Fiscal Code. Thus, in order to benefit from the exemption from the excise duty under art. 20660 of the Fiscal Code, the home users are not obliged to submit notification to the customs authority for the energetic and electricity products.