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Procedure for the ex officio establishment of the health insurance contribution and of the social security contribution
Order for approval of the procedure concerning the ex officio establishment of the social security contribution and of the health insurance contribution owed by the natural persons, as well as of the template and content of some forms (Order no. 1.494/2018)
Notes:
• The procedure concerns the natural persons who were obliged to declare the taxable base for establishing the social security contribution, as well as the health insurance contribution, namely those persons for whom the income tax was determined ex officio for years 2016 and 2017.
• Based on the report prepared for the estimate of the calculation basis of the social security contribution and of the health insurance contribution "The decision on the ex officio establishment of the social security contribution and health insurance contribution for natural persons" is issued and approved.
• If the taxpayer does not fulfill his reporting obligations within 60 days from the decision issuance date, the decision is cancelled. -
Approval of the power of attorney template for the tax consultant/tax consultancy company
Decision on the approval of the power of attorney template for the tax consultant/tax consultancy company (Decision no. 6/2018)
Notes:
• The power of attorney template for the tax consultant/tax consultancy company is approved.
• The proof of the capacity of client’s representative in front of the tax authorities can be made, starting from 1.09.2018, by submission of the power of attorney together with the professional card or a copy of the annual visa for the legal entities.
• In the event that the right of representation of the client in front of the tax authorities is granted to a tax consultancy company, its delegate will also submit the representation mandate given by the company. -
Changes related to the distribution of dividends
Law for amending and supplementing the Accounting Law no. 82/1991, the amendment and supplementing of the Companies Law no. 31/1990, as well as the amendment of Law no. 1/2005 on the organization and functioning of the cooperative companies (Law no. 163/2018)
Notes:
• The shareholders or associates may opt for the quarterly distribution of the profit during the financial year within the limit of the net accounting profit made quarterly, plus any potential profits carried forward and amounts withdrawn from the reserves available for this purpose, from which any losses carried forward and amounts deposited in reserves are deducted in accordance with the legal or statutory requirements, namely based on the interim financial statements approved by the general meeting of shareholders or associates, as appropriate.
• The amounts related to the interim distributions of dividends will be recorded in the accounting system and will be reflected as receivables towards the shareholders or associates.
• The adjustment of the amounts allocated during the financial year should take place after the approval of the annual financial statements and the dividends distributed and overpaid during the financial year are returned within 60 days from the date of approval of the annual financial statements. -
Granting of value vouchers and their amount
Law on granting value vouchers (Law no. 165/2018)
The law no.165/2018 enters into force on 1 January 2019, a date when the following are repealed:
• Law no. 142/1998 on granting meal vouchers;
• Law no. 193/2006 on granting gift vouchers and childcare vouchers;
• Government Emergency Ordinance no. 8/2009 on granting holiday vouchers, approved with amendments and supplements by Law no. 94/2014.
Notes:
• The way of granting value vouchers for the benefit of the employees is regulated under the conditions and with the exceptions set forth by Law no. 227/2015 on the Tax Code.
• The value vouchers which may be granted are: meal vouchers, gift vouchers, childcare vouchers, cultural vouchers and holiday vouchers.
• We remind the fact that the legal entities established under the Companies Law no. 31/1990, as well as the credit institutions, the Romanian legal persons and the branches of the credit institutions authorized in the European Union Member States and notified to the National Bank of Romania according to law may have the capacity of issuing units.
• The costs related to the issuance of the value vouchers on hard copy and/or on electronic medium are entirely covered by the employers and their nominal value cannot be reduced in any way. -
Changes of the Tax Code
Law for amending and supplementing art. 291, para. 2 of Law no. 227/2015 on the Tax Code (Law no. 175/2018)
The law no. 175/2018 will enter into force since 1 January 2019.
Notes:
• According to the changes, the application of the reduced VAT rate of 9% also extends for the sewerage services (compared with the previous provisions by which the reduced rate of 9% applies exclusively for the supply of drinking water and of the water for irrigation in agriculture). -
Approval of the Accounting reporting system on 30 June 2018 of the economic operators, as well as the amendment and supplementing of regulations
Order of the Ministry of Public Finance for the approval of the Accounting reporting system on 30 June 2018 of the economic operators, as well as for amending and supplementing accounting regulations (Ministry of Public Finance Order no. 2.531/2018)
Notes:
• The obligation to prepare and submit the accounting reporting as of 30 June 2018 lies both with the economic operators (entities) who fall under the Accounting regulations on the annual individual financial statements and consolidated annual financial statements (approved by Ministry of Finance Order no. 1802/2014), as well as with the entities which fall under the Accounting regulations compliant with the International Financial Reporting Standards (approved by the Ministry of Public Finance Order no. 2844/2016) and which registered a turnover of more than 220,000 lei in the previous financial year (2017).
• The entities submit the accounting reports to the territorial units of the Ministry of Public Finance on hard copy and in electronic format or only in electronic form on the portal www.e-guvernare.ro, having an extended electronic signature attached. The electronic format of the accounting reports submitted over the internet or to the territorial units of the Ministry of Public Finance consists of a PDF file to which a xml file is attached.
• The deadline for submission of the accounting reports as of 30 June 2018 to the territorial units of the Ministry of Public Finance is 16 August 2018.
We remind the fact that this order brings a series of changes as follows:
1. At the level of the accounting regulations approved by the Ministry of Public Finance Order no. 1.802/2014:
• In the General Accounting Plan and in the entire content of the regulations, the name of the account 441 "Income/profit tax" is amended and has the following content: "Profit tax and other taxes".
• The accounts 4415 'Tax specific to certain activities" (P), 6231 "Entertainment expenses", 6232 "Advertising and publicity expenses" and 695 "Expenses related to the income specific to certain activities" are introduced in the General Accounting Plan.
2. In case of the accounting regulations compliant with the International Financial Reporting Standards, approved by the Ministry of Public Finance Order no. 2844/2016, in addition to the above mentioned changes, the order also brings changes to point 112, paragraph (3) of the Ministry of Public Finance Order no. 2.844/2016, thus the income recognition is made in compliance with the IFRS provisions.
3. In case of the accounting regulations for non-profit legal persons, approved by the Ministry of Public Finance Order no. 3.103/2017, the change consists of the introduction of the accounts 4415 "Tax specific to certain activities" (P), 6231 "Entertainment expenses", 6232 "Advertising and publicity expenses" and 695 "Expenses related to the tax specific to some activities" in general accounting plan. -
Regulation of internship programs
Law on internship (Law no. 176/2018)
Notes:
• The way in which the internship programs are carried out for the persons who have reached the age of 16 is regulated. Also, by exception, the persons who have reached the age of 15 may conclude internship contracts, but only with the consent of the parents or of the legal representatives.
• The host organization may simultaneously conclude internship contracts for a number of interns representing maximum 5% of the total number of employees. By exception, the host organization which has at most 20 employees may simultaneously conclude at most two internship contracts.
• The internship programs may be organized at any time during a continuous period of 12 months and the duration of a program must be of maximum 720 hours over 6 consecutive months.
• An intern and a host organization may conclude either one internship contract or several internship contracts provided that these are for different internship programs and their cumulated duration does not exceed 6 months.
• The conclusion of an internship contract in order to avoid the conclusion of an individual employment contract for carrying out the respective activity is sanctioned by absolute nullity and the host organization can no longer enter into such contracts for a period of 3 years from the moment of application of the sanction.
• The right of the intern to an internship allowance, equal to at least 50% of the national minimum gross base salary guaranteed for payment given according to the number of hours worked is established.
• The duration of the working time for an intern is of maximum 40 hours a week, and in case of the interns under the age of 18, the duration of the working time is of maximum 30 hours per week, but no more than 6 hours a day.
• A series of rights and obligations of the intern, as well as the sanctions applied for the breach of the internal regulations and/or of the internship contract are stipulated.
• The criteria for the assessment of an intern, assessment based on an assessment report, at the end of which the host organization is obliged to release a certificate of internship to the intern, are established.
• The internship contract must be concluded in written form, in Romanian, at least one day before the start of the internship program, having a maximum duration of 6 months.
• We remind the fact that the host organization which concludes an employment contract within 60 days after the completion of the internship program with the person who carried out the respective program, receives, upon request, the amount of 4,586 lei (employment promotion premium) for each person hired, subject to the maintenance of the employment relationships for at least 24 months. -
The form 107 “Informative statement on the beneficiaries of sponsorships/patronage/private grants”
Order for approval of the template and content of the form 107 “Informative statement on the beneficiaries of sponsorships/patronage/private grants” (Order no. 1.825/2018)
Notes:
• the template and the content of the form 107 "Informative statement on the beneficiaries of sponsorships/patronage/private grants” is approved. -
Procedure for the return of the income tax withheld
Order concerning the procedure of return of the withheld income tax by the income payer in a higher amount than the legal tax payable (Order no. 1.760/2018)
Notes:
• The procedure for return of the withheld income tax by the income payer higher than the legal tax payable when the income payer exists and it is in insolvency proceedings under Law no. 85/2014 is approved.
• The procedure for return of the withheld income tax by the income payer in a higher amount than the legal tax payable when the income payer no longer exists or is in insolvency proceedings under Law no. 85/2014 is approved.
• We remind the fact that the template and the content of some forms are approved, namely:
a) “Request for the return of the withheld income tax by the income payer in a higher amount than the legal tax payable”;
b) “Decision for the establishment of the withheld income tax by the income payer in a higher amount than the legal tax payable”.
Any presented information is general and is not meant to address the specific conditions of a particular individual or legal person. Although we try to provide accurate and up-to-date information, there is no warranty that such information is accurate at the time of its receipt or that it continues to be accurate. No action should be taken based on this information without relevant professional assistance following a careful examination of the circumstances that are typical of a particular state of affairs.