News

Portable A1 form in case of exemption – Transnational secondment exceeding 24 months

Article 12 of (EC) Regulation No. 883/2004 provides that the period of secondment cannot be longer than 24 months, therefore the seconded employee may remain affiliated to the social security system from the country of origin for up to maximum 24 months. As an exemption, Article 16 of (EC) Regulation No. 883/2004 allows the competent […]

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Split VAT payment mechanism makes Romania an EU pioneer

Romania could become the only EU member state to enforce the VAT split payment, and this will have a major impact on Romanian companies. After the new system is implemented, once a service is performed, the suppliers will provide the client with a VAT account. As a result of public consultations on the initial proposal […]

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Important ECJ rulings on customs value of defective goods and VAT taxable basis of leasing

Customs value of defective goods (X BV, C-661/15, 12/10/2017) An importer may adjust the customs value declared upon importation where it is established that, at the time of release into free circulation, there was a manufacture-related risk that the goods might potentially become defective in use, and in view of this, the seller, pursuant to […]

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Getting ready for the General Data Protection Regulation

Compared to the current Directive 95/46 / EC transposed into Romania by Law 677 / 2001, G.D.P.R. presents: Determination of the scope for which data is processed; Elimination of the current notification mechanism of the national authority (NSAPDP) and introduction of the accountability principle – the operator must be able to demonstrate that it complies […]

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Changes regarding data controller beginning with 25.05.2018 applicable for online stores

With the advent of EU Regulation 2016/679, traders who have an online business have a number of new obligations regarding the processing of their customers’ personal data. This responsibility of online stores is far more extensive than Law 677/2001, which will be repealed by the New Regulation on 25.05.2018. One of the most important changes […]

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Introduction of European Union Turnover Tax on Digital Businesses

Markus J Beyrer, Director General of Business Europe, has expressed concerns about the proposed introduction of a European Union turnover tax on digital businesses.On September 21, the European Commission launched a new agenda to ensure that the digital economy is taxed “in a fair and growth-friendly way.” This could lead to the announcement of new […]

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European Commission to Release Report on Corporate Tax Reform

The European Commission is set to release a report this week on corporate tax reform. According to news reports, it will recommend that the European Union make unilateral changes to the way its members tax large international companies. If these reports are accurate, European leaders should reject the report’s proposals. Unilateral action would shackle Internet companies in […]

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EU Court of Justice Ruling on Aviva Case

During the autumn meeting of the VAT Club, held on the 22nd of September in Vienna who was attended by our VAT Partner Raluca Tutu, one of the main topics of discussion was the ruling of the EU Court of Justice on Aviva case, which brought to much rumours and chaos within Cost Sharing Groups. […]

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Changes to Fiscal Procedure Code

In brief Government Ordinance no. 30/2017 for amending and supplementing Law no. 207/2015 on Fiscal Procedure Code was published in the Official Gazette no. 7082017. In detail Government Ordinance no. 30/2017 amends and supplements Law no. 207/2015 on the Fiscal Procedure Code. The most significant changes are detailed below. The obligation to present documents in […]

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Mirus to Assist Kramp Group BV on Romanian Market Entry

Kramp Group BV, one of the largest wholesalers in Europe, asked Mirus to assist on Romanian market entry which had been successfully completed on October 1st. Mirus team of 6 advisers provided tax, legal, accounting and payroll support, as well as assisting on an Oracle roll-out process. Mirus assisted on both the planning and structuring […]

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Keeping up with the Tax Code amendments – August 2017

So, what does the Government Ordinance bring new? First of all, a new partial deductible expense was added to the list for computing the corporate income tax. Therefore, you can now deduct the expenses with alienated debts within 30% of the value of these debts. The income from independent actives was redefined to include all […]

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The Ministry of Finance changes the Code of Fiscal Procedure. Changes will also include taxes and tax audits

express regulation that a tax audit carried out by NAFA structures or by the structures of the local public administration authorities may also consist of prevention and compliance actions; flexibility of rules applicable in payment rescheduling and of the rules regarding the payment in installments of adjudicated goods; introducing the possibility of ensuring tax obligations […]

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Lease Agreement Termination and Unilateral Termination

Among these, special rules are provided for unilateral termination and for termination of non-execution, regulated in the Civil Code at articles 1816 and respectively 1817. Definition of Lease Agreement Lease Agreement is defined as the convention between two parties, whereby a party, called the Lessor, undertakes to provide the other party, called a Lessee, the […]

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New Amendments regarding Labor Code

1. Admission to work without the conclusion of the individual labor contract and without reporting in General Register of Employees, constitutes undeclared labor. In the context of undeclared labor being a phenomenon of increased gravity, that the society is confronting and the Romanian legislation did not provide a definition of undeclared labor, by this normative […]

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EU Study on new fuel markers – lower taxes to prevent fraud

Recent concerns have arisen from several Member States that the current common fiscal marker used for industrial fuel is easy to remove and that it causes massive losses of tax revenues. These concerns come in the context of the EU legislation that allows Member States to levy lower tax on fuel used for heating, in […]

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Companies need to create a separate VAT account starting with September 1st”

Another very important element that will come into effect on 1 September is a VAT account. For those who are VAT payers, Romanian state wants to reduce VAT and, as in recent years, VAT collection is somewhere at 73-74%. The impact is that we annually lose somewhere between 16 and 20 billion RON. Starting with […]

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GEO 42/2017 – amending and completing the Law no. 207/2015 regarding the Fiscal Procedure Code

Moreover, on June 9th, 2017, Romania adopted Law no. 124 through which it became an associate member of the OECD’s BEPS plan, thus becoming part of the group of countries aimed at discouraging aggressive tax practices and limitation to total elimination of the processes of erosion of the tax base and / or the artificial […]

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About tax avoidance in Romania

Causes and effects of tax evasion The tax evasion is determined by the action of various factors, the most important being: the existence of tax legislation with gap, inconsistences, ambiguities, flaws and repeated changes; misunderstanding of the tax authorities of the reasons that determine the tax payer to evade the tax system; the existence of […]

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Hard rules prepared for tax consultants, accountants, banks and lawyers will also be affected by multinationals

Moreover, there will be a database through which tax authorities within the Member States of the European Union will exchange this information every three months. Thus, the information will warn them in advance of the new risks of circumvention of tax obligations. In this respect, all categories of direct taxes, including income, profit, capital gains […]

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