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The change of the ceiling for micro-companies from 1st of January 2018 and other new fiscal rules

With the latest tax changes some new information appeared regarding the micro-enterprise regime. They refer to the ceiling up to which a company is consider a micro-company and pays the tax on revenues, not on profits, the extention of this taxation system also to the companies who are now the now excluded, ans also the impossibility of companies with a certain share capital to switch from revenu tax to profit tax. The recent changes also include measures to combat outsourcing of profits made by multinational companies.

According to Government Emergency Ordinance no. 79/2017, published on November 10, starting with 1st of January 2018, will increase the ceiling to which a company becomes a taxpayer on micro-enterprise income, from 500,000 euros (as it is currently) to 1.000.000 euros.

This means that companies with a yearly turnover below 1.000.000 euros will not pay profit tax, but they will pay a 1% tax on the turnover. read more»

Legal changes related to labor taxation from 2018

The Ordinance no. 79/2017 regarding the amendment of the Fiscal Code approved by the Government on 08.11.2017 was published in the Official Gazette of 10.11.2017. This brings important news for both employees and employers.

The main change is represented by the transfer of contributions from the employer to the employee. Out of the total of 9 contributions currently paid by employers and employees, starting with 2018 there will be only 3 contributions, namely: read more»

Modificări aduse Legii 53/2003- Codul Muncii

Ordonanţa de Urgenţă nr. 53/2017, care aduce modificări şi completări la Legea nr.53/ 2003 - Codul Muncii, a intrat în vigoare în data de 7 August 2017, dată la care a fost publicată în Monitorul Oficial, Partea I, nr.644.

Prevederile OUG 53/2017 modifică termenul de încheiere a actelor adiţionale la contractele individuale de muncă şi condiţiile de sancţionare a muncii nedeclarate de către angajatori. read more»

Finally, we will get rid of the stamp! Sanctions for the employees of the public institutions, if requested after July 30!

Even if it seems hard to believe, in Romania, we will get rid of the stamp requirement!

This provision actually already existed from 2015, when a paragraph of the Law 316 already eliminated the corporate obligation to stamp the claims, declarations or other documents in relation to institutions or public authorities. However, a large proportion of the public sector employees continued to request abusively the application of the stamp on these documents.

In order to improve this situation, on 30 June 2017 it was published in the Official Gazette no. 507 a Government Ordinance that not only reaffirms the lack of stamp obligation, but also qualifies officials`demand to apply the stamp as being abusive. read more»

Starting from August, Health and Social Contributions will be paid at minimum salary level even for part-time employees

Thursday, the 20th of July, the Romanian Government adopted a decision through which is the employers will have to pay the CAS and CASS contributions at the level of the minimum wage even for the part-time contracts.

Therefore, under this decision, employers will be required to pay social and health contributions at the level of the minimum wage even in the case of part-time contracts.

The measure is taken even if the salary of the part-time employee, related to the number of hours worked, is lower than the country-guaranteed minimum gross salary. Thus, for example, if the part-time employee earns 600 lei gross, the employer will be obliged to pay the pension and health contribution at the level of the minimum salary of 1450 lei gross. read more»

Legal and fiscal news for 2017

Starting with 2017 a series of legislative changes will take place. Some are applicable from the 1st of January, the others from the 1st of February. We have grouped them in several main categories:

The corporate income tax:

  • The taxpayers engaged exclusively in innovation, research and development activities will be exempted from profit tax in the first 10 years of service;
  • Will be extended the deadline for the tax exemption regarding reinvested profit in technological equipment, computers, electronics and peripheral equipment, and also software.

The income tax for microcompanies read more»

LAST OPPORTUNITY TO PAY LESS TAXES FOR DIVIDENDS

The changes in the New Fiscal Code are making 2016 the best year for withdrawing dividends. The dividend tax was reduced from 16% to 5%. It is possible to benefit of this opportunity only in 2016.

If you haven`t already did it, you can still benefit from this tax relief only in December this year.

The only condition that must be fulfilled in order to pay only taxes rate of 5% is that the shareholder must obtain also other income for which he already pays the health insurance contribution. Therefore: read more»

The main changes of the Fiscal Code in 2016

The new Fiscal Code, adopted in September 2015, brings various of changes, applicable from different data. We will briefly describe below the changes that will be effetive starting with 2016.

Changes in the VAT 

Standard rate of VAT for all goods and services will be reduced from 24% to 19% in two steps: starting from 2016 from 24% to 20% and starting with the 1st of January 2017 will be reduced to 19%.

For the delivery of school textbooks, books, newspapers and magazines, except those intended exclusively or mainly for advertising as well as for the service consisting in allowing acces to the castles, museums, memorial houses, historical monuments, monuments of architecture and monuments of archeology, zoological and botanical gardens, fairs and exhibitions and cultural events, sporting events, cinemas, other than those without the right to deduction it will be applied the reduced rate of VAT to 5%. read more»

New Year, New Code of Procedures and New Tax Code!

This is the time when we all are making plans for the New Year Eve, but did we properly budgeted expenditures for 2016?

And to do this, I propose you to review together the main changes of the new Tax Code and also the new provisions of the Ordinance 50/27.10.2015.

From a first look it's noted that in 2016 the most vulnerable are individuals who are self-employed or freelancers, and the Fiscal Procedure Code is not meant to solve what really hurts, namely: the introduction of rules and procedural limitations about duration and conduct unannounced checks and anti-fraud, or the removal of the effects on third parties resulting from the declaration as being inactive of a taxpayer. read more»

Tax Code changes impact on employees

As it was already announced, starting with the year 2016, the Tax Code will have some changes. Some of them have a direct impact on employees. An amendment provides that the tickets gift in the value of maximum of 150 lei, will no longer be taxed starting with 2016. Another change is linked to the personal deductions. read more»

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