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The summary of the legislative changes in 2018

The year 2018 started with a lot of fiscal changes, contained in various normative acts. This is why we are trying to make a brief recap of the legislative changes that take place this year and a reminder of the main checks and declarations to be made at the beginning of the year:

  • if there are still companies without electronic signature, it will be urgent to take possession of it because as of February the January declarations will be submitted only electronically;
  • the due date for local taxes is March and September; it is also important to remind ourselves of the obligation to reassess properties at least once every three years in order to avoid excessive taxation;
  • the limit for the Intrastat declaration for 2018 remained the same as in 2017: for both deliveries and purchases, the limit is = 900,000 lei;
  • transfer pricing file: it is required to be submitted by the major taxpayers by the date of filing the profit tax statement only if they exceed EUR 200,000 of interest or EUR 250,000 of services or EUR 350,000 of sales / purchases of goods;

Other taxpayers who have to submit it within 90 days from the date of its request: only if they exceed EUR 50,000 of interest or EUR 50,000 of services or EUR 100,000 of sale / purchase of goods. The other taxpayers have no obligation on this file, but all intra-group transactions must comply with the market value principle;

  • the 10% health contribution quota is extended to other incomes: those who earn income over 22,800 lei from sources other than wages owe the sum of 570 lei quarterly to: 25 March, 25 June, 25 sept, about 20 dec. If the person obtains income from other sources below this amount, he may opt for health insurance for a period of one year but also contributes with the same amount of 570 lei / quarter (art.170 paragraph 7 of the fiscal code) Form 600 - January 31;

If a person does not receive income of any kind (and he/she is not exempted from the payment, like: retired, unemployed, socially assisted, disabled, etc.), he / she owes a contribution to health either by paying 190 lei / month when he needs insurance, paying 1,330 lei (art.180 paragraph 1 of the fiscal code) Form 604;
Foreign citizens who do not reside in Romania and stay in the country under 90 days are not obliged to pay this quota and those who are resident in Romania but contribute to the public health insurance system in their country will have to demonstrate this by submitting form E104;

  • attention for the people working abroad and did not complete at their departure The questionnaire for determining the tax resident's physical residence when leaving Romania, they may pay a monthly fee. The document may be filed by a proxy, without the need for a notarial mandate for that purpose;
  • micro enterprise limit: EUR 1,000,000 (1 EUR = 4.6597), the same tax rates (1% or 3%) are retained. There can not be micro-enterprises the societies whose share capital is held by the state or administrative-territorial units or those in dissolution, followed by liquidation - declaration deadline 31 March;
  • transfer from non-payer to VAT payer: 220,000 lei limit - declared until January 10, and the payer will be from 1 February;
  • change of the tax vector for the VAT period (monthly, quarterly): the limit of EUR 100,000 / year (form 010 in the event of a vector change - January 15, or 094 if it remains quarterly - 25 January);
  • verification of the VAT limit on collection: if the turnover exceeds the amount of 2.250.000 lei, the taxpayer must pay VAT normally - January 31;
  • the salary contributions may be declared / paid quarterly only if the taxpayer has a turnover below EUR 100,000 and has an average of up to 3 employees;
  • in the case of tax-payers who exceed an annual gross income of 100,000 euros, they must pass to revenue quota taxation by January 31;
  • Split VAT (GEO 23/2017 and Law 275/2017) is mandatory for the companies in bankruptcy, public companies, and the companies with debts larger than 15,000 lei (large firms), 10,000 (average firms) or 5,000 individuals) that will not be extinguished during January, or with debt older than 60 days from maturity. It shall apply from 1 March 2018.

Unregistered companies for VAT purposes will not be affected in any way by trading with companies that apply VAT split.
Those who opt for split VAT will have to apply it for a period of at least 1 year (benefit for the split VAT option: 5% reduction of profit / income tax throughout its application).
Those who are required to apply it may exit the system at least six months after they are no longer in one of the situations that led to the application of the VAT split scheme.

It is also worth mentioning:

  • the minimum wage increased from 1,450 lei to 1,900 lei;
  • the income tax that falls from 16% to 10% for people who earn income from salaries, pensions, self-employment.

For any further questions or clarifications, feel free to contact Ascent Group's consultants. Find us through our Facebook or LinkedIn page or by email.

 

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