A new draft EGO provides further clarification on related companies

On 13 March 2024, a draft GEO appears on the website of the Ministry of Finance, clarifying the notion of “related enterprise”..

Another impact change for companies with the advent of GEO 115/2023 is the obligation to report high tax risk assets within Romania.

The year 2024 brings many unpleasant surprises for businesses and employees. The most important ones are summarised below.

On Friday, 10 Nov 2023, the Government approved an EGO on cash receipts and payments, which changes the ceilings on the use of cash payments.

Latest changes to the Fiscal Code to establish a balanced budget.

The government is encouraging donations for refugees from Ukraine, approving a number of measures to that end.

News has come up on the financing side, news covering various fields.

A recent press release by the Ministry of Finance foresees the extension of tax measures that are beneficial to taxpayers in the context of the pandemic.

The year 2021 began with many tax innovations, most of which are beneficial to companies.

ANAF reminds companies of the main structures from which they can benefit, but there are new provisions and provisions already in the legislation when the state of emergency was declared.

The President of Romania promulgated the law which concerns the tax on land and buildings used for tourist purposes which is reduced by half.

Besides reimbursable financing provided under the IMM Invest Romania program, companies can now also benefit from non-reimbursable financing.

In view of the current situation, which is burdensome for the business environment, a new OUG project has been created, which is intended to bring additional exemptions and facilities for the companies.

These facilities concern:

News about emergency certificates were published on M.O. 385 on May the 13^th.

According to the new provisions, the economic operators who suffered from the effects of the SAR-Cov2 pandemic in april, can benefit from the certificate of emergency TYPE 2 (yellow) situations following the completion of a self-declaration. The statement must indicate that there is a decrease in revenues of at least 25% in March or April 2020 compared to the average for January and February 2020.

But companies now have another statement available to get the certificate of emergency situations. In fact, the new declaration used only adds the month April 2020 (along with March), as the month in which the decrease in income/income achieved is decreased by more than 25% compared to the average income of January-February 2020.

In the context of the new economic crisis, the support programme for small and medium-sized enterprises, which aims to grant state facilities for loans granted by credit institutions, was approved. This Regulation was published in the Official Journal, on 4 April, through OUG No. 42.

What do these structures refer to?

Given the multitude of new regulations, press releases and confusion created in the media, we are resuming the main economic and fiscal-budgetary measures regulated by the 21th of March 2020.

The concrete measures established by the Government through the 29/2020 Emergency Decision are the following:

The current context, triggered by the COVID19 epidemic, is already creating numerous difficulties and challenges for companies, with a new economic crisis on the horizon. The bill on the amendment of certain provisions of the Tax Code to change the payment deadlines for a series of substandard taxes in the next period was presented to the Chamber of Deputies yesterday.

Therefore, the taxes and duties in the bill are:

• income tax for fiscal year 2019 and first quarter 2020;

• income tax on micro-enterprises for the first quarter of 2020;

• payroll taxes and salaries between February and April 2020;

• Social health contributions related to wages received in the period February-April 2020;

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The law permitting the payment of dividends during the year was voted. According to the principle “autumn is a time of harvest “, perhaps from September or October this year we will already be able to reap the “fruits” of the business.

On July 12, the normative act (Law 163/2018) amending the dividend payment procedure was published, which allowes the distribution of the profit between the companies’ shareholders also quarterly, within the limit of the net profit realized after the preliminary filing of an interim financial statement .

The European Parliament and the Council of Europe adopted on 27 April 2016 the EU2016 / 679 Regulation on the protection of individuals with regard to the processing of personal data. Its provisions will be applicable in all Member States of the European Union as of 25 May 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:

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

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:

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.

The Romanian Government published on 23^rd of July 2009 the implementing rules of the Emergency Ordinance 92/1009 for postponing the payment of unpaid tax obligations on time, due to the effects of economic and financial crisis, determining the framework within which companies may benefit from delaying the payment of the taxes. The provisions of GEO no. 92/2009 shall apply until 30^rd of June 2010.

The legal provisions refer to the payment of the tax obligations administered by ANAF: taxes, fees, contributions and other amounts due to general budget, and increases for the delay in respect thereof.

Conditions for the benefit of payment postponing

To qualify for postponing the payment of the taxes, taxpayers must fulfil the following cumulative conditions: