1. Increase of delegation/ secondment allowance
In the Official Gazette of 29 March 2023, it was published the Order of the Minister of Finance no. 1235/2023 for updating the amount of the delegation/secondment allowance and the amount of the accommodation allowance provided for in the Annex to the Government Decision No 714/2018 on the rights and obligations of staff of public authorities and institutions during delegation and secondment to another city, as well as in the case of travel on official business.
Following the publication of this order, as of 1 April 2023, the delegation/secondment allowance for travel within the country is non-taxable and is not included in the basis for computing social contributions within the following two thresholds: 57.5 lei per day (previously 50 lei) and 3 base salaries.
2. Tax facilities for digital nomads
In the Official Gazette no. 265 of 30 March 2023, it was published the Law no. 69/2023 to amend and supplement Law no. 227/2015 on the Tax Code.
According to this law, digital nomads, defined according to the Emergency Ordinance no. 194/2002 in respect to foreigner’s regime in Romania, do not owe in Romania income tax and pension and health contributions, if they are present in Romania for a period that does not exceed 183 days in any 12 consecutive months that end in the concerned calendar year.
3. Updating the tax form 101 and publishing the form 101 Tax group
In the Official Gazette no. 201 of 10 March 2023, it was published the NAFA Order no. 310/2023 for the approval of the model and content of form 101 Tax group "Consolidated statement on profit tax determined by the tax group", as well as for the amendment and completion of NAFA Order no. 3.386/2016 for the approval of the model and content of form 101 "Statement on profit tax". Through this order, applicable starting with the declaration of the profit tax for the year 2022, the following statements have been introduced:
· consolidated statement 101 to be used exclusively by the company responsible for determining the consolidated tax result of the tax group;
· the standard Form 101 to be used by taxpayers who are not part of profit tax groups and by members of such groups, other than the responsible of the group.
4. Other news in respect to individual taxation
In the Official Gazette No 246 of 24 March 2023, it was published the Order of the Minister of Finance and the Minister of Culture No 1.098/2.748/2023 in respect to establishing the indexed amount to be granted monthly in the form of cultural vouchers for the first semester of 2023. According to this order, for the first semester of 2023, as well as for August and September 2023, the amount to be granted monthly, respectively occasionally, in the form of cultural vouchers, increases to 200 RON/month, respectively 400 RON/event.
In the Official Gazette no. 181 of 3 March 2023, it was published the Instruction of the Authority of Financial Surveillance and the Minister of Finance no. 1/6.218/2023 for the approval of the Rules on the determination, withholding and remittance of the tax on capital gains resulting from the transfer of securities obtained by individuals, supplementing the provisions on the Tax Code. Following the publication, it was repealed the Order of the Minister of Economics and Finance and of the president of the National Commission of Securities no. 3.483/144/2008, the new norms covering more specific situation of acquiring and transfer of securities.
In the Official Gazette no. 179 of 2 March 2023, it was published the NAFA Order no. 231/2023 on the amendment of form 224 "Statement on salary income from abroad obtained by individuals that render activity in Romania". The new form will be used for income earned starting 1st of February 2023 and includes information about the cost of sport subscriptions, paid by employees and deductible in the computation of income tax, in the limit of the equivalent of EUR 400 per year.
In the Official Gazette no. 218 of 16 March 2023, it was published the Order of the Minister of internal affairs No 360/2023 on the entry into force of certain international treaties. According to this order, the Agreement between Romania and the Republic of Chile in the field of social security will enter into force on 1 April 2023.
Romania and the United States of America signed on 23 March 2023 in Bucharest an Agreement in the field of social security and the Administrative Arrangement for its implementation. Once signed, the Agreement is to be ratified by law by the Romanian Parliament.
5. Amendment of legislation on VAT registration/cancellation
In the Official Gazette no. 264 of 30 March 2023, it was published the NAFA Order no. 347/2023 for the amendment of certain regulations on the registration/cancellation of VAT registration.
According to this Order, the 098 form “Request of registration for VAT purposes” was abolished and taxable persons subject to the registration in the Register of Commerce, that request registration for VAT purposes, submit at the Register of Commerce the “Request for tax registration”, which is an annex of the form “Request at registration at the Register of Commerce”, having filled in the corresponding VAT section.
The Order updates also the provisions of the NAFA Order no. 2.012/2016 for approving the Procedure of change, ex officio, of the tax vector in respect to VAT, as well as the model and content of some forms.
6. Publishing the Procedure for issuing the advance individual tax solution
In the Official Gazette no. 263 of 30 March 2023, it was published the Order no. 1.178 of the Minister of Finance, approving the Procedure for issuing the anticipated individual tax solution.
The procedure applies when the competent tax authority issues an advanced individual tax ruling on the tax treatment applicable to a future factual tax situation related to taxes, duties and social contributions regulated by the Tax Code. This procedure replaces the procedure from Order no. 3.736 from 2015 and it was published following the takeover of issuing the advanced individual tax solutions by the Ministry of Finance in 2022.
7. Submission of the notification of the effectiveness of the multilateral convention
Romania submitted the notification for the fulfilment of the internal procedures for the multilateral convention to entry into effect on 6 March 2023. Thus, the multilateral convention will entry into effect in Romania from 1st January 2024 for both withholding taxes and other taxes.
The information contained in this newsletter is intended to give you an overview of new legislation; the newsletter does not contain a comprehensive analysis of each topic. For more information on the topics covered please contact us. No liability is accepted for decisions or omissions following the use of the contents of this newsletter. All Crowe newsletters are available at the address www.crowe.ro.