Government Decision no. 937/2018 on establishing the national minimum gross basic wage guaranteed for payment (“GD 937/2018”), published in the Official Gazette of Romania, Part I no. 1045, on 10.12.2018, provides for an increase in the Minimum Gross Wage, in Romania, which is differentiated based on professional experience and higher education, as of January 1st, 2019.
According to Law no. 163/2018 on amending and supplementing Accounting Law no. 82/1991, Companies Law no. 31/1990, as well as on amending Law no. 1/2005 on the organization and functioning of cooperative companies (“Law 163/2018”), published in the Official Gazette of Romania, Part I no. 595, as of 12.07.2018, the Romanian companies are allowed to distribute dividends quarterly to shareholders, under the conditions stated below.
The professionals registered with the Trade Registry and any other interested individuals may obtain information on all the records entered in the trade registry with regard to a company, having the following available options:
As a Member State of the European Union, Romania will have to implement, starting from May 25th, 2018, European Regulation no. 679/2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data (hereinafter referred to as the “General Data Protection Regulation” or “GDPR”). The GDPR shall take direct legal effects in all Member States.
Starting from February 1st, 2018, new rules shall apply with regard to the income tax exemption applicable to individuals that obtain salaries and similar income from software development activities. These rules are set under joint Order no. 1.168/2017/ 492/2018/ 3.024/2018/ 3.337/2017 of the Ministry of Communications and Information Society, the Ministry of Labour and Social Justice, the Ministry of National Education and the Ministry of Public Finance, regarding the qualification as software development activity (the “Orders”), as published in the Official Gazette of Romania, Part I, no. 52, dated January 18th, 2018.
According to the Romanian Labour Code, fixed-term employment agreements can only be legally concluded in certain situations. In practice, a fixed-term employment agreement differs in many ways from the agreement concluded for an indefinite period, which is the rule in Labour Law.
The idea of converting an employment agreement into a fixed-term instrument, even if the employee agrees to such conversion, is considered by specialists as contrary to the law. In fact, employees may denounce this operation in court, all the more if they were forced by the employer to accept the agreement change. However, there are situations where changing an agreement this way can be considered lawful.
At EU level, this matter is stipulated by Council Directive 2001/23/EC on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of undertakings or businesses.
The Directive applies to any transfer of an undertaking, business, or part of an undertaking or business, to another employer, as a result of a legal transfer or merger.
The Directive covers public and private undertakings engaged in economic activities, whether operating for gain or not, with the exception of seagoing vessels.
However, the Directive does not apply to the transfer of administrative functions between public administrative authorities, or in case of an administrative reorganization of public administrative authorities.
Directive 2001/23/EC which stipulates this matter at EU level was transposed into national legislation by Law No. 67/2006 on the protection of employees' rights in case of transfer of undertakings, businesses or parts of undertakings or businesses and the Labor Code.
Taxpayers’ rights during the tax audit are stipulated both in the Tax Procedure Code and in the Chart of rights and obligations of taxpayers during the tax audit.
These rights are as follows:
1. The right to be notified of the tax audit
Before the tax audit starts, the taxpayer has the right to be notified in writing of the tax audit.
The tax audit notification is prepared by the team that performs the tax audit, approved by the service coordinator, and signed by the head of the tax audit department. This notification is drafted in 3 original counterparts, of which the first is transmitted to the taxpayer:
The Natural Persons Insolvency Law no. 151/2015, which sets a collective procedure for the financial recovery of the debtor, a natural person, in good faith, with a view to recovering his/her liability and discharge his/her debt, was published in the Official Gazette on June 26th, 2015, and shall enter into force on August 1st, 2017, subsequent to its being postponed once again.
Insolvency is the state of a debtor’s patrimony defined by his/her impossibility to meet his/her financial obligations as debts become due. The Law does not refer to the insolvency of authorized individuals or to those carrying out a liberal (independent) activity, but only to the insolvency of regular individuals.
The major advantage of the law on personal insolvency procedures is that after insolvency, the good-faith debtor, a natural person, can keep possession of the immovable asset pledged as collateral for the loan he/she applied for.
Aside from its mandatory nature - the transfer pricing documentation file is the document that justifies before the tax authority why a certain price for a given transaction was chosen - the file can be seen as a tool for an effective management of financial flows.
Therefore, in order for the file to contain every detail requested by the tax authorities, the following steps should be followed:
The decision amending the Government Decision no. 500/2011 on the general registry of employees (“GD 500/2011”) was published in the Official Gazette no. 963/28.11.2016. Significant changes have been made with regard to the rules governing the filling in of the employees’ general registry.
The transfer pricing documentation file must be submitted by March 25th, 2017, which is the deadline for filing the corporate tax return, or by the deadline set for companies that apply any tax year other than the calendar year.
The file has to be prepared and presented according to ANAF Order No. 442/2016 on the amount of transactions, submission deadlines for the transfer pricing documentation file, the content and conditions of requesting the preparation of a transfer pricing documentation file, and the transfer pricing adjustment/estimation procedure.
It is important to note that the interpretation of this Order by tax authorities is that, in case of a tax audit, if the file is requested for the past three years, companies must update the file according to the Order for the entire audited period, which is basically a retroactive application of the document. With audited companies, the deadline for meeting legal requirements is usually 30 to 60 days.
The changes recently proposed by the Ministry of Public Finance (MPF) in relation to the Tax Code and the Tax Procedure Code were passed by the Romanian Government on November 16th, 2016; the Emergency Ordinance is to be published in the Official Gazette, but the Executive has not yet released any statement as to whether the proposed version of the legislative project has been adjusted. The project was initiated by MPF earlier this month, and its beneficiaries are both companies and individuals. The new provisions should be applied from January 1st, 2017.