Legislative Alert March 2005

In this issue:

- Fiscal Code.
- Fiscal Procedure.
- Accounting.
- Foreign Exchange Regulation.
- Banking.
- Customs duties.
- Miscellaneous.

Fiscal Code

Emergency Ordinance 24 / 24 March 2005 amending the Fiscal Code

(Official Gazette 263 / 30 March 2005)

We have summarised the main changes brought by Emergency Ordinance 24 / 2005 to the Fiscal Code in our Tax Flash 10 / 30 March 2005.

Fiscal procedure

Order 162 / 21 February 2005 regarding the Administration and Monithorization Procedure for large taxpayers

(Official Gazette 212 / 14 March 2005)

The Order provides for aspects regarding the administration and monithorisation procedure applicable to large taxpayers, as follows:

Fiscal Registration Procedure

The changes occurred in the information initially stated by the taxpayers and mentioned in the registration certificate, including those referring to their VAT status, shall be made by submitting a request in this regard with the trade register office where the taxpayer is headquartered.

The registration of work points shall be made with the fiscal authorities where such work points are located.

Tax returns

Large taxpayers shall submit all tax returns, including the salary tax return for their own activities, to the General Direction for Administration of Large Taxpayers (GDALT).

In case of large taxpayers having work points, the salary income tax returns of the work points should be submitted to the competent fiscal administration in the major city of county where they are located, or in case of work points located in Ilfov county or Bucharest, such returns should be submitted to the GDALT.

Tax returns should be submitted in electronic format, in one of the ways provided by the Fiscal Procedure Code.

 Tax payments

The fiscal liabilities of large taxpayers due to the consolidated state budget, except for the salary tax, are to be paid to the Treasury and Public Accounting Direction of Bucharest.

The salary income tax liabilities of large taxpayers, except for those headquartered in Bucharest or Ilfov county, including their work points in the country, are to be paid with the relevant fiscal administrations of the major city of the county where they are located.

Payments for salary income tax liabilities for the work points located in Bucharest or the Ilfov county, are to be performed to the Treasury and Accounting Direction of Bucharest.

Fiscal audit procedure

The fiscal audit procedure for large taxpayers is to be performed by the Direction for Financial-Fiscal Audit within the GDALT.

In case of work points, the tax audit is to be performed by the tax authorities of the county where such points are located.

The Order further details the procedure to be followed for appealing against audits related to work points.

Legal aspects regarding the activity of large taxpayers

For litigations regarding the appeals made by large taxpayers against any tax minutes concluded by the tax authorities, the GDALT takes over the attribution of the local fiscal authorities starting 1 April 2005. 

Monithorization procedure

The General Direction for Collecting State Budget Liabilities within the National Agency for Fiscal Administration will be in charge with the monithorisation activity for large taxpayers and for certain taxpayers agreed by the Ministry of Public Finances with the IMF.

VAT reimbursement

In case of taxpayers qualifying as large taxpayers starting 1 April 2005, the settlement of the VAT reimbursement / compensation requests will be made by the GDALT.

The Order also provides for transition rules regarding VAT reimbursement for VAT returns submitted until 1 April 2005.

Order 343 / 25 March 2005 regarding the administration of large taxpayers

(Official Gazette 262 / 30 March 2005)

The Order provides for the Lists of the large taxpayers envisaged to be administrated by the General Direction for Administration of Large Taxpayers or by the local competent tax authorities, as well as the criteria for qualifying as a large taxpayer starting with 1 April 2005.

#PAGEBREAK#
accounting 

Order 3.103 / 23 February 2005 approving clarifications regarding the closing procedure of the financial year 2004 for the insurance companies

(Official Gazette 178 / 1 March 2005)

The Order brings certain clarifications regarding the 2004 financial year closing procedure to be followed by insurers and insurance brokers.  Thus, insurers and insurance brokers are liable to submit the 2004 annual financials to the National Insurance Supervisory Commission and to the units of the Ministry of Finance.  The financials should be drafted in accordance with the accounting regulations specific for insurance, harmonised with the European Directives and the International Accounting Standards (approved by Order 2.328 / 2.390 / 2001).

The financials should comprise:
- balance sheet;
- profit & loss account;
- any equity changes;
- cash flow situation;
- accounting policies applied, as well as explanatory notes.

 In addition, insurers and insurance brokers should draft and submit two other forms, namely the Informative Data and Assets Situation, as per the Order.

 The 2004 financials shall be drafted in accordance with International Accounting Standards (2002 version) and related interpretations, except for the consolidation standards.

 As per the accounting law and the insurance accounting regulations, the financials statements of insurance companies should be audited by independent auditors.

Order 8 / 23 March 2005 approving the Norms 3/2005 regarding the closing of the financial year 2004 for the entities regulated and supervised by the National Securities Commission

(Official Gazette 244 / 23 March 2005)

 The Order approves Norms 3 / 2005 regarding the closing of the financial year 2004 for the entities regulated and supervised by the National Securities Commission.

FOREIGN EXCHANGE REGULATION

Circular 9 / 2005 amending the Foreign Exchange Regulations 1 / 2004

(Official Gazette 195 / 8 March 2005)

We have summarised the main changes brought to the Foreign Exchange Regulation 1 / 2004 in our Tax Flash 8 / 8 March 2005.

Banking

Circular 8 / 2005 regarding the NBR’s reference interests rate for March

(Official Gazette 195 / 8 March 2005)

The reference interest rate for March 2005 is set at 10.75% per annum.

Circular 7 / 2005 of the NBR regarding certain measures to be taken by the credit institutions / State Treasury in respect of the national currency’s denomination

(Official Gazette 196 / 8 March 2005)

The Circular brings certain clarifications regarding the measures to be taken by credit institutions / State Treasury in respect of the monetary denomination of the national currency (ROL).

Until 30 June 2005, financial statements and any reports will be drafted in ROL.  After this date all financial statements, invoices, accounting books will be drafted in new ROL (RON).

Order 1 / 2005 amending NBR’s Order 2 / 2003 approving the format of financials for credit institutions applying the accounting regulations harmonized with Directive 86 / 635 / CEE and IAS

(Official Gazette 211 / 14 March 2005)

The Order brings certain amendments to the NBR’s Order 2 / 2003 regarding the financial statements for credit institutions applying the accounting regulations harmonised with Directive 86 / 635 / CEE and IAS.  Starting with the 2005 financials, all credit institutions, both Romanian legal entities and Romanian branches of foreign entities, should apply the above harmonised accounting regulations.

CUSTOMS DUTIES

Order 169 / 23 February 2005 approving the Methodology regarding the exemption from guaranteeing the customs duties (Official Gazette 205 / 10 March 2005)

The Order approves the methodology regarding the exemptions from guaranteeing the customs duties for certain categories of goods.  The application request along with the related documents should be submitted by the titleholders of the operations with the customs office where the customs formalities are performed, instead of the General / Regional Customs Authorities, as previously provided for.

The application request should be approved or repealed by the authorities within 5 days from submitting it with the customs office.  The request will be rejected in case the titleholder of the respective operation has outstanding debts towards the customs authorities or they have a litigation with the latter.

The Order approves the model for the application request and the exemption approval.

Government Decision 165 / 3 March 2005 regarding the structure and the activity of the National Customs Authority

(Official Gazette 215 / 14 March 2005)

The subordination of the National Customs Authority is shifted from the National Audit Agency to the National Agency for Fiscal Administration.

The Decision details the main responsibilities, as well as the structure of the National Customs Authority.

Order 133 / 290 / 28 February 2005 completing the List of the equipment exempt from customs duties

(Official Gazette 253 / 25 March 2005)

The Order completes the List of the equipment (e.g., technological equipment, software products) exempt from customs duties.

#PAGEBREAK#
MISCELLANEOUS

Order 246 / 4 March 2005 approving the Application Norms for filling in the payment orders for State Treasury

(Official Gazette 206 / 10 March 2005)

The Order approves the Instructions for filling in the payment orders for State Treasury, as well as the format of such payment orders.

Order 261 / 10 March 2005 establishing the tax liabilities for which the tax returns are to be sent by post by the tax authorities

(Official Gazette 246 / 24 March 2005)

According to the Order, the following tax returns should be sent by post by the tax authorities to individual taxpayers:
- Model 200 "Global income tax return";
- Model 202 "Special tax return regarding incomes obtained from independent activities";
- Model 203 "Special tax return regarding the incomes from rent of goods";
- Guide for filling in and submission of the tax returns regarding the incomes for 2004;
- Letter sent by the National Agency for Fiscal Administration to the taxpayers;
- Other necessary documentation.

Order 51 / 21 March 2005 approving the Application Norms regarding the interest rate applicable in case of recovering or reimbursement of illegal or prohibited state aid

(Official Gazette 253 / 25 March 2005)

The Norms establish the interest rate to be applied in case of recovering or reimbursement of the state aid granted to certain companies and subsequently found as illegal or prohibited in accordance with the Competition Council’s rules.

The interest rate for illegal or prohibited state aid is the one applicable at the moment when such state aid was made available to the beneficiary.  The interest rate considers the NBR’s reference interest rate of the first working day of the year for the first half of the year and the interest rate corresponding to the first working day of the month of July for the second half of the year.

The interest rate applied in case of recovering or reimbursement of the illegal or prohibited state aid may be modified provided that the reference interest rate fluctuation exceeds 5 percentage points.

Order 48 / 16 March 2005 approving the Regulation regarding the state aid for employees training

(Official Gazette 257 / 28 March 2005)

The Order replaces the State Aid Regulation for the Training of Employees approved by Order 92 / 2002 and details the conditions and steps to be taken by companies in order to benefit from such state aid. 

Order 49 / 16 March 2005 approving the Regulation regarding the investigating procedure for state aids

(Official Gazette 257 / 28 March 2005)

The Regulation provides for the procedure to be followed for granting a state aid to a company, as well as the procedure applicable for recovering or reimbursement of the state aid previously granted and subsequently found as illegal in terms of competition.

Pentru varianta Pdf. click aici.