Legislative Summary August 2005

In this issue:

- Small and medium enterprises
- Accounting
- Banking
- Social Security
- Local taxes
- VAT
- Customs
- Miscellaneous
 
SMALL AND MEDIUM ENTERPRISES

Amendments in the assistance program for development of small and medium enterprises through funds granted within the limit of profit tax payments for the reinvested profits
(Order 129/2005 of the National Agency for Small and Medium Enterprises published in Official Gazette 689/1 August 2005)

The Order provides inter alia:
- The funds are allocated only for the initial investment and limited to the reinvested profit amount, but not exceeding
ROL 2 billion (RON 200,000) for each beneficiary;
- Specific changes were introduced in the procedure for obtaining these funds and the documentation required from potential beneficiaries;
- Certain changes were made in the application procedure for benefiting from the program.

ACCOUNTING

Application of norms on the form and content of financial reports, including information, documentation and certification needed for completing financial reports
(Order 3117/2005 of the Insurance Supervisory Commission published in Official Gazette 694/2 August 2005)

Authorised insurance firms and insurance brokers are required to submit specific financial reporting and information for review to the Insurance Supervisory Commission (ISC). These reports should be submitted quarterly, half-yearly and annually.

The Order enters into force 1 October 2005 and abolishes the previous reporting regulations, i.e. Order 13/2001 and Order 3102/2003 of the President of the Insurance Supervisory Commission.

Approval of accounts reporting method for insurance, insurance-reinsurance, reinsurance companies and insurance brokers
(Order 3118/2005 of the Insurance Supervisory Commission published in Official Gazette 694/2 August 2005)

The Order provides the form in which accounts reporting must be submitted by above-mentioned entities as of 30 June 2005. It also abolishes previous reporting regulations, i.e. Order 3107/2004 of the Insurance Supervisory Commission.

Approval of National Securities Commission (NSC) Instruction No. 9/2005 on accounts reporting as of 30 June 2005 for entities regulated and supervised by the NSC
(Order 36/2005 published on Official Gazette 745/16 August 2005)

The Order provides specific accounts reporting procedures and the related submission dates of the reporting.

Changes in half-yearly reporting requirements for credit institutions
(Order 1414/4/2005 of the Finance Minister and Governor of National Bank of Romania (NBR) published in Official Gazette 768/24 August 2005)

Credit institutions are required to complete and submit half-yearly accounting reports to the Supervisory Department of the NBR and the territorial units of the Ministry of Finance where these institutions have their registered office.

The Order contains specific information on standard forms for the reporting and instructions on how to complete these forms.

BANKING

Reference interest rate for August 2005
(NBR Circular 29/2005 published in Official Gazette 716/1 August 2005)

The reference interest rate for August 2005 is set at 8.00% per annum.

SOCIAL SECURITY

Changes in social security contribution calculation
(Order 595/2005 of the Ministry of Labour, Social Solidarity and Family published in Official Gazette 779/26 August 2005)

The Order provides a new procedure for determining the average number of employees to be used for computing monthly social security contributions due by employers.
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LOCAL TAXES

Approval of taxable amounts, local taxes and duties, and other taxes assimilated thereto, as well as the level of penalties for 2006
(Government Decision 797/2005 published in Official Gazette 725/10 August 2005)

For further information, please refer to our Tax Alert 35 of 10 August 2005.

VAT

Approval of settlement method for returns on negative value added tax with reimbursement option
(Order 967/2005 of the Ministry of Public Finances published in Official Gazette 698/3 August 2005)

For further information, please refer to our Tax Alert 33 of 3 August 2005.

CUSTOMS

Import formalities for perishables cleared in Bucharest and Ilfov
(Order 6351/2005 of the National Agency of Fiscal Administration published in Official Gazette 698/3 August 2005)

The Order provides specific locations in Bucharest and Ilfov County for customs clearance of perishable goods (classified under Chapters 6, 7 and 8 of Romanian Import Customs Tariff) transported by road.

The Order abolishes the previous regulation on this subject, i.e. Order 373/2005 of the Vice-president of the National Customs Authority.

Amendments in norms for simplified customs clearance procedures
(Order 6603/2005 of the National Agency of Fiscal Administration published in Official Gazette 781/29 August 2005)

The importer can now pay customs liabilities in accordance with the Fiscal Procedure Code rather than putting a cash deposit at the disposal of customs authorities as guarantee for payment of customs liabilities.

Changes in list of imported technological equipment, installations, measurement and control devices and software exempted from customs duty
(Order 894/1088/2005 of the National Commission of Prognosis and the Finance Minister published in Official Gazette 726/10 August 2005)

The Order introduces new items of equipment and installations that may benefit from customs duty exemption upon import in addition to the existing items.


MISCELLANEOUS

Interest level for late payment of fiscal liabilities
(Government Decision 784/2005 published in Official Gazette 691/1 August 2005)

For further information, please refer to our Tax Alert 32 of 1 August 2005.

Conditions for declaring taxpayers as inactive
(Order 375/2005 of the National Agency for Fiscal Administration published in Official Gazette 719/9 August 2005)

For further information, please refer to our Tax Alert 34 of 9 August 2005.

Nominal value of meal voucher for the second half of 2005
(Order 542/2005 of the Minister of Labour, Social Solidarity and Family published in Official Gazette 687/1 August 2005)

The nominal indexed value of a meal voucher for second semester 2005 (starting September) is RON 7.

New regulations on cinematography
(Government Ordinance 39/2005 published in Official Gazette 704/4 August 2005)

The Ordinance introduces changes in Cinematography Fund contributions, including:
- the contribution against income from screening films in cinema halls or other public places was reduced from 8% to 3%;
- the contribution against monthly income from cable and satellite TV transmission was established at 1%;
- the contribution on annual profit of agencies organising gambling activities was established at 1%.

The Ordinance abolishes the previous Cinematography Law 630/2002.

REPUBLICATIONS

Competition and state aid laws

The legislations on competition (Law 21/1996) and state aid (Law 143/1999) were republished.
(Official Gazette 742/16 August 2005).