On 27 March 2018, the Ministry of Public Finance (MFP) published on its website a draft emergency ordinance for amending and supplementing certain pronouncements and extending a deadline.
The draft pronouncement brings changes to the Fiscal Code, the Fiscal Procedure Code and Emergency Government Ordinance no. 62/2011 on the stability of the financial framework for using the non-reimbursable Swiss Financial Contribution granted to Romania through the Swiss-Romanian Cooperation Program to reduce economic and social disparities within the enlarged European Union.
According to the explanatory note accompanying the draft emergency ordinance, the pronouncement is intended to stimulate investments and entrepreneurship, giving micro-entities the possibility to elect to apply the income tax, subject to their compliance with certain conditions regarding the share capital value and number of employees.
The draft also includes provisions regarding the financing of non-profit activities and places of worship, who are accredited social services providers offering at least one licensed social service, by stimulating micro-entities to sponsor these entities.
The measures proposed by the MFP targets the application of the withholding tax system for revenues from sports activities contracts entered into in accordance with Physical Education and Sports Law no. 69/2000, with its subsequent amendments and supplements, and supporting non-profit entities and places of worship who are accredited social services providers offering at least one licensed social service, in accordance with the law, by increasing the share that may be distributed from the payable income tax to 3.5%.
In addition, according to the explanatory note, the provisions of the draft emergency ordinance seek to ensure a uniform fiscal treatment for VAT purposes in regards to operations carried out in relation to research & development and innovation projects, maintain the competitiveness of commodity and passenger transports, as well as social considerations, such as maintaining an optimal level for transport costs. At the same time, the measures seek to link the authorisation requirements for bonded warehouses with those regarding the withdrawal of bonded warehouses authorisations, but also the simplification of the administrative procedure for reimbursing the special tax for cars and motor vehicles, the pollution tax for motor vehicles, the polluting emissions tax for motor vehicles, and the environmental stamp tax for motor vehicles. MFP indicated that the measures included in the draft eliminate the obligation to annex proofs of payment, copies of the vehicle’s identity card and registration certificate, and that reimbursements will only require submitting an application, without any other documents.
The draft emergency ordinance establishes the financial framework for using the non-reimbursable Swiss financial contribution granted to Romania through the Swiss-Romanian Cooperation Program to reduce economic and social disparities within the enlarged European Union.
Furthermore, the draft pronouncement makes provisions for the simplification of payment phase in requirements for fiscal obligations, the removal of dysfunctionalities in medium taxpayer administration activities, and the tourist tax introduced for the city of Bucharest will bring revenues to its local budget, facilitating a better tourism promotion and a more effective use of the amounts collected from tourist accommodation.
The draft pronouncement is available on MFP’s website in the Transparency Section.
Proposals, suggestions and opinions regarding the draft pronouncements subject to public consultation may be sent to MFP at publicinfor@mfinante.gov.ro within 10 calendar days from their publication.
