Legislative News in June 2011


LEGISLATIVE NEWS IN JUNE 2011


Important legal regulations for the business environment in Romania were published in
the Official Gazette, Part I during the month of June 2011 published, such as:
I. Order no. 1984/2011 issued by the Ministry of Finance establishing criteria for
VAT purposes registration.

The Order establishes criteria based the VAT registration of the companies can be
made:
a) the taxpayer exercises economic activities at the headquarters or work point;
b) none of the administrators and / or shareholders of the legal entity seeking
registration for VAT purposes, nor the legal entity itself has shown itself in record tax
crimes and / or facts provided in the Government Ordinance no. 75/2001 on the
organization and functioning of the criminal record;
c) the existence of space for the headquarters / fiscal residence or secondary offices,
which correspond to the object of activity that the taxpayer intends to carry out / carries
out;
d) evaluation criteria stipulated in Annex 2 of the Order.


II. Government Decision no. 500/2011 regarding the register of the employees.
According to the Decision, each employer is required to establish and submit to the
Labor Inspectorate, general records of the employees and the present it labor inspectors
at their request.
Employers can contract the completion and transmission service of the register by
signing services contracts with services providers registered with the labor
inspectorates (in full compliance with the provisions of Law no. 677/2001 on the
protection of individuals regarding the processing of personal data).
The Register is transmitted to the Labor Inspectorate electronically.


III. Ministry of Public Finance Order no. 2017/2011 amending and supplementing
the Annex to Minister of Finance Order no. 263/2010 approving the settlement
procedure for negative returns of value added tax reimbursement option.


Through Order no. 2017/2011 the following amendments are introduced:
1) Settlement under a special procedure for returns with a negative amount of VAT
reimbursement option that, following risk analysis, are included in high tax risk.
2) Establishment of a period of max. 5 days to issue reimbursement decisions for
returns with negative amounts of VAT reimbursement option included in low risk
2
category.
3) Establishment for taxpayers who want compensation for the negative amount
requested for refund of VAT to certain types of tax claims, of the obligation to apply
for this compensation, otherwise the tax authorities will offset the negative amounts
approved for reimbursement.
4) Making the tax inspection in maximum four years, for the requests for
reimbursement submitted by large, medium sized and other taxpayers, settled with low
fiscal risk.


IV. Order of the Ministry of Labour, Family and Social Protection no. 1439/2011
approving the Norms for applying Law no. 52/2011 on the exercise of activities
carried out by occasional day laborers.

To ensure a consistent evidence on the use of temporary labor, each beneficiary of
works, as defined by Law no. 52/2011 organizes management and updating of the
register of the day laborers.
The Income of day laborers (the remuneration for daily work) paid by each beneficiary
is treated as salary income for the applicable provisions of chapter. III "Income from
wages" Title III "Income tax" of Law 571/2003 regarding the Fiscal Code.
Day laborers owe income tax on remuneration in the form of gross daily remuneration.
The tax is calculated by each of the beneficiaries of works by applying 16% of daily
gross remuneration. The calculation and withholding tax due is made by beneficiaries
of works on each payment of daily gross remuneration.
State budget remittance of tax calculated and withheld from each beneficiary of works
will be made until the 25th of the month following the month for which such income is
paid.