May 2017 business and tax news

Business news

Draft of Law to modify the Company Law
A group of Parliament members drafted a project of law to
modify the Company Law.
The project proposes modifications of some important matters:

– An individual person would be allowed to be sole shareholder in more than one company,
– It will be possible that an apartment room be the head office of more than one company.
VAT registration procedure rank held by Romania Deloitte released a study regarding the easiness to obtain the VAT code by a company in 12 European countries.

As expected, Romanian system is the most bureaucratic and difficult one of the analysed countries.
For instance, the procedure of asking the Administrator to come to the Tax Authority Office to be interviewed after depositing the requesting file appears only in Romania, Slovakia and Czech Republic.

Tax news
Forthcoming changes in the tax legislation VAT payment field
As of 1st of July 2017, as it is written in the Convergence Program
sent to EU Commission, Romania will apply the Italian model
regarding the payment of the VAT made by the State owned
entities: when these entities will pay its suppliers, they will pay the
value of the goods / services to the supplier, and the related VAT
directly to the State, on behalf of the supplier.
In case this mechanism will be successful, it will extended also to
the payments between the private entities, first in the most
“sensitive” sectors, where the VAT evasion is biggest (fuel, food,
transports etc).

Salary taxes field
The same Convergence Program says that as of 1st of July 2017
as well, the Romanian Finance Ministry will modify the Fiscal
Code in such way that the companies pay for the part time
employees the employer salary taxes at least at the value to be
paid for the full time minimum gross salary (1,450 RON).
The measure would be applied to the employees having only a
part time contract (not for the ones having already a full time
contract), and the companies would pay a minimum amount of
333 RON (cca 74 EUR) as employer salary taxes, instead of 83
RON (cca 18 EUR) (the tax for 2 hours/day contract).

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