Year 2018, Issue 12
APEX Team International
Helesteului Str. 15‐17, District 1
Bucharest ‐ 011986
Phone: +40 (0)31 809 2739
+40 (0)74 520 2739
Fax: +40 (0)31 805 7739
E‐mail: office@apex‐team.ro
Contents:
• Significant fiscal
changes at the end of
2018
• New levels of
minimum gross
salary
• Application of
reduced VAT quota
for restaurant
and catering services
• New sole account to
pay fines
• Unchanged maximum
value for luncheon
tickets
• Changes to List of
fiscal liabilities to be
paid to the sole bank
account
• Clarifications of
CASS (health
insurance)
• Extension of fiscal
definition for
buildings
• New VAT account
operations for those
applying Split VAT
• Holiday vouchers for
public institutions
• A new convention
between Romania
and Spain
• INTRASTAT
thresholds
• Other fiscal news
• Advance payment
scheme for corporate
tax
• Closing exchange
rates for 2018
• Monthly Agenda
• Social indicators
Newsletter
DECISION 937 dated 7 December 2018 to set guaranteed national mini‐
mum gross salary (Official Gazette 1045/2018)
The Decision changes the level of guaranteed national minimum gross salary, defining
two minimum thresholds.
Thus, starting the 1st of January 2019, the base level is RON 2,080/month, for a regu‐
lar work schedule with an average of 167.333 hours per month, representing RON
12.43/hour. This amount does not include bonuses and fringe benefits.
Starting the 1st of January 2019, for staff employed in jobs implying higher education
studies, with seniority of at least one year within their field of study, the guaranteed
national minimum gross salary, without bonuses and fringe benefits, increases from
RON 2,080 to RON 2,350/month, for regular work schedules with an average of
167.333 hours per month, representing RON 14.044/hour.
To set various fiscal liabilities and legal obligations, the reference level for minimum
salary taken into consideration is RON 2,080 lei. Thus, if the current regulations of
the Fiscal Code remain unchanged, the annual threshold taken into consideration to
set CAS (pension) and CASS (health insurance) by those obtaining income from
sources other than salaries, will be RON 2,080 x 12 months = RON 24,960.
For the first time, there are two reference levels for minimum gross salary. It should
be emphasized that graduating higher education studies and having a seniority of at
least one year does not automatically imply application of the increased minimum
gross salary. The higher minimum gross salary does not apply when the person is em‐
ployed in a domain other than in their field of study. Also, in order to benefit from the
increased minimum gross salary, qualification for the position should require the ne‐
cessity of higher education studies.
For part‐time labour agreements, the same reasoning applies as for full‐time labour
agreements, taking into consideration the relevant level of minimum gross salary.
In relation to fines, in 2019, they will continue to be set as previously, meaning based
on the value of RON 145 per fine point assessed, according to GEO 96/2018.
EMERGENCY ORDINANCE 114 dated 28 December 2018 to set certain
measures in the area of public investment and fiscal and budget
measures, to amend and complement certain normative acts and to extend
certain deadlines (Official Gazette 1116/2018)
The Ordinance brings multiple fiscal, economic and budget amendments, being pub‐
lished in the last issues of the Official Gazette in 2018. The text published in the Offi‐
cial Gazette has no less than 24 pages.
Main changes introduced by this Emergency Ordinance are briefly presented below:
VAT – application of simplification measures (reverse taxation)
Application of simplification measures (reverse taxation) is extended through the 30th
of June 2022 for delivery of:
 cereal and industrial crops;
 gas emission certificates;
 electric energy to a reseller buyer;
 green certificates;
 mobile phones;
 microprocessors;
 PC tablets and laptops.
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 Simplification measures remain applicable for the remaining categories, which do

not have a timetable (waste, timber, land, construction, etc).
Important amendments for employees working in the field of construction
New level of minimum salary for construction work
In the field of construction, during the 1st of January and the 31st of December 2019 peri‐
od, the guaranteed national minimum gross salary is set, without bonuses and fringe
benefits, at the value of RON 3,000/month, for a regular work schedule with an average
of 167.333 hours/month, representing RON 17.928/hour.
Provisions exclusively apply to activity domains provided by the Ordinance, meaning
those defined by the following NACE codes:
 2312 ‐ Shaping and processing flat glass
 2331 ‐ Manufacture of ceramic tiles and flagstones
 2332 ‐ Manufacture of bricks, tiles and construction products using baked clay
 2361 ‐ Manufacture of concrete products for construction purposes
 2362 ‐ Manufacture of plaster products for construction purposes
 2363 ‐ Manufacture of ready‐mixed concrete
 2364 ‐ Manufacture of mortar
 2369 ‐ Manufacture of other articles of concrete, plaster and cement
 2370 ‐ Cutting, shaping and finishing stone
 2223 ‐ Manufacture of builders’ plasticware
 1623 ‐ Manufacture of other builders' carpentry and joinery
 2512 ‐ Manufacture of metal doors and windows
 2511 ‐ Manufacture of metal structures and parts of structures
 0811 ‐ Quarrying of ornamental and building stone, limestone, gypsum, chalk and
Important slate
 0812 ‐ Operation of gravel and sand pits; mining of clay and kaolin
changes on
 711 ‐ Architectural and engineering activities and related technical consultancy
salaries in the Fiscal facilities in field of construction
field of The new fiscal facilities in the field of construction provide:
construction  Exemption from tax on income, if gross salary is between RON 3,000 and RON
30,000 per month;
 Reduction of social insurance contribution (CAS) from 25% to 21.25%, by exempting
these persons from paying contribution to privately administered pension funds
(pylon II)(*);
 Exemption from social health insurance contribution (CASS) – these employees will
be insured without paying the contribution;
 Exemption of employers from paying CAS representing 4% or 8% owed in the case
of particular working conditions or special working conditions, respectively;
 Reduction of employment insurance contribution from 2.25% to 0.3375%.
(*)
This is the interpretation given to the unclear text published in the Official Gazette,
where the verb “to reduce” or “to increase” was omitted. Our understanding is that the
Ordinance wants to reduce the contribution to CAS (pension) by exemption from the
portion paid to Pylon II, representing 3.75%. Certainly, the text should be adjusted by
the law maker and we will report details according to the final, correct version.
During the period of 1st of January 2019 to 31st of December 2028, employees of construc‐
tion companies for whom the above‐mentioned conditions are fulfilled, will benefit from
rights granted by the system of insurance for occupational accidents and disease, unem‐
ployment insurance, including leave and compensation from social health insurance,
without having employers pay employment insurance contribution. Periods worked in
construction represent contribution to set right to unemployment allowance and com‐
pensation for temporary incapacity to work.
Conditions to be fulfilled:
Employers should obtain at least 80% of their turnover from construction activities
mentioned above. Turnover is calculated cumulatively from the beginning of the year up
to the month when the exemption is applied. This condition only applies to gross salaries
granted within limits mentioned above.
Form 112 on social contributions, income tax and the nominative list of insured persons
is represented by an affidavit/statement under own responsibility on fulfilling all condi‐
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tions required in order to apply the exemption.

The facility is applied to the 1 January 2019 – 31 December 2028 period.
Comments by APEX
The article which sets a new level for minimum gross salary in construction does not
differentiate job title and job position held by an employee in the field of construction.
Practically, the level set at RON 3,000 for minimum gross salary might become manda‐
tory for any employee within such a company, even if he or she holds a position within
the administrative department. Also, this minimum level might become the reference
basis to also calculate taxes owed by employees working part‐time.
On the other hand, fiscal facilities granted for this domain are also conditioned on the
structure of employer turnover. Application of the increased level of minimum gross
salary does not seem to take into consideration whether or not employees benefit from
the facilities, given provisions of the Ordinance at this time. Thus, there are several
questions and practical issues such as:
 does the increased level of minimum salary apply to any employee of the company?
 what happens if the company only has one NACE code registered and does not use it,
or it is just a secondary activity?
 what happens during the period when there is no turnover, situations particular to
seasonal activities in construction (e.g. during the first months of the year, winter)
or in the case of extensive work when turnover is only recognized when the situa‐
tions of work are approved and invoices are issued?
It is clear that the new regulations were hastily set, without consulting the economic
environment and without taking various real, practical issues into consideration. To
oblige a company in the field of construction to pay minimum gross salaries amounting
to RON 3,000, regardless of the job title and job position, might cause bankruptcy and
closure of several companies. Limitation of the
It is possible, however, to have provisions amended/clarified to avoid the absurd situa‐ activities where
tions mentioned above.
daily labourers
Pension Pylon II (Private Pension)
A person contributing to a pension fund may opt, based on individual application, to be may be hired
transferred to the public system of pensions. This may be possible only if the person has
a contribution of over 5 years to the respective pension fund.
The funds held as of transfer date remain in the personal account of the participant until
rights to the private pension is opened.
The minimum criteria regarding share capital for administrators of pension funds are
increased and commissions charged are limited.
Calculation base for social contributions related to part‐time labour agree‐
ments
Calculation base for mandatory social insurance (CAS and CASS) is minimum gross sala‐
ry related to seniority and level of education imposed by the activity carried out.
As previously mentioned, the same reasoning for full‐time labour agreements according
to provisions of Government Decision 937/2018 regulating new levels of national mini‐
mum gross salary will also apply to part‐time labour agreements, taking into considera‐
tion the relevant level of minimum gross salary. According to existing regulations, the
employee bears the cost of social insurance at the level of his/her gross salary, the
difference being borne by the employer.
Starting the 1st of January 2019, there are 3 levels of minimum gross salary, levels taken
into consideration when setting CAS and CASS for part‐time employees:
 RON 2,080 – base level;
 RON 2,350 – for staff employed in job positions which require higher educational
studies, with seniority of at least one year in the field of study;
 RON 3,000 – for construction.
Limitation on use of seasonal workers
Seasonal workers may be hired only in the following 3 sectors of activity:
a) agriculture, hunting and related services – division 01;
b) forestry, except logging – division 02;
c) fishing and aquaculture – division 03.
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In addition, a person may not perform activities on a seasonal basis for more than 120
days during a calendar year, regardless of the number of beneficiaries, except seasonal
workers carrying out activities such as animal husbandry, seasonal activities in botani‐
cal gardens held by accredited universities, as well as viticulture, for whom the period is
180 days throughout a calendar year.
The beneficiary may not continuously employ a person for more than 25 calendar days
for seasonal activities.
Harmonization of fiscal treatment for value tickets
The value tickets, regulated by Law 165/2018, include luncheon tickets, gift vouchers,
nursery vouchers, holiday vouchers and cultural vouchers.
Fiscal treatment for value tickets is harmonized, given the fact that the same treatment
applies to cultural tickets in 2019. Thus, income in the form of value tickets received by
individuals are assimilated to salaries and are taxed at 10%. No mandatory social insur‐
ance is owed as long as they are granted according to Law 165/2018 on value tickets.
Submission of Sole Tax Return by individuals
A new exception is introduced regarding submission of Sole Tax Return on income tax
and social contributions owed by individuals for income obtained from rental activities.
As such, the Sole Tax Return should not be submitted for rental income when the condi‐
tions below are cumulatively met:
 the rental income is expressed in RON;
 the option to determine rental income under the real system was not selected;
 at the end of the prior year, the criteria to qualify the income in the category of inde‐
pendent activities category is not met.
As a reminder, starting the subsequent fiscal year, individuals obtaining income from
Tax on assets – a rental activities, having more than 5 rental contracts by the end of the fiscal year, will
new tax owed by consider it income from independent activities subject to regulations specific to this cat‐
egory in order to set net income.
bank institutions
Clarification on treatment of income obtained from dividends reported prior
for financial
to 2018, but paid subsequent to the 1st of January 2018
assets The situation of dividends reported as taxable by individuals by the 1st of January 2018
but paid subsequent to this date is clarified for the health insurance contribution. Thus,
only dividends reported prior to but paid subsequent to the 1st of January 2018 are in‐
cluded in a prior year Sole Tax Return. This way double payment of the social health in‐
surance contribution is avoided.
Tax on assets – a new tax owed by bank institutions for financial assets
A tax on financial assets owned by bank institutions is introduced, the tax being owed
when quarterly average ROBOR (Romanian Interbank Offer Rate) is greater than 2%.
The tax on assets is owed on a quarterly basis for financial assets existing at the end of
the taxable quarter, as they are registered in accountancy, adjusted, depending on the
case, according to applicable accounting regulations.
Average quarterly ROBOR is set based on ROBOR rates at 3 and 6 months, calculated and
published by the NBR (National Bank of Romania) for the quarter/semester prior to the
current taxable quarter.
The tax is owed in progressive quotas, according to the ROBOR percentage above the 2%
threshold, as follows:
Reference threshold for quarterly
Taxation rate on financial assets
average ROBOR rates above 2%
<= 0.5 0.1%
0.51 – 1.00 0.2%
1.01 – 1.50 0.3%
1.51 – 2.00 0.4%
>2.00 0.5%
th
The new tax is owed on a quarterly basis, by the 25 of the subsequent month.

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New tax owed by those organising gambling activities

Starting the 1st of January 2019, those organising online gambling activities, provided by
Government Emergency Ordinance 77/2009, have the obligation to pay a monthly tax
representing 2% of participation taxes collected within a month.
The tax is calculated, declared and paid by the 25th of the month subsequent to when
participation taxes were paid by on‐line customers.
The Ordinance also brings other amendments regarding taxes on licence to organise
gambling activities and annual contributions owed to ONJN (National Office for Gam‐
bling Activities).
Refund of tax for first registration of motor vehicles
Deadline to refund tax for first registration of motor vehicles, identified differently over
time, provided by GEO 52/2017 are extended to the 30th of June 2019.
Tax in field of electricity
The special tax on natural monopoly in the field of electricity and natural gas, adopted
by GO 5/2013, meaning the tax on development of natural resources provided by GO
6/2013, is extended through the 31st of December 2021.
This tax should only have been applied by the 31st of December 2018.
Also, holders of licences in the field of electricity/electricity and heat to generate elec‐
tricity, natural gas, will pay a contribution of 2% on the turnover covered by the licence.
This contribution will be paid to ANRE (Romanian Energy Regulatory Authority).
The Ordinance introduces a price limit for natural gas extracted on the Romanian terri‐
tory at the level of RON 68/MWh. The measure will be applied during the period of 1
April 2019 to 23 February 2022.
Payment schedule plan
Provisions of the Fiscal Procedure Code on a payment schedule plan are amended. It is
possible to supplement the amounts scheduled for payment with categories of budget
New taxes on
receivables, and throughout a calendar year or, depending on the case, with 2 payments
during a fraction of a year. energy sector
Pension point value
Starting the 1st of January 2019, the value of a pension point is kept at RON 1,100, an
increase of 15% being scheduled on the 1st of September 2019, meaning a pension point
will equal RON 1,265.
Other measures
The Ordinance also introduces other measures, such as:
 Creation of Development and Investment Fund, which will have a huge budget and
its role will be to finance investment projects in the field of health, education, water
sewerage, electricity, gas, transportation, roads and sanitation;
 Creation of Programme to finance investments to modernise and develop balneary
resorts;
 Creation of gROwth Programme– we invest in children, we invest in the future;
 Creation of Fund to finance public‐private partnership contracts;
 Various payroll provisions related to staff employed in the public sector;
 New taxes in relation to licences in the field of digital communication.
ORDER 3659 dated 26 November 2018 to approve Instructions for unitary
application of provisions of art. 291 para. (2) letter e) and para. (3) letter e)
of Law 227/2015 of the Fiscal Code (Official Gazette 1037/2018)
The Order clarifies classification of food service operations in the category of provision
of restaurant or catering services for which the reduced 5% VAT quota is applied start‐
ing the 1st of November 2018.
As a reminder, for food delivery, including retail food delivery, the reduced 9% VAT rate
applies, and for beverages the 9% or 19% rates apply. Thus, it was necessary for this
Order to define the criteria to differentiate between provision of restaurant/catering
services and delivery of food products.
The Order makes reference to definition of restaurant and catering activities provided
both in Regulation Council Implementing Regulation (EU) 282/2011 laying down appli‐
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cation instructions for Directive 2006 on the common system of value added tax, and in
Methodological Norms to apply Title VII – VAT of the Fiscal Code.
The Order was based on several decisions by the Court of Justice of the European Union
(CJEU), ensuring the delimitation of restaurant/catering services from delivery of food
products. The Order mentions Decisions of CJEU in connected cases C‐497/09 Manfred
Bog, C‐499/09 CinemaxX Entertainment GmbH & Co. K, C‐501/09 Lothar Lohmeyer and
C‐502/09 Fleischerei Nier GmbH & Co. KG.
It should be emphasized that provision of restaurant and catering services is not only
characterised by serving food products and/or beverages, the distinctive elements imply
the existence of auxiliary services, such as:
 provision of a proper setting which allows food product consumption;
 serving food products;
 provision of serving staff, cooks or cleaning personnel;
 provision of dishes and tableware;
 provision of furniture proper for food product consumption, such as tables and
chairs;
 cleaning tables;
 consulting individual about choosing the food products;
 customer counselling on composition and quantity of food products for certain
events.
There is a series of connected services which characterise the activity of food product
delivery that imply application of the 9% VAT quota:
 presentation of food products on shelf;
 food product preparation;
 transportation (delivery) of food products to the address indicated by customer;
The norms for
 cooling or heating of food products;
application of  food packaging;
reduced VAT rate  provision of disposable tableware for the customer;
for restaurant and  provision of paper napkins, mustard, ketchup, mayonnaise and other similar prod‐
ucts;
catering services
 provision of trash containers;
 general presentation of the offer/menu.
Consequently, a careful analysis of criteria is necessary to differentiate provision of res‐
taurant/catering services and deliveries of food products and, implicitly, the application
of the correct VAT rate.
Another aspect mentioned by the Order is that application of the reduced 5% VAT rate is
not conditioned on existence of a NACE code for restaurant and catering services, but by
the activity per se. For the units carrying out delivery of goods, as well as the consump‐
tion of products inside the restaurant, billing includes the reduced 5% or 9% VAT rates,
depending on the customer’s order.
ORDER 3893 dated 27 December 2018 to open a sole account to pay contra‐
vention fines according to provisions of Law 203/2018 to optimize payment
of fines (Official Gazette 1105/2018)
The Order regulates new sole bank accounts opened for individuals to pay their fines.
This Order is necessary because provisions of Law 203/2018 on paying fines into a sole
account came into force on the 1st of January 2019. All fines given to individuals regard‐
less of the object of the sanction are subject to this law. This Order is applied as a pilot
project for fines related to the traffic violations on public roads.
Also, Law 203/2018 introduces the title of digital debt comprising identification ele‐
ments of the offender described in the contravention minutes and, the procedure of digi‐
tal follow‐up for collecting the fine according to the procedural method followed by the
offender, such as a Court complaint and the existence of a Court order.
As a reminder, fines are income to the State Budget, except for traffic violations on pub‐
lic roads, which are income to territorial‐administrative units where the sanctioned deed
took place.
Officers/inspectors of the authorities responsible for collecting fines applied to individu‐
al will record contravention minutes and the modality of obtain and digitally transmit
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information required to create the title of digital debt in a numerical register. Such fines
should be deposited in the following accounts, which have been opened at the central
and territorial units of the State Treasury.
 50.09.01 Sole account related to fines applied to individuals with domicile in Roma‐
nia;
 50.09.02 Sole account related to fines applied to individuals without domicile in Ro‐
mania.
Payments to these accounts should be encoded with the fiscal code of the State Treasury,
meaning 8609468.
Amounts received in the sole account by the Ministry of Finance, are transferred within
a maximum of 2 days from collection to the account related to the State Budget or, de‐
pending on the case, the local budget.
Provisions come into force from the 1st of January 2019.
ORDER 2565 dated 13 December 2018 to set indexed face value of a luncheon
ticket for the second half of 2018 (Official Gazette 1086/2018)
The Order maintains the maximum value of a luncheon ticket for the second half of 2018
at RON 15.18, the same level as in the first half of 2018.
ORDER 3148 dated 17 December 2018 to amend List of fiscal liabilities which
are paid to the sole account, approved by ANAF Presidential Order
1612/2018 (Official Gazette 1091/2018)
The Order amends the List of fiscal liabilities which are paid to the sole account, by de‐
leting position 25, Tax on income obtained from gambling in Romania by non‐resident
individuals.
ORDER 3105 dated 11 December 2018 to amend and complement ANAF Presi‐ The contravention
dential Order 587/2016 to approve template and content of forms used to fines of
declare taxes and contributions under self‐assessment or withholding re‐ individuals should
gime (Official Gazette 1067/2018) be paid to a sole
The Order amends and complements the List of payment obligations to the State Budget, bank account
thus:
 position 21, Tax on income obtained from gambling in Romania by non-resident indi-
viduals, is excluded;
 there are three categories of budget receivables regulated by Law 256/2018 for de‐
velopment of offshore oil fields:
ο Tax on extra offshore revenue;
ο Compensation related to the right to pass in exchange for limitation on the right of
use;
ο Compensation for damages caused.
These taxes will be declared to the State Budget on Form 100.
EMERGENCY ORDINANCE 109 dated 13 December 2018 to amend and com‐
plement Law 95/2006 on health reform (Official Gazette 1062/2018)
The Ordinance corroborates provisions of the Fiscal Code with provisions of Law
95/2006 on health reform, from the perspective of individuals obtaining income
from sources other than salary which exceed the exemption threshold and having the
obligation to pay social health insurance contributions (CASS).
The Ordinance regulates the period of insurance in the public health system for the
basic package for individuals paying CASS for income obtained from sources other than
salary. In this respect, the individual is insured from the date of submission of the Sole
Tax Return, for payment of CASS, and the period covered by the insurance is through
the date when the individual’s next Sole Tax Return is due (the 15th of March of the sub‐
sequent year).
The Procedure is also applicable to individuals with no income or earning less than the
threshold for payment of contribution. These people have the option to insure them‐
selves in the public health system by submitting a Sole Tax Return. The period covered
by insurance is the same as above. These people benefit from health insurance by paying
health contributions for 6 months of the year.
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ORDER 2846 dated 16 November 2018 to approve Procedure to cancel pay‐

ment obligations set by Tax decision on social health insurance contribution
owed by individuals according to article 180 para. (1) letter a) of the Fiscal
Code, as well as to approve template and content of certain forms (Official
Gazette 1032/2018)
The Order approves Procedure to cancel payment obligations set by Tax decision on so‐
cial health insurance contribution owed by individuals according to article 180 para. (1)
letter a) of the Fiscal Code and the required forms.
Basically, the Order refers to situations where individuals had the obligation to submit a
tax return on income obtained from sources other than salaries which was subject
to social health insurance contribution (CASS) and they did not meet their obligation.
Therefore, tax decisions were issued by fiscal authorities. If the individual meets his/her
obligation of submitting a Sole Tax Return, the tax decision ceases to be applied ex offi‐
cio. The Order regulates the procedure to effectively cancel these tax decisions.
LAW 285 dated 29 November 2018 to amend art. 453 letter b) of Law
227/2015 0n the Fiscal Code (Official Gazette 1028/2018)
The Law amends art. 453 of the Fiscal Code in relation to definition of building in terms
of tax on buildings.
Specifically, the new definition includes buildings and structures representing wind tur‐
bine support towers. By default, they will be subject to tax on buildings.
The new definition of the building is: any construction situated above and/or below the
ground, regardless of its name or use, and which has one or more rooms which may
serve to accommodate people, animals, objects, products, materials, installations, equip‐
ment and others, and its basic structural elements are the walls and roof, regardless of
Wind the materials used for its construction, including wind turbine support towers.
turbine support The amendments came into force on the 7th of December 2018.
towers are subject ORDER 3040 dated 4 December 2018 to set operations giving right to debit
to tax on buildings VAT account (Official Gazette 1069/2018)
The Order extends list of operations to debit a VAT bank account, used by entities apply‐
ing the split VAT payment system. The new operations introduced by this Order are the
following:
a) set of garnishments on cash deposits, by competent enforcement authorities;
b) set of garnishments on amounts owed by third parties to the debtor, by competent
enforcement authorities;
c) set of garnishments on amounts the debtor should collect from pub‐
lic authorities or institutions, by competent enforcement authorities;
d) revaluation of seized assets/assets added to the state’s private property, by compe‐
tent enforcement authorities and authorities revaluing assets added to the state’s
private property;
e) compensation of obligations representing VAT to be paid from other budget receiva‐
bles approved for reimbursement, within the limit of compensated amounts;
f) other situations when VAT related to purchase of goods and/or services was paid by
the holder from an account different than a VAT account or through other payment
instruments, the holder not having the obligation to pay from the VAT account.
EMERGENCY ORDINANCE 107 dated 7 December 2018 to amend and comple‐
ment certain normative acts, as well as extension/postponement of certain
deadlines (Official Gazette 1058/2018)
The Ordinance amends and complements several normative acts.
The period for which public institutions may grant holiday vouchers is extended to 1 Jan‐
uary 2019 to 31 December 2020, amounting to RON 1,450 per employee. Previously, they
were granted between the 1 July 2017 and the 30 November 2018.
Regulations on holiday vouchers which were previously introduced by art. 24‐27 of Law
165/2018 on granting value tickets is postponed until the 1st of January 2021. This law
was presented in the 7th edition of the APEX Team Newsletter.

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LAW 309 dated 12 December 2018 to ratify Convention between Romania

and Spain to avoid double taxation and to prevent tax evasion on income tax
and to avoid tax payment and convention protocol, signed in Bucharest on
the 18th of October 2017 (Official Gazette 1079/2018)
A new Convention between Romania and Spain to avoid double taxation is ratified. The
previous Convention was ratified in 1979.
The new Convention introduces lower withholding tax rates as follows:
 dividends will be taxed at 5% (compared to 10% and 15% provided by previous Con‐
vention. The possibility of tax exemption under the same conditions provided by
Parent‐Subsidiary Directive are also introduced, conditions also found in the Fiscal
Code (companies holding, directly or indirectly, at least 10% of the share capital for
at least 1 year);
 interest and royalties will be taxed at 3% (compared to 10% currently);
 definition of royalties has changed.
Regarding timing of effective date, there will be a system of mutual notification between
the states, subsequent to having the internal procedures fulfilled by each state. The Con‐
vention will come into force within 3 months from the date when the final notification
is received and will have effect on revenue obtained starting the 1st of January of the cal‐
endar year following the year when it comes into force. Taking into account that the law
is published in December 2018, it will most likely to come into force in 2019 (within 3
months from mutual notification between states) and will affect revenue obtained
starting the 1st of January 2020.
ORDER 1667 dated 14 November 2018 on INTRASTAT thresholds to collect
statistical information regarding intra‐community trade of goods for
2019 (Official Gazette 1030/2018) New Double Tax
The thresholds for 2019 are the same as those for 2018, meaning: Treaty between
 RON 900,000 for intra‐community supply of goods; Romania and
 RON 900,000 for intra‐community purchase of goods.
Economic operators which, during 2018, carried out trade of goods with EU Member Spain
States with a total value of each separate flow (supply and purchase) exceeding the
thresholds listed above should prepare and submit an INTRASTAT return to the National
Institute of Statistics starting January 2019.
In 2019, other economic operators may become providers of INTRASTAT data if they
carry out the supply or purchase of goods having an accumulated value from the begin‐
ning of year which exceeds the applicable 2019 thresholds. These economic operators
should prepare and submit statistical INTRASTAT returns starting the month when the
cumulative value from the beginning of 2019 regarding supply to or purchase from the
EU exceeds the INTRASTAT threshold for each separate threshold.
As a reminder, submission deadline for the INTRASTAT return is the 15th of the month
following the month being reported.
Which operations are declared on INTRASTAT return?
The general rule is to declare all goods arriving in Romania from another EU Member
State or leaving Romania to another EU Member State, such as:
 intra‐Community trade of goods involving transfer of ownership and which are in‐
tended for use, consumption, investment or resale;
 movement of goods from one EU Member State to Romania or vice versa, without
transfer of ownership. For example, transfer of inventory, movement of
goods before and after processing;
 return of goods;
 specific movement of goods;
 financial leasing;
 operational leasing with a period over 2 years.
Which operations are not declared on INTRASTAT return?
The following operations are not declared in INTRASTAT return:
 provision of services;
 goods in simple transit;
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 temporary movement of goods;

 movement of goods for/after repairs and/or maintenance;
 trade of goods with EU Member States which do not belong to the statistical territo‐
ries of the EU;
 triangular trade of goods, if goods do not enter the national territory of Romania
from other EU Member States or they are not shipped from Romania to another EU
Member State (Romania is the second state within the triangular operation: the re‐
seller buyer).
ORDER 3236 dated 27 December 2018 to approve Procedure to register eco‐
nomic operators carrying out wholesale and retail trade in energy products
– gasoline, diesel fuel, kerosene, liquified petroleum gas and biofuel, as well
as to approve template and content of certain forms (Official Gazette
1115/2018)
DECISION 983 dated 13 December 2018 to set the 24th and 31st of December
2018 as non‐working days (Official Gazette 1061/2018)
For employees in the public sector, the 24th and 31st of December 2018 are set as non‐
working days, these days being recovered by the 31st of January 2019.
Provisions do not apply to certain job categories which have a special status or require
continuous presence. Also, the provisions do not apply to judges and other categories of
personnel at courts of law involved in settlement of trials with hearings on the 24th and
31st of December 2018, as well as participants in these trials.
Do not forget to
assess the INFO – Advance payment system regarding the tax on profit
opportunity to opt As a reminder, for those applying corporate tax regime, analysis of opportunity to opt
for advance payment system or to return to quarterly calculation system is recommend‐
in or out on
ed as this year begins.
application of the Those which opted to apply the system a year ago are required to maintain it in 2019
advance payment (the system is mandatory for 2 consecutive fiscal years). For those which opted to apply
system on the system two or three years ago or those who have not chosen the system yet, it is
time to perform a new opportunity analysis on whether to apply for this system.
corporate income
The main advantage of this regime is to cancel mandatory computation of profit tax at
tax each quarter‐end, which means applying regulations for computing fiscal profit starting
with accounting profit every quarter. As per the regime on paying profit tax through ad‐
vance quarterly payments, a preliminary amount continues to be paid quarterly, but this
amount is based on prior‐year fiscal profit adjusted for inflation. Annual adjustment oc‐
curs upon preparation of the annual profit tax return and is the only time during the re‐
spective year that computation of fiscal profit starts from accounting profit, the outcome
being profit tax to be paid after deduction of advance quarterly payments.
The profit tax payment regime of advance quarterly payments will consist of:
 an option to enter or exit the advance quarterly payment regime at inception of the
fiscal year, by 31 January;
 the option is made for at least 2 consecutive fiscal years;
 taxpayers under the regime of profit tax payment through advance quarterly pay‐
ments which post a fiscal loss for the first year of the mandatory 2‐year period, pay
advance quarterly payments by applying the tax rate to the applicable current year
quarterly accounting profit, if any;
 taxpayers under profit tax payment regime through advance quarterly payments
which benefited from profit tax exemption the previous year as per law and no long‐
er benefit from these fiscal facilities for the year when quarterly payments must be
determined and disbursed, will determine advance quarterly payments based on
profit tax disclosed on the previous year profit tax return even if they were actually
exempt from payment.
Exceptions from the advance payment system
The categories of taxpayers which will not be allowed to opt for payment of advance
profit tax payments and for which a special regime for declaration and payment is estab‐
lished are the following:
a) non‐profit organizations which must declare and pay profit tax on economic activity
Page 10 © 2018 APEX Team International
 Newsletter

annually, by 25 February of year which follows the year for which profit tax is com‐
puted;
b) taxpayers which obtain most of their income from growing cereal, "technical"
plants, tree cultivation and viticulture, which must declare and pay profit tax annu‐
ally, by 25 February of subsequent year;
c) the following taxpayers must declare and pay quarterly profit tax because they are
not allowed to exercise the option for advance quarterly payments:
ο foreign legal entities and non‐resident individuals who carry out their activities
through an association which is not a legal entity
ο foreign legal entities which obtained revenue from or in relation to real estate
property located in Romania or from disposal of an ownership interest they held in
a Romanian legal entity
ο resident individuals associated with Romanian legal entities for revenue obtained
both in Romania and abroad from associations which are not legal entities
Furthermore, the option will be denied for categories of taxpayers which were, during
the previous year, under one of the circumstances mentioned below, and must compute
and pay profit tax each quarter:
 taxpayers which posted a fiscal year loss at the end of the previous fiscal year;
 taxpayers which were subject to tax on the micro‐enterprise revenue and become
subject to profit tax;
 taxpayers which are in temporary inactivity or which declare under own responsi‐
bility that no activity is carried out at registered headquarters or secondary estab‐
lishments, as per legal provisions, with the Trade Register or with the Registry
maintained by competent judicial authorities, if applicable;
 newly set‐up taxpayers, but in this respect, taxpayers which register further to reor‐
Do not forget the
ganization as per law are not considered new taxpayers.
We want to emphasize the need to perform a careful analysis of the forecasted evolution deadlines to
of the company in the next few years, especially for financial results. The opportunity of submit the tax
whether or not to opt into the new system should be based on this analysis. returns and pay
As we have already mentioned above, the option is mandatory for at least 2 consecutive
the taxes!
fiscal years. This system will not produce positive results for companies registering de‐
creases in turnover or profitability, and, in general, in cases of decline company finan‐
cial results. The system is especially opportune for companies registering growth in ac‐
tivity and results, due to advance payment of profit tax (at previous year levels) and de‐
ferral of actual profit tax payment.
REMINDER – Do not forget to request tax residence certificates issued in
2019 from your foreign business partners
Tax residence certificates issued in 2018 are valid for the first 60 days of 2019.
FOREIGN CURRENCY EXCHANGE RATES at the close of the 2018 financial
year
The 2018 closing exchange rates communicated by NBR to value monetary items (cash
on hand, receivables, payables) denominated in foreign currency or pegged to a foreign
currency are:
1 EUR = 4.6639 RON; 1 CHF = 4.1404 RON; 1 GBP = 5.1931 RON; 1 USD = 4.0736 RON
MONTHLY AGENDA
Every day ‐ do not forget
 To complete the petty cash register (or print electronic version)
 To complete the purchase ledger and sales ledger
 To update electronic employee registers with information regarding labour contract
inception/amendment or termination, if any
At month end ‐ do not forget
 To complete the journal ledger
 To register contracts concluded during the month for services rendered by non‐
residents with tax authorities as per article 8 point 8 of the Fiscal Code
 To revalue monetary assets and liabilities in foreign currency (cash on hand, assets,
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 Newsletter

liabilities) at the NBR exchange rate in force on the last banking day of the month
 To organise a stock count of inventories if the enterprise does not use a perpetual inventory system
 To issue final invoices for the current month.
To comply with requirements regarding VAT
 Mention the registration code under the scope of VAT on documents for EU business partners
 Check validity of registration code under the scope of VAT mentioned on invoices received
 Check amount of VAT disclosed on invoices received
 Check references related to VAT (e.g.: “reverse charge,” “operation not subject to VAT,” etc...)
 On invoices, write VAT amount received in case of reverse charge
 Maintain ledger of goods received
 Maintain ledger of non‐transfer of goods
 Maintain non‐current assets ledger
 Mention which exchange rate will prevail (NBR, commercial bank or Central European Bank) in contracts
with foreign partners
To consult the calendar of tax liabilities for JANUARY 2019, visit the following link on ANAF
webpage (in Romanian):
https://static.anaf.ro/static/10/Anaf/AsistentaContribuabili_r/Calendar/Calendar_obligatii_fiscale_2019.htm

KEY HR FIGURES
Employer and beneficiary Employee and
2019 Contributions
(for activities considered dependent) dependent worker
for dependent activities
(% share) (% share)

It is not due to normal working conditions

Social security contribution (pension) 4% for special work conditions 25% (**)
8% for special work conditions

Contribution to health insurance fund

It's not due 10% (***)
(calculated on gross income)
Work insurance contribution 2.25% (*)
Income tax 10% (****)

Disability Fund (for employers with 4 x minimum wage for every 100 employ‐
more than 50 employees) ees
The amount of a taxable meal tax in the
max 15,18 lei
sense of income tax
2,080 lei
2,350 lei (for more than 1 year and func‐
Minimum wage (gross)
tions requiring higher education)
from 1 January 2019
3,000 lei for employees on construction
field
Diurnal (in the country)
For employees of public institutions 20 lei
For private sector employees (* 2.5) 50 lei
The below tax facilities are available for employers on the field of construction, when minimum 80% of turno‐
ver if from construction activities defined by law:
(*)not due by employer
(**) the social security owed by the employee is decreased to 21,25%
(***) health insurance is not due by the employee
(****) tax on income is not due for gross salaries between 3.000 lei and 30.000 lei.

Page 12 © 2018 APEX Team International

Helesteului Str. 15‐17, District 1 APEX Team includes qualified professionals able to provide a full range of
Bucharest ‐ 011986 accounting and payroll services. Our consultants are ready to share their
knowledge and experience gained whilst working in Romania as consultants
Phone: + 40 (0) 31 809 2739
+ 40 (0) 74 520 2739
for one of the Big 4 international companies, having many international
Fax: + 40 (0) 31 805 7739 companies acting in a wide range of industries as clients.
E‐mail: office@apex‐team.ro The team includes chartered accountants (Romanian Chartered Accountants
Body and also ACCA) specialised in accounting for business entities, as well
as a group specialised in payroll administration on behalf of the client.
APEX Team provides a full range of accounting services, payroll services,
local tax compliance and tax advice, as well as services tailored to your
www.apex-team.ro company needs:
 Bookkeeping
Our Mission:  Recurring accounting assistance
Adding Value to Client’s Business
 Payroll computation and additional HR services
 Accounting and tax advice « on line »
 Consulting and assistance in drafting transfer price files
 Start up services
 Organization of the accounting function
 Assistance in implementation of ERP
 Training

Disclaimer: The above information is a short summary of recently published information and is not
intended to be advice on any particular matter. APEX Team International disclaims liability to any
person in respect of anything done in reliance of the contents of these publications © 2018 APEX Team International