The wonder-law used by the Finance Ministry to put an end to the problems caused by several “slip-ups” in the recent fiscal legislation, as well as to eliminate any new tax evasion-friendly loopholes, has been published in the Official Gazette.
One normative act – the Law enacting Emergency Ordinance 36/2003, modifies an entire set of laws, from the regulations on the income tax to microenterprises, excises and profit tax. This is not all the news there is, though, as enforcement guidelines are underway, too.
The Finance Ministry rushed to use this tool to include the incomes derived from activities carried out under civil conventions/contracts concluded in line with the Civil Code into the category of taxable salary-like incomes. The incomes derived from such activities are subject to 10% tax at the source, except for licensed individuals.
“The civil conventions are no longer considered employment forms, yet the conditions when such contracts may be concluded are not clear at all. Assimilating them to wages contradicts the casual nature of such incomes, as well as Labour Ministry’s interpretations,” says tax consultant Emil Duca.
Other modifications included in the law are specifying the deadline for a microenterprise to hire one employee (60 days from registration), allowing brokers on the capital market and in the insurance industry to establish microenterprises and making expenses for insurance premiums paid by employers for employees deductible when calculating profit tax. In addition, the law stipulates the State does not take precedence over any other creditors when collecting debts, the importers are not required to produce proof of actual wiring of money for customs duties payment, as all they need is the bank seal on the draft. At the same time, the VAT to be returned may be compensated with the taxpayer’s obligations to the State, while the administration of the social security contributions falls upon the Finance Ministry, that is to get the returns highlighting the payment obligations of every taxpayer. razvan.voican@zf.ro