Finance Ministry proposes new Fiscal Code amendment bills

Companies will integrally pay social contributions for full-time employees that also work on intellectual property contracts.

By  Miruna Marinescu

Companies will pay social contributions for the employees working on intellectual property contracts similar to those paid for their full-time employees – a provision that will also apply to independent activities based on a clause of exclusivity, according to a draft ordinance that will change the Fiscal Code posted on the Public Finance Ministry (MFP) website. “If the income payer and the natural person have signed an individual work contract and a legal contract/report that serves for conducting an independent activity, it will be reconsidered by fiscal authorities as dependent activity.” Officials of the National Authority for Fiscal Administration (ANAF) told Mediafax that the reconsideration will also apply to the individual work contracts signed with a company belonging to the same group as the company where the employee is hired with full-time contract, if this refers to similar activities. “If this is the same activity, then the action must be treated as a sole activity, regardless if a contract is with a company and the other contract with a different company,” an ANAF source said.

The draft regulation does not explicitly refer to such a situation. The Finance Ministry also modified the criteria that preponderantly define the existence of an independent activity, by including the risk taken by the taxpayer. Meanwhile, the allowances received by employees for travel abroad or in the country, will be taxed just like wages, with income tax and social security contributions, for the part that exceeds the level established for public institutions.

The amounts representing the equivalent of holiday vouchers granted to employees will no longer be subject to taxation, according to the bill for an emergency ordinance to modify the Fiscal Code. The same MFP bill stipulates that the income of non-resident natural persons will be taxed as of the year they were granted residency, thus modifying the initial provision which they were exempt for three years from the payment of taxes and will be entitled to the same deductions as Romanian citizens.

Also, the royalties for gross proceeds of transport and transit of oil will increase from 10 to 15 pc and for underground gas storage from 3 pc to 5 pc, to supplement the state budget.

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