Forms used for the declaration of self assessment taxes or of taxes withheld at source

In the Official Journal no 75/2012 it was published Order no 70/2012 of the President of the National Tax Administration Agency, amending and supplementing the same President’s Order no 101/2008 approving the model and content of Forms used for the declaration of self assessment taxes, charges and contributions or of taxes withheld at source.

The most important amendments refer to:

  • New model of Form 101 containing the profit tax return which shall become effective when the annual tax obligations for 2011 are declared.
  • Instructions for the filling out of Form 100 containing the Declaration on payment obligations to the State Treasury.
  • Form 100 shall include the quarterly contribution on medicines payable from the National Health Insurance Fund and the Health Ministry’s budget. In this case, the Order provisions shall be applicable from the fourth quarter of 2011.

Source: Mazars

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The annual Profit Tax Return for 2011 shall be filed until March 25

Art. II of Government Ordinance 2/2012 published in the Official Journal no 71/2012 specifies that the annual profit tax return for 2011 shall be filed by all taxpayers with the competent tax authority until 25 March 2012.

Exceptions: the taxpayers stipulated at art. 34 (5) (a) and (b) of the Tax Code (non-profit organizations, taxpayers obtaining most of their income from cereal crops and technical plants, fruit tree and grape growing) that shall submit their 2011 profit tax return by 25 February 2012.

Source: Mazars

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The Tax Procedure Code has been amended

In the Official Journal no 71/2012 it was published Government Ordinance no 2/2012 amending and supplementing Government Ordinance No 92 / 2003, regarding the Tax Procedure Code.

The major amendments to the Tax Procedure Code refer to the following:
1. Advance Pricing Arrangement (APA) and Advance Tax Ruling (ATR):
The Ordinance specifies the base date for the assessment of the future tax situation (only in the case of APA).
Tax inspectors may pay visits to taxpayer’s tax domicile or to any other mutually agreed upon place in order to analyze such taxpayer’s documents.
The competent tax authority shall inform taxpayers of the ATR or APA project, enabling them to state their opinion thereon within 60 working days.
Taxpayers shall have 60 working days at their disposal to supply the tax authority, upon request, with further information.

2. Procedure for the elimination of double taxation in the case of Romanian affiliated parties: The Ordinance introduces provisions referring to the elimination of double taxation when transactions between Romanian affiliated parties are adjusted alike for tax purposes.

3. Amiable procedure under conventions for the avoidance / elimination of double taxation: Any taxpayer that is resident in Romania may request the National Tax Administration Agency to initiate amiable procedure in the case in which this authority deems that taxation in the other Member State does not comply with the provisions of the convention for the avoidance of double taxation.

4. The Ordinance provides for administrative cooperation in tax-related matters, detailing the procedure for cooperation and exchange of information. These provisions become effective as of 1 January 2013, while the provisions regarding the scope and conditions of spontaneous exchange of information commence being applied on 1 January 2015.

5. A tax administration act may also be communicated to taxpayers by such means as fax, e-mail or any other means of remote electronic communication.

6. Tax payable and tax receivable: Any amount collected, while garnished, in addition to the actual tax debt shall be refunded within five (5) working days of the collection date. Special rules are provided for the debtors that have outstanding tax debts.

7. Transaction documentation: At tax authority’s request, taxpayers shall submit all documents regarding a transaction whenever it is performed with entities settled in states where no legal instrument exists on the basis of which information can be exchanged.

Source: Mazars

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News about Natural Persons’ tax residence in Romania

In the Official Journal no 73/2012 it was published Order no. 74 of the Minister of Public Finance, which regulates aspects related to natural persons’ tax residence in Romania that approves the new Forms, valid as of 1 January 2012, which are compliant with art. 40 (2)-(7) of Law no. 571/2003, regarding the Tax Code, and the Conventions for the Avoidance of Double Taxation.

Such Forms contain the following:
– Questionnaire establishing the tax residence of any natural person upon arrival in Romania;
– Questionnaire establishing the tax residence of any natural person upon departure from Romania;
– Notice of fulfillment of the conditions for tax residence in accordance with art. 7 and art. 40 (2)-(7) of Law no. 571/2003, regarding the Tax Code, as amended and supplemented, or with the Convention between Romania and ………………… for the Avoidance of Double Taxation, by the natural persons coming to Romania and staying here for more than 183 days;
– Notice of fulfillment of the conditions for tax residence in accordance with art. 7 and art. 40 (2)-(7) of Law No 571 / 2003, regarding the Tax Code, as amended and supplemented, or with the Convention between Romania and ………………… for the Avoidance of Double Taxation, by the natural persons leaving Romania for a foreign country where they are going to stay for more than 183 days.

The Order:
– mentions the cases in which the aforesaid Forms should be filled out, as well as the term within which such Forms should be submitted to the tax authorities;
– clarifies the criteria applicable for the establishment of tax residence of natural persons nonresident in Romania;
– details the procedure which should be followed by non-resident natural persons upon arrival in Romania, as well as by resident and non-resident natural persons upon departure from Romania.

The fact is noteworthy that natural persons who arrived in Romania after 1 January 2009 and are still here after 1 January 2012 shall fill out the Form containing the Questionnaire establishing the tax residence of a natural person upon arrival in Romania.

The same obligation shall be fulfilled by non-residents who arrived in Romania before 1 January 2009 and apply for Tax Residence Certificate by virtue of the Convention/ Agreement between Romania and ………………… for the Avoidance of Double Taxation, in their capacity as residents in Romania.

Source: Mazars

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Asia Pacific generated most of the transaction in the energy sector in 2011

The power deal world is heading in new and different directions that will lessen the impact of the eurozone crisis on deal totals, according to PwC’s annual Power Deals report.

The eurozone crisis is having a double-edged effect on deals. On the one hand it is constraining finance, while on the other it’s expected to lead to deal flow. It’s prompting a flow of privatisations as governments sell power assets as part of their austerity measures. The crisis is also leading to further currency weakness, strengthening the hand of overseas buyers.

Asia Pacific buyers and sellers were behind the largest number of deals in 2011 and any softening of valuations in Europe will likely reinforce their deal interest in the European marketplace, as well as the strength of the yen and renminbi against the euro.

„Avem “It’s a different M&A world that is less euro-centric. European companies are looking to South America and other growth markets. Asia Pacific buyers are busy in Europe. The US deal flow is compelling and has further to go if current deals get the regulatory green light. There are plenty of reasons to expect deal flow to continue unless the current crisis has a worldwide recessionary effect”, stated Alexandru Lupea, Partner, Assurance Services, Energy, Utilities and Mining Industry Group Leader, PwC Romania.

“Like most European markets, Romania has also experienced a marked slowdown in energy transactions, especially on the conventional energy segment, while renewable energy is now seeing an effervescence in announced projects, but few transactions, as the major energy players interested in the field of wind energy have already acquired the projects needed. It is a buyer’s market more than ever and developers of renewable energy projects must make sure that they secure all the permits and advance the projects very fast, as the window of opportunity for such projects is relatively limited ”, added Alexandru Lupea.

In the last 12 months, Europe has recorded its lowest share of worldwide power deal value since PwC started analysing deal-making in the sector in 1999, with the total deal value in Europe plummeting 43% year-on-year to stand at US$39.8bn (from US$70.3bn the year before). However, this US$30.5bn fall in power deal target value in Europe was more than made up for by a US$58.5bn increase in North America.

US power M&A is being fuelled by the need for scale among the big power utility companies and gas pipeline companies. New sources of shale gas are creating capital investment challenges as well as growth opportunities for gas pipeline operators, spurring deals among companies. Big gas pipeline deals accounted for US$47.3bn of the recent US$58.5bn year on year rise in North American power deal value.

A strong theme which is expected to intensify this year is European divestment programmes. The major European power utilities need to strengthen their balance sheets to make the big investments required in their core markets while retaining the flexibility to seek out growth markets. Eon and RWE are both planning major divestments in 2012.

The capital expenditure and growth challenges faced by European power utility companies are all the greater because of current constrained debt markets and more limited financing options. In a background analysis for the report, PwC looked at the leading European power utility companies and found:

  • On the debt side, issuances have declined from 75.6bn euros in 2009 to 14.6bn euros in 2011 as debt markets contracted.
  • In addition, across the whole European utilities sector, 15 groups have suffered downgrades in 2011 and 30% are on negative watch or facing downgrade reviews.

This reduction in capital- raising options will continue to spur divestments by the major European power utilities.

“European power utilities face a tricky balance. The issue of affordability of future energy prices is likely to see a shift to the utilities bearing more of the future cost of investment. At the same time their funding options are less flexible than in the past. We’re going to see some interesting new partnerships in the years ahead as companies intensify their relationships with alternative sources of funding. It will mean a step-up in partnerships with sovereign wealth funds, pension funds and infrastructure funds. The Chinese state-owned power companies could play a role as well as other active Asia Pacific investors”, concluded Lupea.

Methodology
Power Deals includes analysis of all global cross-border and domestic power utilities deal activity. It is the latest in our Power Deals annual series. We include deals involving power generation, transmission and distribution; natural gas transmission, distribution and storage; and energy retail. Deals involving operations upstream of these activities, including upstream gas exploration and production, are excluded. Renewable deals are covered in our sister publication, Renewables Deals and therefore excluded. The analysis is based on published transactions from the Dealogic ‘M&A Global database’ for all power and gas utility deals. It encompasses announced deals, including those pending financial and legal closure, and those which are completed. Comparative data for prior years may differ to that appearing in previous editions of our annual analysis or other current year deals publications.

This can arise in the case of updated information or methodological refinements and consequent restatement of the input database. Deal values are the consideration value announced or reported including any assumption of debt and liabilities. The Russian Federation is treated as a geographic entity in its own right. We have considered Asia Pacific as a region including Australasia, except if otherwise explicitly stated. All presented numbers of deals are inclusive of those deals with no reported value, unless specified.

Source: PwC

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News about the Content of some Forms Provided by the Tax Code

The Official Journal no. 72/2012 has published Order 52/2012 of the President of the National Tax Administration Agency, approving of the model and content of Forms provided under Title III of Law no. 571/2003, regarding the Tax Code.

The Forms referred to therein are the following:

  • 200 – Income Tax Return, regarding the income obtained from Romania and the Annex thereto
  • 201 – Income Tax Return, regarding the income achieved abroad
  • 204 – Annual Declaration of Income, which should be filed by associations without legal personality and entities that are subject to the tax transparency regime
  • 205 – Information Statement on withholding tax and gains/ losses by beneficiaries of income
  • 220 – Declaration of estimated income/ income standard
  • 221 – Declaration of Income from agricultural activities taxed in accordance with income standards
  • 222 – Information Statement on the commencement/ cessation of activity by natural entities working in Romania and obtaining salary income from abroad
  • 223 – Declaration of Estimated Income, which should be filed by associations without legal personality and entities that are subject to the tax transparency regime
  • 224 – Declaration of Salary Income obtained from abroad by natural entities working in Romania and by Romanian natural entities employed by diplomatic missions and consulates accredited to Romania
  • 230 – Application related to the use of the amount representing up to 2% of the annual tax and deduction of expenses for collective savings for housing
  • 250 – Annual tax decision on the income obtained from Romania by natural entities
  • 251 – Annual tax decision on the income obtained from abroad by natural entities
  • 260 – Tax decision on anticipatory payments representing tax and Annex to such Decision, establishing the net income on the basis of income standards
  • Accommodation Factsheet

The Official Journal no. 60/2012 has published Order no 53/2012 of the President of the National Tax Administration Agency, approving of the model and content of Form (096) – Declaration of amendments regarding abrogation of registration for VAT purposes under art. 152 (7) of the Tax Code, in the case of taxable entities registered for VAT purposes in compliance with art. 153, as well as of the Decision on the abrogation of registration for VAT purposes under art.152 (7) of the Tax Code.

Source: Mazars

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News about the Tax on Motor Vehicle Emissions

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In the Official Journal no. 17/ 2012 it was published Law no. 9/2012, regarding the tax on motor vehicle emissions. Likewise, in the Official Journal no. 29/2012 it was published Government Resolution no. 9/2012 approving the Methodological Norms for the application of Law no. 9/2012.

Also, in the Official Journal no. 31/2012 it was published Order no. 28/2012 of the President of the National Tax Administration Agency, approving the Procedure for the establishment of the tax on motor vehicle emissions.

Law no. 9/2012 refers to the establishment of a tax on the pollutants emitted by new or old motor vehicles which are first registered in Romania.

As to the former provisions, a new element is introduced, which relates to drivers’ obligation to pay tax on the vehicles registered in Romania (irrespective of their country of origin) for which the special tax on motor vehicles or on pollution has not been paid, excepting the vehicles falling within the categories that are exempted from such payment.

As regards these categories of vehicles, after the Law comes into force, the tax on motor vehicle emissions shall be paid when the ownership right over any of such vehicles is first recorded after the vehicle has been alienated.

The Methodological Norms clarify the provisions of this Law and the situations to which exemption from payment of the tax in question is applicable. The Norms also refers to the documents required for the calculation of the tax and to aspects related to the method of its calculation.

The procedure for the reimbursement of the amounts representing the residual value of the tax paid is also regulated by the Law.

The Procedure published in Order no. 28/2012 details the methodology for the determination of the tax on vehicle emissions and provides several Forms that are required throughout the tax determination process.

Source: Mazars

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