Emergency Government Ordinance 31/2019

Emergency Government Ordinance 31/2019

Emergency Government Ordinance 31/2019 regarding granting tax incentives and for amending and completing the Law no. 227/2015 as well regarding Tax Code, in order to complete the Emergency Government Ordinance no. 11/2018 enacted to adopt budgetary measures and for amending the Law-frame no. 153/2017 regarding the salaries for personnel paid from public funds.

 In force from 23 May 2019

Published in Official Gazette, Part I no. 403 from 23 May 2019. Applicable format at 25th September 2019.

Bearing in mind the significant volume of tax impositions issued in order to establish health social insurance contributions, related to period 2014-2017, which has not been communicated to the tax payers until the date of 15 march 2019, with the consequence of cancelation the tax payers benefit related to the tax discount provided by law when the contribution is paid until 31 March 2019, independent of their will, for approximately 990.000 tax payers who should have benefited of the tax discount, considering the inequities resulted from the legal provisions application by which the physical persons are obliged to pay a social health insurance calculated for the minimum gross salary in force at the country level although the obtained revenues are situated below this level, bearing in mind that deadline for reimbursing the amounts representing the special tax for cars and auto-vehicles, pollution tax for auto-vehicles, tax for pollution issuances produced by auto-vehicles and the environment duty for auto-vehicles, established by Emergency Government Ordinance no. 52/2017 regarding the restitution of the amounts representing the special tax for cars and auto-vehicles, pollution tax for cars, tax for pollution issuances produced by auto-vehicles and environment duty for auto-vehicles, approved by Law no. 258/2018, with further amendments and completions, is 30 of June 2019, considering the response formulated by Romanian authorities as a result of the motivated notice in the Cause 2017/2108 – action in finding the failure to comply to the obligations (infringement) and transmitted to the European Commission, where was promised that all measures will be taken and all the efforts will be made in order to restitute entirely the amounts representing the auto-vehicles tax, as well as the related interests, until the date of 30 June 2019, taking into account that within the budget for 2019 of the Environment Fund and of the Environment Fund Administration there was approved the amount of 1100 million RON, amount not suffice to cover the total amount needed to restitute the amounts representing the special tax for cars and auto-vehicles, tax on pollution for auto-vehicles. Tax for pollutants issuances produced by auto-vehicles and environment duty for auto-vehicles, bearing in mind the worrisome statistics regarding the diseases incidence generated by unhealthy food, taking into account  the fact that reduction of the VAT contributes as well to increase in productivity and as a result, to increase of the economic efficiency, considering that reduction in VAT constitute a measure to increase the equity, by improving the revenue distribution or by the fact that food of high quality value become more accessible for the entire global population, having regard to the necessity to ensure the finance of public investments of local interest by the territorial-administrative units in domains of priority for local communities, provided at art. 1 align (2) from the Emergency Government Ordinance no. 11/2018 for adopting budgetary measures and for completion of the art. 63 from Law no. 273/2006 regarding local public finances, approved with amendments by Law no. 187/2018, with further amendments and completions, respectively health, education, water-waste-drainage, thermic and electric energy, transport infrastructure, garbage collection, culture, sport and youth, homes, considering that art. 1 from Emergency Government Ordinance no. 11/2018, approved with amendments by Law no. 187/2018, with amendments and further completions, does not provide a possibility to re-authorize the draws from the given loans to the administrative-territorial units by the Public Finance Ministry depending on the finance needs for the investments for which they contracted such borrowings, and without promoting of the herein act would have negative consequences, increase of the risk that physical persons which are missing the possibility to benefit of the discount provided by law, by paying the contribution until 31st of March, independently of their will, to sue ANAF because they have been deprived of the legal right to benefit of the tax discounts, maintaining of a inequitable situation with regard to the obligation of the physical persons which obtained within the period 1st of July 2015 to 31st December 2017 revenues below the minimum gross salary in force at the country level, by case, under the level of 12 minimum gross salaries in force at the country level to pay the social health insurances contribution to this level in the context which until the date of 30 June 2015 payment obligations of those has been canceled by Law no. 209/2015 regarding cancelation of tax obligations, increase of the risk that physical persons to which, by tax imposition decisions, calculation base for the health insurances contribution is bigger than the effectively obtained revenue, to claim and sue in the court the tax imposition decisions, impossibility to respect the deadline of 30 June 2019 provided in the Emergency Ordinance of the Govern no. 52/2017 and mentioned in the response formulated by the romanian authorities on the notice motivated for the Cause 2017/2108 – action in finding the failure to accomplish the obligations (infringement) and sent to European Commission, in which is promised that all the measure will be taken and all the efforts will be done in order to restitute entirely the amounts representing auto tax, as well as the interests related, lack of the legal framework to allocate amounts from the state budget, by the budget of the Environment Ministry, from a distinct position of expenses, for  the supplementation of the Environment Fund, in order to ensure the needed amounts in order to restitute the special tax for cars, the pollution tax for cars, the tax for pollution issuances produced by the cars and of the environment duty for cars, as well as for regulating the possibility to allocate amounts from the Budgetary Reserve Fund controlled by the Government, by Government Decision, in order to ensure the necessary amounts to restitute the mentioned car tax, taking into account the fact that in the budget for the year 2019 for the Environment Fund and for the Environment Fund Administration an amount of 1.100 million RON, has been approved , an amount not suffice to cover the total amount needed to restitute those tax, maintaining of a inequity within the population, access to foods of high quality value being more easy for the persons with a higher level of revenues, as well as the perpetuation of the current situation with regard to the incidence of the diseases generated by the unhealthy food, which generates inclusively important expenses for the medical care for these persons, in considering the fact that these elements targets the general public interest and constitute emergency and extraordinary situations, whose regulation can not be postponed, according to the art. 115 align (4) from the Romanian Constitution, republished, Romanian Government adopts the current emergency ordinance.

Art.1. Application

  • By derogation from the provisions of art. V align (3) from Emergency Government Ordinance no. 89/2018 regarding several budgetary-tax measures and for amending and completion of several normative acts, approved with amendments and completions by Law no. 13/2019, for the amounts payable established by the annual tax impositions, issued and communicated by the competent tax authority between data of 15th of March 2019, inclusively, and the date of entering in force of the herein emergency ordinance, inclusively, for defining the individual social health insurance contribution owed to physical persons, for the period 2014-2017, deadline for payment is of 120 days from the entering in force of the herein emergency ordinance.
  • For advance payment of the amounts of provided at align (1) a discount of 10% out of these amounts is granted, providing that payments are entirely paid within a deadline of 60 days from the date of entering in force of the herein emergency ordinance.
  • By derogation from the disposition of art. V align (3) from Emergency Government Ordinance no. 89/2018, approved with amendments and completions by Law no. 13/2019, for the amounts payable established by the annual tax impositions decisions, issued and communicated by the competent tax office after the date of entering in force of the herein emergency ordinance, set to define the health social insurance contribution owed by physical persons, for the period 2014-2017, payment deadline is of 120 days starting with the date of tax decision communication.
  • For advance payment of the amounts provided at align (3) a tax discount is granted out of these amounts, if they are paid entirely within 60 days from the date of tax decision communication.
  • The value of the tax discount diminishes the payable amounts provided at align (1) and (3).
  • The application procedure for the provisions of align (1) – (5) is approved by public finance ministry order, as a response to the ANAF proposal, which is issued in 30 days from the date of entry in force of the herein emergency ordinance.

Art. 2. -Application

  • Health social insurance contribution is canceled , as well as tax ancillary obligations related to these, established by a tax imposition issued and communicated to the tax payer, in case when physical persons for which calculation base for health social insurance contribution has been added-on to the level of the minimum gross salary in force at the country level or, by case, to the value of twelve minimum gross salaries at the state level, for the tax periods comprised between 1st of July 2015 and 31st December 2017, according to the Law no. 571/2003 regarding Tax Code, with further amendments and completions, or Law no. 227/2015 regarding Tax Code, with further amendments and completions.
  • In case when the tax office did not enact a tax imposition for the tax obligation the ancillaries of the type of those provided at align (1) for the tax periods between 1st of July 2015 and 31st December 2017, this tax imposition is not issued anymore.
  • Provisions of align (1) and (2) are applicable as well to persons which did not obtained revenues in the tax period comprised between 1st of July 2015 and 31st December 2017, for which the calculation base of health social insurance contribution established according with Law no. 571/2003, with further amendments and completions is the minimum gross salary at the country level, excluding those who opted for paying the contribution according to the Law no. 112/2016 regarding approval of the Emergency Government Ordinance no. 41/2015 for amending and completion of several normative acts, as well for regulating several budgetary measures.

Art. 3 – Application

  • Cancelation of the tax obligation provided at art.2 is done ex-office by the competent tax office, through the issuance of a decision to cancel the tax obligations, which are communicated to the tax payer.
  • In case when, before entering in force of the herein emergency ordinance, the competent tax office had issued, but did not communicated the imposition decision by which it had established obligations of the type of those provided at art. 2, it will not communicate the imposition decision, while tax obligations are decreased from the analytic evidence per tax-payer based on a decrease list.

Art. 4. – Application procedure for the provisions of art. 2 and 3 from the herein emergency ordinance is approved by public finance ministry order, as a response to National Agency for Tax Administration proposal, which is issued in 30 days starting with the data of entry in force of the herein emergency ordinance.

Art. 5 – Application

  • In order to ensure the necessary amounts for the restitution of the special tax for cars, the pollution tax for cars, the tax for pollutant issuances produced by the cars and of the environment duty for cars, provided by Government Emergency Ordinance no. 52/2017 regarding the restitution of the amounts representing the special tax for cars, pollution tax for cars, tax for pollutant issuances from cars and environment duty for cars, approved by Law no. 258/2018, with further amendments and completions , amounts can be allocated from the state budget, by Environment Ministry budget, from a distinct position of expenses, for the supplementation of the environment Fund budget.
  • By derogation from the provisions of art. 30 align (2) from Law no. 500/2002 regarding public finances, with further amendments and completions, starting with the date of entering in force of the herein emergency ordinance, in the year 2019, can be allocated to the Environment Fund, by Government decision, amounts from the budgetary reserves Fund at the control of the Government, for application of the provisions of align (1).

Art. 6 – Law no. 227/2015 regarding Tax Code, published in the Official Gazette of Romania, PART I, NO. 688 from 10th of September 2015, with further amendments and completions, is amended and is completed as follows:

  1. At the article 291 align (2), letter e) is amended and will have the following content:

“e) delivery of the following goods : foods, including drinks, excluding alcoholic drinks, destinated for human and animal consume, animals and alive birds from domestic species, seeds, plants and ingredients used for food preparation, used products in order to complete or replace food excluding those provided at align (3) letter k). By application norms are established codes NC corresponding to those goods;”

  1. At article 291 alignment (3), after letter j) another letter is introduced, letter k), with the following content:

“k) deliveries of high value quality, respectively mountain products, eco, traditional, authorized by Agriculture and Rural Development Ministry. Delivery of such foods will be accompanied by the copy of the document for recognition/attesting/certification issued by the competent authority, excluding the deliveries performed to the final consumer”.

Art. 7. – by derogation from the provisions of art. 4 from Law no. 227/2015 regarding Tax Code, with further amendments and completions, provisions of art. 6 enters in force at the date of 1st of the next month following the date of publishing the current emergency ordinance in Official Gazette of Romania, Part I.

Art. 8. – After alignment (5) of the article 1 from Emergency Government Ordinance no. 11/2018 issued for adaptation of several budgetary measures and for completion of art. 63 from Law no. 273/2006 regarding local public finances, published in Official Gazette of Romania, PART I, no. 207 since 7th of March 2018, approved with amendments by Law no. 187/2018, with further amendments and completions, a new alignment is introduced (51), with the following content :

“ (51) When after the signing off of the loans conventions for the loans granted to administrative-territorial units according to the provisions of the current article amendments occurs in the structure of draws performance against the one authorized by the Authorization Commission of the local loans, main credits Ordinator has the obligation to notify to the Commission, in order to obtain the new authorization within the limits of the amounts approved, according to the law, as caps for draws for each of the years 2019 and 2020, previous to the rescheduling the draws from the respective loan”.

Art. 9 – Alignment (3) of article 5 from annex no. I, chapter III, letter E from frame-law no. 153/2017 regarding the salaries for the personnel paid from public funds, published in Official Gazette of Romania, Part I, no. 492 from 28 June 2017, with further amendments and completions, will be amended and will have the following content :

“ (3) Destinations of the amount provided at align (1) are established by the central units of the recognized cults, together with the management of the cult units from outside the borders, the amounts having to be used in order to ensure the state contribution for the clerks salaries of the respective units at the level of the minimum gross salary payable by law at the country level. The obligation to justify the way of using this amount returns to the central cult unit from Romania, by presentation at the State Secretariat for Cults, of the documents provided by the legal norms in force.

 

 

PRIME-MINISTRY
VIORICA-VIORICA DĂNCILĂ Countersigning:
Public Finance Ministry,
Eugen Orlando Teodorovici
Health Ministry,
Sorina Pintea
p. Agriculture and rural development Ministry,
Dumitru-Daniel Botănoiu,
state secretary

 

Bucharest, 14th of May 2019.

No. 31.