Changes of the Fiscal Code – new criteria to determine the dependent / independent activities

1248

Law no 187/2015 for approving Emergency Government Ordinance no 6/2015 for amending Law no 571/2003 regarding Fiscal Code, was published into Official Gazette no 499/07.07.2015

Seven criteria are provided for establishing whether the activity performed by an individual can be classified as dependent or independent activity.

Independent activity – any activity performed by an individual (PF) for the purpose of obtaining income, which meets at least four of the following criteria:

1. PF has the freedom of choice for place and the way the activity is performed, as well as the working hours;
2. PF has the freedom to perform its activity for more customers;
3. the risks inherent in the business are assumed by the PF that performs the activity;
4. The work is done by using PF patrimony;
5. Work is performed by FP through use of intellectual and/or physical capacity, depending on the specific activity;
6. PF is part of a professional body whose role is of representation, professional regulation and supervision carried out, according to special normative acts regulating the organization and exercising the profession in question;
7. PF has the freedom to conduct business directly, with own employees or in collaboration with third parties according to the law.
For the reclassification of a transactions as not having economic substance, control tax authorities have the obligation to motivate and prove the reclassification decision by indicating the relevant factors that led to reclassification.

There are listed the activities carried out by public institutions considered to be made by taxable persons from the VAT point of view.

It is extended the reduced VAT rate of 9% for the sale of draft beer (code NC 22 03 00 10). The provision comes into force on 6 August 2015 (30 days after publication of the Law into Official Journal).

The Law shall enter into force on 10 July 2015.