Last updated: 16 July 2015
NEW FISCAL ACTIVITIES PROVISIONS REGARDING INDEPENDENT
Law no. 187/2015 (Official Journal no. 499 of July 7, 2015) brought new changes to the Fiscal Code, among which the introduction of new criteria for defining an activity as independent or regarding the reduction of VAT for certain types of beer. These changes are presented to you briefly hereinafter.
NEW CRITERIA FOR DEFINING AN ACTIVITY AS INDEPENDENT
The Fiscal Code previously provided certain criteria, based on which authorities could consider an independent activity as a dependent one. If an activity was considered dependent, the compulsory social security contributions established in accordance with the law had to be recalculated and paid to the State, as they were due severally by the payer and the beneficiary of the revenue.
Law no. 187/2015, published in the Official Journal no. 499 of July 6, 2015, changes the criteria based on which an independent activity is defined. Thus, the new provisions expressly repeal the criteria previously mentioned and define an independent activity as the activity deployed by a natural person in order to obtain an income. This person must comply with at least 4 of the following criteria:
- The natural person has the freedom cu choose the place and the means by which he/she deploys his/her activity, as well as the work schedule;
- The natural person has the freedom to deploy his/her activity for several clients (for example, a tax consultant working for several clients);
- The risks involved by the activity are assumed by the natural person deploying such activity;
- The activity is performed by the natural person by using his/her patrimony;
- The activity is deployed by the natural person by using his/her own intellectual capacity and/or physical work, depending on the nature of the activity;
- The natural person is a member of a professional organization/order, with a representation, regulation and surveillance role (for example, architects, notaries or other persons deploying independent activities);
- The natural person has the freedom to perform the activity directly, with his/her own personnel or in collaboration with third parties.
RECLASSIFICATION OF THE ACTIVITY
The tax authorities have the possibility to reclassify the form of an activity, taking into account the abovementioned criteria. They also have to communicate the grounds of the issued taxation decision, by indicating relevant elements and all evidence taken into consideration.