2020 tax code suggestions

The 2020 Tax Code is still in the draft stage and is available on mfinante.ro under the decision transparency section.

Changes regarding the minimum wage are already into effect and it will also derive increases in: Unemployment benefit, death allowance, fine point, contribution for the disabled persons without an employment and any other indicator based on the minimum wage and/or the average gross wage of the country.

If the draft legislation will be voted in its current form, it will cause a series of changes for the business environment. We look at the most important changes announced, below.

  • The use of certain vehicles which are not used exclusively for the purpose of economic activity and are in the assets of legal persons applying for the micro-enterprise tax or activity-specific tax is excluded from taxable income assimilated to wages;
  • The obligation to pay and declare income tax and compulsory social contributions relating to benefits in cash received by the employee from third parties shall be regulated.
  • The VAT exemption procedure for intra-Community delivery of goods is modified.

The beneficiary from the Member State of destination shall possess a valid VAT registration code and the person carrying out the intra-community supply of goods shall hold a set of at least 3 documents in addition to the properly drawn up invoice. In short, it is a declaration by the beneficiary that he has received the goods, a document certifying the transport of the goods (CMR, transport invoice) and a set of documents issued by a public authority attesting the arrival of the goods in the Member State of destination (warehouse receipt or notarial declaration).

  • Increases in the minimum wage

The minimum wage is set differentially and the new values ​​applied from January 1 are:

    • the minimum gross wage is 465 euro, for personnel classed in secondary education or without education;
    • the gross minimum wage is 465 euro for the employees who are in positions which involve a higher level of education and they have at least 1 year of experience.
  • Certain aspects concerning tax groups and tax residence are clarified

For this it sets out the stipulations on hybrid mismatches, which are relatively new in the Tax Code. The stipulations refer to the introduction of some conditions to limit the possibility for multinational businesses to deduct unevenly or to double certain financial elements, based on their different legal classification according to the State where they are registered, versus the State where they operate.

The legal basis for the creation and use of tax groups is developing, including the payment of group corporate tax.

It also clarifies certain aspects concerning the allocation of deductions received by natural persons with a transnational tax residence.

  • Certain territories not forming part of the customs territory of the European Union are excluded from VAT:

a) The Federal Republic Of Germany:

Heligoland Island,

Bushingen territory,

b) The Kingdom of Spain:



c) The Italian Republic:


As well as a number of territories forming part of the customs territory of the European Union:

a) The Canary Islands;

b) The French territories referred to in 349 and Article 355(1) of the Treaty on the Functioning of the European Union;

c) Mt. Athos;

d) Aland Islands;

e) The Channel Islands;

f) Campione d’Italia.

g) Italian waters of Lake Lugano.


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