Legal Obligations of Romanian companies: payment of taxes and filings with the authorities

The requirement to keep a “Shareholder Registry”
Law No. 31/1990 stipulates that Romanian SRL companies must maintain, through the care of the administrator, a “Shareholder Registry”, where the following information is to be registered: shareholder’s full names, domicile or headquarters of the shareholder, respective share of the share capital, the transfer of any shares or any modifications occurred regarding the shares of the Romanian company.

The requirement to keep an “Employee Evidence Registry”
The employers have the obligation to maintain a “General Employee Evidence Registry” per the dispositions of HG 161/2006. This Registry must be transmitted in electronic format to the Territorial Labour Inspectorate in no more than 20 days from the date of the first employment. In the case where certain elements are modified, the Romanian employers must send the updated registry in a term of 5 days from the date the modifications occurred. The Registry will be kept in electronic format at the employer’s headquarters.

The requirement to keep “Accounting Registries”
Law No. 82/1991 stipulates that the obligatory Accounting Registries are the following:
- The Journal-Registry
- The Inventory-Registry
- The Main Registry
- The Fiscal Evidence Registry.

The Journal-Registry
This is a document which registers chronologically all the financial-economical operations. Any information inserted in the Journal-Registry must include elements regarding: type, number and date of the document, explanation regarding the respective operations and the debt and credit accounts where the respective amounts were registered.

The Main Registry
Information is inserted on a monthly basis through re-grouping of the accounts regarding the movement and existence of all the elements of assets and liabilities at a certain date;
The Main Registry contains the symbol of the debtor-account and the correspondent creditor-accounts as well the balance of the account for each month of the current year.

 

The Inventory-Registry
This Registry contains all the elements of assets and liabilities, grouped according to their nature per the stipulations of the Law.

The Fiscal Evidence Registry
Romanian tax-payers paying tax on profit must keep this type of Registry. This has as purpose the registration of all information taken into account when determining the profit subject to taxation and the calculation of the tax on profit contained in the declaration regarding the payment obligation to the Romanian General Budget.

The payment obligations of employers and employees:

I. Social and Health Insurance (CASS)
The Romanian employer pays CASS 5,5% of the gross salary for each of its employee. The Romanian employee pays CASS 5,5% if the gross salary received from his/her employer.

II. Pension Fund (CAS)
The employer pays CAS 19,5% of the gross salary for each of its employees. The Romanian employee pays CAS 9,5% of his/her gross salary received from his/her employer.

III. Unemployment Fund
The employer pays to the Unemployment Fund 1% for each of his/her employees. The employee pays 0, 5% of his/her gross salary.

IV. Risk & Accident Fund
This is to be paid depending on the activities deployed by the employer (in accordance to its NACE codes).

V. Holidays & Indemnities
The employer pays 0,85% of each of its employees gross salary. The Romanian employee does not contribute to the holiday and indemnity fund.

VI. The Territorial Labour Inspectorate
The employer pays for holidays and indemnities 0,15% of the gross salary of each of its employees. The employee does not contribute.

VII. The Guarantee Fund
The employer pays 0,25% of the gross salary. The employee does not contribute.

IMPORTANT:
All these declarations are filed with the respective authorities until the 25th of the next month and payments will be fulfilled in the same manner.
 

Enescu & Cuc Law Firm provides reputable tax lawyers in Romania and maintains a close collaboration with more than one Romanian accounting and audit companies.