The Legal Framework for Mobility of Human Resources within EU: A Romanian Fiscal Liability Approach

The European integration widened the area of activity for Romanian organizations on the markets of other member states, in the context of free movement of services. This freedom is manifested through the ability to provide services in another state without the obligation of the provider to register or authorise a branch (subsidiary) under the national rules of the host state. Moreover, there are effects on regulation in matter of social security for workers, permission to travel, their right to temporary residences etc. The issues of tax liability, in terms of the state entitled to demand the contribution to social security schemes (state of origin or the actual host country), must be analysed from the perspective of preserving the rights granted to workers. The lack of precise national regulation in this respect determined a large and heterogenic interpretation of the possibilities permitted to the organizations. Different actions asked for a different fiscal treatment and, in the end, they generated very various tax liabilities. The situation developed in the last seven years since the accession and conducted to a controversy case-law experience. Romanian case-law solutions in these matters determined important changes in the legal framework. Still, the regulation in force is not entirely efficient, some further improvements being proposed, both at national and EU level.