0520
Extraction of low-grade coal (PCS < 23865 kJ/kg)
This code covers the extraction of low-grade coal, with a calorific value below 23865 kJ/kg, including lignite and brown coal. Activities include surface or underground mining, sorting, washing and drying of coal. It is intended for companies operating lignite mines, especially in the coal basins of Romania.
Entrepreneur Profile
Acest cod este potrivit pentru companii miniere specializate în extracția lignitului, antreprenori care desfășoară activități de exploatare în cariere de lignit, precum și firme care prestează servicii auxiliare pentru minele de cărbune inferior.
Who should avoid:
Avoid the exclusive use of code 0520 if the main activity of your company shifts towards other commercial or related branches not specified in the official description. See the excluded activities section below.
Authorization procedure and aspects of the Trade Register for CAEN 0520
For the establishment of a company with the main activity according to CAEN 0520, registration with the National Trade Register Office (ONRC) requires submission of a standard file. The main object of activity is stated as 'Extraction of low-grade coal', in accordance with NACE Rev.2 classification and INS Order 337/2007. For legal operation, it is mandatory to obtain a prior concession license/agreement from the National Agency for Mineral Resources (ANRM), according to the Mining Law no. 85/2003, republished. Required documents include: the certificate of registration, the constitutive act, proof of registered office, but also the technical approval from ANRM. ONRC will verify the company name, legal form and minimum share capital; for this class there is no special minimum capital, but a value appropriate to the extraction activity is recommended.
Regulatory framework, specific approvals and control institutions
Extraction of low-grade coal (PCS < 23865 kJ/kg) is subject to a strict regulatory regime: Mining Law no. 85/2003, Water Law no. 107/1996, Environmental Protection Law no. 195/2005. The operator must obtain an environmental approval from the National Environmental Guard (GNM) and, if applicable, an agreement from the National Environmental Protection Agency for the impact on soil, water and air. Also, regulations on occupational safety and health apply (Law 319/2006), controlled by the Territorial Labor Inspectorate (ITM). Periodic inspections are carried out by ANRM, GNM and ITM, and non-compliance leads to license suspension.
Tax management, ANAF audit risk and specific accounting
From a fiscal perspective, the CAEN 0520 activity requires registration with ANAF with the specific tax vector for the CAEN code. The company owes corporate income tax at 16% (or micro-enterprise tax if it meets revenue and personnel conditions). VAT applies to the sale of coal, with the possibility to deduct operating expenses, machinery and repairs. Accounting must separately record extraction costs, mining royalties (according to Mining Law and the concession contract), and asset depreciation. ANAF will carefully analyze the correlation between declared production and paid royalties, as well as transport documents (accompanying notices according to Government Ordinance 28/1999). The audit risk is high due to the specificity of the industry, the large values involved, and the need for multiple authorizations. Strict record keeping of stocks, production and sales is recommended, as well as monthly tax returns (D300, D390, D100) and annual ones. For employees in mining, contributions to pension and health funds apply, and some categories may benefit from special working conditions.
Included Activities
- ✅ Extraction of low-grade coal (lignite, brown coal)
- ✅ Surface mining (open-pit) or underground mining
- ✅ Sorting, washing and drying of coal
- ✅ Activities to prepare coal for transport (crushing, screening)
Excluded Activities
- ❌ Extraction of high-grade coal (PCS >= 23865 kJ/kg) - code 0510
- ❌ Agglomeration of coal (briquetting) - code 1920
- ❌ Production of coke - code 1910
Similar or Related CAEN Codes:
From the same category of economic activities:
Întrebări Frecvente
What authorizations are required for low-grade coal extraction?
The following are required: an exploitation license from the National Agency for Mineral Resources (ANRM), an environmental permit from the Environmental Protection Agency (APM), a fire safety authorization, approvals from the Emergency Inspectorate (ISU) and a building permit for mining installations.
What are the specific tax obligations for this CAEN code?
Standard corporate income tax (16%) or micro-enterprise income tax (1% or 3% depending on revenue) applies. Also, a mining royalty is paid to the state, calculated as a percentage of production value (according to the Mining Law).