5821

Authorization procedure and Trade Register aspects for CAEN 5821

For registration with the Trade Register (ONRC) of the activity of editing computer games, the company must submit the registration application accompanied by the constitutive documents. No prior approvals from other institutions are required at the time of establishment. However, declaring the main activity 5821 implies future compliance with regulations on consumer protection and copyright. These are not verified at registration but during subsequent controls. When completing the affidavit according to Law 359/2004, it is stated that the applicable legal norms will be observed.

Regulatory framework, specific approvals and control institutions

The activity of editing computer games (CAEN 5821) is subject, in addition to commercial legislation, to the provisions of Law No. 8/1996 on copyright and related rights. If the games contain multimedia elements, the provisions of GEO No. 21/1992 on consumer protection may also apply. ANPC (National Authority for Consumer Protection) verifies the presentation and marketing of software products. Also, ANCOM or the Ministry of Culture may be involved in the case of games that involve specific regulations on content (e.g., online multiplayer games or those with gambling elements). In practice, game editing does not require special permits, but obtaining ISMN/ISBN codes for product identification is recommended.

Tax management, ANAF audit risk and specific accounting

From a tax perspective, CAEN 5821 falls into the category of editing activities, and revenues are derived from the sale of licenses, subscriptions or advertising. At the Tax Authority (ANAF), the corresponding tax vector is declared: corporate income tax/micro-enterprise income tax (if conditions are met) and VAT (exemption or payment, depending on turnover). From 2024, for sales of digital games to final consumers, the RO e-Factura system applies if the company uses e-Factura. Also, for sales through online stores to individuals, the e-TVA system may apply for VAT return reporting. Audit risk is medium to high, especially regarding documentation of capitalized development costs (intangible asset activations). It is necessary to separately evaluate research and development costs, according to IAS 38, to justify the tax deduction of research expenses up to an additional 50% (art. 21 para. (1) lit. j) of the Fiscal Code, applying the provisions of Government Decision 9/2005 on research-development documentation). Specific accounting includes recording revenues from license sales (depending on the type of contract - one-time payment or subscription) and amortization of intangible assets representing capitalized development costs. At year-end, an impairment test for intangible assets is required, according to IAS 36. Also, in relations with independent developers, withholding tax on royalties (tax on non-resident income, according to art. 223 Fiscal Code) and corresponding reporting obligations (Unified Declaration, D205) may arise. For games that include microtransactions, the tax treatment of revenues is performed proportionally to the provision of the service over the user's estimated lifetime.