VIENNA 1963 CONSULAR CONVENTION EXPLAINED BY EXPERT RUXANDRA CARAGEA

The Institute of International Relations and Economic Cooperation of Romania has hosted a debate on the role and importance of honorary consulates in the diplomacy of the XXI century.

This debate was made more important as diplomatic and consular rights have evolved with the development of diplomatic and consular relations, since their early appearance until today. One such development is affected by the international situation, integrating multiple processes and the state as the international community's fundamental actor.

Image from the debates on Vienna 1963 Consular Convention

Despite the postmodern characteristics that present consular relations today, their fundamentals remain "Vienna Convention on Consular Relations" of 1963. Here it is pertinent to highlight the need for renewal of this convention, in order to have the proportion between the consular relations with their legal basis.

The category of honorary consuls should be given a more important role in relations between states, this was the conclusion of our discussion with Ruxandra Caragea, HR Expert on the use and role of Honorary Consuls institution, a discussion that we present subsequently.

Consular Activity from a Human Resources Perspective by HR International Expert Ruxandra Caragea

The consular activity as an important component of the states activity develops according to the stipulations of the Vienna Convention regarding consular relations in 1963, of the European Convention regarding the consular functions adopted in 1967 by the European Council, the Vienna Convention regarding diplomatic relations from 1961, of the bilateral conventions contracted in the consular field and of the inside legislation of the states by means of certain specialized institutions, namely the career or honorific consular offices and the consular sections in frame of the diplomatic missions.

In Romania besides various consular conventions, we will consult also the:

Gouvernance Emergency Ordinance 194/2002 regarding the foreigners' status in Romania;

Fiscal Code Law 227/2015, article 62, letter q;

Labour Code Law 53/2003 republished;

Law 319/2006 and

Government Decision number1425/2006;

Government Decision number 905/2017;

Law 202/2002.

In theory, there are differences regarding the exertion of the consular functions and the granting of the consular immunities and privileges between the career consulates and the honorific ones, the state practice relieved that both of them have important contributions to the development of the economic, and commercial, political and cultural relations between the states.

The reason for settling the career or honorific consular offices has been determined by the necessity to organize and develop economical and especially commercial relations between the states and to provide protection to the natural persons and the juridical entities of a state that were placed and perform activity on the territory of another state.

On the following lines, we will try to make an analysis of the HR and salary fiscal system and taxes applicable to the consular offices in Romania.

The highest rank in a consulate is a consul-general and is appointed to a consulate-general. One or more deputy consuls-general, consuls, vice-consuls, and consular agents can work under the consul-general.

The position of the consul general, deputy consuls general, consuls, vice consuls and consular agent must be notified to the Ministry of Foreign Affairs from Romania on a maximum of 10 (ten) working days from the start date of the labor contract providing information as: start date and date of the contract and type of activity.

After we analyzed the Guide issued on the official page of the Ministry of Foreign Affairs, the stipulations of the Vienna Convention regarding consular relations from 1963, of the European Convention regarding the consular functions adopted in 1967 by the European Council and the Fiscal Code Law 227/2015 art 62 letter q we have the following information:

based on Fiscal Law art 62 letter q " the following incomes are not subject of tax on income: income received by the members of diplomatic missions and consular positions for activities in Romania provided in official quality, in conditions of reciprocity, based on international general rules or other provisions and special agreements where Romania is part." 

Read more here:

If we go further to the stipulations of the Vienna Convention regarding the consular relations from 1963, of the European Convention regarding the consular functions adopted in 1967 by the European Council we will find that article 49 of the Vienna Convention on Consular Relations (1963),

"Consular officers and consular employees and members of their families forming part of their households shall be exempt from all dues and taxes, personal or real, national, regional or municipal, except indirect taxes of a kind which are normally incorporated in the price of goods or services, dues or taxes on private immovable property situated in the territory of the receiving state, estate, succession or inheritance duties, and duties on transfers, levied by the receiving state, dues and taxes on private income, including capital gains, having its source in the receiving state and capital taxes relating to investments made in commercial or financial undertakings in the receiving state, charges levied for specific services rendered, registration, court or record fees, mortgage dues and stamp duties.

Ruxandra Caragea-International Expert on Human Resources issues has responded to our questions on the role of honorary consulates and their perspectives as registered by international and local laws.

2. Members of the service staff shall be exempt from dues and taxes on the wages which they receive for their services.

3. Members of the consular post who employ persons whose wages or salaries are not exempt from income tax in the receiving State shall observe the obligations which the laws and regulations of that State impose upon employers concerning the levying of income tax."

Article 48 states also that are the subject of social security exemption:

"Social security exemption

1. Subject to the provisions of paragraph 3 of this article, members of the consular post with

respect to services rendered by them for the sending State, and members of their families forming part of their households shall be exempt from social security provisions that may be in force in the receiving State.

2. The exemption provided for in paragraph 1 of this article shall apply also to members of the

private staff who are in the sole employ of members of the consular post, on condition:

(a) that they are not nationals of or permanently resident in the receiving State; and

(b) that they are covered by the social security provisions which are in force in the sending State or a third State.

3. Members of the consular post who employ persons to whom the exemption provided for in paragraph 2 of this article does not apply shall observe the obligations that the social security provisions of the receiving State impose upon employers.

4. The exemption provided for in paragraphs 1 and 2 of this article shall not preclude voluntary participation in the social security system of the receiving State, provided that such participation is permitted by the state"

Read more here: Vienna Convention on Consular ď, 1963

Also according to GD 905/14.12.2007 article 2 point 4 consulate office has the obligation to conclude a Labour contract and register of the Labour Contract at the Labour Inspection Registry REVISAL and REGES for employees that are permanent residents in Romania or Romanian citizens.

"(4) Diplomatic missions, consular offices of other states in Romania […] have the obligation to create, complete and transmit the data to the registry of territorial labor inspection for the Romanian citizenship or permanent resident on Romania that is local personal employed."

But still, we have a question mark after we analyze the Guide from 2021 issued on the official page of the Ministry of Foreign Affairs, Section 6 states the following:

"Diplomatic missions and consular posts have the obligation to present the salaries payment evidence, accompanied by the documents certifying the monthly payment of the tax related to the salary and contributions to the state social insurance budget, the unemployment insurance budget, the social health insurance budget and the work accident insurance budget occupational diseases, to the territorial labor inspectors." Read more here:

Taking into consideration that consular office personnel are tax exempt for the income result from performing a diplomatic activity and also social security exempt for those amounts, according to the Fiscal Code and Vienna Convention from 1963, probably is safe to address an official letter to the Foreign Ministry to have a better understanding of the section 6 provisions, also in each particular case must be analyzed the conventions between Romania and the state represented because are particular provisions for each state that intend to open in Romania a consular office.

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