New Amendments for Non-resident Taxpayers in Romania

The National Agency for Fiscal Administration (ANAF) enacted a set of new regulations related to non-resident taxpayers’ regime engaging in commercial activities through one or more permanent establishments on the territory of Romania. These provisions firstly clarify procedures concerning the registration process for non-resident taxpayers carrying out activities in Romania. The persons in questions are responsible for filling out the Form 013 known as ”Fiscal Registration Statement/ Mentions Statement for non-resident taxpayers carrying out activities in Romania through one or more permanent establishments”.  This document should be completed in duplicate since one version is to be kept by the non-resident taxpayer and the other one will be submitted to the designated bureau. Depending on the activities they undertake, non-resident taxpayers can request and register for VAT purposes. If the entity has already completed the direct VAT registration the code previously provided will be used, taking into account the first date of registration issued for these purposes. For those situations when there is a further statement which introduces another permanent establishment, the taxpayer is required to provide the tax authority that administers the area where the new office is located, with the form 013 which will be corroborated with another form 050 “Application for the registration of the tax residency of the taxpayer “.

Declaring the permanent establishments by non-resident taxpayers

There are also mentioned all stages describing the process of declaring the permanent establishments founded by non-resident entities interested to carry out business activities on the Romanian territory. These secondary offices must be registered within 30 days with the nominated authority which, in this case, is the National Agency for Fiscal Administration. The form "Declaration to register secondary offices" initiates the proceedings for declaring the secondary offices and the Form 060 “Tax registration statement/Registration of changes for the secondary establishments” will provide further needed information in order to guarantee compliance with regulations concerning the corporate income tax in Romania.

New aspects for non-resident taxpayers in Romania

The purpose of these regulations which amends Law No. 571/2003 is clearly emphasizing the compulsion of nominating of one single establishment, responsible for tax management, for non-resident taxpayers carrying out activities through several offices. For situations where a permanent establishment is the unique institutions designated as secondary office on the Romanian territory, according to Fiscal Code, Title II, it represents the only authority responsible with tax management. In practice, the novelties introduced through these amendments regard the occurrence of the standard form 013 in Romania which is called ”Fiscal Registration Statement/ Mentions Statement for non-resident taxpayers carrying out activities in Romania through one or more permanent establishments” (published through Order No.877/2013) and imposing clearly, for all companies, to appoint a permanent unique establishment responsible for handling tax duties. The tax environment is continuously changing proposing and imposing new features which call for an expert’s opinion that can clarify the ineluctable incongruence. Our lawyers are ready to provide professional help in order to avoid any further inconveniences that might expose your business in an undesirable manner.