Fiscal Residency Certificate in Romania

For applying the Romanian double taxation prevention treaties the non-resident payer must provide the income payer with the fiscal residency certificate. This document must be issued by competent authorities in the country of residence. A fiscal residency certificate in Romania delivers necessary information proving that the non-residents in question are residents of states involved in double prevention conventions signed with our country, for the year corresponding to the period of time during which the income was registered. There are usually mentioned, as well, details concerning the identity of the non-resident and the taxpayer identification number. The income payer is responsible for receiving the document according to legal terms. He has also the option to accept a certified copy. When another state which previously signed with Romania a double taxation prevention agreement, asks a Romanian resident to provide the fiscal residency certificate, the person in question will submit an application form to the bureau responsible with these procedures. An application form example together with the certificate sample can be reviewed in the appendices for the Order No. 724/2011 for approving the application forms contained in the Articles No. 118 and 120 in the Fiscal Code.

The non-resident natural persons who are involved in activities on the Romanian territory and are present in this perimeter for more than 183 days will have to pay taxes on income obtained in Romania or outside Romania, starting with the 1^st of January, following the year when they were registered as residents in Romania. Non-residents must register with the responsible authority which, as well, owns their fiscal domicile records. They have to do this in 30 days starting with expiring 183 – day period. For this they will have to fill in the “Questionnaire for the establishment of the fiscal residency of the individual at the arrival or departure in/from Romania” adding also the following documents: copy of the valid passport, the EU citizens must also provide the national ID card, they will also have to provide the fiscal residency certificate in Romania. The document must be issued by the responsible authority in the country of residence and can also be provided in a copy form, a notarized translation in Romanian shall be delivered also. Some papers must be added as well proving the fact that the individual has a rented or owned home. If we are referring to a case when the individual has to leave Romania then the person in question must submit the above mentioned questionnaire 30 days before the departure. Our lawyers are available for any further questions related to this topic. We would like also to point out the importance of understanding the national laws in an international approach. The optimal function of all Romanian double taxation prevention treaties depends on the utility of such documents as the fiscal residency certificate is.