Foreign businessmen who start contractual relations with a Romanian party need to know the rules that apply to registering contracts in Romania. The Romanian Fiscal authority, in line with the Tax Code, has introduced new rules for registering contracts concluded with foreign legal persons or non-resident natural persons that provide services in Romania. Our accountants in Romania can offer detailed information about these new rules related to registering contracts.
According to the Order no. 1400/2012, issued by the National Agency for Fiscal Administration, new rules apply to registration of contracts. These rules address several contracts concluded between:
• Romanian legal persons, residing natural persons and permanent headquarters in Romania of foreign legal entities;
• Foreign legal persons or non-residing natural persons.
Any contract concluded by these categories and a Romanian party which generates taxable incomes is subject to registration with the Fiscal Authority. Construction works, consultancy, installation works, technical assistance and any other service provided in Romania, which generates taxable income, should be the object of a contract. The documents that justify the services rendered in Romania by non-residing individuals or foreign legal entities will be registered if no written contract is concluded. These documents include: reception minutes, work reports, market studies or feasibility reports. Further details and customized support for registering contracts with the fiscal authorities can be given to you by our accounting firm in Romania.
The contract registration process consists of filling out a special form provided by the fiscal authority. Within 30 days from signing the contract or issuing of documents justifying the render of services, this declaration must be submitted with the tax authority. If a contract is not registered in the above mentioned period of time, the natural persons or legal entities are sanctioned with a fine ranging between 500 RON and 5,000 RON. Other legislative dispositions regarding contract registration are stipulated in The Romanian Contract Law. Business relationships with Romanian partners may be directly influenced by these new requirements for contract registration.
Please contact our Romanian accountants for more information about the rules regarding registering contracts.
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