Registration with the Tax Authorities in Romania
Registration with the Tax Authorities in RomaniaUpdated on Monday 11th November 2019
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One goal of primary importance in our work is to ensure that our clients never pay more than the minimum required by law, always adopt the best strategies and choices and, in this sense, we are able to provide professional services regarding the registration with the tax authorities in Romania. The financial and accounting discipline in Romania, which is constantly changing, requires the presence of a tax consultant able to protect your company from the risks of non-fulfillment of obligations under mandatory legal rules. Our consultants in taxes in Romania are able to provide consulting services to determine the payment of taxes (VAT, income tax, withholding tax) in accordance with the law. We also provide assistance in case of checks carried out by bodies delegated by the Romanian Ministry of Finance, VAT reimbursement assistance, and assistance in drawing up statements of taxes. Our Romanian accountants are up-to-date with the entire legal framework in this field and are able to keep you informed of all the duties required by the law.
What are the tax services we can provide for your firm?
In respect to the applicable legislation in Romania, our accounting firm can assist you in the following tax matters with the Romanian national tax administration:
- deposit balances and statements of issues, such as forms: 100, 102, 300, 710, 390, 392, and 394;
- obtaining situations statements, balance sheets, tax records of your company;
- purchase all the invoice templates required by the authorities in charge;
- deposit of VAT corrections, tracking their progress, reporting any problems, lifting the financial administration;
- deposit of clearing addresses, addresses regarding erroneous payments;
- clarifying the situation of summons and confiscation, plus obtaining the tax vector situation;
- declaration of workstations with or without tax code issued by the Financial Administration;
- obtaining the tax record and the synthetic sheet;
- obtaining a new certificate of registration for VAT purposes, change in case of transfer and obtaining the certificate of registration for VAT purposes in case of VAT loss;
- register the associations and homeowners associations with respect to the applicable legislation;
- obtaining a tax residence certificate, a tax certificate, and the filing derogation.
We can also help you pay the taxes in Romania and on request, we can obtain the economic indicators.
What are the necessary documents for VAT registration in Romania?
According to the new provisions of the Romanian Fiscal Code, companies with a threshold of 300.000 lei need to register for VAT purposes. This important rule has entered into force this year in April. The following documents are mandatory at the time of VAT registration, and we mention that complete support in this direction can be provided by our accountants in Romania:
- form 010 – Statement mentions for juridical persons (2 original documents);
- an affidavit showing the company carries out activities at the head office, a secondary place or outside the offices;
- an affidavit resulting that the owners of the company have no criminal record;
- the registration certificate of the company with activities in Romania;
- a detailed certificate issued by the Romanian Trade Register with the date of VAT filling;
- if it is the case, the trial balance for the month in which the 300.000 threshold was exceeded;
- the power of attorney for drafting the registration form for VAT.
We remind that all copies must be in accordance with the original documents, as established at a public notary. Instead of dealing with the tax authorities and the paperwork involved for VAT registration, you may address to our team of consultants who can handle such matters.
Registration for social contributions in Romania
Our team of accountants in Romania is at your disposal with complete support if you would like to register for social contributions. It is an obligation to contribute to the unemployment fund, the social fund and the health fund and pay the specific contributions. These contributions are connected to the taxation on salaries and the following information must be in the attention of company owners in Romania:
- The employer needs to pay a 0.25% rate for the contribution to the Guarantee Fund for wage payment.
- 10% rate is the health contribution retained from the salary of the employee.
- Work accidents and work risks contributions range between 0.15% and 0.85% and are paid by the employer.
- Employee benefits are not taxable if they don’t surpass 300 lei.
We remind that our Romanian accountants are at your service if you want to open a company in Romania and need to register with the tax authorities in the country. Our team of professionals can provide in-depth assistance and support for local and foreign investors interested in accounting services and more.
The taxpayer registry in Romania
In Romania, the central fiscal body organizes and holds information about each taxpayer in the country, and comprises information about identification data of the taxpayer, tax vector data, and other details needed to manage tax claims. This information is provided based on the data communicated by the Trade Register in Romania, the Population Registry Service and other important institutions in the country. It is important to know that such information can be changed or modified by the entitled authorities whenever it is found they do not correspond to the current state of affairs, mentioning that such changes are communicated to the taxpayer.
What happens to inactive or reactivated taxpayers in Romania?
Taxpayers or any unincorporated entity are declared inactive, according to the Tax Code, if they do not fulfill the quarterly fiscal declarations and tax obligations, if they skip the periodical controls made the financial authorities by declaring an incorrect fiscal domicile or if the company ceased to exist. In the case of business reactivation, companies are considered in function from a fiscal point of view if they fulfill all the financial obligations as stated by the laws, there are no debts registered and if the authorities state that the fiscal domicile is correctly declared. It is good to know that if a taxpayer is registered inactive by mistake, the fiscal authorities will issue a document stating the annulment of the inactive status of the taxpayer. If your company is inactive from a tax point of view or if you want to register your business for tax purposes, feel free to ask for complete support and assistance from our accountants in Romania. Furthermore, if you need audit services, tax returns preparation and filings or if you are interested in forensic accounting, do not hesitate to get in touch with one of our specialists and ask for customized services.
Short facts about fiscal controls for companies in Romania
A tax audit is the legal activity through which the authorities verify the validity and compliance of tax returns, fairness and accuracy obligations concerning the determination of tax obligations by the taxpayer or payer compliance with tax laws and accounting, the verification or determination, where appropriate, of tax bases and the facts related to the main tax liabilities. The entitled authorities will verify the taxpayer documents, will analyze and evaluate the fiscal information and will also confirm the business places where the taxable income generating activities. The support of our team of accountants in Romania is at your disposal if you would like to be prepared in terms of documents before an audit taxes place.
Who needs to register for tax purposes in Romania?
Any natural and legal persons having activities within the territory of Romania need to register with the tax authorities before developing any activity. The same thing is available for freelancers or individuals having independent activities who will be recognized as taxpayers with the help of a tax ID assigned by the authorities. Below you can find interesting details and facts about the economy in Romania and also about companies with establishments in this country:
- approximately $249 billion is the GDP expected for 2019 in Romania;
- 2.7% is the inflation rate in Romania, expecting to be unchangeable until the end of 2019;
- 3.4% rate is expected to be the economic growth in Romania for this year;
- there are around 5 million active workers in Romania, according to recent statistics.
Please contact us for full service and customized offer regarding the registration with the tax authorities in Romania.