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Changes to the Romanian Fiscal Code Impacts Taxpayers


The Romanian tax regulations have been amended once again. The Ordinance, published on 2 September 2011, amends the current Fiscal Code. Most of the amendments will be applicable with effect from 1 January 2012. Taxand Romania considers the changes to the Romanian Fiscal Code and what this means to taxpayers.

The most important changes to note are:

  • The due date for declaration and payment of the annual corporate tax changed from 25 April to 25 March (starting from 2012 annual corporate tax return, for the year ended December 2012)
  • "Regular" income tax payers can apply for an advance payment system of corporate income tax, starting 2013. "Regular" corporate include corporations other than banks, financial institutions, not-for-profit organisations and similar entities
  • Significant changes with respect to tax residence conditions for individuals being brought in by the present Ordinance.
    • Under the domestic law, individuals are considered to be Romanian tax residents if they: (i) are domiciled in Romania, or (ii) have their centre of vital interests in Romania, or (iii) are physically present in Romania for more than 183 days in 12 consecutive months ending in the calendar year concerned.
    • Currently, foreign nationals deemed tax residents in Romania under the second or the third criterion mentioned above for three consecutive years become subject to tax in Romania on worldwide income as of their fourth year of stay.
    • Starting 1st of January 2012, non-residents deemed tax residents in Romania based on any of these two criteria would be subject to income tax on their worldwide income starting with the 1st of January of the calendar year following the one in which they have become resident in Romania, except for individuals residents of states with which Romania has concluded Double Tax Treaties where the provisions of such treaties apply
    • Simplification measures introduced to limit the administrative burden for salary income payers subject to certain conditions (ie legal entities with a turnover of up to EUR 100,000 and having a maximum number of 3 employees can now settle income tax and social contributions on a quarterly basis)
    • The submission deadline for the VAT recapitulative statement changed to the 25th of the following month (from 15th of the following month previously) starting from statement for 2 August
  • The local tax rate imposed on buildings that have not been revaluated significantly increased from the current tax rate of 5-10% to the following
    • 10% - 20% for buildings that have not been revaluated in the last 3 years preceding the fiscal year of reference;
    • 30% - 40% for buildings that have not been revaluated in the last 5 years preceding the fiscal year of reference.

Taxand's Take

Taxpayers need to be aware of the new reporting procedures and payment deadlines and plan their tax schedule accordingly. Also, taxpayers who own buildings should pay attention to the substantial increase in the local tax rate for non-revaluated properties.

Your Taxand contacts for further queries are:
Angela Rosca
T. +40 21 316 06 45

Adriana Craciun
T. +40 21 316 06 45

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Taxand's Take Author