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Fiscal Code and Tax Legislation Amended

3 Sep 2012

Tax legislation and the fiscal code has been scruntised and amended in Romania. Taxand Romania provides a quick and easy guide to what these amends entail.

Fiscal Procedure Code

The main amendments brought to the Fiscal Procedure Code refer to:

  • e-Romania portal: the submission date of all electronic tax statements is deemed to be the date on which it is validated. Therefore if a tax statement is deemed invalid, this submission date is not viable.
  • The only exception to the above rule is if the tax statement was submitted within the legal deadline but was deemed invalid due to errors. In this case the submission date will be considered as when it was initially processed. However this is only if the taxpayer resubmits a valid statement before the last working day of the same month.
  • A new exception for the settlement order of tax liabilities has been introduced. In terms of fines and liabilities, the taxpayer can now choose which of these should be assessed and settled with priority.
  • If a taxpayer submits a bank guarantee letter it is possible to suspend or even cancel the forced execution of liabilities. This letter must be valid for at least 6 months and cover the value of the tax liabilities challenged.

Amendments regarding the organisation and operation of the fiscal record

  • According to the new provisions, the procedure for removing data which has been registered in the fiscal record for reactivated dormant taxpayers is also applicable to their legal representatives.
  • If a legal entity which was previously declared dormant is now cancelled, the fiscal inactivity registered is removed one year after the taxpayer's cancellation.

Provisions regarding the tax clearance certificate issued by the local public authorities

  • The tax clearance certificate can also be issued at the request of a public notary or of its agent, based on the power of attorney received from the taxpayer.
  • The tax clearance certificate can be used by taxpayers only during the month of issuance, with the specification that it should be issued in maximum 2 working days from the application date.

Registration of commercial operations through electronic means

  • The new provisions regarding the registration of commercial operations through electronic means is applicable to persons established in Romania and performing economic activities in Romania.
  • Electronic invoices, fiscal receipts and bills shall additionally contain the electronic signature and time stamp, irrespective if transmitted electronically or on paper format.
  • Invoices, fiscal receipts and bills issued and archived electronically, in compliance with this law, represent justifying documents per the provisions of the Accounting Law.
  • Individuals and legal entities can issue invoices either electronically or on paper, the issuer having the right to opt for the change of the issuance method, with prior notification from the Ministry of Public Finance.
  • The law also allows the outsourcing of the issuance, transmission and archiving of electronic invoices.
  • Expenses incurred with investments made in equipment and related utilities required for conducting such activities can be depreciated over a period of 5 years. While investments related to the modification and perfection of the existing electronic systems used in the activity of electronic invoicing can be depreciated over a period of 3 years.

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

Cristian Radulescu
T. +40 21 316 06 45

Taxand's Take

Taxpayer's need to be aware of how to submit documents electronically and in the correct manner, in order to avoid fines or grievances. Commercially, multinationals should note the changes in electronic invoicing as these amends will apply to anyone doing business in Romania. Multinationals should always take note of fiscal amends and adhere to these in order to comply with the laws of the country.

Taxand's Take Author

Angela Rosca