News

Issuing the advance tax ruling

Angela Rosca 01 Feb 2016

Taxand Romania discusses the procedure for issuing the advance tax ruling in their January newsletter.

The present Order approves the Procedure for issuing the advance tax ruling.

The future fiscal operations for which an advance tax ruling is requested must be subsequent to the date when the request form was submitted and the tax ruling shall apply from the date of the future operations for which a tax ruling was requested.

The procedure sets new situations when the request for the issue of an advance tax ruling can be rejected:

• the future fiscal situation was regulated through legislative amendments or other administrative documents (decisions issued by Central Fiscal Commission), issued between the date when the request was filled and the date when the tax ruling is issued;
• the fiscal situation subject to the request for advance tax ruling is similar to a fiscal situation regulated during a fiscal inspection at the level of the applicant taxpayer for which administrative documents were issued;
• if the taxpayer does not submit information, data, clarifications, other documents requested by the tax authorities regarding the request submitted.

An advance tax ruling is issued for each future fiscal situation, as well as for each fiscal obligation.

If there are any clues that the future fiscal situation is an artificial cross-border transaction, the tax authority can initiate the information exchange procedure, based on the double taxation treaties, together with the tax administrations of the states involved within respective transaction.

Discover more: Issuing the advance tax ruling

Taxand's Take

The provisions of the present Order apply to the requests for issuing the individual advance tax ruling submitted after 1 January 2016.

Article tags

International Tax | Romania