Summary of Romanian fiscal and accounting news of February 2024

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Summary

1. Updated forms – 205 and 207 (Order 154/2024)
2. Updated forms – 100, 710 and List of payment obligations to the State Budget (Order 172/2024)
3. Updated form 208 (Order 253/2024)
4. Measures to combat excessive increase in prices for certain agricultural and food products are extended (GEO 5/2024)
5. February 2024 closing exchange rates

Order 154/2024 to amend annex no. 1 to ANAF Presidential Order 179/2022 to approve template and content of forms 205, "Informative statement regarding withholding tax and gains/losses from investments, by income beneficiaries" and form 207, "Informative statement regarding withholding tax/tax borne by the income payer/exempt income, by non-resident income beneficiaries" (Official Gazette 100/2024)

Summary

The Order updates fiscal forms:

• 205 - "Informative statement regarding withholding tax and gains/losses from investments, by income beneficiaries"
• 207 - "Informative statement regarding withholding tax/tax borne by the income payer/exempt income, by non-resident income beneficiaries."

Details

Form 205

New form 205 is used to declare, for each beneficiary of income, income that is subject to the withholding tax regime, as well as the gains/losses from transfer of investment-grade gold, obtained starting the 1st of January 2023, and its update has been determined by recent legislative changes.

Obligation to withhold tax on income obtained from transfer of securities and derivative financial instruments by entities provided by art. 96^1 of the Fiscal Code -?amendment brought by Law 142/2022.

Entities provided by art. 96^1 paragraph (1) of the Fiscal Code have the obligation to withhold, declare and pay tax by the 25th of the month following the month tax was withheld, both for income obtained in Romania and for those obtained from abroad, the tax being final.

The tax is determined according to the ownership period of the securities/derivative financial instruments:

• held for a period of more than or equal to 365 days – in this case, the tax is determined by applying a 1% tax rate on each gain,
• held for a period of less than 365 days – in this case, the tax is determined by applying a 3% tax rate to each gain.

Also, according to art. 96^1 para. (2) of the Fiscal Code, entities through which transfers of investment-grade gold are performed have the obligation to annually submit form 205 on total gains/losses for each taxpayer related to the previous year by the last day of February of the current year.

Withholding tax on income from other sources (tips)

Amounts obtained by employees from collection of tips are qualified as income from other sources and are subject to the fiscal regime provided by title IV, "Tax on income,” Chapter X, "Income from other sources" of the Fiscal Code. Tax on income owed by the employee is withheld when the tips are distributed by payers of income and is paid to the state budget according to art. 115 of the Fiscal Code.

Who submits form 205?

The informative statement regarding withholding tax and gains/losses from investments, by income beneficiary (form 205) is completed and submitted by income payers/intermediaries defined according to legislation in force – investment management companies, self-managed investment companies, alternative investment funds manager, Romanian tax residents or non-residents having a permanent establishment in Romania that has the quality of an intermediary, and who have the obligation to calculate, withhold and pay withholding tax, according to title IV of the Fiscal Code, for the following types of income:

a) income from dividends; b) income from interest; c) income as gains from transfer of securities and derivative financial instruments held for a period greater than or equal to 365 days; d) income as gains from transfer of securities and derivative financial instruments held for a period of less than 365 days; e) income from liquidation of a legal entity; f) income from prizes; g) income from gambling; h) income from collection of tips by employees; i) income from other sources, other than income from collection of tips by employees and those provided by art. 114 para. (2) letter k1) of the Fiscal Code; j) income from independent activities provided by art. 682 of the Fiscal Code and income from other sources provided by art. 114 para. (2) letter k1) of the Fiscal Code.

In the case of non-resident individuals who obtain income from transfer of securities issued by Romanian residents, the entities provided by art. 96^1 para. (1) of the Fiscal Code have the obligation to submit the statement for both non-resident individual taxpayers who do not provide proof of residence in a state with which Romania has concluded a convention to avoid double taxation, and for non-resident individual taxpayers who provides proof of residence in a state with which Romania has concluded a convention to avoid double taxation, according to provisions of art. 230 para. (5) of the Fiscal Code.

The statement is also submitted for gains/losses from transfer of investment-grade gold, according to provisions of art. 96^1 para. (2) of the Fiscal Code.

Other information

In the case of income from dividends, the tax related to dividends distributed, but not paid to shareholders or associates by the end of the year when their distribution was approved, is included in the statement related to the period when the distribution of dividends was approved.

Form 207

Form 207 is an informative statement regarding withholding tax/tax borne by the income payer/exempt income by non-resident income beneficiaries.

Who submits form 207?

Form 207 is submitted by:

• the income payer who has the obligation to calculate, withhold and pay withholding tax according to title VI of the Fiscal Code (income from dividends, interest, royalties, commissions, services provided in Romania, etc. obtained by non-residents) or according to conventions to avoid double taxation concluded by Romania with other states.
• the income payer for tax-exempt income according to title VI of the Fiscal Code or according to conventions to avoid double taxation concluded by Romania with other states.

The statement is also submitted by income payers within the withholding tax regime when the tax owed by non-residents is borne by the income payer.

Deadline to submit form 205 and 207

The statement is completed and submitted annually:

• by the last day of February of the current year for the previous year;
• whenever errors are found in previously submitted statement, a rectification is completed and submitted.

The rectification is prepared by type of income and will only include the adjusted positions erroneously declared in the initial statement, or the positions that, erroneously, were not included in the initial statement.

The statement is submitted by electronic means of remote transmission.

Failure to submit forms 205 and 207 constitutes a contravention and is punishable by a fine:

• from RON 1,000 to RON 5,000 for legal entities classified as medium and large taxpayers;
• from RON 500 to RON 1,000 for other legal entities, as well as for individuals.

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Order 172/2024 to amend and complement ANAF Presidential Order 587/2016 to approve template and content of forms used to declare taxes and fees for self-taxation or withholding tax regimes (Official Gazette 100/2024)

Summary

The Order updates fiscal forms 100 and 710, as well as List of payment obligations to the State Budget, in order to harmonize with amendments brought to the Fiscal Code through Law 296/2023.

Details

Form 100 - "Statement on payment obligations to the state budget" is updated for the following taxes:

• tax on income from rental activities, other than those from leasing agricultural goods and from rental of rooms located in privately owned houses for tourist purposes, withheld by legal entities or other entities that have the obligation to keep accounting recordsthe deadline to submit the form – monthly, by the 25th of the month following the reporting period.
• tax on turnover owed by credit institutions - Romanian legal entities and branches in Romania of credit institutions - foreign legal entities:for 1st to 3rd quarters, the submission deadline is the 25th of the month following the reporting period;for 4th quarter, the submission deadline is the 25th of March of the following year.
• the specific tax on turnover owed by legal entities that carry out activities in the oil and natural gas sectors:for 1st to 3rd quarters, the submission deadline is the 25th of the month following the reporting period;for 4th quarter, the submission deadline is the submission date of the annual statement on corporate tax.
• annual special tax: advance payments due quarterly in accordance with provisions of art. XLIV of Law 296/2023 - the deadline to submit the form is the 25th of the month following the reporting period;regularized in accordance with provisions of art. XLIV of Law 296/2023 - the submission deadline by the 30th of June of the following year, along with submission of financial statements.
• corporate tax set at the level of the minimum tax on turnover – completed by taxpayers paying corporate tax which owe corporate tax at the level of minimum tax on turnover.

The lines, "Sponsorships and scholarships granted” and "Purchase cost of fiscal electronic cash registers," are removed.

Form 710 - "Rectifying statement" refers to correcting information reported on form 100.

The Order also updates instructions to complete forms 100 and 710.

Forms 100 and 710, the List attached to form 100 and Instructions to prepare forms 100 and 710 are in effect starting with obligations related to January 2024.

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Order 253/2024 to amend template, content and submission instructions for form 208 - "Informative statement regarding income obtained from transfer of real estate from personal patrimony,” approved by Order of the Minister of Public Finance and Minister of Justice 1022/2562/2016 to approve procedures to set, pay and adjust tax on income obtained from transfer of real estate from personal patrimony, as well as to approve template and content of certain forms used to administer income tax (Official Gazette 135/2024)

Summary

The Order updates fiscal form 208 - "Informative statement regarding income obtained from transfer of real estate from personal patrimony" and instructions to prepare the form.

This form is used to declare information on real estate transactions regarding personal patrimony through notarial procedure concluded starting the 1st of January 2024.

Details

Form 208 is completed and submitted monthly (previously, it was submitted twice a year), by the 25th of the month following the month when documents on the transfer of real estate from personal patrimony were authenticated by public notaries who have the obligation to calculate, collect and pay tax on income from the transfer of real estate properties from personal patrimony.

The form contains information on transactions through which ownership rights and its dismemberments were transferred for buildings of any kind and related land, as well as for land of any kind without buildings, subject to tax on income, according to law.

Emergency Ordinance 5/2024 to amend and complement GEO 67/2023 to set certain temporary measures to combat excessive price increases for certain agricultural and food products, as well as to amend and complement certain normative acts (Official Gazette 93/2024)

Summary

The Ordinance amends and extends application of GEO 67/2023 to set certain temporary measures to combat excessive increase in prices for certain agricultural and food products.

Details

The main changes made to GEO 67/2023 are presented below:

• Establishment of a mechanism to monitor prices of agricultural and food products, a mechanism that will be regulated by a joint order of the Minister of Agriculture and Rural Development, the Minister of Economy, Entrepreneurship and Tourism and the President of the Competition Council.
• Application of the measures established by GEO 67/2023 is extended to the 31st of March 2024 (previously, the measures were effective the 31st of January 2024).
• The list of agricultural and food products subject to these provisions is updated.

Order 159/2024 to repeal ANAF Presidential Order 1889/2016 to approve Technical Norms on authorisation to issue isolated warranties, to use global warranties and warranty waivers within the Community/Common transit regime (Official Gazette 109/2024)

Valuation of monetary items in foreign currency for February 2024

The February 2024 closing NBR exchange rates to use for valuation of monetary items (cash on hand, receivable, payables) denominated in foreign currency, as well as receivables and payables denominated in RON but pegged to a foreign currency for collection/disbursement are:

1 EUR = 4,9690 RON; 1 USD =? 4,5823 RON;

1 CHF = 5,2072 RON; 1 GBP = 5,8022 RON