Romania: Important amendments to the Fiscal Code and the Fiscal Procedure Code
On 31 August 2021, Government Ordinances nos. 8/2021 and 11/2021, amending the Fiscal Code and the Fiscal Procedure Code, were published in the Official Gazette no. 832/31.08.2021.
Of the most important changes to the Fiscal Code, we note the following:
- Starting with 1 January 2022, 50% (formerly 30%) of the expenses with the depreciation of receivables for which provisions have been established are deductible
- Dividends distributed but not paid by the end of the year in which the distribution was approved are to be paid by 25 January of the following year or the 25th of the first month of the modified fiscal year
- Starting with 1 October 2021, for benefits in kind obtained by individuals from non-resident third parties, the social security contributions may be withheld and paid by the Romanian employer
- Payment of dividends from a Romanian enterprise to an enterprise from Iceland, Liechtenstein or Norway is tax exempt if the recipient of the dividends holds more than 10% of the share capital of the Romanian enterprise for a period of more than one year
From the amendments introduced to the Fiscal Procedure Code we note the following:
- Starting with 1 January 2022, it becomes mandatory to submit the “Standard Audit File for Tax” (SAF-T). This file is to contain information from a company’s accounting and tax records and will be submitted to the central fiscal body electronically. The deadline for submitting this file will be established by an order issued by the President of ANAF. The fine for failure to submit the standard file is between RON 1,000 and RON 5,000, whilst the fine for incorrect or incomplete submission of the file is between RON 500 and RON 1,500
- Starting with 1 February 2021, the simplified VAT refund procedure (with a subsequent VAT audit) is added to the Fiscal Procedure Code and made permanent. The procedure applies to all taxpayers, with certain exceptions such as taxpayers who have issues with their tax record or are undergoing voluntary liquidation or insolvency; taxpayers, other than large or medium-sized taxpayers, whose VAT refund claim relates to a period longer than 12 months; and taxpayers for which the tax authorities identify the risk of an undue refund
- Starting with 1 October 2021, the simplified procedure (without collateral) for payment in instalments of outstanding tax liabilities (principal and ancillary) not older than 12 months, over a period of a maximum of 12 months, is permanent.