Published in the Official Gazette, a Government Emergency Ordinance amends the Fiscal Procedure Code with respect to the obligation of nonresident taxpayers incurring tax obligations in Romania to appoint a tax representative resident in Romania.
With immediate effect, an exception to this rule comes into force for certain categories of nonresidents, which are allowed to make a choice in either appointing a Romanian tax representative or directly filing the tax returns to the Romanian tax authorities.
This exception is applicable to taxpayers having fiscal domicile in an EU Member State, an EEA Member State or a jurisdiction with which Romania has entered into a treaty providing for administrative cooperation in the field of taxation.
Please note that this possibility only concerns the manner in which the tax reporting obligations are fulfilled by such eligible nonresidents and does not have an effect on the fiscal obligations of such nonresidents - i.e. with respect to tax registration, reporting and payment, which remain in force
Electronic communication and exchange of administrative documents between taxpayers and tax authorities will also become possible, on the basis of a related procedure that will be approved by a subsequent order of the Ministry of Finance.
Impact on investors: Residents in EU Member States, EEA Member States or jurisdictions with which Romania has entered into a treaty providing for administrative cooperation in the field of taxation now have an option in either appointing a fiscal representative resident in Romania or directly filling the relevant tax documentation to the Fiscal Authorities in Romania.