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Procedure for registration of contracts with foreign entities or foreign individuals

The Official Gazette of Romania, Part I, no.695 of the 10th of October 2012 has published the Order of the President of the National Agency for Fiscal Administration no. 1400/2012 regarding the procedure for registration of contacts/documents signed between Romanian legal persons, natural persons residing in Romania and permanent establishments of foreign legal entities owned by foreign legal entities or non-residents.

According to the Tax Code, Romanian legal persons, natural persons residing in Romania and permanent establishments of foreign legal entities belonging to foreign legal entities are required to register contacts/documents signed with foreign entities or individuals residing in Romania, that offer services such as constructions, installations, monitorising activities, consultancy, tehnical assistance and any other services rendered in Romania, which generate taxable income.

When there is no written contract signed, they shall record the documents justifying the provision of services in Romania: work situations, minutes of reception, work reports, feasibility studies, market studies or other relevant documents.

The recording of contracts/documents is done at the local tax authorities office, from the area of the Romanian legal persons, natural persons residing in Romania and permanent establishments of foreign legal entities in Romania, beneficiaries of the aforementioned activities have their fiscal domicile. As an exception, Romanian legal persons having the status of large and medium taxpayers are required to register contracts/documents to the competent tax administration.

Recording contracts/documents justifying efficient service provision is achived through submission to the tax authority, the “Registration Statement of contracts/documents justifying the effective provision of services in Romania, initial/additional (related) concluded with foreign legal entities or non-resident individuals withought being accompanied by documentation of the data included in the statement.

The statement shall be submitted for each contract or document justifying actual supplies of services in Romania, within 30 days of the closing date of issuance of the contracts or any documents required by law.

The competent fiscal body organizes the contracts/documents justifying the effective provision of services in Romania in a register of contracts/documents justifying the effective provision of services in Romania, concluded with foreign entities or individual residents.

Failure of the contract/documents registration shall be sanctioned with a fine from 500 RON to 1000 RON/individuals and a fine of 1000 RON to 5000 RON for legal person under the GO no. 92/2003 on the Fiscal Procedure Code.

>> The source: JURIDICE.RO

Diana STOICA

 

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