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Major changes concerning non-resident taxpayers having permanent establishments in Romania

The latest changes to the tax legislation clarify the procedure for the fulfilment, with effect from 1 July 2013, of the obligation devolving on non-resident taxpayers that perform their business in Romania through several permanent establishments to designate one permanent establishment whereby they should meet tax requirements.

The Official Gazette of Romania no. 439 of 18 July 2013 has published the Order no. 877/9 of July 2013 of the President of the National Tax Administration Agency, approving the Procedure for the registration for tax  purposes of non-resident taxpayers performing their business in Romania through one or several permanent establishments, as well as the model and content of Form 013 containing the Declaration of registration for tax purposes / Declaration of amendments concerning non-resident taxpayers carrying on activities in Romania through one or several permanent establishments.

The Order corroborates the obligation, in effect from 1 July 2013, of non-resident taxpayers performing business in Romania through one or several permanent establishments to have a designated permanent establishment in order to meet the requirements regarding profit tax.  The Order refers to such aspects as:

– Procedure for the registration for tax purposes of non-resident taxpayers carrying on their activity in Romania through one or several permanent establishments;
– Change of the designated permanent establishment after its registration for tax purposes;
– Procedure for the declaration of permanent establishments of non-resident taxpayers performing business in the territory of Romania;
– Model and content of Form no. 013 – Declaration of registration for tax purposes / Declaration of amendments concerning non-resident taxpayers carrying on activities in Romania through one or several permanent establishments;
– Instructions for filling in Form no. 013.

In addition, the Order includes transitional provisions regarding the tax obligations of non-resident taxpayers having several permanent establishments registered in Romania until 30 June 2013.

The Official Gazette of Romania no. 432 of 16 July 2013 has published the Order no. 878/9 of July 2013 of the President of the National Tax Administration Agency, amending and supplementing the same President’s Order no. 1950/2012 which approves the model and content of the Forms used for the declaration of self assessment taxes, charges and contributions or of taxes withheld at source.

The introduction of the obligation of non-resident taxpayers performing business in Romania through one or several permanent establishments to have a designated permanent establishment whereby they should meet the requirements regarding profit tax has triggered amendments to Form no. 101 containing the profit tax return.

Thus, a separate column has been provided for the period to which the tax return refers, which should be filled in according to the relevant instructions.

TAX ALERT by Mazars Consulting / MAZARS ROMANIA

* Note: You may find Romanian, German and French versions of the newsletter in Mazars’ archive

* TAX ALERT contains a selection of the latest major issues occurred in the Romanian legislative framework, is intended only to provide information and, hence, shall not be deemed to provide professional advice or consultancy.  Therefore, we assume no responsibility in this respect.

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