Tax registration of non-residents by income payers

According to the Fiscal Procedure Code, any person or entity that is subject of a fiscal legal report is tax registered by receiving a tax identification code.

Both natural persons and non-resident legal persons who are subject in a fiscal legal report have the obligation to request the fiscal registration in Romania.

In order to facilitate the tax registration of non-resident persons, the Fiscal Procedure Code provides for the possibility of assigning the tax identification code for these non-resident persons at the request of the income payer, only if they realize income subject to the rules of taxation at source, and the tax withheld is final.

The tax registration of non-resident natural or legal persons can also be requested by the income payer on the basis of Form 030 (natural persons) or Form 015 (legal persons), if the income withholding at source is the only income that non-resident persons obtain from Romania. The Form is submitted to the fiscal body in whose territorial area the fiscal domicile of the income payer is located or the fiscal authority in whose territorial area the headquarters of the income payer is located, in the case of large and middle-sized income taxpayers. To the Declaration there shall be attached the documents proving the quality of income payer with withholding regime at the source for the respective beneficiary of income (copy according to the service contract, company statute – for associates, etc).

The tax registration of non-residents who make in Romania only income subject to the rules of taxation at the source is not assimilated to the registration of a permanent headquarters in Romania and does not attract other tax obligations for the non-residents.

For example, a non-resident legal person providing a service in Romania that does not generate a permanent headquarters, according to art. 8 of the Fiscal Code, obtains from Romania a taxable income according to art. 223 paragraph (1) letter k) of the Fiscal Code. This income is subject to withholding tax at the source by the income payer. If the non-resident company does not show the fiscal residence certificate, the income payer will retain at source the tax due by applying the 16% quota provided in art. 224 of the Fiscal Code.

The non-resident company must register in Romania on the basis of Form 015 – Tax registration statement/ Statement of mentions / Cancellation (Erasers) declaration for non-resident taxpayers who have not permanently headquarters in Romania. This registration will not generate any other fiscal obligations in Romania. The income payer will declare the tax in the Form 100 and in the informative statement 207 – based on the tax registration code of the non-resident income beneficiary, issued by the competent authority of Romania.

Non-resident tax-payers which operate in Romania through one or more permanent headquarters submit the Form (013) “Declaration of fiscal registration / Statement of mentions / Declaration of cancellation for non-resident taxpayers who work in Romania using one or more permanent headquarters”.