Starting January 9, 2017, according to Order of the President of the National Agency for Fiscal Administration (OpANAF) 3706/2016 (published in the Official Gazette no.93 from 1. February 2017), there is applied The procedure for registration of agreements concluded by non-resident employers who do not have a registered office, permanent establishment or a representative in Romania and owe the mandatory social contributions for their employees, according to the provisions of the European legislation applicable in the field of social security, as well as of the agreements on social security systems to which Romania is a party
Therefore, according to the mentioned normative act, non-resident employers who do not have a registered office, permanent headquarters or a representative in Romania, which owe in Romania mandatory social contributions for their employees, can, according to the provisions of the European legislation applicable in the field of social security and of the agreements on the of social security to which Romania is a party, fulfill their tax obligations:
- either directly,
- either by concluding agreements with employees, resident or non-resident individuals by which they undertake the obligation to calculate, declare and pay compulsory social contributions.
Fulfillment of tax obligations by the employer:
Non-resident employers who do not have a registered office, permanent establishment or a representative in Romania who owe the mandatory social contributions for their employees, according to the provisions of the European social security legislation, as well as the social security systems agreements to which Romania is a party, and who have not concluded agreements with employees have the following obligations:
- Fiscal registration, directly * or by empowering **, completing the section “Categories of taxable declarations of a permanent nature” in the registration statement with declaratory obligations regarding social contributions.
*Employers who register directly submit to the competent central fiscal body the form (015) “Tax Registration Statement / Mention Statement / Deletion Statement for non-resident taxpayers who do not have a permanent establishment in Romania”, code 14.13.01.10.11 / n , having completed the section “Categories of tax liability declarations, permanent” with declaratory obligations regarding social contributions.
**Employers who are registered by the empowered person have the obligation to appoint a proxy according to art. 18 of the Fiscal Procedure Code, which submits the fiscal registration statement to the competent fiscal body, having completed the section “Categories of tax liability declarations of a permanent nature” with the declaratory obligations regarding the social contributions.
- to submit the statement 112 “Statement on the obligations to pay social contributions, the income tax and the nominal records of insured persons “;
- to pay the social contributions due by employers;
- to retain and pay individual social contributions;
In this situation, the employees have the obligation to file monthly the form 224 “Statement on salary income and assimilated salaries abroad obtained by natural persons carrying out activity in Romania and by the Romanian natural persons employed by diplomatic missions and consular posts accredited in Romania”.
Upon the termination of the obligation to declare the social contributions, the employers submit the statement of mentions for the elimination from the fiscal vector of the declarative obligation regarding the social contributions or the delisting declaration for canceling the tax registration, if they have no other declaratory obligations in Romania.
Fulfillment of the tax obligations by the employee on the basis of the agreement concluded with the employer:
Non-resident employers have the obligation to provide the competent tax authority with information on the agreement with the employees.
Employers send a copy of the agreement, translated into Romanian, certified by certified translators, directly to the fiscal body competent to manage the employee or empower the employee to fulfill this obligation.
Agreements concluded by non-resident employers with resident or non-resident individuals must necessarily include the elements necessary for the employee to correctly determine the social contributions due, such as the CAEN code of the employer’s main activity, the working conditions, etc.
In this case, employees, resident and non-resident individuals have the following obligations:
- to submit to the competent tax authority, as the case
– Statement 020 “Tax Registration Statement / Statement of Mentions for Romanian and foreign individuals having Personal Numeric Code (CNP)”, for the updating of the fiscal vector, having been marked in Chapter IV “Work Activity Data” in the “Employer” cell, as well as in Chapter V “Data regarding the tax vector “sections regarding the income tax on salaries and social contributions – Romanian natural persons or foreign natural persons holding Personal Numeric Code (CNP);
– Statement 030 „Tax Registration Statement / Statement of Mentions for Individuals not owning Personal Numeric Code (CNP)”, for fiscal registration and / or updating of the fiscal vector, marked in Chapter IV “Employer’s Activity Data”, as well as in Chapter V “Fiscal vector data” sections on income tax on wages and social contributions – individuals who do not have Personal Numerical Code.
2. to submit monthly the Statement 112 “Statement on the obligations to pay social contributions, income tax and nominal records of insured persons”. In the “Payer’s Identification Data” section and the “Insurer Identification Data” section of Statement 112, fill in the identification data of the individual who has the obligation to declare the social contributions. Statement 112 also declares thetax on income from wages due under the law, so individuals are no longer required to submit the Statement 224.
- to pay the individual social contributions and the employer’s contributions.
- to submit the statement of claims at termination of the obligation to declare and to pay the social contributions, for the elimination from the fiscal vector of the declaratory obligations regarding the income tax on salaries and social contributions.