Changes to D205 and D207

The ANAF Order no. 179/2022 for the approval of the model and content of the forms was published in the Official Gazette (Part I) no. 138 of February 10, 2022:

• 205 “Informative declaration regarding the withholding tax and the gains / losses from investments, on income beneficiaries” and
• 207 “Informative declaration regarding the withholding tax / tax borne by the income payer / exempt incomes, on non-resident income beneficiaries”.

The publication of the previously mentioned normative act was necessary in the conditions in which a series of amendments and completions were made to Law no. 227/2015 on the Fiscal Code, by Law no. 296/2020 and Government Ordinance no. 8/2021.

Important modifications of OpANAF 179/2022 sunt:

• regulation of the fiscal regime applicable in case of incomes made by taxpayers, other than the holder of the property right, former owner or his legal or testamentary heirs, from the National Authority for Property Restitution (ANRP), as a result of capitalization of the right acquired inconnection with the measures for finalizing the process of restitution, in kind or by equivalent, of the buildings abusively taken over during the communist regime in Romania according to the provisions of Law no. 165/2013;

In the case of these revenues, regulated in article 68 ^ 2 and article 114 paragraph (2 letter k ^ 1) of the Fiscal Code, the income tax is calculated by withholding tax, at each payment, by CEC Bank – S.A. by applying the 10% quota on the gross income and represents the advance payment in the account of the annual tax due.

• modification of the deadline for submitting forms 205 “Informative declaration regarding the withholding tax and the gains / losses from investments, on income beneficiaries” and 207 “Informative declaration regarding the withholding tax / tax borne by the income payer / exempt income, on non-resident income recipients “;

According to the provisions of article 132 paragraph (2) and article 231 paragraph (1) of the Fiscal Code, the deadline for submitting the two informative declarations is until the last day of February, inclusive, of the current year for the expired year

• regulation of the obligation to submit form 207 “Informative declaration regarding the withholding tax / tax borne by the income payer / exempt income, on non-resident income beneficiaries” also by the income payers with withholding tax regime, when the tax due by the non-resident is borne by the income payer;

• amending the provision regarding the declaration of distributed dividends that were not paid to shareholders or associates until the end of the year in which their distribution was approved. As a result, the tax related to the dividends distributed, but which were not paid to the shareholders or associates until the end of the year in which their distribution was approved, is included in the declaration related to the period in which the distribution of the dividends was approved.

• the introduction of the provision according to which the informative declaration is completed and submitted for the tax-exempt income based on international agreements to which Romania is a party.

 Main modifications of D205:

• Modification of form 205 “Informative declaration regarding the withholding tax and the gains / losses from investments, on income beneficiaries” by replacing the phrase “Distributed dividends, of which:” with the phrase “Distributed dividends” from column 3, Section V of the table of contents informative statement.
• Modification of the instructions for completing form 205 “Informative declaration regarding the withholding tax and the gains / losses from investments, on income beneficiaries”, by:

– the introduction in the content of the instructions for completing the provisions regarding the revenues provided in article 68 ^ 2 and article 114 paragraph (2 letter k ^ 1) of the Fiscal Code. In the case of these incomes, the withholding tax is declared by the income payer in form 205;

– amending the provision regarding the declaration of distributed dividends that were not paid to shareholders or associates until the end of the year in which their distribution was approved. As a result, the tax related to the dividends distributed, but which were not paid to the shareholders or associates until the end of the year in which their distribution was approved, is included in the declaration related to the period in which the distribution of the dividends was approved.

We specify that on the website of the National Agency for Fiscal Administration (ANAF) was published, on February 9, 2022, the intelligent PDF of Form 205 – Informative declaration regarding the withholding tax and the realized gains / losses, on income beneficiaries , according to OpANAF 179/2022 (valid starting with the reporting year 2021).

Main modifications of D207:

• Modification of form 207 “Informative declaration regarding the withholding tax / tax borne by the income payer / exempt income, on non-resident income beneficiaries” by inserting a separate column in the content of the informative declaration, to highlight the tax borne by the income payer.
• Modification of the instructions for completing the form 207 “Informative declaration regarding the withholding tax / tax borne by the income payer / exempt income, on non-resident income beneficiaries”, by:

– the introduction in the content of the instructions for completing the provisions regarding the obligation to submit the form also by the income payers with withholding tax regime, when the tax due by the non-resident is borne by the income payer;

– redefining certain categories of taxable income obtained from Romania, according to Title VI of the Fiscal Code, as well as in order to clarify certain situations arising from the application of the Convention for the avoidance of double taxation concluded between Romania and India. certain types of income from the provision of services;

– amending the provision regarding the declaration of distributed dividends that were not paid to shareholders or associates until the end of the year in which their distribution was approved. As a result, the tax related to the dividends distributed, but which were not paid to the shareholders or associates until the end of the year in which their distribution was approved, is included in the declaration related to the period in which the distribution of the dividends was approved;

– the introduction of the provision according to which the informative declaration is completed and submitted for the tax-exempt income based on international agreements to which Romania is a party.

We specify that on the website of the National Agency for Fiscal Administration (ANAF) was published, on February 9, 2022, the intelligent PDF of Form 207 – Informative declaration regarding the withholding tax / tax borne by the income payer / exempt income , on non-resident income beneficiaries, according to OpANAF 179/2022 (valid starting with the reporting year 2021):

We remind you that forms 205 and 207 are used to declare, on each beneficiary of income, the income with withholding tax regime, made starting with January 1, 2021.

Legal basis:

– ANAF Order 179/2022 for the approval of the model and content of the forms 205 “Informative declaration regarding the withholding tax and the gains / losses from investments, on income beneficiaries” and 207 “Informative declaration regarding the withholding tax / tax borne by income payer / exempt income, on non-resident income beneficiaries ”;

– ANAF Order 48/2019 for the approval of the model and content of the forms 205 “Informative declaration regarding the withholding tax and the gains / losses from investments, on income beneficiaries” and 207 “Informative declaration regarding the withholding tax / exempt incomes, on non-resident income beneficiaries ”;

– www.anaf.ro