Organizing the activity of administration of large taxpayers

ANAF Order no. 1721 on the organization of the activity of administration of large taxpayers was published in the Official Gazette (Part I) no. 1051 of November 3, 2021.

The initiators specify that, in order to increase the efficiency of the taxpayers ‘administration activity, to improve the collection of budget revenues, as well as to strengthen the partnership relationship with the taxpayers, it was necessary to reorganize the taxpayers’ administration activity.

“All the analyzes presented present the large taxpayers as the sample of economic agents with the highest fiscal importance, they being selected so that their share in the total budget revenues expected to be collected at the level of budgets administered by ANAF to be about 50%. Following the analysis of the selection criteria provided by OPANAF no. 3609/2016, resulted the need to review them taking into account the objective pursued for a good management of those taxpayers who have a good financial capacity and who can bring significant revenues to the general consolidated budget “, states ANAF in the Approval Report.

We specify that, according to the provisions of OPANAF no. 3609/2016, at present, large taxpayers are managed by the General Directorate for the administration of large taxpayers.

Therefore, in OpANAF no. 1721/2021, the selection criteria of large taxpayers were maintained, respectively the specific criteria, the basic criterion and the continuity criterion. In addition, the selection of large taxpayers took into account the current economic and financial reality, as well as the reduction of the transfer of competence of taxpayers between the central fiscal bodies, in order to comply with the restrictions imposed by the COVID-19 pandemic.

Thus, as a result of the reduced contribution of these taxpayers in the total budget revenues collected, the new normative act regulates:

♦ exclusion of eligible taxpayers from among eligible taxpayers:

– for which the insolvency procedure was opened by the final sentence;

– declared insolvent according to article 265 of Law no. 207/2015 on the Fiscal Procedure Code, with subsequent amendments and completions;

– declared inactive according to the provisions of article 92 of the Fiscal Procedure Code or who have suspended their activity at the Trade Register;

♦ elimination of two selection criteria, respectively the criterion of fiscal representation and the criterion of direct participation;

♦ redefining the specific selection rules, in the sense of maintaining in the category of large taxpayers those for whom the insolvency procedure was opened or were declared inactive in the year in which the selection was made.

General eligibility condition:

            According to OpANAF 1721/2021, taxpayers who fall into one of the following categories are considered eligible:

  • the taxpayers provided for in Article 4 paragraph (2) – NBR; credit institutions authorized by the NBR, except for credit cooperatives within credit cooperative organizations; insurance companies authorized by ASF; financial investment companies; Romanian Television Society; Romanian Broadcasting Company.
  • Romanian legal entities established according to the provisions of the Companies Law no. 31/1990, republished, with subsequent amendments and completions, including the entities resulting from the merger with other taxpayers;
  • branches of taxpayers foreign legal entities / designated permanent establishments / permanent establishments operating in Romania;
  • autonomous utilities, national companies and societies and companies with majority or wholly state capital;
  • the national research-development institutes organized according to the provisions of the Government Ordinance no. 57/2002 regarding the scientific research and the technological development, approved with modifications and completions by Law no. 324/2003, with the subsequent modifications and completions.

              By way of exception, the following are not considered eligible:

  1. a) taxpayers who are declared insolvent according to article 265 of the Fiscal Procedure Code;
  2. b) the taxpayers for whom the insolvency procedure was opened by the final sentence;
  3. c) the taxpayers who are in temporary inactivity registered in the trade register nor the taxpayers who are declared inactive according to the provisions of article 92 of the Fiscal Procedure Code.

Selection criteria:

The selection of large taxpayers is made from eligible taxpayers, depending on the following criteria:

  1. a) specific criteria;
  2. b) the basic criterion;
  3. c) the continuity criterion.

Taxpayers who meet the criteria set out in Article 4 (2) and (3), as well as those established in descending order according to the basic criterion set out in Article 5 shall be selected within a maximum of 3,000 taxpayers.

The selection criteria can be modified annually by order of the president of the National Agency for Fiscal Administration.

Specific criteria:

The category of large taxpayers includes taxpayers who meet the following specific selection criteria:

  1. a) the specific criterion of the activity carried out;
  2. b) the investment criterion;
  3. c) the criterion of the single fiscal group.

It falls within the specific criterion of activity:

  1. The National Bank of Romania;
  2. credit institutions authorized by the National Bank of Romania, except for credit cooperatives within credit cooperative organizations;
  3. insurance companies authorized by the Financial Supervisory Authority;
  4. financial investment companies;
  5. Romanian Television Company;
  6. The Romanian Broadcasting Company.

The investment criterion includes in the category of large taxpayers the newly established taxpayers who, at the date of establishment, undertake by declaration on their own responsibility to make, within a maximum period of 3 consecutive years from the date of establishment, investments whose value in lei is or the equivalent of at least 10 million euros, at the reference exchange rate of the foreign exchange market for the euro, communicated by the National Bank of Romania, from the date of establishment.

After the expiration of this period, the taxpayers shall be selected according to the selection criteria provided for in Article 3, except for the continuity criterion.

Taxpayers submit the declaration on their own responsibility previously provided to the central fiscal body in whose territorial area they have their fiscal domicile, according to the law, within maximum 15 days from the date of their registration with the trade register.

By submitting the declaration, it is considered that the respective taxpayer requests the inclusion in the category of large taxpayers.

Within 10 working days from the date of filing the declaration on their own responsibility, the taxpayers shall be taken over by the General Directorate for the Administration of Large Taxpayers, on the basis of a handover-receipt protocol drawn up in accordance with Article 9 paragraph (2).

The single tax group criterion. The fiscal representative and the members belonging to the single fiscal group defined according to the provisions of article 269 paragraph (9) of Law no. 227/2015 on the Fiscal Code, with subsequent amendments and completions, provided that at least one of them meets the selection criteria provided in Article 3.

The basic criterion, representing the aggregate value criterion, is the result of the aggregation of 3 indicators selected from an economic and budgetary point of view in the following proportions:

  1. a) turnover – 50%.
  2. b) the volume of declared fiscal obligations – 30%;
  3. c) the volume of personnel expenses – 20%.

The indicators provided in letters a) and c) are those reported in the financial statements concluded on December 31 of the year preceding the one in which the selection / update is performed. For taxpayers who have not submitted, by the date of updating the lists, the financial statements concluded on December 31 of the year preceding the year in which the update is made, the indicators provided in letters a) and c) are calculated based on the data entered in the following documents:

  1. a) value added tax returns (form D300) submitted by the taxpayer in the fiscal year prior to the one in which the selection / update is made, in order to establish the turnover;
  2. b) the declarations regarding the obligations to pay the social contributions, the income tax and the nominal record of the insured persons (form D112), submitted by the taxpayer in the fiscal year prior to the one in which the selection / update is made, to establish the volume of personnel expenses.

The indicator provided in letter b) is established according to the declarations submitted by the taxpayers during the year preceding the one in which the taxpayers are selected / updated.

Continuity criterion:

Large taxpayers selected / updated under this order who no longer meet the specific criterion set out in Article 4 (2) (b) and (c) or the basic criterion set out in Article 5 are no longer administered by the General Directorate for the Management of Large Taxpayers, after 3 consecutive years in which they do not meet these criteria, starting with January 1 of the year following the expiration of this period.

Large taxpayers who enter one of the conditions provided for in Article 1 paragraph (2) letters b) -d), in the fiscal year in which the selection / update is made, are no longer administered by the General Directorate for Administration of Large Taxpayers, after 3 years consecutive, starting with January 1 of the year following the expiration of this period.

Liste of large taxpayers, including secondary offices:

The establishment of the number of taxpayers, as well as the list of large taxpayers administered by the General Directorate for Administration of Large Taxpayers, including those selected / updated according to the provisions of this order, is approved by order of the President of the National Agency for Fiscal Administration.

The secondary offices of the large taxpayers are managed by the General Directorate for the Administration of Large Taxpayers.

The list of major taxpayers, including the list of their secondary establishments, shall be updated annually, on the basis of the selection criteria provided for in Article 3 and the specific rules provided for in Article 7, by 10 December of each year and published on the website of the National Agency for Fiscal Administration.

Legal basis:

ANAF Order no. 1721/2021 regarding the organization of the administration activity of the big taxpayers;

Fiscal Procedure Code (approved by Law no. 207/2015, published in the Official Gazette no. 547 of 23.07.2015), with subsequent amendments and completions.