Fiscal residence submission deadline for foreign companies

Fiscal residence submission deadline for foreign companies

Foreign legal entities that have the effective management in Romania must fill in, by June 30, 2021, a questionnaire based on which the tax authorities will establish the tax residence.

The questionnaire must be sent with a number of other documents. More precisely, according to Law no. 296/2020, inter-alia, the following documents are needed:

  • certified copy, accompanied by the authorized translation of the decision of the shareholders / associates / members of the board of directors / executive directors of the foreign legal entity regarding the establishment of the place of effective management in Romania;
  • certified copy of the extract from the Trade Register;
  • copy of the document or act regarding the use of the space in Romania;
  • certified copy accompanied by the authorized translation of the contracts concluded with the executive directors / members of the board of directors of the foreign legal entity.

If a foreign company will be considered resident both in Romania and in a signatory state of a double taxation convention to which Romania is a party, the residence of this person is established according to the norms of the double taxation convention.

The law stipulates that, after the fiscal residence of foreign companies in Romania will be established, they will have a series of obligations, especially registration.

If the non-resident companies do not register for tax purposes in Romania, they will be automatically assigned by the tax authorities a place of effective management.

An important change is that the establishment of residence in Romania must not be based on artificial arrangements in order to reduce taxes and must not create opportunities for non-taxation or lower taxation in Romania.

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