Law nr. 207/2015 regarding Fiscal Procedure Code was published into Official Gazette no 547/23.07.2015
The main amendments are:
Interpretation of the law
5 Rules are provided for the interpretation of tax legislation. If the fiscal legislation remain unclear after applying the 5 rules, they shall be interpreted in favour of the taxpayer / payer.
The fiscal administrative act
When issuing an electronic Fiscal administrative act, it shall be deemed as issued on the date of application of extended electronic signature.
The Fiscal administrative act is void if it is issued in violation of legal provisions concerning jurisdiction or is affected by a serious and obvious mistake.
If Fiscal administrative act is cancelled, the competent tax authority issues another Fiscal administrative act, if the limitation period was not met or if the cancellation was not due to faulty administrative proceedings.
The advance tax ruling and advance price agreement
If the taxpayer disagrees with the issued advance tax ruling or advance price agreement, it shall submit a notification to the tax authority, within 30 days from communication, (previous deadline was 15 days).
Bilateral/multilateral advance price agreement can be issued only for transactions with taxpayers from countries with which Romania has concluded conventions for avoidance of double taxation.
The issue fee of an advance tax ruling will be (currently it is 1.000 EUR):
– 5.000 EUR for large taxpayers;
– 3.000 EUR for other taxpayers.
The deadline for settlement of the taxpayers’ requests
If for processing a request it is necessary to provide additional evidence relevant to the decision making, the period shall be extended by the period between the date of evidence request and date of the obtaining the evidence (2, 3 or 6 months as the case may be).
The deadline for processing a request is at most 90 days from filing the application if for their settlement it is necessary to carry out a tax audit.
The limitation period began to run from 1 July of the following year for which tax liability is due.
The limitation period is suspended for the period between the date of commencement of the tax audit and date of tax decision issue.
The tax audit
Duration for performing a tax audit is determined by the objectives of the tax audit and cannot exceed:
– 180 days for large taxpayers and for taxpayers / payers who have secondary offices regardless of size;
– 90 days for medium taxpayers;
– 45 days for other taxpayers.
A maximum period of suspension of the tax audit for 6 months it is established.
At the taxpayer request, for the purpose of payment of additional tax obligations, the taxpayer can request the issue of a temporary tax decision. The amounts set by temporary tax decision shall be settled in the final decision.
Duration of the unforeseen tax audit can not exceed 30 days.
A new provision to refund the withholding tax on income has been established. When the payer withheld tax on income in the amount higher than the legally due tax, the refund is made by the payer, at the taxpayer’s request. Amounts reimbursed by the payer are subsequently settled by filing a rectifying return.
Tax liabilities established as a result of reclassification of a transaction shall be settled with the tax liabilities declared / paid by taxpayer related to that transaction.
Interest rates decreased from 0.03% to 0.02% per day of delay and late payment penalties decrease from 0.02% to 0.01%.
For the undeclared or incorrectly declared main tax obligations by the taxpayer/payer and assessed by fiscal tax authority by a tax decision, taxpayer/payer owes an undeclared penalty of 0.08% per day.
Undeclared penalty can not be higher than the main tax receivables to which it applies.
Undeclared penalty shall apply for fiscal receivables born after 1 January 2016.
Resolution of appeals made against fiscal administrative acts
The appeal shall be filed within 45 days of the communication of fiscal administrative act (previously the term was 30 days).
It is introduced the possibility to appeal the oral defense.
The suspension term shall not exceed 6 months from the date of grant. The suspension may be requested once.
In case of unsolving the appeal within 6 months from the date of filing the appeal, the appellant may appeal to the administrative court for cancelling the act.
Suspension of executing the fiscal administrative act
During suspension, the fiscal obligations are not included in the tax certificate, no late payment penalties are due, late payment interest of 0.5% per month are due.
The contraventions are established according to the following categories:
– legal entities classified as medium and large taxpayers;
– other legal entities and individuals.
– the act of any entity consisting in non submitting of information to the National Office for Prevention and Combating of Money Laundering;
– taxpayer/payer failure to submit by the terms provided by law of de-registration fiscal returns.
Will not represent contravention failure to write Fiscal identification code on documents.
The Law will enter into force on 1 January 2016.