12 January 2012
Government Ordinance no. 30/2011 amending the Fiscal Code and containing other financial and fiscal measures was published on 2 September 2011. These amendments were detailed in PwC’s Tax and Legal Alert no. 32 dated 6 October 2011.
According to the Ordinance, the three-year exclusion period before non-resident individuals meeting residency requirements become taxable in Romania on their worldwide income has been eliminated. Such income will now be taxed starting with the calendar year following that in which the individual became resident in Romania.
To obtain data on individuals who arrive or leave Romania and who want to obtain fiscal residency in Romania or want to be removed from the Romanian tax authorities’ records, the Ministry of Finance has prepared a draft order, available on its website.
The draft Order contains the procedure for the tax authorities to determine whether a non-resident individual is tax resident in the other state or keep the fiscal residency in Romania. The criteria for determining an individual’s residence and the elements that prove fiscal residence in Romania or in the foreign state under a double tax treaty and the Tax Code are also detailed.
How can we help?
Our consultants can help you analyse your position under the provisions in the draft order, and once the order is published we can assist you in filling in the questionnaires which directly affect how you manage your tax obligations in Romania.
For more information, please contact Peter de Ruiter, Mihaela Mitroi, Ionut Simion, Daniel Anghel or Brian Arnold.
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