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Romania: Is Your Company a Large Taxpayer?

Romania: Is Your Company a Large Taxpayer?

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Order no. 1721/2021, regarding the management of large taxpayers (“the Order”) was published on 3 November 2021, in the Official Gazette no. 1051/03.11.2021.

The Order provides, that, as of 1 January 2022, large taxpayers are:

  • companies that have the status of large taxpayers as on 31 December 2021; and
  • companies that qualify as large taxpayers based on the criteria set forth in the Order.

Of all eligible taxpayers, those qualifying as large taxpayers are selected based on:

a) specific criteria: (i) the activity they perform (e.g. banking and non-banking financial institutions, insurance companies, investment companies); (ii) the value of investments they make, which needs to be more than EUR 10 million during the first three years from incorporation and (iii) their inclusion in a VAT group;

b) the basic criterion (represents the aggregate value of three indicators within the following proportions: turnover - 50%; total declared tax liabilities - 30%; personnel expenses - 20%);

c) the continuity criterion: large taxpayers that no longer meet the selection criteria mentioned at letters: a)(ii); a)(iii) and b) for three consecutive years will be removed from the list starting on 1 January of the following year. Also, large taxpayers that initiate insolvency proceedings, are declared inactive at the Trade Registry or are declared inactive based on the provisions of the Tax Procedure Code in the selection year will be removed from the list after three consecutive years, starting on 1 January of the following year.

Secondary offices belonging to large taxpayers will also be included in the list of large taxpayers, and they will be administered by the same structure within the Romanian National Agency of Fiscal Administration (ANAF).

Any new taxpayer that comes into existence following the corporate restructuring of large taxpayers (mergers, spin-offs) will be also treated as a large taxpayer.

By Theodor Artenie, Tax Advisor, Noerr

Romanian Knowledge Partner

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