DECLARATION 2017: “INFORMATIVE DECLARATION ON THE TAX WITHHELD AT SOURCE/REVENUE EXEMPT, FOR THE NON-RESIDENT BENEFICIARIES OF INCOME”, INTRODUCED BY THE ORDER OF THE ANAF NO. 3695/27 DECEMBER 2016

Starting with the year 2017, the annual statement of tax stoppage at source, with deadline for submission on the last day of the month February, shall be drawn up by Romanian taxpayers that pay revenues with the regime of stoppage at the source, in electronic format.
New declaration 207 has “sneaked” a fundamental amendment, by the removal of a simple footnote who said that if the non-resident has not been assigned a Fiscal Identification Code in Romania, the column referred to as the “code of fiscal identification assigned by the competent authority of Romania”, can be completed with the identification data from abroad of the beneficiary of income. Now, this will no longer be possible in electronic form; such column will be supplemented with only a fiscal identification code assigned to them in Romania.
Thus, all Romanian companies that make payments to non-residents (in the taxation with stoppage at source regime) must register the non-residents in Romania so that they would receive a Fiscal Identification Code from the Romanian authorities.
Although, according to the law, the obligation does not belong to Romanian taxpayers, but to the non-residents concerned, from practical reasons, the Romanian companies are those which may facilitate this registration the best.
Romanian companies are at risk of a fine for not submitting the 207 electronic form, if the form cannot be validated without the fiscal identification code of the non-resident taxpayer.
Non-residents are at risk for a double taxation, both in Romania and in the State of residence, for the incomes obtained in Romania, as the recent practice of the Romanian fiscal authorities is not to issue the certificate of attestation for the taxes paid in Romania to the non-resident, unless the non-resident is fiscally registered in Romania.
Without certificate, the non-resident will also be taxed in the State in which he resides for the same income, for which he was taxed by stoppage at source in Romania.
The obligation of registering non-residents is not a novelty. It was established some time ago in the Code of tax procedure which mentions that the non-residents have the obligations to fiscally register themselves in order to be granted a Fiscal identification code in Romania.
For this year, the ANAF has announced that the electronic submission will not be prevented if the code does not exist. But this is a temporary measure, following that in the future the tax payers will no longer be able to submit the 207 Form, if the non-residents do not have a Fiscal Identification Code in Romania.

Issued by: the National Agency for Fiscal Administration

Date: 27.12.2016