Declaration of income obtained by non-residents in 2020

29 January 2021

For the non-residents who obtain taxable income in Romania, the income payer is required to calculate, withhold, declare and pay income tax.

The informative statement on withholding tax/exempt income for non-resident income beneficiaries (form 207) must be submitted for both the withholding tax and the income that is exempted under the Tax Code or the double taxation conventions concluded between Romania and other states.

The deadline for the submission of form 207 for the year 2020 is February 28, 2021.

The income payer may submit this statement only if the non-resident beneficiary has a tax identification number assigned by the Romanian tax authorities. In the case of income subject to withholding tax regime, the registration of the non-resident for taxation purposes may also be requested by the income payer.

Non-residents are registered for taxation purposes based on the Tax Registration Statement/Statement of Mentions/Deregistration Statement for non-resident taxpayers who do not have a permanent establishment in Romania (form 015).

Form 015 must be accompanied by documents certifying the status of payer of income subject to the withholding tax regime for the income beneficiary concerned.

Example: If a Romanian legal entity paid dividends to a non-resident company in 2020, irrespective whether the dividends were tax exempt or not, the income payer is required to submit form 207 by February 28, 2021. However, in order to be able to submit form 207, the income payer must request the registration of the non-resident for tax purposes on the basis of form 015, which will be accompanied by the following documents:

the copy of the resolution of the general meeting of shareholders based on which the dividend payments were made in 2020;
the copy of the document proving the payment of dividends;
an extract from the Trade Register of the country of residence of the non-resident company;
the confirmation of company details issued by the Trade Register for the income payer.

According to the letter no. A-VAD 1270/09.12.2016 issued by ANAF, the registration of a non-resident for taxation purposes does not require a document authorizing the income payer to this effect.

Attention! Form 015 must be submitted to:

the tax body with territorial jurisdiction over the tax residence of the income payer;
the tax body with territorial jurisdiction over the headquarters of the income payer in the case of income payers who are large and medium-sized taxpayers.

Conclusion: In order to be able to meet the deadline for the submission of form 207, it is necessary to start in due time the procedure of registration for taxation purposes of non-residents if they do not already have a tax identification code assigned by the Romanian tax authorities.