ANAF is preparing for inspections in the field of stationary offices and permanent offices, according to representatives of the institution. At the same time, some Romanian taxpayers found themselves under enforcement following notices sent to our tax office by similar authorities in other countries.

ANAF control campaign. A risk analysis has now been carried out

“This is a campaign that we have been thinking about for some time and for which we are preparing. We don’t hide it from you: we conduct a risk analysis on this domain. It aims to create permanent offices and permanent offices for non-resident taxpayers who receive income in and from Romania and who are not registered for tax purposes in the country,” said Sia Giru, director of the General Directorate for the Coordination of Fiscal Control.

• “They have an employee who constantly works in a certain office from a certain computer for a non-resident taxpayer. I gave the simplest and most common example.

“We do not hide from you that we also have information about the exchange of information from other member states. We also do not hide from you that there have already been cases where they have established a permanent and permanent headquarters here in Romania so that the taxes remain in the Romanian public budget,” she said during an EY event in Romania.

• “We do not hide from you that there is also a reverse side. That is, in which other Member States have established permanent offices for taxpayers from Romania in those Member States, because they found that they should have been registered for tax purposes in Romania.”

What control campaign will start and what will happen after it

Daniela Teodoru, director-general of the Directorate-General for the Coordination of Fiscal Control, says that a working group has been set up at the OECD level to prioritize the application of the double taxation convention chapter on permanent establishments.

“We are in working groups. We are preparing campaigns to check the fulfillment of conditions for permanent and stationary premises,” she said.

• The campaign we are currently preparing is aimed at non-resident taxpayers, but a joint campaign will be launched to exchange information with other Member States for Romanian resident taxpayers who carry out their activities in other states or receive income in other states and according to The conditions at the headquarters of the head of the Convention on the Avoidance of Double Taxation were to draw up their documents accordingly.

“One of them is the job description, which meets all the requirements for filling in the relevant information and sections. In order to fulfill the conditions for a permanent headquarters, it is necessary to fulfill the conditions for several documents together,” the ANAF representative explained.

Where do Romanian taxpayers who work in other countries go wrong?

“I discovered that Romanian taxpayers, when they carry out activities in other countries, do not focus on fulfilling these conditions or do not attach the necessary importance, and therefore the tax authorities in these countries carried out inspections, controls, drew up control acts and they created a permanent headquarters” , – Daniela explained to Teodora.

That the Fisc abroad registered them as a permanent establishment, imposed taxes and duties on them and made them pay.

Enforcement sent by external tax authorities in Romania

“Some states used forms of forced execution both on the territory of those states, and they sent us letters to block and monitor forms of forced execution also on the territory of Romania,” Teodoru confirmed.

These tax authorities make sure that they collect sums for their state, “only then for the Romanian state, even if the taxes and fees first go to the Romanian state and then to that state”.

“They are a bit aggressive,” concludes the ANAF representative.

What Romanian taxpayers can do if they feel abused by tax authorities abroad in relation to the head office

“Dissatisfied Romanian taxpayers or those who should not have paid there, submit requests for the avoidance of double taxation, for the amicable procedure. Romania, through ANAF, is the competent authority for peace procedures for all Romanian citizens,” she explained.

• Through the General Directorate of Fiscal Control Coordination, we carry out these peace procedures with other states based on requests submitted by Romanian taxpayers.

“The reconciliation took longer (in many cases it didn’t) because we tried our best to ensure that the Romanian taxpayers won and we gave them justice. After he pays these taxes and fees to the Romanian state, he should be compensated for the difference or the full amount that was paid in another state or withheld there, maybe correctly, maybe abusively, on a case-by-case basis,” she explained.

We also have cases where Romanian taxpayers did not prepare documents properly or made certain mistakes.

“Some may be so severe that they cannot be fixed. Unfortunately, we cannot achieve 100% double taxation avoidance,” Teodorou said.

She sounded the alarm about:

• paperwork

• study of conventions on avoidance of double taxation

• call consultants