New legislative changes in May
Extended deadline for submitting declaration of the real beneficiary
1) Emergency Ordinance no. 43/2021 for the extension of deadline for submitting the annual declaration regarding the real beneficiary of a legal person
In the Official Gazette no. 561 of May 31, 2021, was published GEO no. 43/2021 which regulates the deadline for submitting the annual declaration regarding the real beneficiary, declaration provided in art. 56 para. (4) of Law no. 129/2019 for preventing and combating money laundering and terrorist financing.
Thus, by this normative act adopted by the Government it was established that the annual declaration regarding the real beneficiary of the legal entity subject to the obligation of registering in the Trade Register, has to be submitted to the Trade Register Office where the legal entity is registered until October 1, 2021.
2) Order of Ministry of Finance no. 577/2021 for the regulation of some aspects regarding the residence in Romania of foreign legal entities
In the Official Gazette no. 520 of May 19, 2021, was published the Order of the Minister of Finance no. 577 approving the forms regarding the fiscal residence of the foreign legal entity with the place of effective management in Romania.
The order thus approves the “Questionnaire for establishing the fiscal residence of the foreign legal entity with the place of effective management in Romania”.
According to the amendments brought on January 1, 2021 to the Fiscal Code, a foreign legal entity is resident in Romania if the place of effective management is in Romania, performing operations that correspond to economic, real and substantial purposes and where at least one of the following conditions is met:
- the economic-strategic decisions necessary for the management of the activity of the foreign legal entity as a whole are taken in Romania by the executive directors / members of the board of directors;
or
- at least 50% of the executive directors / members of the board of directors of the foreign legal entity are residents.
The Questionnaire, accompanied by the necessary supporting documents, is submitted to the central fiscal body in physical format or by electronic means of remote transmission. Within the next 30 days after submitting the Questionnaire, the fiscal body verifies the documentation and, insofar as the foreign legal entity meets the conditions of residence according to the place of effective management in Romania, issues the Notification on the fulfillment of the conditions.
Within 30 days from the date of communication of the Notification, the foreign legal person has the obligation to register with the tax authority, through the form 016 "Tax registration declaration / declaration of mentions / deregistration declaration for foreign legal persons having the place of effective management in Romania".
The foreign legal entity is considered resident in Romania according to the place of effective management from the date of fiscal registration with the central fiscal body.
The foreign legal entity registered with the place of effective management in Romania until December 31, 2020 inclusive has the obligation to submit the Questionnaire to the central fiscal body until June 30, 2021 inclusive, accompanied by the supporting documents, in order to clarify the concrete situation of the taxpayer regarding the fiscal residence in Romania.
The foreign legal entity registered with the place of effective management in Romania in the period between January 1, 2021 and the date of entry into force of this order (respectively May 19, 2021) has the obligation to submit to the central fiscal body by June 30, 2021 inclusive the Questionnaire and the related supporting documents.
3) Law no. 123/2021 on amending and supplementing Law no. 207/2015 regarding the Fiscal Procedure Code
In the Official Gazette no. 476 of May 7, 2021, was published Law no. 123/2021 on the approval of Government Ordinance no. 5/2020 for the amendment and completion of Law no. 207/2015 regarding the Fiscal Procedure Code.
According to the Fiscal Procedure Code applicable before this amendment, if there were several intermediaries involved in a cross-border arrangement, the obligation to report information on the cross-border arrangement, which is the subject of reporting, rested with all intermediaries involved in that cross-border arrangement. However, they were exempted from the reporting obligation if the information had already been reported to ANAF.
This amendment clarifies that relevant intermediaries / taxpayers may also be exempted from the reporting obligation if they have conclusive evidence, beyond any doubt, that the information has already been reported to the competent authority of another Member State, by another relevant intermediary / taxpayer.
Additional changes were made to annex no. 4 to the Fiscal Procedure Code, regarding the Distinctive Signs, the most important being:
- B. Distinctive signs specifically related to the principal beneficiary test
– the phrase „money laundering” was replaced by „round-tripping of funds”;
- E. Distinctive signs related to transfer pricing
– the definition of 'intangible assets difficult to value' refers to the meaning given to this notion by the Transfer Pricing Guidelines issued by the Organization for Economic Co-operation and Development for multinational corporations and tax administrations, as subsequently amended and supplemented;
– it is clarified that "expected annual income" actually means "expected annual profit".
4) ANAF Order no. 632/2021 for the approval of the model and content of the form (300) “Value added tax return”
In the Official Gazette no. 464 of May 4, 2021, was published the ANAF Order no. 632 by which changes were made to form 300 - Value added tax return.
Thus, the row no. 40, the “cumulated payment tax” will also include the differences in payable VAT established by the tax authorities, not only by the tax inspection bodies, by decisions communicated until the date of submission of the return, provided that the differences are unpaid by the filing date.
Also, for the consolidated tax return submitted by the representative of a single VAT tax group, a specific box is inserted that will be checked by the representative. The box must not be checked in the VAT return submitted by the representative of the tax group for his own activity.
The new version of the VAT Return will be used starting with the declaration of the fiscal obligations related to June 2021.
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