On January 15, 2019 the National Agency for Tax Administration (ANAF) published a Order of the ANAF President. This order approves the new model, content and instructions for completing the following forms:
- Form 205 “Informative return for income beneficiaries regarding withholding tax and investment profit/loss”;
- Form 207 “Informative return for non-resident income beneficiaries regarding withholding tax/exempt income”.
These forms are used by every income beneficiary, in order to declare the income received starting with January 1, 2018 which is subject to withholding tax. In this sense, the following changes regarding form 205 “Informative return for income beneficiaries regarding withholding tax and investment profit/loss” were adopted:
- Inclusion of income received as a result of gambling activities practiced throughout Romanian territory;
- Inclusion of a separate section regarding income received from dividends, which would indicate both, distributed and paid income;
- Removal of index “gross income”, considering that starting with March 23, 2018 the liability to compute, withhold and declare the tax, for each income beneficiary, lies with the organizer and/or payer.
At the same time, in form 207 “Informative return for non-resident income beneficiaries regarding withholding tax/exempt income”, the information regarding the type of income received from gambling activities were removed, as starting with March 23, 2018, these type of income (i.e. received from gambling activities) received in Romania is taxed according to the norms included in the Fiscal Code, Title IV “Income tax”.
One specific particularity of the amendments introduced to form 207, is the fact that in previous years – 2017 and 2018, form 207 “Informative return for non-resident income beneficiaries regarding withholding tax/exempt income” was submitted without indicating the tax identification number in Romania. However, we noticed that in the new forms, there is a box intended to be completed with the tax identification number, and due to this, it is likely for ANAF to no longer validate/accept any 207 forms submitted without the tax identification number of the declarant.
Please note that the informative returns should be submitted by January 31 of the year following the reporting year, i.e. January 31, 2019 is the submission deadline concerning year 2018. Worth mentioning are the certain risks associated with the failure of timely submission of the informative returns, such as, the taxpayers’ inability to obtain a certificate of attestation regarding the tax withheld and thus, prevention to request any reimbursement of the tax withheld.
The amended forms were subject to changes due to the adjustments on the income received from long distance gambling activities and poker festivals, income received by non-residents from gambling activities, as well as the amendment of the submission deadline of the informative returns regarding income subject to withholding tax.