Fiscal obligations for individual taxpayers

Written by: Bridgewest

Fiscal_obligations_for_individual_taxpayers.jpgThe Romanian National Agency for Fiscal Administration (NAFA) recently published a fiscal guide for taxpayers who derive income from independent professional services in Romania. This regulates the fiscal obligations for self-employed individuals who perform professional services, either individually or in a form of association.
The list of professional services and professions that can be performed by self-employed individuals in Romania includes:
- medical services,
- lawyers,
- notary activities,
- auditors,
- tax consultants,
- accountants,
- architects,
- individuals performing other independent and regulated professions in Romania.
Individuals who obtain income from these types of professions are required to submit Form 070 (Fiscal registration statement/Statement for natural persons who perform independent economic activities or perform other liberal professions) at the competent fiscal authority within their operating area. If the professional activity is not performed independently, but in some other form of association, taxpayers must submit Form 010 (Fiscal registration statement/Statement for legal persons, associations and other legal entities without legal personality).
These two types of registration statements must be filled and submitted within 30 days at the first fiscal registration (usually when the company is set up).

Other mandatory fiscal statements for individual taxpayers

Apart from the registration forms, taxpayers who perform liberal professions must submit forms that indicate the amount of income they managed to produce. Form 220 (Statement for the estimated income/income norm) must be submitted within 15 days after the beginning of the activity. Form 200 (Statement of income) must be submitted until the 25th of May, the following year after the income was produced.
Social security contributions are also mandatory for taxpayers who derive income from liberal professions. Form 600 (Statement regarding the insured income) must be filled and submitted for the purpose of declaring the income and calculating the social security contributions. 
Our Romanian accountants can help you with detailed information regarding the specific forms that need to be submitted, according to the type of activity you perform.
Taxpayers who derive income from liberal professions must also register for VAT in certain cases: if they choose to do so or if their income exceeds 220,000 lei. For VAT purposes, taxpayers must fill and submit other specific forms on a monthly or trimestrial basis: Form 300, Form 394 and Form 394A (yearly). 
Taxpayers who do not fulfil their fiscal obligations may risk fines amounting to 3,500 lei. Please contact our accounting firm in Bucharest for more information about the applicable fiscal obligations.