The Ministry of Public Finance issued a draft law that will allow for an easier fiscal reactivation of a Romanian company. The tax inspectors from the National Agency for Fiscal Administration will not make any further checks to see if the company is still compliant as far as the fiscal domicile of the corporation is concerned. This check-up will not take place only in those situations in which the inactivity was not related to the company’s fiscal domicile. Our Romanian accountants can help you understand these new provisions.
Company reactivation for fiscal purposes in Romania
The new draft ordinance issued by the National Agency for Fiscal Administration changes the manner in which taxpayers may opt for financial reactivation. Once the draft law is approved, the procedure will only require two steps for completion: compliance with the applicable financial obligations, as required by law and the absence of any due fiscal obligations.
The inactive taxpayer will be able to request its tax reactivation by submitting a request with the competent tax authority (where it is registered for tax purposes).
One of our accountants in Romania
can help you draw up the necessary documents if your company is currently in a state of financial inactivity
Financially inactive companies
A consequence of no financial activity is the cancellation of the VAT number
. Taxpayers who are financially inactive forfeit the right to deduct expenses during the time of the inactivity.
Fiscal inactivity can take place if:
- the company’s functioning period has expired;
- the company no longer has a valid headquarters;
- the company no longer has statutory bodies.
The draft law is yet to be in force. It will only become enforceable after it is approved by the Government and published in the Official Gazette. The experts at our Bucharest accounting firm can help you with information on its applicability once it is in force.
We can also help you with other matters concerning tax compliance in Romania. Contact us
if you have any questions or are in need of professional accounting services.