• Tax Flash nr. 69
Article:

Tax Flash nr. 69

18 February 2022

In the Official Gazette no. 138/10.02.2022 was published the Order no. 179/2022 for the approval of the model and content of the forms 205 "Informative Statement regarding the tax withheld at source and the gains / losses from investments, on income beneficiaries" and 207 "Informative Statement regarding the withholding tax / the tax borne by the income payer / exempt income, on non-resident income beneficiaries".

The main amendments to Form 207 are as follows:

  • a new column is introduced through which the tax withheld by the income payer will be highlighted (through the gross-up method). We remind you that there is an obligation to submit the form also by the income payers with withholding tax regime, when the tax due by the non-resident is borne by the income payer;

 

  • redefining certain categories of taxable income provided at article 223 of the Tax Code (remuneration received by foreign legal entities acting as administrator, founder, or member of the board of directors of a resident, income earned by non-residents from the liquidation of a resident) and adding a new category of incomes representing payments for technical services according to the Double Tax Treaty between Romania and the Republic of India;

 

  • introducing the obligation to declare the exempt income based on international agreements to which Romania is part of;

 

  • it is clarified the period of declaring the distributed dividends, but which were not paid to the non-resident shareholders / stockholders by the end of the year in which their distribution was approved. Thus, the tax related to the distributed dividends, but unpaid, will be reported in the statement related to the year in which the distribution was made.

 

Forms 205 and 207 published through the Order no. 179/2022 will be used to declare the incomes obtained starting with 1st of January 2021.

We remind you that the deadline for submitting the forms 205 and 207 is the last day of February, inclusive, of the current year for the previous year.