Tax Update for Romanian Diaspora

Courtesy of KPMG experts Simona Vasile and Inga Tigai

Policy Changes and impact

The Romanian tax authorities (engl. NAFA/ rom. ANAF) have recently introduced a new set of rules aimed at improving tax compliance, especially for high net worth individuals and those perceived to have a higher fiscal risk. The changes are two-fold:

1. Compliance notification: This is a preliminary document issued by ANAF to individuals deemed to be at fiscal risk. It aims to provide taxpayers with the opportunity to rectify any irregularities in their filings before any formal tax inspection occurs. The window to make the necessary adjustments is 30 days upon receiving the notification. Draft template below.

2. Heightened Surveillance List: As per Ordinance ANAF 920/2023, effective from June 28, 2023, a special list will be created featuring high net worth individuals and their close relatives. The goal is to encourage voluntary compliance among these categories of taxpayers.

Escalated Tax Rate

Furthermore, there is a proposed ordinance that could escalate taxes on undeclared revenues from the current rate of 16% to an astounding 70%.