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The establishment ex officio of the individuals’ annual income tax

In this edition:

•    Approval of the procedure concerning the establishment ex officio of the individuals’ annual income tax due on several types of income.

Order no. 2.862/24 from 24 October 2019, published in the Official Gazette, part I, no. 897 6 November 2019

The provisions of this Order shall apply to the ex-officio assessment of the annual income tax due by individuals obtaining certain incomes starting with the fiscal year of 2018.

Procedure for the ex-officio assessment of the annual income tax due by the individuals

In case of taxpayers which have not submitted the annual tax return reflecting the incomes obtained, the tax authorities are entitled to determine ex-officio the annual income tax due for each source and type of income:

·        Incomes obtained from independent activities, if the respective activity continues in the concerned fiscal year;

·        Incomes obtained from intellectual property rights, other than those for which the income tax is withheld at source;

·        Rental income;

·        Incomes derived from agricultural activities, forestry and/ or pisciculture;

·        Capital gains;

·        Incomes derived from abroad for which there is an obligation to submit an annual tax return.


Identifying and notifying the concerned taxpayers:

The tax authorities can collect and centralize the data regarding the taxpayers based on the existing information declared by the respective taxpayers, by the income payers and/ by the intermediaries, and also from the automatic exchange information process between the Romanian tax authorities and the foreign relevant tax authorities, when the case may be (e.g. via the software application “Automatic Exchange of information”).

For the fiscal year 2018, the tax authorities will use the following sources to collect the information regarding the individuals who have not filed the annual tax return in due time:

·        the estimative annual tax returns already filed;

·        the form 260 – representing the tax decisions regarding the pre-payments of income tax/ the annual income tax due, issued for previous fiscal years;

·        the form 220 – representing the tax statements of the estimated incomes for the fiscal year 2017;

·        the form 205 – representing the tax returns for the fiscal year 2018, regarding the income tax withheld at source and the earnings/ losses from investment incomes;

·        third-parties data obtained from the exchange of information process;

·    the form 240 – representing the annual tax return for nongovernmental organizations and for transparent entities.


The concerned taxpayers will be notified by the tax authorities, through the following forms:

·   “Notification attesting the failure to meet the reporting obligation to file the annual tax return in due time”;

·   the form 256 – ”Ex officio tax decision regarding the incomes derived by individuals”;

·   the form 257 –  ”Decision for canceling the ex officio tax notification”.


Conclusions and recommendations:

We recommend both to taxpayers and to their tax consultants to pay more attention to the reporting obligations with regard to the annual tax process, in order to avoid being added on the non-compliance list issued by the tax authorities.

Besides the reputational risk, the paxpayer may be forced to support a higher tax burden than it should have been normally due if the reporting obligations were settled in due time. This could happen given the tax authorities will use for assessing the respective taxable base and applicable income tax, several other indirect methods/ tools for colecting the relevant information.

For more information or details on the above you may consult the Official Gazette no. 897 / 6 November 2019.

Also, we invite you to contact us shoud you need more details on the above.


Prepared by:
Corina Mindoiu - Associate Partner, People Advisory Services
Dan Răuț - Manager, People Advisory Services


For additional information, please contact:
Alex Milcev - Partner, Head of Tax & Law


Ernst & Young SRL

Bucharest Tower Center Building,

22nd Floor, 15-17 Ion Mihalache Blvd.,

Sector 1, 011171, Bucharest, Romania

Tel: (40-21) 402 4000, Fax: (40-21) 310 7124

Email: office@ro.ey.com

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