Starting with January 1st, 2018, the representative office of one or more foreign legal persons, authorized for functioning in Romania, pursuant to the law, is obligated to pay an annual tax in amount of 18.000 lei. For representative offices of one or more foreign legal persons incorporated or terminated during a fiscal year, the tax owed for that year is calculated proportionally with the number of the months of existence of the representative office during that fiscal year.

The representative office of one or more foreign legal persons is obligated to declare and pay the representative office tax to the national budget until the last day of the month of February (included) of the taxation year. In 30 days after the incorporation the representative office is obligated to calculate, to register the tax statement at the competent tax authority and to pay the tax for the taxation year. The tax is calculated starting with the first day of the incorporation month until the end of that year. If the representative office is terminated, it has the obligation of redoing the calculation of the representative office tax and to register at the competent tax authority the tax statement, in 30 days term after the date of the termination. The representative office calculates again the annual tax for the active period since the beginning of the year until the day 1 of the month following the cancellation month.

This newsletter is issued by ECOVIS Romania as an informing letter over the most important evolutions/changes in the legal and tax fields, and in the investment environment in Romania as well. The information, the analysis and the comments mentioned above are of generic nature and it is not the intention or the imperative of the issuer to be used as a substitute for professional consulting dedicated to individual cases. For advice concerning your specific situation, please contact us directly.

© ECOVIS Romania SRL – 2017