7/12/2023 0 Comments Transfer pricing ey![]() ![]() Equally important are the situations in which the Ministry of Finance can decide to reject the Advance Tax Ruling, which creates a significant imbalance between the rights/obligations of the tax authorities and the taxpayer. The signals and proposals from the Romanian business environment are extensive and support the clarification, clarity, and modification of certain points in the current provisions of OMF 1178, as well as the expansion of the scope of applicability for the Advance Tax Ruling. If a taxpayer desires to obtain a solution to resolve a future tax situation (anticipated through the business plan), it is much more important than the amount paid to ANAF to ensure the smooth operation of their business in a stable fiscal environment. ![]() The fact that obtaining an individual advance tax ruling incurs a relatively significant issuance fee is not the most important aspect compared to others mentioned in the order.įiscal predictability, along with legislative predictability, takes precedence by ensuring fair tax treatment for a taxpayer. On the other hand, although the legislation in this regard has existed in Romania for some time, obtaining an advance tax ruling is still a challenging and bureaucratic project.Īlthough all spheres – business, academia, and even ANAF – speak about fiscal predictability as an absolute requirement for a functional economy, which could be ensured by the ATR procedures, obtaining it is still very difficult for a taxpayer. To ensure the usefulness of the Advance Tax Ruling, it would be necessary to expand the scope of covered taxes, for example, to make obtaining the Advance Tax Ruling a common practice for taxpayers. OMF 1178/2023 reiterates the provisions regarding the Advance Tax Ruling, but there are still several aspects that could be greatly improved to effectively support taxpayers, both in form and substance.įiscal predictability – mandatory for a stable business environment the conclusions requested by the taxpayer.references to applicable tax legislation and administrative interpretations supporting the request. ![]() ![]() relevant documents supporting the request.arguments and references to the application of tax legislation and international tax conventions.a detailed description of the specific tax situation for which the advance ruling is requested.The deadline for resolving the request for issuing the individual advance tax ruling is up to six months, and obtaining an individual advance tax ruling is subject to a fee, as follows: equivalent of 5,000 euros for large taxpayers and non-resident taxpayers, and the equivalent in Romanian Lei of 3,000 euros for other categories of taxpayers. The individual advance tax ruling is an administrative act issued by the central tax authority (Ministry of Finance) to resolve a taxpayer’s request regarding the regulation of a future tax situation.Īccording to the provisions of the Fiscal Code, the individual advance tax ruling is enforceable and obligatory for the tax authority only if the terms and conditions have been respected by the taxpayer. ![]()
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