Romanian tax residents with wealth > EUR 25 million will be notified by the Tax Agency ANAF to ensure voluntary tax compliance, and inspections may be triggered based on the risk profile.
Drafted on 19 July 2023 with the help of ChatGPT-4
The order 920 from the National Agency for Fiscal Administration (Agenţia Naţională de Administrare Fiscală) in Romania, issued on June 13, 2023, and published in the Official Gazette of Romania, Part I, on June 28, 2023, is about High Net Worth Individuals: HNWIs, individuals with large fortunes.
Key points from the document:
1. A person with a large fortune is defined as a fiscal resident in Romania who owns wealth, both in Romania and abroad, estimated at a value greater than 25 million euros, equivalent in lei, calculated at the average euro rate from the previous year of wealth estimation, established by the National Bank of Romania. The estimation is based on data held/obtained by the National Agency for Fiscal Administration, in accordance with legal provisions.
2. The wealth estimation is based on data and information held or obtained by the National Agency for Fiscal Administration, regarding the following assets: real estate, movable assets, and financial assets.
3. The group of individuals with large fortunes is made up of individuals whose estimated wealth meets the condition specified in point 1. The extended group includes these individuals and their spouses and relatives up to the second degree.
4. The National Agency for Fiscal Administration notifies individuals about their inclusion in the group of individuals with large fortunes. The notification includes information about the wealth criterion, the elements based on which the wealth was estimated, and the approach of the National Agency for Fiscal Administration and the legal framework adopted to ensure the tax compliance of individuals with large fortunes.
5. The group of individuals with large fortunes is updated once every three years, to include individuals who meet the wealth criterion, and once every six years, to remove individuals who no longer meet this criterion. The extended group of individuals with large fortunes is updated concurrently.
6. To ensure voluntary tax compliance of the individuals mentioned in point 3, the National Agency for Fiscal Administration may apply alternative tax treatments based on identified risks and select, based on risk analysis, individuals who present a risk of non-compliance in declaring taxable income, for the purpose of conducting checks on their personal tax situation/documentary checks, under the law.
7. The General Directorate for the Control of Personal Income will implement the provisions of this order.
Link to the document: https://static.anaf.ro/static/10/Anaf/legislatie/OPANAF_920_2023.pdf