In this article, we detail the procedure for obtaining a Romanian tax identification number for a foreign citizen not holding a Romanian CNP. The foreign citizen has been appointed on the position of director at a Romanian company. We describe below the necessary documents and the steps to be taken to successfully obtain the Romanian tax identification number (TIN) from ANAF.
Why is it required to obtain a tax identification number?
The purpose of obtaining the tax identification number (TIN) is, obviously, to declare different taxes due. Such taxes may be due either directly by the foreign director (i.e. wage taxes), or by the company whose representative is the director. Thus, for the purpose of properly tax identification of the individual, and in case he does not already have a Romanian CNP (personal numerical code), it is necessary to obtain a TIN for the foreign citizen.
First, let’s detail the documents that will have to be prepared for submission to ANAF.
Documents required for the Romanian tax identification number application
For obtaining the TIN the applicant must submit the following documents to the Romanian territorial Tax Office (ANAF):
- “the tax registration/deregistration form for individuals who do not hold Romanian personal numerical code” – form 030;
- a copy of the national identity document or of the passport (if the person is a citizen from outside the EU area) of the foreign citizen;
- the document proving the reason for requesting the TIN – in this case, the copy of the appointment document for the director position (i.e. the shareholders’ decision) or the mandate agreement for the administrator position, as the case may be;
- certificate issued by the Romanian Trade Register attesting the official registration of the foreign person on the director position (in Romanian: “administrator”).
Who should submit the TIN application?
As per the general legal provisions, it is the direct obligation of the taxpayer (in this case of the foreign individual) to request the issuance of a TIN.
However, in this specific case, the tax law allows for the company, as the payer of income, to submit the NIF application file to the tax office. This is possible without having the foreign citizen signing any power of attorney, as per the provisions of art. 82 paragraph (3) of the Romanian Tax Procedure Code. For this purpose, the checkbox for “income payer” must be ticked on form 030 (please see the form above in the list of documents required).
Where should the application file be submitted?
For the situation of obtaining a TIN for a foreign director of a Romanian company, the application file must be submitted to the Territorial Tax Administration (ANAF) in the area where the income is realized. More specifically, to the Territorial Tax Administration (ANAF) of which the company belongs (e.g., if the company’s headquarter is located in district 1 of Bucharest, then that’s where the application file should go).
The application file can be submitted directly to the registry desk of the competent ANAF office, and also by post. If you submit the file by post, you will have to follow the procedure of sending the envelope by acknowledgment of receipt (in Romanian: “cu confirmare de primire”).
How long does it take for tax authorities to issue the Romanian tax identification number?
The certificate reflecting the foreign individual’s tax identification number is generally issued by the tax office within approximately 7-10 business days from the date of submission of the complete application file. If the application file is sent via post, the deadline extends with 3 to 4 days.
Tax obligations related to the director’s remuneration
As for the tax treatment applicable to the remuneration derived by the director, this is similar to the one applicable to any salary income. More specifically, for the remuneration received by the foreign director both the income tax of 10% and the mandatory social contributions are due: pension contribution – CAS (25%) and health insurance – CASS (10%), due by the beneficiary of income, and the labor insurance contribution (CAM) in the percentage of 2,25%, due by the company.
The company paying the income has the obligation to declare it for taxation purposes via the monthly form 112 until the 25th of the following month.