Recent update on the Romanian Taxpayer List applicable as of 2022

The Romanian tax authorities published the draft requirements regarding the updated large taxpayer list, to be applied starting with 1 January 2022.As per the current draft information released by the tax authorities, part of the criteria used in the past will be maintained, as follows:

1. Specific criteria:
• certain entities (e.g. National Bank of Romania, authorized credit institutions, authorized insurance companies, investment firms);
• newly established companies declaring their intention to invest at least EUR 10 million during the first three consecutive years of activity in Romania;
• companies part of VAT fiscal groups – the corporate income tax fiscal group is not mentioned at all in the draft requirements.
2. Basic criteria:
• ranking by considering an aggregated value of 50% turnover, 30% declared tax liabilities and 20% personnel expenses;
• all values are based on the previous financial/fiscal year – no special mention is made for taxpayers having a different financial year (i.e. other than 1 January – 31 December).
3. Continuity criteria:
• previously selected entities are excluded from the list only after a period of three consecutive years during which they will not meet the relevant criteria.

At the same time, they have eliminated two criteria, namely:

• fiscal representation – non-resident company having a Romanian large taxpayer as fiscal representative will no longer be included by default;
• direct shareholder – companies owning at least 50% of the shares of large taxpayer or companies in which a large taxpayer owns at least 50% of shares will no longer be included by default.

Further to such changes in the applicable criteria, approximately 1,200 entities will be eliminated from the list, which is expected to be limited to 3,000 companies.