Services for non-residents

Supporting foreign companies that wish to employ Romanian staff working in Romania

The relevant legislation regarding the taxation of the salary incomes received by the Romanian citizens for activities run in Romania for non-resident employers says that the non-resident company having employees in Romania must apply and use the Romanian specific payroll legislation.
Consequently, the non-resident company must declare and pay for its Romanian all the social security contributions (pension insurance tax and health insurance tax) and help declaring the salary tax due by a Romanian company.

There are two possibilities to do that:

• The non-resident company registers in Romania as salary taxes payer through a fiscal representative and obtain a Romanian Tax Number, and declares and pays directly the taxes, or
• The employee concludes an Agreement with the non-resident company to declare and pay the salary taxes in the name and on behalf of it.

Important: the non-resident company must have a bank account which allows payments in RON (the taxes can be paid only in RON).

Obtaining the Romanian VAT number by non-resident companies

The non-resident companies are allowed to sell from abroad to Romanian clients as follows:

• to the VAT payer companies – by using the “reverse charge” mechanism,
• to the non-VAT payer companies – by adding the VAT quota from the head office country,
• to the individuals – by adding the VAT quota from the head office country (“distance sales”)

Selling goods to Romanian companies

In such cases, the Romanian Tax Authority does not grant the Romanian VAT code (because the “reverse charge” mechanism is available), unless the non-resident company intends to perform imports in Romania, for which the VAT is to be paid before taking out the goods from Customs. Proof of this intention is required (contract with non-EU company, etc).

Another situation when the Romanian VAT code is granted is when the non-resident company intends to purchase goods from Romanian companies and to sell them to Romanian companies. Again, proof of this intention is required.