More than 1,000 large companies will be tax reclassified, to be moved to the category of medium taxpayers starting from July 1. The decision was based by ANAF on a detailed analysis of the fiscal activity of large taxpayers, which highlighted the need to adjust their number according to their contribution to budget revenues. For companies that lose their large taxpayer status, the reclassification comes as good news because it reduces their administrative burdens and provides them with a milder sanction regarding their invoice reporting obligations in e-Invoice.

The Romanian Tax Office has initiated, through a recently published draft Order, a strategic reorganization of the way it administers large and medium-sized taxpayers, motivated by the desire to increase the efficiency of taxpayer administration, to improve the collection of budget revenues and to strengthen the partnership relationship with companies.

The decision was based on a detailed analysis of the fiscal activity of large taxpayers, which highlighted the need to adjust their number according to their contribution to budget revenues. The analysis showed that a number of 1064 taxpayers, currently classified as large, actually have a relatively small share in the total budget revenues, representing only 4.8% of them.

In order to make tax administration more efficient and focus resources on the most significant sources of income, ANAF decided to transfer 1064 taxpayers from the category of high taxpayers to that of medium taxpayers. This reorganization will begin to be effective from July 1, 2024, involving a redistribution of taxpayers to categories more appropriate to their size and fiscal impact.

Through this reconfiguration, the Tax Office aims to improve the quality of services offered to taxpayers with the highest tax contribution, while reducing administrative burdens for taxpayers reclassified as medium, facilitating their access to tax services.

Thus, from July 1, for these 1064 companies that were large taxpayers and are becoming medium taxpayers, the fiscal body that will administer them will change. More precisely, according to ANAF, 676 of them will be administered from a fiscal point of view by the county administrations of public finances, and the remaining 388 will go to the Fiscal Administration for Middle Taxpayers in Bucharest.

This generates a simplification, says ANAF, in the sense that, for the 676 taxpayers who will be administered as medium taxpayers, moving to the headquarters of the fiscal body (County Administrations of Public Finances) is easier than moving them to the central structure that it was now under administration – the Directorate of Large Taxpayers from Bucharest.

Moreover, the move to the category of medium taxpayers also has an impact on the obligations related to the preparation of the transfer pricing file. While large taxpayers must prepare their transfer pricing file annually by the date of their annual income tax returns, medium-sized companies benefit from a less stringent approach in this regard. More precisely, for these companies, the file does not have to be drawn up every year, it must only be presented during tax inspections when ANAF requests it. Companies that receive such requests have between 30 and 60 calendar days to present the document to tax inspectors. In addition, for medium-sized companies, the obligation to present the transfer pricing file comes from other significance thresholds compared to those provided for large taxpayers. In the case of medium-sized companies, the value of transactions with related parties must be greater than or equal to one of the following limits: 50,000 euros, in the case of interests, 50,000 euros, in the case of services, 100,000 euros, in the case of transactions with tangible and/or intangible goods.

Another aspect worth pointing out concerns the sanctions for the incorrect application of the e-Invoice, also differentiated according to the size of the companies. We remind you that, starting from July 1, the deadline for reporting invoices in e-Invoice is five calendar days, and the fines for non-compliance with these deadlines are lower for average taxpayers compared to large ones. While large companies risk sanctions ranging from 5,000 to 10,000 lei, for medium-sized ones, the fines will be half, from 2,500 to 5,000 lei. However, it should not be neglected that, also from July 1st, another sanction regarding the e-Invoice comes into force – the fine of 15% of the invoice value (including VAT). This penalty will be applied to the receipt and registration of invoices in a format other than that imposed by the national electronic invoicing system, and it will be imposed in the same way to any company, regardless of the size category it belongs to from a fiscal point of view.

The current lists of large and medium taxpayers are available here and here, respectively, and will be republished by ANAF with updates in the coming period, so that they apply from July 1.

Article published in Business-Mark.ro