Romania: Amendments to FATCA and CRS regimes

Amendments related to FATCA and CRS regimes—generally effective as of 30 June 2022

Amendments related to FATCA and CRS regimes—generally effective as of 30 June 2022

The Romanian tax authority issued amendments related to the FATCA and common reporting standard (CRS) regimes—generally effective as of 30 June 2022.

The amendments incorporate the recommendations of the Organisation for Economic Cooperation and Development and the European Commission regarding the implementation of the CRS on financial accounts, as well as the European rules on the mandatory automatic exchange of information in the field of taxation.

The amendments specifically relate to:

  • New administrative tax procedures applicable going forward in the communication between the Romanian tax authority and financial reporting entities regarding verification of compliance with FATCA and CRS due diligence procedures
  • The obligation of the financial reporting entity for keeping in electronic and/or physical format all the records/documents obtained during the tax due diligence procedures and the supporting documents of the efforts performed for complying with the FATCA and CRS regulations for a period of ten years from the annual reporting deadline
  • The obligation of the financial reporting entity to apply the reporting procedures and tax due diligence procedures of the automatic exchange of information in terms of reportable accounts as detailed in Appendix 1 and Appendix 2 of the current rules
  • Details regarding the data related to a reportable account which will be exchanged between the Romanian tax authority and the foreign tax authorities
  • New administrative sanctions and fines for the financial reporting entities for non-compliance with FATCA and CRS obligations—which are effective as of 30 July 2022—as follows:
    • Fines between RON 2,000 and RON 5,000 for each reportable account in case of non-reporting, reporting with delays or incorrect or incomplete reporting of the financial reporting entity
    • Fines between RON 5,000 and RON 10,000 for each reportable account in case of failure to apply the FATCA and CRS due diligence and reporting procedures by the financial reporting entity
    • Fines between RON 20,000 and RON 100,000 in case of failure to keep all the documentation obtained during the tax due diligence and reporting procedures
    • Fines between RON 5,000 and RON 10,000 for each reportable account in case of failure to provide the Romanian tax authority with the requested documentation

Read a July 2022 report prepared by the KPMG member firm in Romania

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.