Romania’s tax authority plans to increase revenues from large taxpayers

Large taxpayers in Romania only cover 43% of the paid taxes, but they bring 70% of the economy turnover, whereas in countries like Germany, France or UK, their share of paid taxes is of 65% to 75%, said Ionuţ Mişa, the new president of the National Fiscal Administration Agency ANAF, in an interview with Ziarul Financiar. The ANAF is planning to increase this ratio in Romania too, thus diminishing the fiscal burden for small and medium enterprises. Mişa, a former Finance Minister and former head of the Large Taxpayers department with ANAF, plans to set up a centralized department for risk analysis, by using databased rather than the human factor, thus lowering the risk of potential office abuse in controlling taxpayers, and targeting specific information, instead of asking for all company documents. It will also focus on large taxpayers. Some 4,500 companies on the large taxpayers list, based on turnover, assets or staff criteria, bring 70% of the economic turnover, whereas the rest of 395,000 active companies bring only 30% of the economic turnover, but cover over half of the total taxes and social contributions. ANAF cashed in some USD 46 billion worth of taxes and social contributions in 2017, 8% more than in 2016. The risk criteria ANAF might include could be unjustified loss, lack or delay in submitting fiscal declarations, rectifications to previous declarations, high number of employees earning minimum wages, and the weight of salary costs within the turnover, among others. Romania’s new tax agency head says tax collection lags behind estimates editor@romania-insider.com