State to introduce the “penalty for withholding taxes”

Individuals and companies that will not declare the taxes they owe the state, and are discovered by Fisc (for values higher than RON 50), will be obligated to pay a “penalty for withholding taxes” of minimum 10 percent the sum owed which could be raised to 100 percent should the debt be a result of tax evasion.

Taxpayers who will be charged for this penalty will not be spared from paying other duties as a result of their tardiness, such as interest rates and penalty fees.

The new strike was introduced in the new Fiscal code and it’s defined as a fiscal “accesory” in the form of a sanction for withholding or sub-declaring the taxes owed.

For undeclared taxes established by tax auditor, taxpayers will owe a penalty of 10 percent of each of these undeclared obligations, if the established sum is not bigger than 25 percent of every tax receivable. The penalty will have a maximum limit of RON 100,000.

This limit will not be imposed if the debt to the state is generated by an act of tax evasion. In this case, the withholding penalty will be upgraded to 100 percent, on the condition that the tax evasion crime was established by a judiciary.

Read more about

Nearly 80,000 Romanians are using the new Avansis Online platform to pay their taxes and fees

read more

“Applying the withholding penalty does not eliminate other penalty fees”, according to the document quoted by Mediafax.