Romanian legal persons, residing natural persons, and permanent headquarters in Romania belonging to foreign legal persons have the legal obligation to register with the competent fiscal authorities those contracts concluded with foreign legal persons or non-residing natural persons.

Pursuant to Order no. 1400/2012 issued by the National Agency for Fiscal Adminis-tration, the contracts concluded between (i) Romanian legal persons, residing natu-ral persons, as well as permanent headquarters in Romania of foreign legal entities, and (ii) foreign legal persons or non-residing natural persons, for services that are carried out by the latter in Romania and generate taxable incomes (such as: con-struction works, consultancy, technical assistance, etc.) are subject to registration with the fiscal authorities. If no written form contract is concluded, the registration will refer to the documents justifying the services rendered in Romania by foreign legal entities or non-residing individuals, such as: works reports, reception minutes, feasibility reports, market studies, etc.

The registration process consists of filling out a special form with the competent fis-cal authority, without any proving documents of the enclosed data. The declaration must be submitted for each contract within 30 days from the signing of the contract or the issuance of documents set forth by the law, as the case may be.

Failure to fulfill the registration is sanctioned with a fine ranging from RON 500 to RON 1,000 for natural persons, or from RON 1,000 to RON 5,000 for legal entities