No registration requirements apply to prize promotions.
In terms of whether the organizer of a promotion should apply for tax registration in Romania - the position is unclear because the law is not straightforward as regards the nature of revenue obtained by individuals participating in promotions, which is relevant for tax registration purposes.
If the revenues qualifies as 1) a prize, then registration is required. However if the revenue qualifies as (2) revenue from abroad, no registration requirements exist. In the meantime, the safest approach would be for the organizer granting the prize to apply for tax registration in Romania.
According to the provisions of the Romanian Fiscal code, income from prizes obtained by a Romanian individual from a non-resident entity may be classified either as an income from a prize or as an income received from abroad. We are not aware of the approach of the tax authorities in Romania as regards the classification of the income received by a Romanian individual in such cases.
In our opinion, the safest approach for the payer of the income / entity granting the prize would be for the income paid to be considered as income from prizes, in which case the payer of the income has the obligation to withhold, declare and pay the relevant income tax towards the Romanian state budget; therefore a tax registration process should be followed in this respect, while the taxes / fee registration due are immaterial.
Nevertheless, if the income is classified as income received from abroad, the non-resident entity has no obligation in respect of income tax due in Romania, such obligation falls under the liability of the individual obtaining the income.
Last modified 23 Jan 2019