Romania's tax authority has updated reporting requirements for Form 205 to capture a new income category — transfers of property rights from dismemberments under suspensive conditions — requiring companies to report withheld tax on such transactions from the 2025 fiscal year, with declarations due by 28 February 2026.
Romania’s tax authority, the National Agency for Fiscal Administration (ANAF), has issued an Order No. 179/2022 on 16 February 2026 to modify the reporting requirements for Form 205, the “Informative Declaration on Withholding Tax and Investment Gains/Losses per Income Beneficiary.”
This update introduces a new income category that must be reported by legal entities and other organisations required to maintain accounting records.
Key changes to reporting obligations
Effective 1 January 2025, entities must report income from transfers of property rights resulting from dismemberments under suspensive conditions. This new category—labelled as section (l) in the form’s instructions—applies when legal persons or entities with accounting obligations withhold income tax at source on such transactions.
The updated instructions specify that Chapter IV of Form 205 now covers this additional income type. For each payment, companies must generate a separate table within the form to record the relevant data for each income beneficiary. This requirement sits alongside existing reporting categories for dividends, interest, royalties, and other income types already covered by the declaration.
Implementation and compliance
The Regional Directorates General of Public Finance and their subordinate tax units will enforce these provisions. The order received approval from the Ministry of Finance and will be published in the Official Gazette of Romania.
Companies making payments in this new category must ensure their reporting systems accommodate the additional data fields when filing their informative declarations for the 2025 fiscal year onward.
The amendments are in line with Government Emergency Ordinance No. 138/2024, which introduced changes to Article 111 of Law No. 227/2015 (Fiscal Code) and established a new withholding tax obligation. The changes require tax withholding on income from transfers of property right dismemberments under suspensive conditions, paid by legal entities or entities maintaining accounting records.
The withheld tax must be declared and paid by the 25th day of the month following the withholding. Additionally, Article 132(2) of the Fiscal Code mandates that income payers submit, by the last day of February each year, to the tax authority a declaration form for each income beneficiary for the previous year (Form 205).
As of 1 January 2025, tax on these transactions must be withheld at source by the income payer when maintaining bookkeeping records, replacing the previous system under which the public notary collected the tax upon authentication of the transfer deed.
The proposed changes are expected to apply when filing the 2025 tax return, due on 28 February 2026.
