SAFT Reporting from 1 January 2025

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13 January

What is Statement 406 or SAFT?

SAFT stands for Standard Audit File for Tax, or the standard fiscal control file.

Statement 406 or SAFT reporting represents a standardized electronic reporting method to the National Agency for Fiscal Administration (“ANAF”) that details all of a company’s accounting records, issued and received invoices, details of collections and payments, fixed assets, inventories, taxes, and other information. Practically, all these details are reported in the form of an XML file submitted electronically to ANAF.

The SAFT reporting allows ANAF to access a company’s financial and accounting information without the need for physical presence at the company’s headquarters. Thus, ANAF can automatically and thoroughly analyse taxpayers’ economic activities, reducing the need for physical inspections and direct interactions. As a result, transparency regarding any company’s operation is increased.

Reporting Schedule

SAFT reporting was introduced gradually, starting with large taxpayers (since January 1, 2022), followed by medium taxpayers (since January 1, 2023). Intermediate deadlines were also established, especially for taxpayers classified as large/medium size during the 2022-2024 period.

Small taxpayers fall under SAFT reporting requirements starting January 1, 2025. This category includes non-residents having branches, permanent establishments, or who are VAT-registered in Romania.

Reporting Methodology

SAFT reporting consists of three sections:

Monthly (or quarterly) section: Refers to information about received and issued invoices, details of collections and payments, taxes, and detailed accounting entries. This section aligns with the applicable VAT fiscal period. Taxpayers not registered for VAT or those with VAT fiscal periods of six months or one year must submit the SAFT file on a quarterly basis.
Annual section: Refers to reporting of assets, i.e., non-current assets and detailed transactions related to them.
Inventory and work-in-progress section: Submitted only upon ANAF’s request.

Standard Reporting Deadlines

With the exception of grace periods described below, the following standard reporting deadlines apply:

The last calendar day of the month following the reporting period (month/quarter, as applicable) for the monthly (quarterly) section, i.e., information excluding “Inventories” and “Assets.”
For “Assets” section, the reporting deadline corresponds to the deadline of submission of financial statements for the financial year they refer to (usually 31 May of the year following the reporting year). This information is prepared based on the applicable financial year and submitted via a sole D406 Statement. The “Assets” section can be submitted as an independent statement, requiring only mandatory fields for that specific type of information.
At ANAF’s request, within a period of no less than 30 calendar days, for “Inventory and work-in-progress” information. Depending on the requested reporting period, taxpayers may submit one or more SAFT files covering relevant subsections for “Inventories,” separated by calendar months/quarters for the requested period.

Grace Period

The grace period applicable to all categories of taxpayers is as follows:

For monthly SAFT filing obligations:
- 6 months for the first filing, 5 months for the second, 4 months for the third, 3 months for the fourth, 2 months for the fifth.
For quarterly SAFT filing obligations:
- 3 months for the first filing.

The grace period begins after the reporting period’s last day when the filing becomes mandatory for the respective taxpayer.

Small taxpayers, who enter the scope of SAFT reporting from January 1, 2025, will have a maximum deadline for submitting reports until July 31, 2025. This deadline applies to six monthly reports or two quarterly reports covering the January-June 2025 period.

Similarly, large and medium taxpayers benefited from a grace period upon entering SAFT reporting requirements.

Who Must File Statement D406?

The following categories of taxpayers are required to submit the Standard Audit File for Tax (SAFT) through the Informative Statement D406:

All forms of commercial companies (SA, SCA, SCS, SNC, and SRL)
Branches / permanent establishments of non-resident companies
Non-resident companies having a Romanian VAT registration code
Foreign legal entities whose effective place of management is in Romania
Associations / Non-profit associations/entities (NGOs)
Autonomous authorities / National research and development institutes / National societies/companies
Craft cooperative organizations, consumer cooperative organizations, and credit cooperative organizations
Collective investment organizations not established by constitutive act as regulated by capital market legislation, optional pension funds, privately managed pension funds, and other entities organized under the Civil Code.
Other legal entities not specifically excluded (see the exceptions listed below).

Who is Exempted from Filing?

The following taxpayers are not required to submit the Standard Audit File for Tax (SAFT):

Authorized individuals (PFA) / Sole proprietorships (II) / Family enterprises (IF)
Individuals performing lucrative activities (PFL)
Family associations (ASF)
Limited liability law firms (SPAR) and individual attorney offices
Notary offices and individual notary practices
Individual medical practices (CMI)
Insolvency practitioner law firms (SPI)
Professional one-person enterprises with limited liability (URL).
Public institutions (PUB), regardless of their financing source or taxpayer category.
Administrative authorities, regardless of their financing source.
Cult units, homeowners’ associations, and other non-profit legal entities that, based on their founding regulations, special laws, or other normative acts, are required to use single-entry bookkeeping. If such associations/entities opt for double-entry accounting, they will be required to file SAFT reports.

Contraventions and Sanctions

Contraventions applicable to SAFT are specified in Article 337^1 of the Fiscal Procedure Code:

Failure to file SAFT (D406) by the specified deadlines is punishable by a fine of 1,000 RON – 5,000 RON.
Incorrect or incomplete filing of SAFT (D406) is punishable by a fine of 500 RON – 1,500 RON.

There are no contraventions applied to:

Taxpayers who correct their SAFT (D406) statement before the filing deadline for the next statement.
Taxpayers who correct their SAFT (D406) statement after the filing deadline due to circumstances beyond their control.

Article written by Valentin Alangiu, Accounting & Tax Partner – Nowium Tax&Finance

Valentin ALANGIU

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