Tax audit of individuals 2026

Chapter 1

General framework of tax audits

Fiscal Procedure Code (Law 207/2015), Title VI · forms of audit · who carries them out

A tax audit is the set of activities through which the tax authority verifies the legality of the taxpayer's affairs and their compliance with the tax law. For individuals, the central instrument is the Personal Tax Situation Verification (PTSV), the procedure through which ANAF compares declared income against the person's actual wealth and expenses and, in case of mismatch, establishes additional income through indirect methods. This guide covers that procedure in detail and presents, in summary, the other forms of control that may apply to an individual.

Forms of audit under the Fiscal Procedure Code

Form of audit	Legal basis (FPC)	Applicable to individuals?
Personal Tax Situation Verification	art. 138–147	Yes, the specific procedure for individual income tax
Tax inspection	art. 113–133	Yes, typically for self-employed (PFA), liberal professions or economic activities
Unannounced control	art. 134–135	Yes, without prior notice
Anti-fraud control	art. 136–137¹	Yes, operational control, without notice
Documentary verification	art. 148–149	Yes, "desk-based" coherence analysis

Who audits individuals

The Personal Tax Situation Verification is carried out exclusively by the central apparatus of ANAF (the General Directorate for Income Audit of Individuals, DGCVPF), with nationwide competence (art. 138 para. (3) FPC). Tax inspections, unannounced controls and documentary verifications may also be conducted by the territorial inspection or anti-fraud bodies.

The principles that protect you

Whatever the form of audit, the tax authority is bound by the general principles of the Fiscal Procedure Code: good faith (art. 12), the right to be heard before any decision is taken (art. 9), the active role of the authority and the establishment of the truth (art. 7), the exercise of discretion within the limits of reasonableness and fairness (art. 6), and the mutual duty of cooperation. These principles are concrete arguments in any subsequent administrative appeal.

Chapter 2

Personal Tax Situation Verification

Art. 138 FPC · scope, definition of "personal tax situation", the "once-only" rule

ANAF has the right to audit the entirety of an individual's personal tax situation, in respect of income tax (art. 138 para. (1) FPC). In essence, the procedure aims to determine whether the income declared by a person covers the growth of their wealth and the expenses incurred over a given period.

What "personal tax situation" means (art. 138 para. (4))

The entirety of the rights and obligations of a patrimonial nature, the cash flows and any other elements that may determine the actual tax position of the individual over the audited period; in short, everything that came in, everything that went out and everything accumulated as wealth.

The "once-only" rule

The Personal Tax Situation Verification is carried out only once for income tax and for each taxable period (art. 138 para. (17)). By way of exception, the head of the tax authority may order the re-audit of a period if, before the expiry of the limitation period, additional information unknown at the date of the initial audit comes to light (art. 144).

The period that may be audited (limitation)

The audit is carried out within the limitation period applicable to the right to establish tax claims (art. 140 para. (2)):

Situation	Limitation period	Date from which it runs
General rule	5 years	1 July of the year following the one for which the obligation is owed (art. 110 para. (1)–(2))
Claims arising from a criminal offence	10 years	The date the offence was committed (art. 110 para. (3)–(4))

Chapter 3

Preliminary activities

Art. 138 para. (2) & art. 140¹ FPC · risk analysis · compliance notice · selection

Before being actually audited, an individual passes through a three-stage filter. Understanding these stages is essential: in many cases, the issue can be resolved before the audit proper is triggered.

Stage 1. Risk analysis

The structure at the level of ANAF's central apparatus determines the risk of non-compliance with income declaration obligations. The risk represents the significant difference between the income estimated through the risk analysis and the income declared by the person and/or by paying agents for the same period.

>10% / RON 50,000 The "significant difference" thresholdThe difference is "significant" if it exceeds 10% of the declared income but is no less than RON 50,000 (art. 138 para. (2) lit. a) FPC).

Stage 2. Compliance notice

For persons identified as carrying tax risk, ANAF has an obligation to send, in writing, a compliance notice regarding the risks identified (art. 140¹). Through the notice you are given the opportunity to review your situation and to file or correct your returns.

Key deadline: 30 days

From the communication of the compliance notice you have 30 days to file or correct your tax return. Until that period expires, ANAF takes no action to select you for audit (art. 140¹ para. (2)). Note: filing the return does not prevent a subsequent selection, but voluntary remediation significantly reduces interest, penalties and exposure.

Stage 3. Selection

Individuals to be audited are selected on the basis of the risk level established through the risk analysis (art. 138 para. (2) lit. c)). By way of exception, up to 10% of those selected in a calendar year may be chosen at random (art. 138 para. (2¹)). High-risk persons who have not remedied the risks after the compliance notice are mandatorily subject to a Personal Tax Situation Verification or to a documentary verification (art. 140¹ para. (4)).

Chapter 4

Indirect methods of income assessment

Art. 138 para. (9)–(11) FPC · OPANAF 675/2018, as amended by OPANAF 417/2023

When the declared income cannot be reconciled with the person's wealth and expenses, ANAF establishes income through indirect methods, approved by order of the ANAF president (art. 138 para. (9)). The tax authority exercises judgement over the method and its scope within the limits of reasonableness and fairness, ensuring a fair proportion between aim and means (art. 138 para. (11)).

Method	How it works	When it is typically used
Source and use of funds	Compares total funds used (expenses, acquisitions, savings) with total identified sources of funds. The positive difference = additional income.	When the person has used funds in excess of identified sources
Cash flows	Analyses inflows and outflows through bank and financial accounts and the cash balance.	When operations were conducted predominantly through accounts, with significant inflows
Net wealth	Determines the growth of net wealth between the start and end of the period, adjusted for expenses, and compares it to declared income.	When significant growth in net wealth is observed over the period

The 70% tax on income from unidentified sources

From the result of the audit, ANAF separates income from identified sources (taxed under each category's own regime) from income whose source could not be identified. Starting 1 July 2024, income from unidentified sources is taxed at a rate of 70% applied to the adjusted taxable base (art. 117 Fiscal Code). The previous rate was 16%. This increased rate is the central stake of any audit, hence the importance of documenting the source of every sum.

Chapter 5

Conduct of the audit

Art. 138–142, 145 FPC · the notice · the declaration of assets · deadlines · duration · suspension

Procedural steps

Verification notice. Before the audit, ANAF informs you in writing through the verification notice (art. 138 para. (5)). The notice contains the legal basis, the start date, the audited period, the option to request a postponement (only once, on justified grounds), the request for documents and for filing the declaration of assets and income, and the mention of the right to professional / legal assistance (art. 141).A postponement request is decided within 5 days.
Submission of documents (60 days). You have at most 60 days from the communication of the notice, subject to forfeiture, to submit supporting documents or clarifications. The deadline may be extended by 30 days, once, upon justified request and with ANAF's consent (art. 138 para. (6)).Submission periods do not count towards the audit's duration.
Declaration of assets and income. At ANAF's request through the notice, you are required to file a declaration of assets and income within the deadline above (art. 138 para. (7)). The items to be declared and the template are established by order of the ANAF president.The minutes of finding record the start date of the audit (art. 140 para. (6¹)).
Application of the indirect method. ANAF establishes the income of the audited period using one of the indirect methods and, if new elements emerge, may request additional documents from you, with a reasonable deadline of at least 10 days (art. 138 para. (9) and (12)).You may, at any point during the procedure, submit documents and explanations (art. 138 para. (13)).
Communication of findings and hearing. Upon completion, ANAF presents you with the findings and the tax consequences, granting you the right to express your standpoint (art. 145 para. (3)). You have 5 working days from the presentation of conclusions to submit your written standpoint (art. 145 para. (5)).Exception: if the base is not adjusted or you expressly waive the right, in writing.

Place and duration

Place (art. 140 para. (3))

As a rule, the audit takes place at the tax authority's premises. Upon justified request, it may take place at your home (if you are unable to travel) or at the premises of the person providing your assistance, if the space is suitable. The request must be made before the start date and is decided within 5 days.

Duration (art. 140 para. (6))

Actual duration may not exceed 270 days, computed from the start date of the audit. Periods granted for the submission of documents and information are not included in this computation (art. 140 para. (7)).

Suspension of the audit (art. 142)

The audit may be suspended where failure to satisfy a condition prevents its completion, notably for: an expert report; investigations to identify persons or to verify the reality of transactions; at the written request of the individual on the basis of an objective situation (only once); to obtain information from third parties or from tax authorities of other states. Suspension and resumption are communicated in writing.

Chapter 6

Your rights and obligations

Art. 138, 141, 143, 145 FPC · what you may request · what you must do

Rights of the individual taxpayer

The right to be informed through the verification notice before the action begins (art. 138 para. (5)).
The right to professional or legal assistance, communicated through the notice (art. 141 para. (3)). The audit may take place at the office of your tax adviser / attorney (art. 140 para. (3) lit. b)).
The right to request the postponement of the start date, once, on justified grounds (art. 141 para. (1) lit. d)).
The right to cooperate in establishing the facts — to provide information, to submit documents and to name persons to give information (art. 143 and art. 138 para. (14)).
The right to be informed throughout the procedure of the findings (art. 138 para. (16)).
The right to be heard before the decision is issued and to submit a written standpoint within 5 working days (art. 9 and art. 145 para. (5)).
The right to challenge the tax assessment decision (art. 268 et seq.).

Obligations of the taxpayer

To submit the supporting documents and clarifications within the 60 (+30) day deadline, subject to forfeiture (art. 138 para. (6)).
To file the declaration of assets and income, at ANAF's request (art. 138 para. (7)).
The duty of cooperation and to provide the information relevant to establishing the actual tax position.

Beware the consequences of non-cooperation

If you fail to submit the documents on time, if they are incorrect, incomplete or false, or if you obstruct the audit, ANAF establishes the adjusted taxable base on the basis of the information it holds and issues the tax assessment decision (art. 138 para. (10) and art. 146 para. (3)). In other words, failure to engage does not stop the audit — it merely deprives you of your means of defence.

Chapter 7

Outcome of the audit

Art. 145–146 FPC · verification report · tax assessment decision · ancillary obligations

Verification report (art. 145)

The outcome is set out in a written report presenting the findings from a factual and a legal perspective. Attached to the report are the documents on which the findings were based, the records of the meetings and your standpoint, on which the tax authority must rule within the report itself.

Tax assessment decision (art. 146)

The report underpins the issuance of:

a tax assessment decision, if the taxable base is adjusted; or
a decision to close the verification procedure, if the base is not adjusted.

The decision is communicated to the audited individual. In addition to the additional income tax, the authority establishes ancillary tax claims (late-payment interest and penalties) attached to the principal sums.

Ancillary charges (general rule, FPC)

For claims administered by the central tax authority, late-payment interest of 0.02% / day and a late-payment penalty of 0.01% / day apply. For principal obligations resulting from incorrect declaration / non-declaration of income, a non-declaration penalty of 0.08% / day may also apply (art. 181). Values to be verified at the date the decision is issued.

Chapter 8

Tax residency verification and reclassification as resident

Art. 7 point 28 & 37, art. 59, art. 230 Fiscal Code · residency questionnaires · taxation of worldwide income

A distinct chapter of the tax audit of individuals concerns tax residency. The stake is significant: an individual who is a tax resident of Romania has full tax liability, meaning they owe tax on their worldwide income (earned both in Romania and abroad), whereas a non-resident is taxed only on Romanian-source income (art. 7 point 37 and art. 59 Fiscal Code). When ANAF finds that a person meets the residency conditions, that person is reclassified as a Romanian tax resident, with effects on the entirety of their income.

When you are an individual tax resident (art. 7 point 28)

It is sufficient to meet at least one of the following conditions:

Criterion	Content
Domicile	Your domicile is in Romania.
Centre of vital interests	The place to which your personal and economic relations are closest is in Romania (art. 7 point 6): family, dwelling, principal source of income, accounts, wealth.
Presence over 183 days	You are present in Romania for one or more periods totalling more than 183 days, in any consecutive 12-month interval ending in the target calendar year.
Romanian citizen in state service	You are a Romanian citizen working abroad as an official or employee of Romania in a foreign state.

Residency questionnaires (art. 230 para. (7))

Residency is determined by the central tax authority on the basis of standard questionnaires:

Questionnaire on arrival in Romania. An individual who arrives and stays in Romania more than 183 days files it within 30 days of meeting the 183-day threshold. On its basis and on the supporting documents, ANAF determines whether you have full or partial tax liability.ANAF notifies the person within 30 days of the questionnaire being filed.
Questionnaire on departure from Romania. A resident leaving for periods totalling more than 183 days in any consecutive 12 months files it 30 days before departure (art. 59 para. (4)–(7)).Evidence of change of residency to another state must also be provided, where applicable.
Tax residency certificate. If you invoke residency in a state with which Romania has a double tax treaty, you must produce a residency certificate issued by the foreign authority, valid for the relevant year(s) (art. 59 para. (6)).Failing such certificate, the domestic residency rules prevail.

When you become taxable on worldwide income

Situation	Worldwide-income taxation from	Basis
Centre of vital interests in Romania	The first day on which you declare that the centre of vital interests lies in Romania	art. 59 para. (2)
Presence over 183 days	The first day of arrival in Romania	art. 59 para. (2¹)

Exception: persons who establish, by way of a residency certificate, that they are resident in a state with which Romania has a double tax treaty, who are subject to the provisions of the treaty (art. 59 para. (3)).

The 3-year rule on leaving to a no-treaty state

A Romanian resident individual, with domicile in Romania, who moves their residency to a state with which Romania does not have a double tax treaty remains liable to pay tax on worldwide income for the year of the change of residency and for the following 3 calendar years (art. 59 para. (7)). Formal departure does not immediately end full tax liability.

Audit of persons reclassified as residents

Reclassification as a resident opens up, practically, the full scope of the tax audit over worldwide income:

The reclassified person falls within the scope of Personal Tax Situation Verification (Chapters 2–7), and ANAF may apply the indirect methods for income from any source, including foreign sources.
ANAF holds information about income and accounts abroad through the automatic exchange of information (the CRS standard and the DAC Directive on administrative cooperation), which it compares with declarations filed in Romania.
Foreign-source income that is not declared leads to additional tax and ancillary charges; sums whose source cannot be documented risk being taxed at the 70% rate applicable to income from unidentified sources (Chapter 4).
To avoid double taxation of the same income, the foreign tax credit or the exemption method provided by the applicable treaty applies (art. 130–131 Fiscal Code), on the basis of documents evidencing the tax paid abroad.

To remember

Tax residency is not the same as citizenship or administrative domicile. Document the criteria in good time (days of presence, centre of vital interests, residency certificates) and file the residency questionnaires by the deadlines. A properly clarified residency position prevents later reclassification and the retroactive taxation of worldwide income.

Chapter 9

The other forms of control

In brief: tax inspection, unannounced control, documentary verification, anti-fraud control

An individual, especially one carrying out an economic activity (self-employed PFA, sole proprietorship, liberal profession), may also be subject to the other forms of control. Here are the essential reference points.

Art. 113–133 FPC

Tax inspection

Verifies the legality and the compliance of tax obligations, typically for those with economic activity. Prior notice of 15 days (30 days for large taxpayers). Maximum duration: 45 days for small taxpayers (90 days medium, 180 days large / non-residents / with secondary establishments).

Art. 134–135 FPC

Unannounced control

Without prior notice. Factual and documentary verification, cross-checking or assessment of a specific tax risk. Maximum duration 30 days. Concluded by minutes (evidentiary means); you have 5 working days to express your standpoint.

Art. 148–149 FPC

Documentary verification

"Desk-based" coherence analysis, based on the tax file and third-party information. Where differences are found, you have 30 days to submit documents. The tax assessment decision is issued subject to subsequent verification and is null without a hearing.

Art. 136–137¹ FPC

Anti-fraud control

Operational control by the General Directorate for Tax Anti-Fraud, without prior notice, based on risk analysis. You have the right to verify the identification of the inspectors, to professional assistance and to be informed about the findings. Standpoint within 5 working days.

Indirect methods also apply in documentary verification

When the documentary verification is carried out by the structure competent for the Personal Tax Situation Verification, the same indirect methods provided by art. 138 para. (9) apply, in accordance with art. 148¹ para. (4) FPC.

Chapter 10

Avenues of review

Art. 268–281 FPC · administrative appeal · administrative-fiscal court litigation

The tax assessment decision is an administrative-fiscal act that may be challenged. The administrative appeal is a mandatory prior administrative remedy (without it you cannot reach the court), but it does not remove your right to bring proceedings in court (art. 268 para. (1)).

Administrative appeal (45 days). Lodged within 45 days of communication of the decision, subject to forfeiture, with the issuing tax authority (art. 270 para. (1) and art. 269 para. (4)). Exempt from court stamp duty.If the act does not state the available remedy, the deadline is 3 months.
Content of the appeal. In writing, with: identification data, subject matter, factual and legal grounds, evidence, signature. The taxable base and the tax claim must be challenged only jointly (art. 268 para. (3); art. 269).State the contested amount, by category.
Resolution. Appeals against acts of the central tax authority are resolved by the specialised structure within the Ministry of Finance (art. 272). The resolution decision is binding on the issuing body.It is rendered by reasoned decision (art. 273–274).
Administrative-fiscal court litigation. Against the resolution decision (or in the absence of a timely reply) you may apply to the competent administrative court (tribunal or court of appeal, depending on the amount), in accordance with Law 554/2004.The deadline and competent court are stated in the resolution decision.

The appeal does NOT suspend enforcement

Lodging the appeal does not, by operation of law, suspend enforcement of the tax assessment decision. To avoid enforced collection during resolution, a separate application to suspend enforcement must be filed under Law 554/2004 (usually with the payment of a surety), addressed to the administrative court.

Chapter 11

Criminal side: tax evasion

Law 241/2005 · art. 132 & 150 FPC · when the audit turns into a criminal file

If, during the audit, the tax authority finds facts that may constitute the elements of an offence, it issues minutes of referral to the criminal prosecution bodies. These minutes are not a fiscal-administrative act and cannot be challenged through the fiscal appeal (art. 150 FPC); findings regarding the taxable base are severed in accordance with art. 132 FPC.

Reference points from Law 241/2005

Tax evasion (art. 9): concealment of the taxable asset / source, omission to record operations, parallel records, etc., punishable by imprisonment, aggravated by reference to the prejudice.
Grounds for reducing or waiving the penalty: full reparation of the prejudice, increased by a statutory percentage, during the proceedings may lead, under the conditions of the law, to a reduction of the statutory sentence or to non-custodial sanctions.

To remember

The fiscal side (establishment and challenge of the claim) and the criminal side (liability for the offence) are distinct proceedings, with their own rules. A coherent strategy treats them in a coordinated way; for that reason early legal assistance is decisive when the amounts are significant or the sources cannot be documented.

This chapter presents general information, not an individualised criminal analysis. A specific situation requires dedicated legal advice.

Chapter 12

What to do if you receive a notice

A practical checklist for individuals

Read the notice in full: legal basis, audited period, start date and requested documents.
Note the deadlines: 60 days for documents (extendable by 30), the deadline for requesting the postponement of the start.
If you first received a compliance notice, urgently evaluate the filing / correction of returns in the 30-day window (it may avoid the audit altogether).
Contact a lawyer / tax consultant: you have the express right to professional assistance, and the audit may take place at their offices.
Reconstruct the source of each sum: contracts, bank statements, donations / inheritances, loans, sales of assets, any document that identifies the source of income.
Prepare the declaration of assets and income carefully; coherence with supporting documents is essential.
Keep every communication in writing and request that explanations be recorded in documents signed by both parties.
At the end of the audit, use the 5 working days for a reasoned written standpoint on the findings.
If you receive the tax assessment decision, compute the 45-day deadline for the appeal and consider an application to suspend enforcement.
Pay special attention to sums without documented source: they risk being taxed at 70%; prioritise identifying their sources.

How we can help

The Petcu Partners team assists individuals throughout the tax audit, from the response to the compliance notice and the preparation of the declaration of assets, to representation in the administrative appeal and in administrative-fiscal court litigation. For an evaluation of your situation, you can contact us using the details in the contact section of the website.