The Romanian Agency for Fiscal Administration (ANAF) has recently implemented the electronic garnishment system for communicating the enforcement documents to credit institutions by electronic means of remote transmission. The main advantage of the electronic garnishment system is that it eliminates deficiencies related to the delay in providing the bank account attachment in the event of discharging the tax obligations. Our accountants in Romania can give you further information on the matter of electronic garnishment.
The benefits of electronic garnishment
Communicating the enforcement documents to credit institutions through electronic garnishment has several advantages. These include the following:
• Simplifying the administrative procedures – the authorities in charge of taxation in Romania can directly communicate with the financial institutions via electronic means;
• Shortening the communication of enforcement documents period – electronic garnishment enables real time communication between competent authorities for the direct benefit of taxpayers. This also includes lifting the forced execution provisions through real time garnishment;
• Reducing the communication costs – electronic communication has cost benefits for the Romanian fiscal authorities and for the financial bodies, such as banks or other credit institutions;
• Increase the system efficiency and reducing costs – electronic garnishment provides speed, efficiency and the reduction of human error in mailing enforcement documents.
A detailed presentation of the advantages of electronic garnishment system can be offered to you by our accounting firm in Romania.
The electronic garnishment system
The electronic garnishment system implies the process of collecting a monetary judgment on behalf of a plaintiff from a defendant through electronic means of communication. The increase of internet speed and the digitization of most official documents have made the electronic garnishment system very attractive for state institutions, Romanian companies and foreign investors. The most common types of garnishment implemented in Romania are:
• Wage garnishment – deducting money from an employee’s monetary compensation, salary included;
• Tax statements – filing tax liens for the fiscal authorities in Romania in a dedicated format;
• Child support and student loans – the payments are made in time, without withholding an amount over the earnings percentage limit.
Please contact our Romanian accountants for more information regarding the use of electronic garnishment system and its advantages.