By adopting the Law 124 on 9 June 2017, Romania becomes a member of the BEPS (Base Erosion and Profit Shifting) plan, thus proposing to be part of an international approach to limiting and counteracting the use by multinationals of legislative inconsistencies between states, the aim being to choose tax profits in more favorable jurisdictions.
On 13 June 2017 was published the Government Emergency Ordinance no. 42/2017 which includes amendments to the Fiscal Procedure Code, more precisely introduces the Country by Country Report (CbC Report) as mandatory for multinational enterprise groups. This Ordinance transposes the provisions of EU Directive 2016/881 from 25th of May 2016, into national law.
Under the provisions of GEO 42/2017, a group of multinational enterprises with a consolidated group income of over € 750 million must submit an annual CbC report. The report will contain the following information:
"The implementation of these normative acts will have a major effect on the tax legislation in Romania. The actions of the BEPS plan also make recommendations for changing the current transfer pricing legislation and will lead to greater transparency between tax authorities of signatory states and between taxpayers and local tax authorities", says Florentina Şuşnea, Managing Partner, PKF Finconta.
The most important effects of these normative acts will be the following:
For more than 22 years, PKF Finconta is one of the 10 leading professional services companies in Romania. Since 2006, we are a member of PKF International Limited. PKF International is a leading international business advisory organization. The company grew consistently over the years, forming a Group of four companies: PKF Finconta, PKF Finconta Consultanta, PKF Finconta HR and Finconta Consulting SPRL, members of national professional organizations CECCAR, CAFR, CCFR and UNPIR. We provide a wide range of business advisory and related specialist services. We have seven core areas of expertise and within these areas we tailor our services for your business and your needs: audit, corporate finance, tax, bookkeeping and accounting advisory services, transfer pricing, payroll and personnel administration and insolvency.
Alina Făniță, CEO
Phone: +40 21.317.3196
Mobile: +40 768.184.870