The Ministry of Finance (MFP) has put up for debate a draft bill that aims to transpose into national legislation the mandatory exchange of information between states by multinational groups.
The bill is based on the EU Directive 2016/881, which changes the Directive 2011/16/EU and refers to the tax figures that multinational firms need to submit in the member state where the mother company exists.
According to the MFP, the directive makes it mandatory for groups to provide annual reports that include fiscal data on revenue, profit/loss, declared capital, undistributed profit, the number of employees and the assets.
The identification of each entity form the multinational group is based by mentioning the fiscal residency and the type of economic activity it has.
The draft bill includes the conditions that an organization with a fiscal residency in Romania has to meet in order to report this information.
The MPF explained that Romania can use this information to combat tax evasion and fiscal planning and to analyze risks related to transfer pricing transactions.