COUNTRY BY COUNTRY REPORTING (CbCR) AND NOTIFICATION
With the European Union's deadline for transposing EU 881/2016 into the mandatory tax information exchange (June 4, 2017), the EU member states have transposed the changes brought by this legislation at an accelerated pace in local legislation direction.
Without making any significant changes to the European text, by OUG 42/2017, the Government of Romania provides the premises for a new source of information that can be used in a tax audit or in preliminary risk analyzes to start tax inspections.
By interpreting the new legislation, it can be deduced that there are two types of companies in Romania:
(i) companies that have the obligation to submit a notification about the reporting entity for each country CbCR, ie any company that is part of a multinational group of companies with a consolidated turnover of more than 750 million EUR; and
(ii) companies that have the obligation to submit country-by-country reporting to CbCR in Romania, namely companies that are in the position of final parent companies, surrogate parent companies, group delegated entities, and reporting companies in the reporting countries with which Romania can not automatically exchange information either because it does not have an information exchange agreement signed either for other causes that can lead to systemic information exchange failure (e.g. lack of ISO data security certifications).
The failure to notify in time may bring fines of up to 5.000 RON, and failure to report on a country-by-country basis CbCR may impose fines of up to 100.000 RON even if failure occurs because of a systemic defeat to exchange information between states.
ATIPIC Solutions can assist with the preparation and submission of the CbCR notifications, with the preparation and submission of the CbCR report but also with the preparation of strategic analyses for determination of the countries where the CbCR report should be submitted as to avoid systemic failure generated by the failure of exchange of information between countries.