Romania: Obligations for Country by country-Reporting

Published on 10 January 2018

The Official Gazette of Romania, Part I, no. 0894 / 14.11.2017 published Order no. 3049/2017 to approve the model and content of the ”country-by-country report”. The order intends to supplement the obligations established by GEO 42/2017 regarding the multinational enterprise groups (MNE) with fiscal residence in Romania.

The multinational enterprise groups that achieve a consolidated total income higher than or equal to EUR 750,000,000 or the equivalent in national currency, are required to submit the ”country-by-country report”.

The normative act approves and details the following aspects:

The model and content of the form ”country-by-country report”;
Instructions to complete and submit;
The content of the Notification regarding the role of the constituent entity of the multinational enterprise group, namely the identity and tax residence of the reporting entity of the multinational enterprise group.
Specifications regarding how to print, distribute, use and keep the form.

The form is used to report the allocation, within a multinational enterprise group, of the income, taxes and economic activities for each tax jurisdiction.

The submission term

The ”country-by-country report” shall be submitted annually, starting with the fiscal year 2016 and forwarded to the competent fiscal authority for the management of the taxpayers debts, by those who are required to submit it within 12 months from the last day of the reporting fiscal year of the multinational enterprise group. These provisions also apply to taxpayers who are required to submit the ”country-by-country report” form and who have chosen a different financial year from the calendar year.

The content of the form

The information included in the ”country-by-country report” form, according to Annex no. 1 of the Order 3049/2017, is the following:

Taxpayer identification data, namely the reporting entity with fiscal residence in Romania,
Identification data of the multinational enterprise group;
Overview of the allocation of revenue, taxes and economic activities for each jurisdiction;
List of all the constituent entities of the multinational enterprise group included in each aggregation;
Additional information considered necessary in the reporting process.

Notification

Each constituent entity of a group of multinational enterprises having their tax residence in Romania has the obligation to notify, no later than on the last day of the reporting fiscal year of that group of multinational enterprises, and no later than the deadline for the submission of the annual corporate profit tax statement, regarding its role within the multinational enterprise group, namely the identity and tax residence of the reporting entity. These provisions also apply to the constituent entities of multinational enterprise groups that have their tax residence in Romania and are obliged to pay the specific tax.

The notification model is provided in Annex no. 3 of the Order 3049/2017. The notification shall be filled-in by the constituent entity on the basis of the information received from the reporting entity of the group (the one which prepares the country-by-country report) regarding:

The name of the multinational enterprise group;
The name of the reporting entity of the group and the tax jurisdiction in which it is located;
The tax reporting period.