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Gov't: multinationals will file their business reports in the countries of their tax residence
The Government adopted on Friday an emergency ordinance amending the Tax Procedure Code, which stipulates the fact that multinationals will file their business reports in the countries of their tax residence, Spokesperson for the Gov't Alina Petrescu announced on Friday.
"Today, an emergency ordinance that amends the Tax Procedure Code was adopted. It's about transposing a European directive adopted last year in the national legislation, which aims to fight against tax evasion and aggressive tax planning. Multinationals are to file their reports in the countries of their tax residency. It's an ordinance which aims at (...) on one hand, fighting tax evasion and aggressive tax planning, and, on the other hand, making transparent the activities of these multinational companies," Petrescu said at the Government House.
According to Petrescu, these groups of companies will have to provide information about revenues, earnings before income tax and income taxes paid up or aggregated, in the annual reports for each country and for every fiscal jurisdiction where they do business.
"There are also other reporting obligations as a result of transposing this European directive, such as the number of employees, the capital declared, undistributed profit and tangible assets (...) of each fiscal jurisdiction. There will be an automatic exchange among countries of these reports filed by multinational companies," Alina Petrescu also said.