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Deloitte Survey: 95 pct of multinational groups’ representatives believe they will be more exposed to tax controls
The representatives of the multinational companies present in Romania (95 pct) consider they will be more prone to tax inspections in the future, following the changes brought by the tax base and the artificial transfer of profits to another state (Base Erosion and Profit Shifting - BEPS), reveals an online survey carried out by Deloitte Romania.
According to the study, half of the business milieu representatives in Romania (50 pct) consider they will have supplementary reporting obligations, 17 pct expect an increase of the owed corporate tax and 13 pct anticipate a double taxation of certain revenues.
Moreover, 68 percent anticipate a rising risk that the tax authority will adjust the prices practised in the intra-group transactions during tax inspections following the implementation of the European directive regarding the country by country reporting adopted by Romania through OUG 42/2017.
More than half of the respondents (58 pct) acknowledge that they have learned about both the BEPS project and the measures it has adopted or is due to adopt as an associate member of the BEPS. Moreover, 42 pct of the respondents have carried out so far an analysis of the BEPS impact on the company's activity.
At the same time, in the respondents' opinion, the intra-group transaction categories that are the most harmed by the BEPS project will be as follows: supply of services (38 pct), know-how provision and other intellectual property rights (18 pct) and financing (13 pct).
Deloitte Romania has carried out, from August to September 2017, an online survey regarding the impact of the measures in the plan against tax base erosion and artificial profit shifting to another state (BEPS).
On the other hand, Romania was not included in the global survey as it wasn't an associate member of BEPS at the time when the survey was conducted. Our country gained that quality at the beginning of June 2017.