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FinMin Misa: Multinational companies will have to respect Romania and pay their taxes
Multinational companies will have to respect Romania and pay their taxes and fees just as they do in other EU member countries or outside the European Union, Minister of Public Finance Ionut Misa told a press conference on Wednesday.
"I am telling multinational companies that Romania's tax climate is highly propitious to investing, that Romania offers a tax burden that is among the lowest in Europe and I am also telling those multinationals that do not pay corporate tax in Romania and attempt to shun paying taxes and fees here that they will have to respect Romania and Romanians and pay their taxes and fees just as they do in all other EU member states or outside the European Union," Ionut Misa said in reply as to what his message to investors is.
During a presentation, the Finance Minister said that the government has taken steps to combat tax evasion and that these moves have materialized in the transposition of EU Directive No. 1164 / 2016 (on the combat of tax avoidance practices through the erosion of the tax bases and the shifting of profits outside the internal market). The Directive was transposed into national law through four amendments to the Tax Code.
One of these amendments refers to the capping of interest deductions, another to the taxation of outsourced assets, the third is the anti-abuse rule that sets forth the denial of state tax benefits obtained through abusive arrangements among companies, and the last one concerns the prevention of tax avoidance in Romania by diverting revenues to subsidiaries in tax havens.
As regards the discouragement of intra-group financing arrangements for excessive interest rates in Romania, Misa pointed out that at the time when he was working at the General Directorate for Large Taxpayers Administration he initiated controls at several multinational companies and not only, succeeding for instance in funneling to the state budget 200 million euro in additional collections from one leading oil company alone.