Transfer Pricing Alert – Order 3049/2017 regarding the approval of the template and content of the “Country-by-Country Report”

Order no. 3049/2017 issued by the President of the National Agency for Fiscal Administration (published in the Official Gazette no. 894/14 November 2017)

The Order approves the template, content and filing instructions for the:

    • Country-by-Country Report („CBCR”), and
    • Notification regarding the quality of the constituent entity of the multinational enterprise group, respectively the identity and tax residence of the reporting entity of the multinational enterprise group („Notification”).

Certain taxpayers in Romania may be subject to such reporting/notification requirements, in case they are constituent entities of a multinational group for which CBCR reporting requirements apply (i.e. group with a total consolidated turnover of EUR 750 million or above). The Order was thus issued in application of the requirements under Art. 2913 para (1) (including annex 3) and Art. 303 para (8) of Law 207/2015 regarding the Fiscal Procedure Code as subsequently amended and completed – introduced so as to implement the mandatory exchange of information on CBCR further to the BEPS action plan.

Template and content of the Country-by-country report

Content-wise, the CBCR template approved by the Order is broadly aligned with the one provided for under the Council Directive (EU) 2016/881 of 25 May 2016 and requires information to be presented on the following:

  • Identification data of the Romanian reporting entity;
  • Identification data of the multinational enterprise group;
  • Table presenting an overview on the allocation of income, taxes and business activities by tax jurisdiction;
  • Table containing the list of all constituent entities of the multinational enterprise group included in each aggregation per tax jurisdiction
  • Additional information deemed necessary or that would facilitate the understanding of the mandatory information provided.

The data to be presented in the CBCR for each reporting fiscal year of the multinational enterprise group is required to reflect information on a tax jurisdiction level regarding all constituent entities of the group for the relevant reference period, namely:

  • the respective fiscal year of the constituent entities (ending on the same date with the fiscal year of the reporting entity or within the 12 months period prior to such date), or
  • the respective fiscal year of the reporting entity.

Content of the Notification

The Notification template approved by the Order requires the following information to be presented:

  • Identification data and quality of the taxpayer in Romania as constituent entity of the multinational enterprise group (i.e. group parent vs. surrogate parent vs. (EU) designated entity vs. constituent entity);
  • Identity and tax residence of the CBCR reporting entity of the multinational enterprise group;
  • Start and end dates of the reporting fiscal year of the multinational enterprise group;
  • Start and end dates of the reporting fiscal year for the Romanian taxpayer. 

Submission of the CBCR and/or Notification

The Romanian taxpayers subject to CBCR reporting and/or notification requirements in Romania have to submit the CBCR/Notification to the tax administration responsible for administering the respective taxpayer’s tax liabilities as follows:

  • In PDF (with XML file attached) on CD support and a hard copy signed according to the law, or
  • Electronically, according to the law in force.

In terms of timing, the following submission deadlines apply:

  • CBCR: if required to be filed in Romania, CBCR is due to be submitted within 12 months from the last day of the reporting fiscal year of the multinational enterprise group;
  • Notification: to be submitted in Romania by the last day of the reporting fiscal year of the multinational group, but not later than the legal deadline for submission of the annual corporate income tax return (101 statement) for the preceding fiscal year of the Romanian constituent entity.

Guidelines regarding the completion of the CBCR can be found in the Order.

EY is able to provide support on any specific aspects related to the above.

 

For additional information, please contact:

Adrian Rus, Partner – Head of Transfer Pricing

Monica Chiriac – Senior Manager, Transfer Pricing



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