The Romanian Government passed Emergency Ordinance no. 42/2017 on 9 June 2017 to implement country-by-country (CbC) reporting requirements in Romania, transposing the provisions of Directive (EU) 2016/881 dated 25 May 2016 into the national legislation.
According to the new provisions, all Romanian tax resident entities that are ultimate parent entity of an MNE Group with annual consolidated group revenue of €750 million and above will need to comply with the CbC requirements for fiscal years starting on or after 1 January 2016.
CbC reports received by the Romanian tax authorities will be communicated to other interested foreign tax authorities by means of automatic exchange of information within 15 months of the last day of the fiscal year. A Romanian group entity will need to notify the tax authorities whether it is the ultimate parent entity or surrogate parent by the last day of the reporting fiscal year. If it is neither an ultimate parent nor a surrogate parent, it will have to inform the tax authorities of the identity of the UPE or SPE along with its tax residency.
The report must cover group revenue aggregated information for each jurisdiction in which the MNE group operates regarding total revenues, profit / loss before income tax, number of employees, income tax paid, income tax accrued, stated capital, undistributed profits, tangible assets other than cash and cash equivalents. Average number of employees in each entity must be reported.
For failing to file a CbC report, the penalty ranges from RON 70,000 to RON 100,000 and for late filing of a CbC report or for incomplete / incorrect data in a CbC report, the penalty ranges from RON 30,000 to RON 50,000.