The Romanian Ministry of Finance published a draft law on 24 May 2017 to modify the CbC reporting legislation of the country.

According to the draft law, all Romanian tax resident entities which are ultimate parent of an MNE Group with annual consolidated group revenue of €750 million and above will have to comply with the CbC requirements for fiscal years starting on or after 1 January 2016. 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 Country-by-Country (CbC) report must be submitted by a company resident in Romania that is the parent company of a corporate group. If the ultimate parent entity (UPE) is not resident in Romania, and not obligated to file a CbC report in its country of residence, or although obligated to file CbC report there is no exchange of information instrument in place with Romania or there is a systemic failure of the jurisdiction of tax residence of the UPE, any other entity of the group that is resident in Romania would have to prepare the CbC report.

The CbC report must be submitted within 12 months after the end of MNE’s financial year.

When a Romanian entity fails to report the required information within the time stipulated or fails to report the information in a complete and accurate manner, monetary penalties (of up to RON50,000 – 100,000) may trigger.