According to half of the respondents to a survey conducted by PwC Romania during the Annual Tax Conference, the tax change that most affected companies among those affected by the Fiscal Code this year is the increase in the tax rate on dividends. Other important changes in 2023 concern VAT, the abolition of some benefits and the limitation of some amenities for employees, as well as new legislation regulating commercial relations between agri-food companies in order to reduce anti-competitive practices or strict rules to control foreign direct investments made in Romania. The consequences of these new provisions, including from a tax point of view, were discussed during the annual tax conference of PwC in Romania.

“There are several important aspects for 2023 and 2024: first of all the ESG requirements, the procedures that we have to standardize, implement, control, the procedures that are already known or that will go through a series of directives that we must respect. The finance and tax department will play an important role in the development of these procedures and a transparent tax policy. In terms of CbCR, the reporting criteria and reporting companies remain the same, but transparency will increase as this information is made public. OECD Tier Two will require some analysis as there are different calculation rules and cannot be directly compared to income tax. The fact that we have a tax rate of 16% against a minimum rate of 15% does not mean that we should sit still. On the other hand, apart from tax issues, we need foreign direct investment, but if investors do not report it under the new law, they will be fined.”stated Andreja Mitirice, partner, PwC Romania.

Read the rest of the article on the PwC Romania blog

Article supported by PwC Romania