The government may return to a minimum turnover tax, as well as additional ones for large companies and banks, given that it will soon carry over an OECD (Organization for Economic Co-operation and Development) directive that provides for an additional tax of 15% on multinational companies from 2024 year

“If we leave it (1% tax-free) for at least one year, then my question as a consultant is how can we leave it when what’s waiting for us outside the door is coming from the OECD area? We don’t have a choice,” said Andra Casu, Head of Direct Taxes at EY Romania.

• “The OECD says that from 2024 we have to put in place a directive that says: we tax the minimum in a way that avoids any situation of tax fraud, undertaxation, tax evasion in any country.”

“It clearly says that any multinational group that exceeds €750 million or that represents a large national group will have to apply these rules. Romania has said it will introduce it into law from 2024,” Casu said.

• “There are two rules, and it is not 1% – 2%, as in this amendment. These are really extremely complex formulas. You have to think about them, apply them. We have no choice.”

“If we apply them (there is no OECD rule), then we will have a minimum tax liability of 15% of profit. It is income tax as an entity compared to this additional tax or minimum tax that the authorities have now introduced,” explained the representative of EY Romania.

• “Please note that there is no legal right to ‘apply or not the OECD Directive'”

“Most likely, this turnover or additional tax on banks will have to be kept for some time, even for the sake of it.” I don’t think it will be the 4-year period originally envisaged,” Andra Kasu said.

as a reminder, the Government is going to introduce an additional tax of 15% for multinational companies. Two taxes are actually introduced: “additional” and “statewide additional”. We are talking about the well-known revolution in the field of taxation after the agreement concluded with the OECD. In this sense, the European directive (2022/2023) has practically been transposed.

The project was discussed on Wednesday in the Economic and Social Council.

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