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Romanian Tax Updates for Multinationals
Approval of accounting regulations harmonised with the International Financial Reporting Standards (IFRS)
The regulations refer to the preparation, approval, statutory auditing and the publication of the annual financial statements rules (and of the consolidated annual financial statements) for companies whose securities are traded on a regulated market, as well as the rules for the accounting registration of the economic and financial operations performed, together with the applicable chart of accounts.
Amendments regarding the registration obligation of the contracts concluded with foreign legal entities or nonresident individuals rendering services on the Romanian territory
In addition to the obligation to register the agreements related to rendering of services concluded by Romanian legal entities, there is now also the obligation to register the agreements concluded by resident individuals and Romanian permanent establishments of foreign legal entities.
Protocol amending the Convention between Luxembourg and Romania for the avoidance of double taxation
The Law ratifies the Protocol amending the Convention between Luxembourg and Romania for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital, which introduces new provisions within article 28 regarding the exchange of information and repeals the existing ones.
As with many governments at the moment, the Romanian government are adapting their tax legislation in order to make their country an attractive place to invest while still raising much needed capital. Multinationals should keep abreast of all tax developments in order to stay compliant.