On 2 June 2016, the Romanian government approved Romania’s participation as an associate to BEPS Implementation forum alongside other OECD and G20 countries, thus enabling Romania to monitor and implement locally the measures addressed by BEPS package.
The 15 BEPS actions include recommendations for legislative changes targeting both international provisions (such as OECD Model Tax Convention and OECD transfer pricing guidelines) as well as national tax systems. Transfer pricing issues, increased transparency requirements, tackling treaty shopping and double non-taxation issues are some of the issues BEPS is trying to address in a consistent manner in order to fight base erosion and profit shifting.
Romania’s new associate status to the Implementation Forum assumes working with OECD and G20 in developing of standards and monitoring of the entire BEPS package implementation, including a firm commitment to introduce and apply the BEPS package locally, thus aligning to the international practices in the area.
First meeting of the countries which have joined the BEPS action plan was held in Kyoto on 30 June – 1 July 2016; Romania was represented by delegates from the Ministry of Finance and National Agency for Tax Administration.
For similar content to our Global Guide, subscribe to our mailing list and keep up to date.
Government’s approval of Romania’s accession as an associate to the BEPS Implementation Forum represents a significant step forward taken by our country in its efforts to align to the international practices. Changes in local rules will probably follow alongside changes in international provisions which are already incorporated into national law such as OECD transfer pricing guidelines.
We recommend multinational groups with operations in Romania or envisaging doing business in Romania to carefully monitor the impact that the local implementation of BEPS package will have on their operations.
