{"id":6432,"date":"2025-08-22T07:00:28","date_gmt":"2025-08-22T07:00:28","guid":{"rendered":"https:\/\/ofero.news\/?p=6432"},"modified":"2025-08-22T07:00:28","modified_gmt":"2025-08-22T07:00:28","slug":"consultancy-firm-argues-tax-on-multinationals-shifted-profits-breaches-oecd-principles","status":"publish","type":"post","link":"https:\/\/ofero.news\/?p=6432","title":{"rendered":"Consultancy firm argues tax on multinationals\u2019 shifted profits breaches OECD principles"},"content":{"rendered":"<p>The new tax on multinationals\u2019 shifted profits, which waives deductibility for expenditures affiliated with four categories of services, above a 3% threshold, breaches the fiscal governance principles of the OECD that Romania seeks to join next year, tax consultancy firm BDO Romania warned in a note cited by <a href=\"https:\/\/www.economica.net\/proiectul-de-lege-privind-noua-impozitare-a-multinationalelor-este-contrar-principiilor-oecd-induce-impozitare-suplimentara-a-tranzactiilor-intra-grup-consultant-fiscal_865185.html?mc_cid=1f4e6f1375&amp;mc_eid=cd1f92f96c\" target=\"_blank\">Economica.net<\/a>.<\/p>\n<p>The firm\u2019s representatives also claim the new tax breaches other provisions of the Fiscal Code.<\/p>\n<p>The new tax is part of a new series of tax reforms to be introduced in the second package of reforms, likely to be legislated next week.\u00a0<\/p>\n<p>The terms used by BDO Romania officials are rather radical and hardly technical in nature.\u00a0<\/p>\n<p>&#8220;We note that the Government is about to make a fundamental mistake. It is replacing the minimum tax on income [IMCA], the scourge that hit the business environment, with a much worse rule that even contradicts the Fiscal Code.\u00a0I still hope that it will not take another two years until the Ministry of Finance realises that it is making a mistake. Let&#8217;s look, first of all, at the problem that comes from the definition of affiliated entities. The new rule defines affiliated entities according to accounting rules, a different definition than the one that targets tax-affiliated parties,&#8221; said Dan B\u0103r\u0103scu, Partner, Head of Tax BDO Romania.<\/p>\n<p>B\u0103r\u0103scu noted that, for example, in some situations, companies owned by relatives up to the third degree are not accounting affiliates, but are considered tax affiliates.\u00a0<\/p>\n<p>Furthermore, because the accounting definition refers to \u201caffiliated entities,\u201d individuals are excluded because they are not \u201centities,\u201d he explained.<\/p>\n<p>Therefore, the restrictions [on expenditures] do not apply to relationships between an individual and the companies with which they are tax affiliates, simply because the definition does not cover this situation.<\/p>\n<p><em>iulian@romania-insider.com<\/em><\/p>\n<p><em>(Photo source: <a href=\"https:\/\/www.dreamstime.com\/\">Juan Moyano\/Dreamstime.com<\/a>)<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>The new tax on multinationals\u2019 shifted profits, which waives deductibility for expenditures affiliated with four categories of services, above a 3% threshold, breaches the fiscal governance principles of the OECD that Romania seeks to join next year, tax consultancy firm BDO Romania warned in a note cited by Economica.net. The firm\u2019s representatives also claim the [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6432","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/6432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6432"}],"version-history":[{"count":0,"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/6432\/revisions"}],"wp:attachment":[{"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}