On 26 July 2022, the Ministry of Finance published draft legislation to amend the accounting regulations (O 1802/2014), following the need to transpose a new European directive that requires certain entities to submit information on corporate tax.
According to the document, the new disclosure requirements concern only a part of the entities, i.e. those falling under a certain size criterion.
The main provision of the directive concerns multinational groups and, where applicable, certain autonomous entities, which would be required to report to the public on corporate tax information when they exceed a certain level of net turnover/revenue for two consecutive financial years, depending on the consolidated revenue of the group or the revenue of the autonomous entity. We emphasise that such an obligation no longer applies when those indicators cease to exceed the relevant amount in two consecutive financial years.
Thus, a new chapter is introduced in the regulations in Order 1802/2014 entitled: Report on information relating to income tax.
Entities and branches that are required to submit reports on corporate income tax are ultimate parent companies whose consolidated net turnover has exceeded at their balance sheet date, for each of the last two consecutive financial years, the amount of 3,700,000,000 lei (equivalent to 747,474,740 euro at the exchange rate published in the Official Journal of the European Union on 21 December 2021), as reflected in their annual consolidated financial statements. They are required to prepare, publish and provide access to a report on income tax information for the most recent of those two consecutive financial years.
An ultimate parent company is no longer subject to the reporting obligations set out above when its consolidated net turnover at the balance sheet date falls below the amount of 3,700,000,000 lei for each of the last two consecutive financial years, as reflected in its consolidated annual financial statements.
Autonomous entities whose net turnover has exceeded, at their balance sheet date, for each of the last two consecutive financial years, the amount of 3,700,000,000 lei, as reflected in their individual annual financial statements, are obliged to prepare, publish and provide access to a report on information relating to corporate income tax for the most recent of those two consecutive financial years.
An entity is no longer subject to the reporting obligations set out in the previous paragraph when its net turnover at the balance sheet date falls below the amount of 3,700,000,000 lei for each of the last two consecutive financial years as reflected in its financial statements.
Please note that the report includes information on all activities of the autonomous entity or ultimate parent company, including the activities of all affiliated entities, consolidated in the financial statements for the financial year in question.
The report on information relating to corporation tax and the statement shall be published within 12 months from the balance sheet date of the financial year for which the report is prepared, in accordance with the provisions of Directive (EU) 2017/1132 of the European Parliament and of the Council, as transposed into national law.