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Romania

6 February 2020

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Romania Implements EU Directive on Reporting of Cross-Border Arrangements

Romania has published Ordinance no. 5 of 28 January 2020 in the Official Gazette, which provides for the implementation of Council Directive (EU) 2018/822 of 25 May 2018 (DAC6) on reportable cross-border tax planning arrangements. This includes measures to require the reporting of cross-border tax planning arrangements and the automatic and mandatory exchange of information reported with other EU Member States.

The reporting requirement primarily applies to intermediaries that design, market, organize, or manage the implementation of a reportable arrangement. The requirement may also be shifted to a taxpayer in some cases, such as when an intermediary does not report due to professional secrecy obligations or a reportable arrangement is designed in-house. Intermediaries may still report where there are professional secrecy obligations if written consent is provided by the relevant taxpayer.

The requirements enter into force on 1 July 2020, with reportable arrangements to be disclosed within 30 days from the day after the date the arrangement is made available for implementation, the day after the date the arrangement is ready for implementation, or the moment the first step of the arrangement is implemented. Reportable arrangements must also be disclosed where the first step for implementation was taken between 25 June 2018 and 1 July 2020, with a deadline of 31 August 2020.

Failing to report or delayed reporting by the relevant intermediary or taxpayer, as the case may be, will result in penalties of RON 20,000 to RON 100,000. Failure by an intermediary to notify another intermediary or relevant taxpayer of a reporting obligation will result in penalties of RON 5,000 to RON 30,000. The penalty for reporting incorrect or incomplete information in the original draft is not included in the final Ordinance.

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