FinMin: Multinationals to pay 15% income tax from January 1, 2023

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The Minister of Finance, Adrian Câciu, announced on Tuesday evening that Romania will tax multinationals with 15% of the profit, starting with January 1, 2023. According to the minister, the Government’s priorities for this year are to significantly reduce the VAT deficit and reduce tax evasion.

“I attended a meeting in Brussels of the Economic and Financial Affairs Council (Ecofin) where I sent a clear message: Romania is preparing to swiftly transpose the rules set by the Organization for Economic Co-operation and Development (OECD) on taxing multinationals at 15% of profits. Our ambition is to be able to be ready to apply this ceiling right from January 1, 2023!

Especially in the context of the current energy crisis, we are compelled to make sure that large corporations operating on the local market pay a fair tax margin, adapted to the billions of euros they do in Romania. That is why I have told the European Commissioner for the Economy, Mr Paulo Gentiloni, that this is a further priority for the Government, which is to significantly reduce the VAT deficit this year and to reduce tax evasion. We want to have resources so that not a penny of the record amount planned for public investment in 2022, of 6.7% of GDP.

I am convinced that these measures are just and necessary both economically and socially. It is vital that part of this added value produced in the economy be returned to Romanians, financing measures to stimulate small businesses, farmers and all those who live honestly from a family business”, the minister  of Finance, Adrian Câciu, posted on his Facebook page.

The proposal for a Directive on the minimum level of taxation for EU multinational groups was the most important topic of the ECOFIN Council meeting.

The rules of the directive apply to all large national or international groups, including the financial sector, which have a combined financial income of over EUR 750 million per year and which have a parent company or a subsidiary located in an EU Member State.

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