New corporate income tax rules - ATAD

Starting with 1 January 2018, significant changes were enforced in the Romanian Tax Code as a result of the transposing of the Anti-Tax Avoidance Directive. These rule primarily refer to the following:

• Financing costs deductibility rules – exceeding borrowing costs higher than EUR 200,000 will be subject to limited deductibility up to 10% of the base computation;
• Reinforcement of the anti-abuse rule – transactions carried out with the main/ one of the main purposes of obtaining a tax advantage will not be taken into consideration for the purpose of determining tax liabilities;
• Specific rules in relation to controlled foreign companies – these rules apply to certain Romanian corporate income tax payers that control a foreign company and that should include in their taxable base specific income of this controlled foreign company.

However, the Senate has approved a Draft Law that are meant to amend some of the above provisions. Namely, based on this Draft Law, exceeding borrowing costs higher than EUR 3 mil. will be subject to limited deductibility up to 30% of the base computation.

Deloitte experts have summerized the rules imposed by EU Directive 2016/1164 that affect corporate tax. Please find the document by clicking the button.

Contact

Silviu Sandache - Tax Director

Daniel Petre - Tax Director