Finance News by Mazars Romania November 2022

Tue | 29.11.2022

Accounting/audit/tax

Finance News by Mazars Romania November 2022

Tax transparency becomes a top priority in Romania: the Public Country-by-Country reporting (CbCR), mandatory for multinational groups, starting with 2023

Starting with 1 September 2022, through Order No. 2048, Romania is amongst the first EU countries to transpose the (EU) Directive 2021/2101 on public country-by-country reporting ("CbCR public reporting") into national law.

The element of novelty brought by the CbCR public reporting, in comparison with the current applicable CbCR reporting, is that the information included in the report will no longer be filed with The National Agency for Fiscal Administration (ANAF), but instead, it will be publicly available.

Mazars’ specialists have prepared an informative material regarding this topic, that has the following conclusions:

Romania, among the first EU countries to transpose the (EU) Directive 2021/2101 into national law.
The public will have access to the CbCR annual reports of both EU and non-EU headquartered multinational groups with a consolidated annual turnover of more than €750m in the last two consecutive financial years.
The annual report will be published no later than 12 months after the balance sheet closing date.

Read more info HERE.

Taxpayers' guide for 2023: preparing for a tax audit is about identifying and monitoring risks early on

The National Agency for Fiscal Administration (NAFA) published a press release earlier this year, in which they announced that 555 tax inspection and unannounced control actions are being carried out on large taxpayers, out of which 128 are being carried out on taxpayers with recurrent losses. Therefore, in 2023, taxpayers need to prepare in advance for the possible tax audits that may appear.

Mazars’ tax team has prepared an informative material, where you can find tips and recommendations to successfully pass such an inspection.

Main conclusions:

The enterprises that may be subject to a tax inspection are those with profitability below the average profitability of companies with the same NACE code or companies with operating losses over a sustained period of time.
The risk sub-criteria, which were created from the four main criteria listed in the Tax Procedure Code, was recently published by NAFA.
Large taxpayers must submit the transfer pricing file within 10 days of receiving a request from the tax authorities.
As a result of taxpayer appeals, between 45% and 60% of the amounts included in the tax assessment decisions are subsequently rejected or cancelled.

Read more info HERE.

Main aspects to consider for the closing of the 2022 financial year

One of the easiest ways to reduce the risks of having closing errors and issuing incorrect financial statements, as well as to improve productivity during this period is to prepare and follow certain work procedures.

Mazars’ specialists have prepared a comprehensive material to provide you with precise information about the steps you need to follow to successfully close the financial year, whether we are talking about accounting and tax matters, HR and payroll issues, or transfer pricing and tax changes for 2023.

Read more info HERE.

SAF-T insights

The Standard Audit File for Tax – SAF-T is a standardized file that facilitates fiscal control by the Romanian tax authorities and simplifies tax compliance for taxpayers. In addition to this, SAF-T also guarantees information security.

As part of its digital transformation strategy, the Romanian tax authorities implemented SAF-T in Romania on 1 January 2022, when the first companies required to submit their SAF-T statements were large taxpayers. Starting with January 2023, medium-sized and small taxpayers in Romania are required to declare their tax and accounting information electronically through the SAF-T system.

To support you through the challenges that may appear in the following year(s), Mazars’ specialists have prepared many insights, to help you understand the legal requirements and structure of the SAF-T reporting.

Read more info HERE.

In the face of increasing cyber risks, businesses must have a strong safety net

According to research amongst more than 1,000 C-suite executives worldwide, cyber security is now a major preoccupation among corporate leaders. Effective cyber defence has become a delicate balancing act for many businesses; having a strong safety net that can cushion any eventual fall is paramount.

Mazars’ specialists have prepared a material, regarding the concerns of the Romanian C-suite leaders.

„Based on our annual C-suite barometer, in Romania, only 31% C-suite leaders feel their data is “completely” protected, vs. 68% globally. Two-thirds feel that they’re likely to have a data breach next year, vs. roughly one-third globally. For most businesses, it’s not a question of if you will suffer a cyberattack but when. It can cause huge damage, not just reputationally, but also commercially and financially. Businesses need to ensure they are as robust and resilient as possible to withstand cyber threats.”, mentioned Horațiu Nistor, Senior Manager, IT Audit & Advisory, Mazars Romania.

Read more info HERE.