Finance News by Mazars Romania November 2023

Mon | 27.11.2023

Accounting/audit/tax

Mazars and FORVIS to form a unique new top-10 global network

Mazars, the leading international audit, tax, and advisory firm, and FORVIS, the eighth largest public accounting firm in the United States, jointly announced that they will create a new, top-10 global network, effective June 1, 2024. The new network will position both firms for continued global growth by expanding their capabilities to serve clients, especially those with international needs.

The network will operate under a single brand worldwide, Forvis Mazars. With around €4.7bn ($5bn) in revenue, Forvis Mazars will be a new entrant in the top-10 global network rankings. Uniquely formed of just two members, the network is designed to be agile, deliver consistency, and have the global scale to meet clients’ needs. Both network members will remain owned by their current respective partnerships. Effective 1, 2024, Mazars USA will join Forvis Mazars in the U.S.

Read more info HERE.

The introduction of the global minimum tax in Romania by Mazars

On October 4, 2023, a draft law was published concerning the global minimum level of taxation for multinational groups and large-scale domestic groups operating in Romania.

The minimum tax will apply from January 1, 2024, to groups with an annual income of at least €750 million. Nevertheless, certain entities are exempt from Pillar Two rules, such as governmental entities, international organisations, pension funds, non-profit organisations, etc.

Companies falling under the scope of Pillar Two should assess the impact from a tax liability perspective. The analysis can start by establishing which Romanian entities are covered by the new rules and by determining the applicability of the safe harbour regime and simplification rules.

Mazars can help you assess the impact of Pillar Two on your business and achieve compliance with the new rules.

Read more info HERE.

OECD and IGF guidelines in addressing BEPS risks when pricing minerals, by Mazars

In the mining industry, Base Erosion and Profit Shifting (BEPS) represents a challenging concept to identify and, implicitly, eliminate due to the limited capabilities of tax authorities in developing countries rich in natural resources.

Because the mining industry has a significant potential to contribute to state budgets, the Centre for Tax Policy and Administration of the Organisation for Economic Cooperation and Development (OECD) and The Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) have established a collaboration (the OECD - IGF initiative), with the purpose of combining tax expertise and industry-specific knowledge, to develop guidelines for governments, and tackle this issue.

Considering that Romania is rich in mineral resources (oil, natural gas, gold, silver, ferrous and non-ferrous metals) and that a significant number of Romanian and foreign companies are active in this sector, there is great potential to derive revenues to the state budget from this industry. Hence, these guidelines published by the OECD and IGF apply to these companies as well.

Mazars’ tax experts have prepared a material with more information on the subject.

Read more info HERE.

Transfer pricing brochure, by Mazars

Globalisation and the rapid growth of international trade, facilitated in recent years by the digital revolution, has brought complex regulatory and tax issues to the forefront of every multinational organisation’s agenda. In the wake of media scrutiny and international projects led by the Organisation of Economic Cooperation and Development (OECD), transfer pricing has remained an area of focus and controversy.

Mazars’ Transfer Pricing brochure has been meticulously crafted to offer you the necessary information to tackle your transfer pricing challenges.

What you will discover

Introduction: Explore the fundamental principles and importance of transfer pricing in the global business environment.
Transfer Pricing, a priority for multinational companies: Delve into why transfer pricing is a top priority for multinational companies and how it impacts your business strategies.
How we can assist you: Discover the specialised assistance Mazars offers to navigate the intricate transfer pricing landscape effectively.
360-degree service offering: Learn about our comprehensive services, designed to cover every aspect of your transfer pricing needs.
Advanced services: Explore our advanced offerings, tailored for businesses seeking sophisticated transfer pricing solutions.
Our global transfer pricing team: Meet our team of experienced professionals, dedicated to providing expert guidance across borders.
Your trusted advisors in Romania: Specifically tailored for our clients in Romania, this section offers localised insights and support from our local experts.

Read more info HERE.

How to navigate the latest tax changes with confidence, by Mazars

Mazars provides invaluable knowledge and insights necessary for thriving in today's complex Romanian tax environment.

Learn more from Mazars’ experts about:

Minimum turnover tax;
Fiscal changes in the area of salary incomes and existing benefits;
Fiscal changes for income from independent activities;
e-Invoicing obligations;
Changes in VAT rates (including food, social housing, selling and installing photovoltaic panels);
VAT exemptions and excise duty changes.

Read more info HERE.

CEE Tax & Payroll Newsletter, by Mazars

The CEE Tax & Payroll Newsletter aims on sharing Mazars’ latest news on tax, labour, and payroll legislation in Central and Eastern Europe, with the scope of helping you to prepare for the changes that could lie ahead in the following countries: Austria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia, Slovenia, and Ukraine.

Find out more about:

OECD Pillar 2 GloBE in CEE: Preparing for a different tax future by our joint regional team of tax experts in Central & Eastern Europe.
The CEE perspective on the Work-Life Balance Directive for parents and family caregivers by our joint regional team of payroll experts in Central & Eastern Europe.

Read more info HERE.

Latest tax alerts, by Mazars

New tax amendments

On 27.10.2023, Law 296 on some fiscal-budgetary measures to ensure Romania's long-term financial sustainability was published in the Official Gazette No. 977.

Important amendments to contraventions subject to Prevention Law and to other normative acts

Decision no. 937/2023 for the amendment of annex no. 1 to Government Decision no. 33/2018 regarding the establishment of contraventions that fall under the Prevention Law no. 270/2017, as well as the remedial plan model and for the amendment and completion of some normative acts was published in the Official Gazette no. 904 from 06.10.2023.

Adoption of the DAC8 Directive concerning crypto-asset transactions

On 17 October 2023, the Council of the European Union unanimously adopted the Proposal amending Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC8).

Read more info HERE.

This article is provided by our Finance Partner, MAZARS in Romania.

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