ECONOMY FINANCE&BANKING

FinMin Misa unveils tax on multinationals’ transfers abroad

The Romanian Government will tax the transfers abroad made by multinational companies “in their attempt to reduce their tax base,” Finance Minister Ionut Misa said on Thursday.

“The European directive fighting the externalisation of revenues by multinational companies will be introduced – the EU Directive 1164/2016 [laying down rules against tax avoidance practices that directly affect the functioning of the internal market]. Multinational companies that until now have avoided paying taxes in Romania won’t be able to do it anymore. Therefore, a limited deduction of interest will be granted, but a tax will be levied on overseas transfers of the multinationals in their attempt to reduce their tax base. Transfers by certain groups of companies to their branches in tax havens will be prevented and tax benefits obtained under abusive business arrangements will no longer be offered,” Misa said.

He added that also the confiscation of means of transportation as a measure to fight against tax evasion is also being considered.

“It’s about all means of transportation – cars, trucks, ships, planes, trains – used by those who evade taxes on excisable goods in addition to the impounding of goods involved in the evasion,” said Misa.

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