Companies must conclude the analysis of all cross- border transactions with business partners from other states

This analysis must be strongly documented in order to be able reasoning of the decision of reporting to authorities or not needed the reporting.

Cross-border transactions occurred during period

01 July 2020 – 31 December 2020 – Reporting Deadline 31 January 2021

25 June 2018 – 30 June 2020 – Reporting Deadline 28 February 2021

 

Afterwards, the analysis and documentation must be continuous, taking into account the obligation of reporting within 30 days.

DAC6’s reporting purpose is identification of cross-border transactions rendered for the aim of tax optimization.

The hallmarks in arrangements designed to be used for the purpose of reducing tax and incomes and avoid aggressive tax planning to be paid are structured as follows:

A. Generic hallmarks regarding main benefit test (MBT);
B. Specific hallmarks regarding main benefit test;
C. Specific hallmarks regarding cross-border transactions, some of them being linked of main benefit test;
D. Hallmarks regarding exchange of information and real beneficiary
E. Hallmarks regarding transfer pricing

The persons obliged to report the arrangements are the intermediary (promotor or service provider) or the company-tax payer itself.

The reporting DAC6 obligation remains with the company in the situation when there is no intermediary, the intermediary does not comply with requested criteria or the intermediary does not have company’s consent to report to the tax authorities.

There are considered contraventions:

  • Lack of reporting or late reporting by the intermediaries or companies

Penalty: between 20.000 lei and 100.000 lei per arrangement

  • Lack of notification regarding the obligation of reporting from the intermediary to the company

Penalty: between 5.000 and 30.000 lei per arrangement

Our team of professional is available for any clarifications or additional details required in your analysis. The above information represents just a summary of aspects we consider relevant in the recently published legislation. This is not exhaustive disclosure of information and it is not intended to be used as advice on any particular matter. We invite all readers to contact us for further clarification of any specific issue. Argus Audit team and its associates disclaim liability in any action taken by a third party in reliance exclusively on summarized information presented in our publications.