To clarify the legislation regarding the non-cooperating jurisdictions, the Ministry of Finance announces that the necessary actions were taken to modify the provisions of art.25 para.4) letter f ^ 1) of the Fiscal Code. This point, introduced by an amendment that came into force in January 2021, provides that expenses incurred as a result of transactions with a natural or legal person located in a State which, at the date of recording the expenses, is included in Annex I and / or Annex II of the EU List of non-cooperating jurisdictions for tax purposes, published in the Official Journal of the European Union, are non-deductible.
The amendment will eliminate the provision that states mentioned in Annex II will be considered as non-cooperating jurisdictions for tax purposes, a measure that clarifies, in this regard, including the tax treatment applied to transactions conducted from 1 January 2021.
Based on the information available, no other Member State has taken similar measures against the jurisdictions included in Annex II of the EU List of non-cooperating jurisdictions for tax purposes.
The Ministry of Finance intend to clarify that, in the context of reporting cross-border arrangements under EU Directive 2018/822 (known as DAC 6), non-cooperating jurisdictions refers only to the countries in Annex I of the EU List of Non-Cooperative Jurisdictions for tax purposes, published in the Official Journal of the European Union.