Clarifications on non-cooperating jurisdictions

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.

Cristina Georgescu

Partener

FCCA, Expert Contabil și Consultant Fiscal cu peste 24 ani de experiență. Având o fire practică, anticipează nevoia clienților și îi ajută pe aceștia în luarea deciziilor. Abilitatea, optimismul, flexibilitatea și atenția cu care gestionează fiecare client în parte, fac din Cristina un partener de încredere pentru clienți.