Widespread litigation has long been a feature of the Romanian market and 2015 and 2016 brought no respite so far as taxpayers were concerned.
"The environment in Romania is still an aggressive one," said Tudor Nedelea, head of tax at DLA Piper. "At the firm we currently see a lot of litigation work, which is good for tax advisers, but not necessarily good for the environment in general. This doesn't look like it will improve for taxpayers anytime soon." He added that the tax authorities' approach is to "collect as much as possible".
This kind of environment obviously makes it extremely difficult for taxpayers to know their position regarding tax strategy, and some advisers believe that this can be seen by the way that taxpayers are behaving. "In general the taxpayers, are very cautious with their behaviour," said Teodora Martin, tax counsel at Niculeasa Law Firm. "There are still a lot of changes, there are still a lot of collections that are upcoming, there is still a great debate regarding the law and how to interpret various things. Taxpayers don't want to take risks. They don't want to incur penalties, fiscal or criminal."
Not all of this uncertainty is coming from the fact that the tax authorities have been taking tough action against taxpayers. From January 2016, Romania introduced a new fiscal/fiduciary court, and advisers feel that some of the reticence to act on the part of taxpayers is because this needs time to bed in, with advisers and taxpayers alike needing time to adjust to the new court system and observe what kinds of judgements they will pass.
On the issue of the OECD's BEPS Project, Romania has generally been ahead of the curve, or at the very least one of the first, in implementing the project's various recommendations, including CbCR and amendments to transfer pricing documentation requirements.
"The BEPS recommendations will be adopted in full, Romania was among the first to adopt transfer pricing rules, and to implement country-by-country reporting," said Martin.
Uncertainty is high even before BEPS is considered however, given that Romania is implementing a series of reforms, not just in tax, to reduce corruption in the country. This is aimed at increasing the attractiveness of Romania as a place to do business for both Romanian and foreign companies. The hope is that when this is resolved Romania will emerge as a stable and attractive place to do business. In the meantime, taxpayers will be seeking comfort in solid tax advice from their advisers.
Ernst & Young S.r.l.
Bucharest Tower Center, 22nd floor
15-17 Ion Mihalache Blvd.
Tel: +40 21 402 4000
Country Tax Leader
Tel: +40 21 402 4083
Law Leader, Radu si Asociatii SPRL
Tel: +40 21 402 4100
Tax Policy and Controversy Leader, Radu si Asociatii SPRL
Tel: +40 21 402 4100
Business Tax Services
Tel: +40 21 402 4044
Global Compliance and Reporting
Tel: +40 21 402 4072
Tel: +40 21 402 4191
International Tax Services
Tel: +40 21 402 4083
Tel: +40 21 402 4189
Tel: +40 21 402 8419
79-81 Popa Savu Street
Monolit Building, 1st floor
District 1, 011432, Bucharest, Romania
Tel: +40 21 316 06 45 / 46 / 47
Fax: +40 21 316 06 48
Angela Rosca – Managing Partner
Taxhouse Taxand is, exclusively, Taxand Romania.
|Corporate Income Tax||16%|
|Capital Gains Tax||0%||16%||A|
|Net Operating Losses (years)|
|Royalties from, for example, patents, know-how||0%||16%||C|
|Branch Remittance Tax||0%|
Source: Taxhouse, Taxand Romania
Baker Tilly Klitou in Romania has a team of well-respected tax professionals who are capable of handling a variety of complex tax matters. Including providing support to public-sector clients, and in particular in assisting with tax consulting in the real estate tax issues, distribution, tax structuring and planning, financial sector tax issues, taxation of individuals and non-resident investment funds.
Biris Goran in Romania offers services covering the tax-efficient structuring of multinational companies, cross-border transactions, support in tax controversy and dispute resolution.
A key contact at the firm is Ruxandra Jianu, the firm's head of tax. This year saw founding partner Gabriel Biri? leave the firm to become a secretary of state with the Romanian Finance Ministry.
At bpv Grigorescu Stefanica a key contact is head of tax Anca Grigorescu, who leads the tax team. This comprises three partners and six other tax professionals all of whom are competent to work on indirect tax issues, eight who cover corporate tax and five who cover tax disputes.
The firm primarily advises large companies and multinationals in the information technology, energy and utilities, financial services, healthcare and pharmaceuticals and manufacturing sectors.
A key contact at Deloitte is Dan Badin who is the partner in charge of Deloitte in Romania. He leads of team of 115 tax professionals, including two other partners, 27 of whom cover indirect tax, 33 of whom cover corporate tax, 16 who cover the taxation of individuals, six of whom cover tax disputes and five of whom cover VAT compliance. The past year has seen the firm grow by just under 50 professionals, this has included two tax compliance specialists, six senior tax consultants and 14 tax consultants.
The firm's clients are drawn from a wide range of industries but particularly from the energy and utilities, financial services, retail and fast moving consumer goods (FMCG), real-estate, healthcare and pharmaceuticals and manufacturing.
DLA Piper in Romania is led by well-respected tax partner Tudor Nedelea, who leads a team of five other tax professionals, of whom two cover indirect tax and VAT, two cover corporate tax, and three cover tax disputes and litigation.
The team advises clients in a broad range of industries including healthcare and pharmaceuticals, information technology, manufacturing, TMT, FMCG, transport including aerospace and financial services.
During the last year, the tax department extended its practice area by undertaking new challenging projects for companies active in the automotive and remote gambling fields. Furthermore, during this year it has been actively involved in tax evasion projects both from a tax and white collar crime perspective, benefitting from the experience of a specialised lawyer at the firm who is a former prosecutor.
Dobrinescu Dobrev SCA's Romanian professionals have broad experience of working with clients from the real estate, IT, road construction, food and beverages and transport industries. It provides clients with tax advice and consulting covering, M&A and LBO deals, financial structuring, domestic and international tax structuring, due diligence, dispute resolution and litigation, and VAT and indirect tax.
Alex Milcev is a key contact at EY in Romania leading a large team, who assist clients in a broad range of domestic and international tax matters. Key services that the firm provides include advice on the tax implications of business restructuring, the tax aspects of M&A and leveraged buyout (LBO) transactions, dispute resolution and litigation services, tax planning and assistance during audits.
Key contacts at FinExpert are Manuela Furdui, and Suzana Adamache, who together lead a tax team competent in advising clients from a broad range of industries on the full range of tax issues. The team provides accounting, payroll, tax and audit functions and prides itself on its in-depth knowledge of the Romanian business environment and the experience it has of working with the authorities.
A key contact at Grant Thornton Romania is Nadia Oanea, who was appointed head of tax in May 2015. She leads a team of six other professionals, two of whom cover indirect tax, two of whom cover corporate tax, one who assists with tax disputes, and one who covers tax compliance and accounting.
The firm offers a range of tax services including advice on tax litigation and dispute resolution proceedings, international and domestic tax structuring advice and the tax implications of M&A and LBO transactions. It advises clients primarily in the manufacturing, TMT, healthcare and pharmaceuticals and transport and aerospace industries among other areas.
KPMG Romania's head of tax is Mark Gibbins, he leads a team of well-respected tax professionals who strive to provide high quality tax solutions to a broad range of clients on a wide range of domestic and international tax issues.
The team primarily advises firms in the areas of construction and real estate, energy, utilities, financial services, technology, media and telecommunications (TMT) and public sector and European funding.
René Schöb heads the tax practice Mazars in Romania and has more than 17 years of experience working in the tax advisory business. He leads a team capable of advising on complex domestic and international tax issues, particularly in the areas of tax, transfer pricing, audit, accounting and payroll outsourcing, with further focus in finance and legal advisory.
The firm advises clients of all types from a range of industries including financial services, real estate and construction, energy, automotive, retail and fast-moving consumer goods.
Mu?at & Asocia?ii in Romania advises clients on a range of issues from industries such as financial services, healthcare and pharmaceuticals, oil and gas, real estate and construction, consumer goods and natural resources. The team assists in a range of matters such as tax structuring, M&A, tax disputes and litigation, VAT and indirect tax.
The key contacts at Nestor Nestor Diculescu Kingston Petersen (NNDKP) are Alina Timofti, Marius Ionescu, Adina Vizoli, Lucian Barbu, and Silviu Badescu all of whom are partners and head up the tax team at the firm, overseeing a team of 15 other tax professionals.
The team offers tax advice to domestic and international companies involved in industries such as oil and gas, energy, banking, automotive, real estate and construction and retail. It offers advice on tax structuring, litigation and dispute resolution, controversy management and advice on all aspects of domestic and international tax law.
Niculeasa Law Office was founded in 2012, and is quickly developing a reputation as an excellent firm in Romania. A key contact at the firm is Bogdan Marculet who is head of the firm's tax practice.
PKF Finconta in Romania offers a wide range of tax services, which include support in M&A, transactions, tax analysis, risk management, indirect tax and tax disputes. The practice advises clients of all types from a range of industry backgrounds but its specialisations include pharmaceuticals, financial services, agriculture, cash and carry, and special constructions.
A key contact at the firm is Florentina Susnea, the head of tax.
Popovici Nitu Stoica & Associatii advises clients on business tax structuring, M&A, due diligence and restructuring for business reorganisations, corporate and international planning for Romanian and foreign entities, VAT and excise duties, expatriate taxation, dispute resolution and tax litigation. The team includes lawyers and certified tax experts.
A key contact at PwC in Romania is Mihaela Mitroi, who has been a partner in the firm since 2004, and is the head of tax. She leads a team which is well placed to offer a truly international tax service through the worldwide PwC network alongside local services. The firm has particular focus on the communications and IT, pharmaceuticals and agriculture, corporate tax, financial services, retail and consumer and energy sectors. Key services include assistance with tax litigation, optimisation, corporate tax and financial restructuring for transactions such as LBO and M&A transactions.
Schoenherr Si Asociatii specialises in advice and international tax law, corporate tax, M&A, VAT and other forms of indirect tax and withholding tax. As well as the proper application of benefits arising from double taxation treaties.
Taxhouse, Taxand Romania's head of tax is Angela Rosca, a well-respected tax professional who leads a team of twenty, including herself. The team comprises two partners and 18 other fee earners, five of whom cover indirect tax, nine who cover corporate tax, three who advise clients during tax disputes and litigation and three who cover tax compliance and accounting.
All members of the team are competent in handling a range of domestic and international tax issues including M&A, compliance, tax litigation support and transfer pricing, among other areas. Through the firm's membership of the Taxand network, it can partner with firms worldwide to offer a truly international service.
TPA advises a range of clients including domestic and international companies and multinational groups from a broad range of industries on issues such as tax due diligence, tax structuring advice, audits and compliance, transfer pricing and tax and VAT structuring for Romanian and international tax.
Tuca Zbârcea & Associatii in Romania is led jointly by Razvan Gheorghiu-Testa, Alexandru Cristea and Alin Chitu. The firm advises on a wide range of domestic and international tax issues for clients from a range of industry backgrounds. Its advice covers dispute resolution and litigation, tax structuring, corporate and indirect tax, and the tax implications of LBO and M&A transactions.
|Tier 1 - Romania|
|Tier 2 - Romania|
|Taxhouse, Taxand Romania|
|Tier 3 - Romania|
|Baker Tilly Kiltou|
|bpv Grigorescu Stefanica|
|Nestor Nestor Diculescu Kingston Peterson (NNDKP)|
|Popovici Niţu & Associaţii Tax|
|Ţuca Zbȃrcea & Associaţii|
|Tier 4 - Romania|
|Dobrinescu Dobrev SCA|
|Muşat & Associaţii|
|Niculeasa Law Offices|
|Schoenherr Şi Associaţii|