GENERAL ASPECTS
1. What is the legislation applicable to tax matters? Is the Romanian tax legislation fully harmonised with the EU law?
Romanian tax matters are mainly covered by Law No. 227/2015 regarding the Tax Code, as further amended and supplemented, and by Government Decision No. 1/2016 approving the Norms for the application of the Tax Code, as further amended and supplemented. Moreover, certain provisions from the Anti-Tax Avoidance Directive (i.e. deductibility limitations for exceeding borrowing costs, exit taxation, controlled foreign companies (CFC) rules, anti-abuse rules) were implemented in the Romanian tax legislation.
Also, the provisions of the Council Directive (EU) 2018/822 of 25 May 2018 (also known as DAC 6) have been implemented in the Romanian tax legislation through Government Ordinance No. 5/2020 amending and suplementing Law No. 207/2015 on the Fiscal Procedure Code, generating obligations with respect to the automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements.