| Status | Enacted Law |
| Law | On August 29, 2025, Ordinance No. 21 of August 28, 2025 was published in the Official Gazette. This amends various aspects of the Minimum Tax Act, including for the filing deadline for the designated filing entity nomination, transferable tax credits and the excess negative tax carry forward election. On July 9, 2025, ANAF Order 1.729/2025 was issued to nominate a single designated entity for QDMTT filing and payment purposes, if there are several constituent entities in Romania that are part of the same group. On February 7, 2025, Order no. 193 of 2025 was published in the Official Gazette. This provides amendments to the income tax return (form 100) to report amounts due under the IIR/UTPR or DMTT. On December 29, 2023, Law No. 431/2023 to implement the EU Minimum Tax Directive was published in the Official Gazette. On December 19, 2023, the Romanian Parliament approved the ‘Draft Law on ensuring a global minimum level of taxation for MNE Groups and Large National Groups’. |
| Effective Date | Accounting periods beginning on or after December 31, 2023 |
| IIR | Yes (2024) |
| UTPR | Yes (2025) |
| QDMTT | Yes (2024) |
| Filing Deadlines | Standard |
| Safe Harbours | Transitional CbCR Safe Harbour, QDMTT Safe Harbour, the Non-Material Constituent Entity provisions of the Simplified Calculations Safe Harbour and the Transitional UTPR Safe Harbour |
On November 7, 2025, Romania issued the Draft Order for the model and content of the GIR and the double filing relief notification.
On August 29, 2025, Ordinance No. 21 of August 28, 2025 was published in the Official Gazette. This amends various aspects of the Minimum Tax Act, including for the filing deadline for the designated filing entity nomination, transferable tax credits and the excess negative tax carry forward election.
On August 11, 2025, Romania issued form N408 to nominate a designated filing/payment entity for QDMTT purposes.
On July 9, 2025, ANAF Order 1.729/2025 was issued to nominate a single designated entity for QDMTT filing and payment purposes, if there are several constituent entities in Romania that are part of the same group.
On February 7, 2025, Order no. 193 of 2025 was published in the Official Gazette. This provides amendments to the income tax return (form 100) to report amounts due under the IIR/UTPR or DMTT.
On December 29, 2023, Law No. 431/2023 to implement the EU Minimum Tax Directive was published in the Official Gazette.
On December 19, 2023, the Romanian Parliament approved the ‘Draft Law on ensuring a global minimum level of taxation for MNE Groups and Large National Groups’.
On October 4, 2023, the Romanian Ministry of Finance issued a draft law to implement the Pillar Two GloBE rules/EU Minimum Tax Directive.
Under Article 5 of the Law, the OECD GloBE Commentary, as well as other OECD guidance such as the Administrative Guidance and Safe Harbour rules are to be used as a source of ‘illustration and interpretation’ for the application of the Romanian Law.
On August 29, 2025, Ordinance No. 21 of August 28, 2025 was published in the Official Gazette. This amends various aspects of the Minimum Tax Act. As the Law does not provide for a specific deadline for the entry into force of the amendments, under Romania’s general legislative provisions it applies three days following its formalization (ie from September 1, 2025).
General
As expected, the Law closely follows the EU Directive. There are very few options given to member states in the EU Directive in terms of flexibility over national implementation.
As noted below, very few aspects of the First or Second Set of OECD Administrative Guidance are included in the Law.
However, Article 4 of the Law provides that the Ministry of Finance is to issue methodological norms, instructions and orders for the detailed application of the GloBE rules.
Administrative Guidance
Aspects of the First Set of OECD Administrative Guidance included in the Law are:
– Forex hedge election (Article 2.2)
– Debt release election (Article 2.4)
– Accrued Pension Expenses (Article 2.5)
– Exclusion of Insurance Investment Entities from the definition of Intermediate Parent Entity and Partially-Owned Parent Entity (Article 3.2)
– Liabilities related to Excluded Dividends and Excluded Equity Gain or Loss from securities held on behalf of policyholders (Article 3.4)
– Portfolio shareholding election (Article 3.5)
The aspects of the Second Set of OECD Administrative Guidance included in the Law include some of the Currency Conversion Rules for QDMTTs and Safe Harbour rules.
As such, the following are not included in the Law:
– Excess negative tax carry-forward guidance (Article 2.7)
– Substitute Loss carry forwards (Article 2.8)
– Equity Gain or loss inclusion election (Article 2.9)
– Allocation of taxes arising under a Blended CFC Tax Regimes (Article 2.10)
– The extension of the taxable distribution method election to insurance investment entities (Article 3.1)
– Application of Tax transparency election to Mutual insurance companies (Article 3.6)
– Transitional rules (Article 4)
– Sovereign wealth funds and the definition of Ultimate Parent Entity (Article 1.4)
– Clarifying the definition of ‘Excluded Entity’ (Article 1.5)
– Transferable tax credits;
– Meaning of “ancillary” for Non-Profit Organisations;
– Additional rules (such as the deemed 50% requirement where employees perform work outside the employer’s jurisdiction for the SBIE).
No aspects of the Third Set of OECD Administrative Guidance are reflected in the Law.
The August 2025 Law includes the Excess Negative Tax Carry Forward Election and the OECD rules for Transferable Tax Credits.
Safe Harbour and Penalty Relief Guidance
Article 36 of the Law provides for the safe harbour provisions. It states that, subject to an election of the MNE group, top-up tax will be deemed to be nil where the conditions are met as set out in the OECD Safe Harbours and Penalty Relief: Global Anti-Base Erosion Rules (Pillar Two) guidance.
The Law specifically includes the Transitional CbCR Safe Harbour, the Non-Material Constituent Entity provisions of the Simplified Calculations Safe Harbour and the Transitional UTPR Safe Harbour.
Note that Article 17(5) of the Law does include a version of the QDMTT Safe Harbour as provided in the EU directive. This provides that where a foreign QDMTT has been calculated in accordance with the accepted financial accounting standard of ultimate parent entity or with IFRS there will be no top-up tax liability.
The 2025 Law proposes an amended Article 17(5) that now includes the OECD QDMTT Safe Harbour including the three standards that are required to be met in the OECD Guidance (Accounting Standard, Consistency Standard and the Administration Standard).
Elections in the OECD Model Rules
All of the elections included in the OECD Model Rules and the EU Minimum Tax Directive are provided in the Law, including:
– Excluded Entity Election (Section 2(5) of the Law)
– Stock-Based Compensation Election (Section 20(3) of the Law)
– Election to use the Realization Method (Section 20(6) of the Law)
– Election to Spread Capital Gains (Section 20(7) of the Law)
– Consolidation Election (Section 20(9) of the Law)
– Unclaimed Accrual Election (Section 26(1) of the Law)
– GloBE Loss Election (Section 27 of the Law)
– Prior Year Adjustment Election (Section 29(1) of the Law)
– De minimis Election (Section 34(1) of the Law)
– Substance-Based Income Exclusion Election (Section 32(2) of the Law)
– Taxable Distribution Election (Section 47 of the Law)
– Tax Transparency Election (Section 46 of the Law)
– Distribution Tax Regime Election (Section 44 of the Law)
Other elections in the OECD Administrative Guidance that are included in the Law, include the:
– Debt Release Election (Section 20(12) of the Law);
– Foreign Exchange Hedge Election (Section 20(14) of the Law);
– Portfolio Shareholding Election (Section 20(13) of the Law);
The August 2025 Law includes the Excess Negative Tax Carry Forward Election.
Differences to Model Rules
As expected, the Law closely follows the EU Directive. There are very few options given to member states in the EU Directive in terms of flexibility over national implementation.
The main options relate to the design of the QDMTT and the inclusion of the OECD Administrative Guidance (see above).
The key differences are with the OECD model rules, including the extension to include large scale, purely domestic groups.
The OECD Model Rules allow flexibility as to how to apply the UTPR. Romania’s approach is to apply a UTPR top-up tax rather than a denial of deduction.
As such the carry forward provisions in Article 2.4.2 of the Model Rules for UTPR amounts not sufficient to provide for the additional cash tax expense are not relevant and these rules are not included in the Law.
Qualifying Domestic Minimum Top-Up Tax
Chapter III of the Law includes a domestic minimum top-up tax. Article 17(1) states that it is intended to be a QDMTT under the OECD rules.
The QDMTT applies to both MNE groups and domestic groups.
Article 18 of the Law provides that the standard GloBE calculation rules for determining the top-up tax, but they are then subject to a number of adjustments. The adjustments are:
Unpaid QDMTT
Any QDMTT that has not been paid within four years is usually taken into account for top-up tax purposes in the fifth year. This does not apply for the QDMTT calculation (just for tax under an IIR or UTPR). This is required to avoid circularity and ensure the QDMTT is not taken into account for the domestic minimum tax calculation.
Transparent Entities
Article 18(2) of the Law provides that the QDMTT does not apply to fiscally transparent entities, either with or without separate legal personality (as defined in article 7 of Law no. 227/2015 regarding the Fiscal Code, and investment entities.)
For GloBE purposes they would generally be Stateless entities (subject to some exceptions). The OECD Administrative Guidance does not require a QDMTT to apply to these entities.
Taxes Pushed-Down
Tax paid or incurred by a Constituent Entity-owner under a CFC Tax Regime that is pushed down to a domestic Constituent Entity in the GloBE Rules must be excluded, as provided in the OECD Administrative Guidance. This is included in Article 18(3) of the Law.
This preserves Romania’s primary right to tax income accruing to an Romanian member entity which is also a CFC. If there were no statutory derogation from the general GloBE rules for the calculation of the domestic minimum tax, and the CFC tax paid by the controlling company abroad were included in the included taxes of the Romanian CFC, the effective tax rate would be increased. Therefore, excluding the CFC tax from the Romanian CFCs covered taxes allows Romania to tax low-taxed income at a higher rate than would be the case under an
Section 18(3) also prevents the pushdown of tax to hybrids, PEs and for taxes on distributions (aside from Romanian withholding tax on distributions).
Amended Top-Up Tax Calculation
Article 18(5) of the Law amends the standard top-up tax calculation so that the determination of the QDMTT payable does not itself require the deduction of QDMTT (which would include an element of circularity).
Ownership Interests
Article 18(7) of the Law provides that top-up Tax that is subject to the QDMTT is based on the whole amount of the Jurisdictional Top-up Tax calculated, irrespective of the Ownership Interests held in the Constituent Entities located in the QDMTT jurisdiction by any Parent Entity of the MNE Group.
QDMTT Allocation
The OECD Administrative Guidance provides that the QDMTT tax liability does not need to be allocated to constituent entities in any particular way providing it is allocated to at least one constituent entity subject to tax in the jurisdiction that is legally liable for the tax. Article 18(8) of the Law provides that the allocation in Romania is based on the share of GloBE income in Romania.
Accounting Standard/Currency
Article 17(3) of the Law requires a local accounting standard to be used where all constituent entities of the group in Romania use the national accounting standard. If this does not apply or if the fiscal year of entities in Romania is different from the fiscal year of the consolidated accounts, the accounting standard under the general GloBE rules is to be used (ie either the UPE accounting standard or another relevant accounting standard subject to various requirements).
Under Article 18(9) of the Law, where the QDMTT uses the same accounting standard as for GloBE income (ie art 3.1.2 and 3.1.3 of the GloBE rules) the presentation currency is used for the QDMTT calculation.
The Second set of OECD Administrative Guidance provides that where not all Constituent Entities in the jurisdiction use the local currency as their functional currency, the Filing Constituent Entity may make a Five-Year Election to undertake the QDMTT computations for all Constituent Entities in the jurisdiction either:
– in the presentation currency of the Consolidated Financial Statements; or
– in the local currency.
This is also provided in Article 18(9) of the Law.
QDMTT Payment
Under Article 48(10) of the Law, where there are a number of constituent entities in Romania which are part of the same group for QDMTT purposes, the filing entity can opt for filing and payment to be made by a single constituent entity. The option must be exercised within 6 months of the last day of the reporting year.
On July 9, 2025, ANAF Order 1.729/2025, outlining the details of the nomination form was published in the Official Gazette and entered into force. On August 11, 2025, Romania issued form N408 to nominate a single designated entity for QDMTT purposes.
The 2025 Law amends Article 48(10) to extend the deadline for filing the notification to 12 months from the last day of the reporting year for the first year of application.
Article 48(12) of the Law provides that the QDMTT is paid in the Romanian currency.
Filing
The relevant aspects of the submission of a GloBE Information Return (GIR) are included, as provided in the EU Directive.
Every Constituent Entity located in Romania will have an obligation to file a GIR in Romania. However, this obligation can be discharged if the GIR is filed by:
– The Ultimate Parent Entity, or
– The Designated Filing Entity.
Where the GIR is being filed by either the Ultimate Parent Entity or the Designated Filing Entity, the Constituent Entity, must file a notification with the Revenue.
The notification must contain:
– Details of the entity that is filing the GIR, and
– The jurisdiction in which such an entity is located.
Where the GIR is filed by the Designated Local Entity it needs to outline the Constituent Entities that it is filing on behalf of.
Both the GIR and associated notifications must be filed no later than 15 months after the end of the fiscal year (with an 18-month deadline for the Transition Year).
Payment
Article 48(8) of the Law requires payment of top-up tax by the GIR filing deadline.
Penalties
Article 50 of the Law provides that the provisions of the Fiscal Procedure Code apply for penalties.
On November 7, 2025, Romania issued the Draft Order for the model and content of the GIR and the double filing relief notification.
On August 11, 2025, Romania issued form N408 to nominate a designated filing/payment entity for QDMTT purposes.
On July 9, 2025, ANAF Order 1.729/2025 was issued to nominate a single designated entity for QDMTT filing and payment purposes, if there are several constituent entities in Romania that are part of the same group.
| Romania | |||
|---|---|---|---|
| Effective Date: | Accounting periods beginning on or after December 31, 2023 | ||
| Section/Article | |||
| First Set of OECD Administrative Guidance | |||
| 1.1 | Rebasing monetary thresholds in the GloBE Rules | 2(3) |
|
| 1.2 | Deemed consolidation test | – | |
| 1.3 | Consolidated deferred tax amounts | – | |
| 1.4 | Sovereign wealth funds and the definition of Ultimate Parent Entity | – | |
| 1.5 | Clarifying the definition of ‘Excluded Entity’ | – | |
| 1.6 | Meaning of ancillary for Non-Profit Organisations | – | |
| 2.1 | Intra-group transactions accounted at cost | – | |
| 2.2 | Excluded Equity Gains or Loss and hedges of investments in foreign operations | 20(14) | |
| 2.3 | Excluded Dividends- Asymmetric treatment of dividends and distributions | – | |
| 2.4 | Debt release Election | 20(12) |
|
| 2.5 | Accrued Pension Expenses | 20 | |
| 2.6 | Covered Taxes on deemed distributions | – | |
| 2.7 | Excess Negative Tax Carry-forward guidance | August 2025 Law, Art 25(6)-(10) | |
| 2.8 | Substitute Loss carry forwards | – | |
| 2.9 | Equity Gain or loss inclusion election | – | |
| 2.9 | Qualified Ownership Interest/Flow through entity | ||
| 2.1 | Allocation of taxes arising under a Blended CFC Tax Regimes | – | |
| 3.1 | Application of Taxable Distribution Method Election to Insurance Investment Entities | – | |
| 3.2 | Exclusion of Insurance Investment Entities from the definition of Intermediate Parent Entity and Partially-Owned Parent Entity | 6(38)/(39) | |
| 3.3 | Restricted Tier 1 Capital | August 2025 Law, Art 20(11) | |
| 3.4 | Liabilities related to Excluded Dividends and Excluded Equity Gain or Loss from securities held on behalf of policyholders | 20(13) | |
| 3.5 | Simplification for Short-term Portfolio Shareholdings | 20(13) | |
| 3.6 | Application of Tax transparency election to Mutual insurance companies | – | |
| 4.1 | Deferred tax assets with respect to tax credits under Article 9.1.1 | – | |
| 4.2 | Applicability of Article 9.1.3 to transactions similar to asset transfers | – | |
| 4.3 | Asset carrying value and deferred taxes under 9.1.3 | – | |
| Second Set of OECD Administrative Guidance | – | ||
| 1 | Currency conversion rules | 18(9) | |
| 2 | MTTCs | August 2025 Law, Art 6(21)/20(5)/25(3) | |
| 3 | SBIE Rules | ||
| – Foreign rules | – | ||
| Stock-based compensation election | – | ||
| Leases | – | ||
| – Impairment losses inc in tangible asset value | – | ||
| 4.1 | QDMTT Safe Harbour | – | |
| 4.2 | UTPR Safe Harbour | 36(24) |
|
| Third Set of OECD Administrative Guidance | |||
| 1 | Transitional CbCR – Purchase Accounting Adjustments (consistent reporting condition, goodwill impairment adjustment) | ||
| 2.2.1 | Transitional CbCR – JVs | ||
| 2.3.1 | Transitional CbCR – Same Financial Statements/Local Financial Statements for Statutory Reporting | ||
| 2.3.2 | Transitional CbCR – Using different accounting standards | ||
| 2.3.3 | Transitional CbCR – Adjustments to Qualified Financial Statements/Dividend Mismatches | ||
| 2.3.4 | Transitional CbCR – MNEs not required to file CbC Reports | ||
| 2.3.5 | Transitional CbCR – Qualified Financial Statements for PEs | ||
| 2.4.2 | Transitional CbCR – Treatment of Taxes on income of PEs, CFCs, and Hybrid Entities | ||
| 2.6 | Transitional CbCR – Treatment of hybrid arbitrage arrangements | ||
| 3.1 | Identifying Consolidated Revenue | ||
| 3.2 | Mismatch between Fiscal Years of the UPE and another Constituent Entity | ||
| 3.3 | Mismatch between Fiscal Year and Tax Year of Constituent Entity | ||
| 4.2.1 | Blended CFCs -multiple GloBE Jurisdictional ETRs | ||
| 4.2.2 | Blended CFCs – not required to calculate an ETR | ||
| 4.2.3 | Blended CFCs – income of non-GloBE Entities | ||
| 5.3 | 30 June 2026 Filing deadline | ||
| 6 | NMCE Simplified Calcs | ||
| Fourth Set of OECD Administrative Guidance | |||
| 1.2.1 | Aggregate DTL Category basis | ||
| 1.2.1 | Exclusion of certain types of GL accounts and separate tracking | ||
| 1.2.1 | Exclusion of GL accounts that generate standalone DTAs | ||
| 1.2.1 | Exclusion of swinging accounts and separate tracking | ||
| 1.2.2 | FIFO/LIFO Basis | ||
| 1.2.3 | Aggregation of Short-term DTLs | ||
| 1.2.2 | Reversal of DTLs that accrued before the Transition Year | ||
| 1.2.2 | 5 year unclaimed accrual election | ||
| 2.1.2 | Recalculated deferred tax where GloBE carrying value differs from accounting carrying value | ||
| 2.1.2 | GloBE and accounting carrying values and the Transition Rules | ||
| 2.1.2 | Additional provisions for Intragroup transactions accounted for at cost | ||
| 2.1.2 | Exclusion of GloBE carrying value from SBIE | ||
| 3.1.3 | General rules for allocating cross-border, current taxes under a cross-crediting corporate tax system: 4 Steps | ||
| 3.1.3 | Specific rules for foreign PEs/CFCs, Hybrids/rev hybrids with domestic source income | ||
| 3.1.3 | Cross-crediting between Permanent Establishments and distributions from foreign subsidiaries | ||
| 4.1 | Extension of the Substitute Loss Carry-forward DTA to PEs, hybrids and rev hybrids | ||
| 4.2 | Allocation of deferred tax expenses and benefits from a Parent Entity to a CFC, PE Hybrid or Rev Hybrid: 5 step process | ||
| 4.2.2 | Five-Year Election to exclude the allocation of all deferred tax expenses and benefits to CFCs, PEs, Hybrids and Rev Hybrids | ||
| 4.2.3 | Exclusion of deferred tax assets or liabilities arising under a Blended CFC regime from transition rules | ||
| 5.2.2 | Determining GloBE status when a Flow-through Entity is held directly by another Flow-through Entity | ||
| 5.3.2 | Non-group owners: Partially owned Flow-through Entities | ||
| 5.3.5 | Non-group owners: Indirect minority ownership | ||
| 5.4.2 | Taxes allocated to a flow-through entity | ||
| 5.5.2 | Hybrid entities – Taxes pushed down include indirect owners | ||
| 5.5.4 | Hybrid entities – Entities located in jurisdictions without a Corporate Income Tax system | ||
| 5.6.2 | Extension of taxes pushed down to include Reverse Hybrids | ||
| 6.1.4 | Option to exclude a Securitization Entity from scope of QDMTT | ||
| 6.1.4 | Option to not impose top-up tax liabilities on SPVs used in securitization transactions | ||
| 6.1.4 | Amendments to the Switch-Off rule | ||
| 6.1.4 | New definition: Securitization Entity | ||
| 6.1.4 | New definition: Securitization Arrangement | ||
| January 2025 OECD Administrtive Guidance | |||
| 1 | Articles 8.1.4 and 8.1.5 | ||
| 1 | Amendments to CbCR Safe Harbour for 9.1 | ||
| 1 | Amendments to QDMTT Safe Harbour for 9.1 | ||
| 1 | Article 9.1 of the GloBE Rules | ||
| 1 | Central Record of Legislation with Transitional Qualified Status |
| Note | Romania | |
|---|---|---|
| QDMTT?(Enacted/Draft) | Is there a QDMTT in the Legislation? | Yes – Enacted |
| Effective Date: | Accounting periods beginning on or after December 31, 2023 | |
| Administrative Guidance/Safe Harbour Guidance? | Are the provisions of the OECD Administrative Guidance and Safe Harbour Guidance reflected in the current legislation? | Generally, yes |
| Separate/Transposed QDMTT | Is the QDMTT a Separate QDMTT or a Transposition of the GloBE Rules (with Amendments) | Transposed |
| Domestic Groups | A QDMTT can also apply to purely domestic groups. | Yes |
| Scope Definitions | The definitions of Ultimate Parent Entity, MNE Group, and Constituent Entity correspond with the definitions in the GloBE Rules. | Yes, transposed from Article 18(5) |
| Income and covered taxes of Constituent Entities | The QDMTT must compute the tax liability for the jurisdiction by taking into account the income and covered taxes of Constituent Entities under the GloBE Rules. | Yes, transposed from Article 18(5) |
| Separate ETRs | A QDMTT must determine a separate ETR and Top-up Tax amount for MOCEs, Joint Ventures and JV Subsidiaries. | Yes, transposed from Article 18(5) |
| Charging | A QDMTT must impose a Top-up Tax on one or more domestic Constituent Entities on the Excess Profits of all domestic Constituent Entities, including the domestic Parent Entity. | Yes, from Article 18(8) |
| Enforceability | The legal liability for the domestic top-up tax needs to be enforceable against at least one Constituent Entity in the jurisdiction. | Yes, from Article 18(8) |
| Different Accounting Standard? – Optional | Is the use of a local accounting standard optional? | No |
| Different Accounting Standard? – Mandatory | Is the AG2 guidance followed? | Yes, from Article 18(3) (AG2 Local Accounting Standard rule) |
| Different Accounting Standard? – Default GloBE rules | Do the general GloBE rules apply for the QDMTT accounting standard? | No |
| Require 100% ownership? | The QDMTT )can require 100% ownership | No |
| Differences to GloBE Rules: tighter restriction is consistent with local tax rules | The QDMTT can be more restrictive than the GloBE Rules where the tighter restriction is consistent with local tax rules. | None |
| Differences to GloBE Rules: Not relevant to in the context of its domestic tax system | The QDMTT can exclude adjustments that are not relevant to in the context of its domestic tax system. | None |
| Income/Loss of a PE | The QDMTT must exclude the income or loss of a foreign Permanent Establishment from the income or loss of the Main Entity. | Yes, transposed from Article 18(5) |
| Tax Transparency | A QDMTT must include certain tax transparent provisions. | Yes, transposed from Article 18(5) |
| Adjusted Covered Taxes Consistency | The range of taxes included in Covered Taxes needs to be the same or narrower, as under the GloBE rules. | Yes, transposed from Article 18(5) |
| GloBE Loss Election? | Not Required in QDMTT | Yes, transposed from Article 18(5) |
| No Pushdown to CFC or PE | A QDMTT must exclude: (1) tax paid or incurred by a Constituent Entity-owner under a CFC Tax Regime that is pushed down to a domestic Constituent Entity in the GloBE Rules and (2) tax paid or incurred by a Main Entity that is allocated to a PE in the jurisdiction. | Yes, from Article 18(3) |
| Exclude tax allocated to Hybrids | Second AG Guidance | Yes, from Article 18(3) |
| Exclude allocated net basis tax on dividends (except WHT) | Second AG Guidance | Yes, transposed from Article 18(3) |
| UPE that is a Flow-Through Entity | Second AG Guidance | Yes, transposed from Article 18(5) |
| UPE subject to Deductible Dividend Regime | Second AG Guidance | Yes, transposed from Article 18(5) |
| Eligible Distribution Tax Systems | Second AG Guidance | Yes, transposed from Article 18(5) |
| ETR Computation for Investment Entities | Second AG Guidance | Yes, transposed from Article 18(5) |
| Investment Entity Tax Transparency Election | Second AG Guidance | Yes, transposed from Article 18(5) |
| Taxable Distribution Method Election | Second AG Guidance | Yes, transposed from Article 18(5) |
| Multi-Parented MNE Groups | Second AG Guidance | Yes, transposed from Article 18(5) |
| Additional Top-Up Tax/Excess Negative Tax Expense | A QDMTT needs to have provisions for additional top-up tax where there is no Net GloBE Income and the Adjusted Covered are less than zero and less than the Expected Adjusted Covered Taxes. Amount. Excess Negative Tax Carry-forward rules also need to be in place. | Yes, transposed from Article 18(5) but excess negative tax not included in general GloBE rules |
| Modified Top-Up Tax Formula | The QDMTT top-up tax formula needs to be modified as the GloBE Rules subtract tax paid under a QDMTT from the current GloBE Top-up Tax. | Yes, from Article 18(5) |
| Same Approach As GloBE Rules | A QDMTT must require that top-up tax is taken into account by the relevant Constituent Entity at the same time and in the same manner as under the GloBE Rules (eg it can’t be carried forward). | Yes, transposed from Article 18(5) |
| SBIE Included? | Not Required in QDMTT | Yes, transposed from Article 18(5) |
| SBIE Rates same as GloBE? | Not Required in QDMTT | Yes, transposed from Article 18(5) |
| De Minimis Rule Included? | Not Required in QDMTT | Yes, transposed from Article 18(5) |
| Restructuring Rules? | A QDMTT needs to include restructuring rules as provided in the GloBE rules to the extent necessary to conform to the tax reorganization rules in the jurisdiction. | Yes, transposed from Article 18(5) |
| Safe Harbours? | A QDMTT needs to contain GloBE safe harbours. | Yes, transposed from Article 18(5) |
| Deferred Tax Transition Rule? | A QDMTT must include the deferred tax starting point under Article 9.1.1 of the Model Rules. | Yes, transposed from Article 18(5) |
| SBIE Transitional Rates? | Not Required in QDMTT | Yes, transposed from Article 18(5) |
| Initial Phase of International Activity Exemption | Not Required in QDMTT | Yes, transposed from Article 18(5) |
| Elections? | Where the GloBE Rules permit an election, a QDMTT must generally also provide for the election and require the MNE Group to make the same election under the QDMTT as is made under the GloBE Rules. | Yes, transposed from Article 18(5) |
| Deferred Tax transition: First time or refreshing rule? | Second AG | None |
| New transition year – amend tax attributes? | Second AG | None |
| Currency provisions? | Second AG | Yes, Article 18(9) included election for currency when local accounting standard is used. |
| DTL Recapture rules – Aggregate DTL Categories | Fourth AG, 1.2.8 | |
| DTL Recapture rules Unclaimed Accrual Five-Year Election | Fourth AG, 1.2.8 | |
| Reverse Hybrid Pushdown | Fourth AG, 5.6.2 | |
| Securitization Entities – A QDMTT may also exclude a Securitisation Entity from its scope | Fourth AG, 6.1.4 | |
| Securitization Entities – A jurisdiction may allocate the QDMTT liability for any QDMTT top-up tax to another Constituent Entity (if any) that is located in the jurisdiction | Fourth AG, 6.1.4 | |
| Note |
| Romania | ||
|---|---|---|
| Effective Date: | Accounting periods beginning on or after December 31, 2023 | |
| Section/Article | ||
| Safe Harbour & Penalty Relief Guidance | De Minimis Test | 36(5) |
| Safe Harbour & Penalty Relief Guidance | Simplified ETR Test | 36(5) |
| Safe Harbour & Penalty Relief Guidance | Routine Profits Test | 36(5) |
| Safe Harbour & Penalty Relief Guidance | Simplified Covered Tax defn (inc exclusion of uncertain tax positions) | 36(18) |
| Safe Harbour & Penalty Relief Guidance | Simplified ETR defn | |
| Safe Harbour & Penalty Relief Guidance | Transition Period | 36(11) |
| Safe Harbour & Penalty Relief Guidance | Transition Rate | 36(9) |
| Safe Harbour & Penalty Relief Guidance | Defn of Qualified Financial Statements | 36(4) |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Joint Ventures | 36(19) |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Tax Neutral UPEs | 36(20) |
| Safe Harbour & Penalty Relief Guidance | Special Rules for Investment Entities and their Constituent Entity-owners | 36(21) |
| Safe Harbour & Penalty Relief Guidance | Special Rule for Net Unrealised Fair Value Loss | 36(23) |
| Safe Harbour & Penalty Relief Guidance | Exclusions | 36(13) |
| December 2023 OECD Administrative Guidance | ||
| 1 | Transitional CbCR – Purchase Accounting Adjustments(consistent reporting condition, goodwill impairment adjustment) | |
| 2.2.1 | Transitional CbCR – JVs | |
| 2.3.1 | Transitional CbCR – Same Financial Statements/Local Financial Statements for Statutory Reporting | |
| 2.3.2 | Transitional CbCR – Using different accounting standards | |
| 2.3.3 | Transitional CbCR – Adjustments to Qualified Financial Statements/Dividend Mismatches | |
| 2.3.4 | Transitional CbCR – MNEs not required to file CbC Reports | |
| 2.3.5 | Transitional CbCR – Qualified Financial Statements for PEs | |
| 2.4.2 | Transitional CbCR – Treatment of Taxes on income of PEs, CFCs, and Hybrid Entities | |
| 2.6 | Transitional CbCR – Treatment of hybrid arbitrage arrangements | |
| January 2025 OECD Administrtive Guidance | ||
| Amendments to CbCR Safe Harbour for 9.1 |
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