Romania Issues Order to Amend CIT Return for Global Minimum Tax

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 Pillar Two Global Minimum Tax Rules (IIR/UTPR or DMTT).

On October 4, 2023, the Romanian Ministry of Finance issued a Law to implement the Pillar Two GloBE rules/EU Minimum Tax Directive. On December 29, 2023, this was enacted as Law No. 431/2023 and was published in the Official Gazette.

As provided in the EU Directive, the Law includes an income inclusion rule (IIR) and an under-taxed profits rule (UTPR).

The IIR is to apply to financial years beginning on or after December 31, 2023. The UTPR will generally apply to financial years beginning on or after December 31, 2024.

Chapter III of the Law provides that Romania will apply a domestic minimum top-up tax (intended to be a QDMTT) for financial years beginning on or after December 31, 2023.

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.

Articles 48(8) and 48(9)of the Law requires submission of an additional self- assessment return (a ‘GloBE Top-Up Tax Return’ or a ‘DMTT Tax Return’) by the GIR filing deadline if there is a top-up tax liability.

The amendments to form 100 include amending the nomenclature of payment obligations by the introduction ‘item 109’ (“Additional tax under the IIR/UTPR”) and ‘item 110’ (“Domestic Minimum Tax”).

There were also corresponding modifications to the instructions for filling in the form 100 in accordance with the above amendments.