Clarifications regarding public country-by-country reporting

Through Order No. 1730/2023, the Romanian authorities have made a series of clarifications regarding public country-by-country reporting.

More precisely, one of these clarifications refers to the fact that only medium and large subsidiaries whose parent company is based in a non-EU country are required to publish the public country-by-country report when the consolidated revenues of the multinational group exceed the threshold of RON 3.7 billion for each of the last two consecutive financial years.

It was also clarified that the obligation to publish the public country-by-country report for subsidiaries having a non-EU parent company can be fulfilled by any subsidiary located within the EU on behalf of the entire group.

The deadline for publishing the first report has been kept the same as in the initial legislation (Order no. 2048/2022), meaning that the first financial year for which the public country-by-country report will be prepared is that starting on or after 01.01.2023. The report must be published within a maximum period of 12 months from the end of the fiscal year.

In cases where the parent company and the Romanian subsidiary have different financial years, the reporting year will align with the parent company’s financial year, thus providing a consistent approach in reporting.

In addition to the initial legislation, it is now mentioned that entities based in a country within the European Economic Area (EEA) are considered, in terms of reporting obligations, as being established in a Member State rather than in a third country. This implies that EEA-based entities are subject to the same reporting requirements as entities within the EU. 

Source: Order of the Minister of Finance no. 1730 regarding the regulation of certain accounting aspects, published on 21 June 2023.