Romania

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  • Type: Press release
  • Date: 5/26/2013

Latest developments in Tax: KPMG conference 27 May 2013 

27 May 2013, Bucharest

 

Romania’s tax system continues to be subject to frequent change, often at very short notice. Moreover, in the current climate of budgetary pressures, tax authorities worldwide are increasingly strict in applying existing legislation as well as finding new ways to combat tax evasion and tax avoidance. So it is critical for businesses not only to be fully in touch with existing legislation which applies to them, but also to be aware of changes as soon as they happen. They also need to try to anticipate the sort of changes which might take place in future. A business whose decision-makers are well-informed about tax issues is in a far better position to make accurate financial projections, and hence to retain a competitive position on the market

KPMG’s International Tax Conference, to be held on 27 May 2013 at the Radisson Hotel, Bucharest, aims to help businesses gain a better understanding of the latest hot topics in taxation. The event will bring together tax specialists from KPMG in Romania as well as from KPMG offices in Belgium, the Netherlands and Germany, who will give presentations and answer questions. The first session will examine some major changes which are likely to occur in Romanian tax legislation in the near future. The Romanian Government is currently undertaking a process of rewriting the Fiscal Code (expected to be finalized before the end of June 2013, applicable as of 1 January 2014), and at the same time introducing new concepts into Romanian tax legislation, such as favorable tax treatment for holding companies, fiscal transparency, as well as new rules for taxation of capital gains. At the same time, KPMG specialists expect to see increased focus by the tax authorities on tax audits targeted at certain industries where there is a high risk of tax evasion.

 

The Romanian authorities are not alone in Europe in their efforts to combat tax evasion and tax avoidance. Tax authorities throughout the world are focused on this and there will be a discussion on recent international trends in this area. In view of the current level of attention given to this issue, today’s businesses need to be particularly careful to avoid aggressive tax planning, which can generate risks of unexpected tax demands with related penalties and even the possibility of prosecution. Moreover, there can also be reputational risks, given the recent media focus on this issue.  Robert van der Jagt, Partner in KPMG Netherlands and Chairman of KPMG EU Tax Center and Barry Larking, Director in KPMG Netherlands will speak to participants about the latest developments at EU level.

 

The second session will look closely at the tax-related costs of employment. Extensive discussions have taken place recently about whether the Romanian Government will reduce social contributions or the VAT rate, and there is also a lot of discussion about Romania’s tax competitiveness where highly-skilled employees are concerned.  The KPMG International surveys focused on effective tax and social security rates demonstrate that the combined costs of income tax and aggregate social contributions are relatively high in Romania compared with other European countries, raising the question as to whether these act as a deterrent to investors and to attracting qualified workers. The tax implications of international labor mobility as well as the latest trends in how companies approach global mobility policies will be examined by Rene Philips, Global Head of KPMG’s International Executive Services Practice.

 

Customs legislation in the EU is currently under review, with the new Union Customs Code well on the way to being implemented. The new legislation will offer certain advantages, such as deferred VAT payments for Authorized Economic Operators, and also aims to combat illicit trade more effectively. Kay Masorsky, Tax Partner, Customs and Trade, KPMG Germany, will give an overview of developments, and will also discuss the various free trade arrangements currently being negotiated by the EU with the U.S.A. and other countries, as well as preparations for Croatia’s accession to the EU.

 

As Madalina Racovitan, Partner and Head of People Services at KPMG in Romania comments: “This event will be useful for any business which operates in Romania or in the rest of the EU. It will give a general overview of recent changes and of our expectations for the future as well as looking into some other topical issues. It will also give participants the chance to ask their own specific questions about tax problems they may have. I’m expecting this event to generate a lot of interest.”

Media Enquiries

Maria Stancu

Marketing Director

+40 744 631 102

mstancu@kpmg.com

 

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