21 March 2023
On 6 March 2023, Romania officially notified the OECD regarding the completion of all necessary internal procedures for the application of the MLI – Multilateral Convention to Implement Tax Treaty related measures to prevent base erosion and profit shifting.
By fulfilling these procedures, Romania has committed to implementing measures to prevent tax treaty abuse and improve dispute resolution mechanisms.
The MLI should produce effects in Romania starting on 1 January 2024.
This is an important step in the fight against tax avoidance and will help to ensure that Romania’s existing tax treaties are effective in preventing base erosion and profit shifting.
Businesses operating in Romania should be aware of the changes that the MLI will bring to the tax treaty network, and should review their existing structures and operations to ensure that they are compliant with the new rules. It is also important for companies to understand the potential implications of the MLI on their cross-border transactions.