Romania

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Overall Phase 2 Rating is Largely Compliant

Table of Determinations and Ratings of the Phase 2 Review

Jurisdictions should ensure that ownership and identity information for all relevant entities and arrangements is available to their competent authorities. (ToR A.1)
Determination Factors Recommendations
The element is in place, but certain aspects of the legal implementation of the element need improvement.   Foreign companies and foreign partnerships with legal personality having their place of effective management in Romania are not obliged to maintain ownership information in all cases.  Romania should require foreign companies and foreign partnership with legal personality having their place of effective management in Romania to maintain information on their ownership in all cases. 
Although bearer shares that may be issued by SAs and SCAs represent only a small percentage (i.e. 0.15%) of the total amount of shares in circulation in Romania, mechanisms to ensure that the owners of such shares can be identified are not in place for all bearer shares.  Romania should take necessary measures to ensure that appropriate mechanisms are in place to identify the owners of bearer shares in all instances. 
Although there are some mechanisms in place to ensure compliance by companies, Romanian legislation does not provide for sanctions in all cases for SAs and SCAs that fail to maintain ownership information.  Romania should introduce appropriate enforcement measures to address the risk of SAs and SCAs not complying with the requirement to maintain a register of their shareholders and members. 
Phase 2 Rating Factors Recommendations
Partially Compliant.     
   
   
Jurisdictions should ensure that reliable accounting records are kept for all relevant entities and arrangements. (ToR A.2)
Determination Factors Recommendations
The element is in place.   Romanian trustees of foreign trusts are not required to keep accounting records that fully reflect the financial position and assets/liabilities of the foreign trust.  Romania should ensure that such accounting records are maintained for a minimum of five years for any foreign trusts which have Romanian-resident administrators or trustees. 
Phase 2 Rating Factors Recommendations
Compliant.     
Banking information should be available for all account-holders. (ToR A.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Competent authorities should have the power to obtain and provide information that is the subject of a request under an exchange of information arrangement from any person within their territorial jurisdiction who is in possession or control of such information (irrespective of any legal obligation on such person to maintain the secrecy of the information). (ToR B.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The rights and safeguards (e.g. notification, appeal rights) that apply to persons in the requested jurisdiction should be compatible with effective exchange of information. (ToR B.2)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
Exchange of information mechanisms should provide for effective exchange of information. (ToR C.1)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' network of information exchange mechanisms should cover all relevant partners. (ToR C.2)
Determination Factors Recommendations
The element is in place.     Romania should continue to develop its exchange of information network with all relevant partners. 
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdictions' mechanisms for exchange of information should have adequate provisions to ensure the confidentiality of information received. (ToR C.3)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The exchange of information mechanisms should respect the rights and safeguards of taxpayers and third parties. (ToR C.4)
Determination Factors Recommendations
The element is in place.      
Phase 2 Rating Factors Recommendations
Compliant.     
The jurisdiction should provide information under its network of agreements in a timely manner. (ToR C.5)
Determination Factors Recommendations
The assessment team is not in a position to evaluate whether this element is in place, as it involves issues of practice that are dealt with in the Phase 2 review.      
Phase 2 Rating Factors Recommendations
Largely Compliant.  Although peers have been generally satisfied with their EOI relationships with Romania, Romania’s competent authority has in many instances been unable to answer incoming requests or provide updates on the status of requests within 90 days.  Romania should ensure to be able to respond to EOI requests in a timely manner, by providing the information requested within 90 days of receipt of the request, or if it has been unable to do so, to provide a status update. 

Earlier self-assessment based annual reports entitled Tax Co-operation 2010: Towards a Level Playing Field are also available.