Corporate structures

Developing international corporate structures that have an efficient but appropriate tax treatment is becoming a process increasingly complex due to worldwide changes that have been mostly triggered by the OECD’s Base Erosion and Profit Shifting (BEPS) initiative. In addition, Romanian tax policies are changing at an accelerating rate, as governments are looking to solutions for covering ever increasing budget deficits in their public finances, especially as a result of the COVID-19 pandemic.

Council Directive (EU) 2018/822 of 25 May 2018 amending Directive 2011/16/EU in respect of mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements (“the Directive”) supplements the reporting obligations for certain categories of entities.

In the sense of the Directive, cross-border arrangements refer to, among others: tax optimization structures in several jurisdictions and cross-border arrangements consisting in the transfer of intangible assets or transfers of lines of business between related parties.

The entities falling under the scope of this reporting obligation are represented by intermediaries, respectively any person that designs, markets, organises or makes available for implementation or manages the implementation of a reportable cross-border arrangement, but also taxpayers themselves, in certain cases.

The result is more transparency in terms of cross-border corporate structures and/or transactions and more information available to the national tax authorities for performing their risk analysis in respect of tax avoidance and/or tax evasion.

Our approach

In this fast-changing environment, we believe in a risk-averse, long-term, and sustainable approach to developing corporate structures, rather than being forced to respond to each new piece of legislation or tax court ruling. 

Our team in Romania is tracking local tax issues in advance, including disruptive tax events such as Brexit. Also, our international presence makes Mazars Romania ideally placed to serve both larger corporations and mid-sized firms for their international expansion and operations. In addition, Mazars supports international groups to resolve their tax issues triggered by the OECD BEPS initiative and the EU-Anti Tax Avoidance Directive (ATAD).  

We also offer advice on tax-efficient structures during cross-border acquisitions and/or disposals, and strategic assistance during international tax audits. 

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Our services

DAC6 services

Mazars offers a full range of services for compliance with the new reporting obligations, as follows:

• Review of potential reportable arrangements and guidance for the taxpayer in gathering additional information / assessing the need to report;
• Training for the employees of the taxpayer, so that they become accustomed to the arrangements that need to be monitored and understand the importance of this exercise;
• Draw up internal procedures, both in respect of tracking information and identifying reportable arrangements, as well as in verifying and validating them;
• Assistance with assessing potential/future arrangements from the perspective of the reporting obligation;
• Provision of a completely new, smart, and modular service portfolio. To comply with DAC6 requirements, we have developed the DAC6 Platform, a Software as a Service (SaaS) solution to cover the analysis of potentially reportable arrangements, the necessary documentation as well the ultimate report to the respective tax authorities.

Additionally, Mazars DAC6 is our practical tool that offers the possibility to compare countries by topic in light of the transposed Directive, thus simplifying the analysis of potential reporting obligations. 

We invite you to access the tracker below.