The Romanian tax authorities (ANAF) publish the draft Order detailing the procedure for the “Notification concerning the declaration and payment of the domestic top-up tax” under Pillar Two rules
Background
Law 431/2023 on ensuring a global minimum level of taxation of large multinational and national enterprise groups ("Law 431") entered into force on 8 January 2024. The legislation transposes into national law the provisions of Directive 2523/2022 on ensuring a minimum level of taxation ("Directive 2523"), which incorporates the guidelines of the second pillar of the "Global Anti-Base Erosion Model Rules" (hereafter referred to as the "GloBE Rules" or "Pillar Two”) issued by the OECD/G20 Inclusive Framework on BEPS, as well as the Administrative Guidelines on the GloBE Rules.
Under Law 431, each Romanian constituent entity which is part of a group of companies subject to Pillar Two rules needs to declare and pay its share of the domestic minimum top-up tax within 15 months of the end of the financial year (18 months for the first year in which the Pillar Two rules apply). However, as a simplification measure, Law 431 states that the group has the option to designate a local constituent entity to declare and pay the domestic top-up tax in Romania. The deadline for notifying this option is 6 months after the end of the financial year (i.e. 30 June 2025 for calendar year taxpayers).
Notification template for declaring and paying the domestic top-up tax
On 20 June 2025, ANAF published a draft Order to approve the template and content of the form Notification concerning the obligation to declare and pay the domestic top-up tax.
The Order has not yet been approved and may be subject to further amendments.
