- The main goal of electronic reporting is to provide tax authorities with relevant data for risk analysis, not just for imposing fines.
- The complexity of new rules has put pressure on companies to quickly implement technical solutions and adapt their internal processes.
- Digitalization of taxation promises more predictability and more efficient inspections, but the success of this process depends on how companies manage their compliance.
- Many organizations have managed to avoid fines by introducing specific checks, quickly identifying discrepancies and correcting them in a timely manner.
- Individuals are facing increasingly strict rules, especially regarding the management of salary benefits and income declaration.
- The PwC Romania Annual Tax Conference discussed these topics with experts from PwC Romania, D&B David and Baias, and other organizations.
- Inge Abdulcair highlighted the four pillars of global tax digitalization and the importance of analyzing its local impact.
- Digitalization aims to improve tax collection efficiency, especially for VAT, which accounts for 44% of Romania’s total tax revenue.
- Digitalization brings greater transparency as data transmitted to tax authorities becomes more detailed and reported faster.
- This transition is part of the OECD’s Tax Administration 3.0 initiative, which aims to shift from end-of-period tax audits to near real-time checks.
- Centralization of tax and electronic reporting functions within large groups is a growing trend due to harmonized tax regulations and the need for updated ERP systems.
- In Romania, the transition to digitalization is often perceived as an IT project without integrating the tax component from the start, which can lead to problems when risks or discrepancies arise in electronic reporting.
- Companies should include tax teams in the implementation process from the beginning to avoid issues.
Source: blog.pwc.ro
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
