Accounting relief for Romanian banks

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Accounting relief for Romanian banks

gheorghe-ialomi-ianu-ministrul-finan-elor-publicesmall.jpg

The Romanian government provided some welcome tax accounting news for the banking sector at the end of 2011.

gheorghe-ialomi-ianu-ministrul-finan-elor-publicesmall.jpg

Though new fiscal rules for banks that use IFRS were announced on December 27 as part of wider changes to the tax system, they include a tax break for net amounts registered in early 2012 resulting from the establishment and release of provisions after the enforcement of IFRS, as long as these sums are kept in a bank’s reserve account, as well as the deductibility of IFRS provisions and additional provisions resulted from the enforcement of regulations by the National Bank of Romania (BNR), the central bank.

Gheorghe Ialomitianu, the Public Finance Minister, also announced that the government and the BNR had agreed that no tax liability would arise from the differences resulting from the application of the local accounting rules and IFRS for various income and expense items specific to the banking system.

“The central bank said that for reasons of prudence, it would be good to keep this difference in revenues in the accounting records...and as long as they represent funding sources for the banks, they should not be taxed,” Ialomitianu told the Actmedia news agency.

more across site & shared bottom lb ros

More from across our site

The South Africa vs SC ruling may embolden the tax authority to take a more aggressive approach to TP assessments, an adviser tells ITR
Indirect tax professionals now rate compliance as a bigger obstacle than technology and automation; in other news, Italy approved a VAT cut on art sales
AI-powered tax agents are likely to be the next big development in tax technology, says Russell Gammon of Tax Systems
FTI Consulting’s EMEA head of employment tax and reward tells ITR about celebrating diversity in the profession, his love of musicals, and what makes tax cool
Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
A ‘joint understanding’ among G7 countries that ‘defends American interests’ is set to be announced, Scott Bessent claimed
The ‘big four’ firm’s inaugural annual report unveiled a sharp drop in profits for 2024; in other news, Baker McKenzie and Perkins Coie expanded their US tax benches
Representatives from the two countries focused on TP as they met this week to evaluate progress under a previously signed agreement – it is understood
Gift this article