Tax Alert – Deferred Tax in the Context of Global Minimum Tax (Pillar II)
Tax Alert – Deferred Tax in the Context of Global Minimum Tax (Pillar II)
Click here to view online  Tax Alert – Deferred Tax in the Context of Global Minimum Tax (Pillar II) Context The article is addressed to taxpayers that are part of a group of companies that are obliged to apply the rules on the global minimum tax. In August 2025, clarifications were introduced applicable to constituent entities that prepare individual financial statements according to Order of the Ministry of Public Finances no. 1.802/2014 (“OMFP no. 1.802/2014”) on the approval of Accounting Regulations, to calculate and present deferred tax in the explanatory notes, starting with the financial statements for the financial year 2025. Alternatively, entities may choose to apply International Financial Reporting Standards („IFRS”) as the basis for accounting. See the tax alert published on this topic here. In this context, legislative provisions have been introduced on how to apply and present these requirements. In Detail I. Provisions applicable to constituent entities applying the accounting regulations (OMFP no. 1.802/2014): The determination of the amount of receivables and liabilities related to deferred tax is carried out in compliance with the provisions of IAS 12 “Corporate Income Tax”; The deferred tax is presented only in the explanatory notes of the financial statements, without being recorded in the accounting; The amount of the deferred tax corresponding to the result of the financial year is presented separately from the deferred tax related to the deferred result; The deferred tax is established in relation to the book value of the balance sheet items and their tax base. The provisions also apply to units without legal personality and permanent establishments belonging to legal entities established in the European Union, which are required to present the deferred tax in form code 30 “Informative data”, with the distinct highlighting of the value corresponding to the result of the financial year from that corresponding to the result carried forward. (Read more…) II. Provisions applicable to constituent entities that opt to apply International Financial Reporting Standards (IFRS): Constituent entities may apply IFRS-compliant accounting regulations starting with the financial statements for the financial year 2025, if they consider that they have the capacity to implement; These entities will organize and conduct accounting according to IFRS rules starting with the financial year 2026. ) |