Tax Advisory

As a result of a long-standing practice and extensive knowledge in the field, Mușat & Asociații Tax Advisors provides in-depth advice on a wide range of tax issues and intricate related aspects generated by multiple changes occurred at legislative level. Our expertise covers all areas of tax matters applicable at both national and international level, ranging from direct and indirect taxation, transfer pricing and value added tax (VAT) and up to expert advice in mergers and acquisitions, complex cross-border transactions as well as identifying reliable financial alternatives for investments in Romania. The team has extensive practice in a broad range of industries, with particular focus on:

• Healthcare & Pharmaceuticals
• Oil & Gas
• Real Estate & Construction
• Products (Consumer Goods & Services, Industrial Equipment, Retail)
• Resources (Chemicals, Energy, Natural Resources, Utilities)
• Communications, Media & Technology
• Financial Services (Banking, Equity Capital Markets, Insurance)

• Advising investors on international tax issues, from the set-up phase until efficient exit strategies
• Tax efficient financing alternatives
• Holding structures, business reorganization, cash pooling agreements
• Corporate tax advice and compliance
• Assistance with VAT reimbursements
• VAT registration
• Drafting transfer pricing documentation
• Transfer pricing planning
• Drafting advanced pricing agreements (APA)
• Vendor and buy-side tax due diligence in M&A transactions
• Taxation of employees, freelancers and expatriates
• Capital gains taxation and reporting
• Tax on buildings, lands, advertising
• Requests for rulings from the tax authorities-preparation, submission and follow-up with the authorities
• Administrative litigation procedures

• Kaufland, the most important retail company in Romania, in relation to a tax audit process, including assistance with procedures during the audit, as well as subsequent tax challenge exercise. We also assisted Kaufland on other tax matters, such as: restructuring of the retail business at local level, compliance with various regulatory obligations, implementation of electronic cashiers, tax aspects in relation to various supplier damages.
• Sermedic, a Servier Group entity, one of the largest French pharmaceutical companies, in relation to challenging a tax decision issued by the Romanian tax authorities and successful representation of the client before the court for suspension of the enforcement of respective decision. Additionally, our work includes assistance in obtaining the reimbursement of claw-back amounts paid in excess, from the Ministry of Finance, for notifications which were cancelled in court. Moreover, our mandate consists in various tax advisory services, including taxation of intellectual property and independent contractors.
• Amazon, an American international e-commerce company, upon extending its presence in Romania, regarding tax incentives for local employees, including the drafting of all relevant documentation. Our mandate included extensive tax assistance with respect to changes on the individuals’ taxation aspects, as well as other day-to-day tax advisory with respect to various taxation issues such as individual contractors, registration/amendment and deregistration of certain working units, submission of the financial statements etc.
• Booking.com, the largest international online travel aggregator, with respect to the tax implications arising from its transactions with local business partners for rental of properties, as well as for its separate business of car-rental services during vacation periods.
• Airbnb, Inc., one of the largest on-line platforms offering homestays and tourism services, in relation to aspects regarding the Romanian VAT implications stemming from its various business models on the local market.
• Brookfield Business Partners L.P., the flagship listed business services and industrial company of Brookfield Asset Management Inc., in connection with the $13.2 billion acquisition of 100% of Johnson Controls’ Power Solutions business. We assisted the client at all stages prior to the business transfer, and generally with the structuring of the transaction. The tax aspects of this deal included handling VAT treatment applicable to the transfer of business, drafting of relevant documentation and tax registration of the newly incorporated local entity.
• Sony, one of the world’s leading provider of consumer and professional electronics, gaming, entertainment and financial services, with respect to the restructuring of its operations (i.e., merger by absorption between Sony Europe Limited and Sony Europe B.V.). Our assistance consisted in representing the local branch before the tax authorities (ANAF) in order to reflect the corporate changes as a result of the merger.
• Rhenus Logistics, an important Austrian logistics company, in relation to the tax audit performed by the Romanian tax authorities, by preparing the preliminary complaints to be submitted before the competent authorities against the tax decision and tax report issued by the tax inspectors by means of which additional tax obligations (i.e., VAT, corporate income tax) were imposed; our mandate included also the representation of the client during the preliminary step of the hearing in front of the tax authority.
• Ana&Cornel, one of the largest players in the meat processing and retail industry, with respect to the administrative procedures regarding the challenge of the conclusions in the tax audit report drafted by the tax authorities.
• Transavia, one of the biggest players in the meat production, processing and sales in Romania, with respect to various tax issues regarding a tax audit performed by the tax authorities. Our involvement consisted in preparing all challenges in administrative phase against the tax decisions issued by the tax inspectors for the Group’s companies, as well as assistance throughout the entire court litigation process.
• Condotte D’Acqua, an Italian industry leader acting in the infrastructure industry, in relation to the administrative procedures for challenging the conclusions of a fiscal inspection report drafted by the fiscal authorities.
• AROBS Transilvania Software, a company specialized in providing IT solutions, during the tax audit performed by the tax authorities, as well as related procedural aspects such as drafting of various written notes or of the Company’s point of view on the findings in the fiscal inspection report.
• Airplus, a leading supplier of business flight management solutions, with respect to the activities performed for Romanian clients. Our assistance included the analysis of the correct invoicing flow and VAT treatment applicable to flight booking activities.
• Baxter International Inc., a $6 billion global biopharmaceutical leader, in connection with the spinoff of its BioScience and its Medical Products businesses in two separate and independent global healthcare companies. Our mandate included, among others, assisting and representing the client in view of the local separation, starting with the incorporation of the new Romanian entities, undertaking extensive tax analysis on the separation projects, assessing financial and tax implication arising from the transfers of business, as well as preparation of the required transaction documents for the VAT registration of the new companies.
• Novo Nordisk, a leading healthcare company, in connection with claw-back matters. Legal work includes drafting the preliminary complaints to be submitted before the National Health Insurance House, preparing the court challenge in connection with the claw-back contribution, as well as representing the client before the court in the claw-back related litigation.
• Desitin, a leading pharmaceutical company, in connection with claw-back matters. The tax work includes drafting various requests to be submitted before the National Health Insurance House, performing various registrations with the tax authorities. Also, our assistance included advice in relation to various day-to-day business matters.
• Promedica24, a Polish company in the elderly care business, on matters pertaining to the extension of the activities performed by the company in Romania and providing various scenarios for contracting workforce in Romania. Our involvement in the project included tax advice applicable to various scenarios regarding the local incorporation and contracting of work force.
• Nokia, a leading worldwide mobile phone producer, with respect to disputing a customs tax decision, issued after reconsideration of the customs regime for specific items, as well as on related late payment interest. Our assistance also includes court representation in connection with interest to be received from the state budget as a result of undue payments of the amounts established by the tax authorities during the customs audit.
• Monsanto Company, a major U.S.-based agricultural company, in connection with the Romanian fiscal regime related to the payment of dividends by the local subsidiary including in relation to the fiscal registration of non-resident shareholders. We had previously assisted the company in terms of payment operations as well as with regard to different aspects related to current transactions.
• Abbott, a leading global health care company, following extensive tax and legal due diligence, on the tax effects of the consolidation of its Romania-based vehicles, including a representation office and a subsidiary, via transfer of assets and related personnel as well as day-to-day legal assistance.
• L’Oreal, a major cosmetics producer, in relation to customs and cross-border tax issues, as well as in relation to different aspects regarding the restructuring of own capitals.
• Electrolux, the world’s largest producer of kitchen appliances and equipment, in relation to the administrative procedures for challenging the conclusions of a fiscal inspection report drafted by the fiscal authorities. Also, our mandate included analysing the tax and accounting implications deriving from a “cash pooling” structure to be implemented within the group.
• Mewi Import Export Agrar Industrietechnik, a leading Romanian distributor of agricultural machines, on the whole array of VAT, customs duties and corporate income tax issues in relation to its operations in Romania. Also, we have been appointed by the client to prepare the transfer pricing documentation as per the local law requirements.
• Cooper Standard Romania, a leading Romanian manufacturer of automotive parts, on transfer pricing adjustments performed with related parties and possible implications arising from the current adjustments. Also, we have been appointed by the client to prepare the transfer pricing documentation as per the local law requirements.
• Mecaplast, one of the European leaders in automotive equipment, with respect to the tax treatment applicable to the acquisition of land and premises necessary for performing economic activities in Romania, as well as with respect to the VAT registration of their new Romanian subsidiary.
• Emerson, a global manufacturing, engineering and technology company, in connection with tax involvements related to the spinoff of its business into separate and independent specialized companies in Romania. A to Z assistance in relation to the local separation, starting with the incorporation of a new Romanian entity, undertaking extensive tax assistance on the separation projects, assessing financial and tax implication arising from the transfer of business, as well as preparation of the required transaction documents.
• Kruk Romania, member of the Kruk Group, a group specialised in the management of receivables, with respect to the tax treatment applicable to the operations of debt collection conducted locally.
• Premier Capital Plc in the indirect acquisition of McDonald’s local operations, transaction which included all 67 McDonald’s restaurants in Romania, 19 McCafé coffee shops and the local McDonald’s franchise.
• Colas, the world leader in construction and maintenance of infrastructure for transport, urban development and recreational facilities, in respect of the VAT implications in connection with the amounts awarded by the ICC in the arbitration with the Romanian National Company for Motorways and National Roads, totalling over EUR 16,000,000.
• Pavcom and Metex, companies acting in the real estate field, with various administrative procedures in challenging a complex number of tax decisions issued by the tax authorities during various tax audits.
• Onix Residence SRL, a major real estate investor and developer in Romania, member of one of the largest independent local group acting in various fields, such as hotel, food, construction and real estate industry. Our mandate included assessing the tax and legal implications through all stages of implementation of the real estate projects, as well as assisting the client during the procedure for sale of apartments. Also, our assistance involved the analysis, from a tax and legal perspective, of all alternatives to restructure the business within the group and to propose the best solution to be implemented so as to separate certain activities.
• Bucur Obor, a major Romanian company listed on the Bucharest Stock Exchange, acting in the real estate lease field, in respect of tax implications deriving from a business transfer and the possibilities to distribute profits obtained during previous years.
• Intact Media Group, the most important Romanian multimedia platform fully owned locally, in connection with the measures imposed by the Romanian authorities related to the criminal litigation subject to trial. Our mandate included tax assistance on the tax treatment of capital goods seized by the Romanian authorities, drafting letters to the tax authorities and representation in front of such for clarifying the tax position of the individuals and legal entities involved in the case at hand.
• DePaul University, a US-based private university, having as priority teaching and developing an effective educational system. In achieving the main objective of the client, our mandate included assistance with regard to tax implications on offering a study program in Romania;
• Litens Automotive Group, a leader in the production and commercialization of automotive equipment and CPI Wirecloth & Screens Group, a leader in the production and commercialization of woven wire mesh and wire cloth products, with respect to the VAT and EORI registration of their new Romanian subsidiaries, as well as with respect to various day-to-day tax related matters.
• Schlumberger Group, the world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry, with respect to the merger by consolidation undergone between two Romanian subsidiaries.
• Sciformix Corporation, a leading scientific knowledge-based organization that provides process, technology and consulting services to the life sciences industry, in concluding various agreements with Romanian workforce providers and advising on the tax implications arising from such structure.
• Numerous clients, amongst which Vinci, Danone Group, AXA, Atos, Total, Valeo, Thales, Vivendi, Veolia, Capgemini on matters pertaining to employee stock option plans, which involved advice on the legal and tax implications and assistance throughout the implementation of such plans, including fulfilling the necessary formalities with the competent authorities and institutions (e.g., the National Bank of Romania), obtaining the necessary clearances and applicable passporting facilities, social security payments, etc.