Tax Transparency

Taxes generated by our business activities are substantial and diverse. We pay corporate income taxes, royalties, production taxes, employment and other taxes. In addition, we collect and remit payroll taxes as well as indirect taxes, such as excise duties and VAT. We contribute significantly to the economies of the countries in which we operate by collecting and paying taxes.  

Specific policies and commitments

At OMV Petrom, we are committed to complying with tax laws in a responsible manner and to having open and constructive relationships with tax authorities. To address tax matters, we have in place a comprehensive system of internal regulations and multiple standards and instructions, which also detail the roles and responsibilities of the business units, departments and management representatives involved in tax matters. Moreover, in 2020, OMV Group published a new Tax Strategy valid throughout 2022. More detailed information on tax governance, control, and risk management can be found in the Tax Strategy and in the Annual Report. 


Our tax compliance supports OMV Petrom Group’s business and reflects our commercial and economic activity. Neither OMV Petrom Group nor its subsidiaries engage in aggressive tax planning that involves artificial structures that are merely designed to save taxes, nor do they engage in transactions without economic substance designed to secure undue tax advantages. We adhere to all applicable tax rules while attempting to reduce the chance of ambiguity or disagreements. We perform transactions between OMV Group companies on an arm’s-length basis and in accordance with current applicable OECD principles. 


OMV Petrom Group companies are established in suitable jurisdictions, considering our business activities and the prevailing regulatory environment available. OMV Petrom does not establish its subsidiaries in countries that do not follow international standards of transparency and exchange of information on tax matters, unless justified by operational requirements in line with OMV Petrom’s business ethics principles and our Code of Conduct. 


Since 2016, OMV Petrom has provided mandatory disclosures under the Payment to Government Directive (according to Chapter 8 of the Annex 1 of Ministry of Finance Order 2844/2016, transposing Chapter 10 of the Accounting Directive 2013/34/EU of the European Parliament and of the European Council) and has published its payments made to governments in connection with exploration and extraction activities, such as taxes, royalties or license fees, rental fees, entry fees and other considerations for licenses and/or concessions, in the consolidated financial statements. 


For more details, see the Consolidated Report on the Payments to Governments on our website. 


OMV Petrom actively participates in initiatives to update or modify the fiscal legislative framework through its representatives, either independently or as a part of a coordinated effort of professional associations  (e.g. Foreign Investors Council, American Chamber of Commerce in Romania, Oil and Gas Employers’ Federation). Additionally, OMV Petrom actively participates in conversations with tax authorities and in the preparation of letters and position papers, either independently or through the aforementioned associations. 


Since 2015 OMV Petrom has obtained, from Romanian tax authorities, five unilateral Advance Pricing Agreements (‘APA’), in relation to significant transactions carried out with related parties. Some of these APAs have been changed or extended throughout time, while others have not been renewed when they expired. Currently, an APA is still in effect through the end of 2024, and the Company plans to apply for a new APA in the early 2023 timeframe. 


OMV Aktiengesellschaft (AG) files a Country-by-Country Report (CbCR) with Austrian tax authorities for OMV Group which is part of the OECD’s Base Erosion and Profit Shifting (BEPS) Action Plan 13. In compliance with fiscal tax legislation in place, members of the OMV Petrom Group, acting as constituent entities of OMV Group, notify national authorities, where required, about the submission of the CbCR in Austria. The CbCR is an annual tax return that breaks down key elements of the financial statements by tax jurisdiction. At the same time, OMV Petrom SA, in its constituent entity capacity, fully complies with notification requirements and annualy submits, to Romanian tax authorities, the mandatory CbCR Notification. 

Management and Due Diligence Processes

Risk assessment

We regularly conduct risk analyses that take into account tax risks in order to evaluate our present and potential financial and non-financial risks, determine how these trends will affect OMV Petrom, and then create the necessary defenses or responses. Through a well-defined process, we report significant internal risks to the Supervisory Board at least twice a year. The Executive Board sets the tone for a strong risk culture throughout the firm and drives OMV Petrom’s dedication to the risk management program. As part of our internal control procedures, we adhere to OMV Petrom’s risk management framework. By integrating risk management strategies at the operational level with a strong and intricate set of controls and processes, we are able to identify, evaluate, and manage tax risks. 


Currently, among initiatives of the EU, OECD Member States and the Romanian Government, taxation is a vital guiding tool towards an eco-friendly, green economy. Initiatives include: 

  • The Fit-for-55 package to reduce EU net greenhouse gas emissions by at least 55% by 2030 will have an impact on the taxation of inefficient and polluting fuels. 
  • OECD/G20 inclusive framework on reforming international tax rules by implementing new rules for profit allocation (Pillar One) and establishing a global minimum taxation regime (Pillar Two) effective in 2023. 

Common European Council, European Parliament, and European Commission agreement on the proposed public Country-by-Country Reporting Directive (CbCR). Romania transposed into its domestic legislation the provisions of EU Directive on the public CbCR in September 2022; such provisions will come into force as of 1st of January 2023, while the filing deadline for 2023 is set in 2025 (i.e.12 months after deadline for financial statements submittal).