The new report estimates that Romania failed to collect around 35% of its estimated corporate tax for 2019, with a collection gap three times higher than the average rate of 10.9% among the 23 EU member states included in the analysis. The largest gaps were recorded in Romania, Slovakia, Poland and Italy, while the smallest (under 3%) were in Denmark, the Netherlands and Finland.

According to the report, in Romania, Slovakia, Poland and Italy, the corporate tax collection gap is mainly due to tax evasion. In other countries such as Denmark, Finland, Sweden, Austria and France, tax base erosion and profit shifting to other jurisdictions represent the main cause affecting national budget revenues.

"Romania's fiscal-budgetary situation has become critical due to accumulated problems: lack of predictability through frequent legislative changes, unsustainable public spending and delays in digitising the tax administration," said Ruxandra Târlescu, Tax Services Partner at PwC Romania. "The effects felt by taxpayers are fiscal inequity and deficits that are difficult to finance, which attract tax increases."

Romania also maintains its position as the EU leader in VAT collection failures, losing about 30% of potential VAT revenue due to taxpayer non-compliance, compared to an average loss of 9.5% for all 27 member states. The report estimates this gap represents approximately €9 billion. Since 2015, Romania has ranked first among member states each year with the largest VAT gap.