Agenavej 11 · DK 2670 Greve

Uncertain conditions for international transport companies in Romania

6 May 2021

Uncertain conditions for international transport companies in Romania

Several international transport companies in Romania including our local subsidiary, Kim Johansen SRL, have been met with significant financial demands from local authorities.

The key issue is that the authorities - with no warning and retrospectively for five years - demand taxation of tax-free diets already paid to the drivers on top of their ordinary and taxed salary. If the authorities maintain this demand, Kim Johansen SRL will have to pay the same amount of money twice.

We, and several local transport organizations, have protested, and our Romanian subsidiary has - in line with other companies - brought the case before a Romanian court.

Status right now is that the issue has been raised politically. A working group, including authorities and transport organizations, are now trying to find a fair and transparent regulation and a solution to the specific cases.

Most recently - at the end of April - the local transport organization, UNTRR, has been publicly pushing for the working group to get started. Read about that here (Romanian language). Parallel to that the local authorities have annulled a similar tax decision in a case against another international transport company.

We are optimistic about the further development. However, as the case is not concluded and further contains political aspects, we cannot yet assess the outcome.

Update: All the cases from Romanian authorities against KJTG are now closed in KJTG favour.