Google Bucharest SRL, Google’s subsidiary in Romania, reported a turnover of RON 16.8 million (EUR 3.7 million) and a net profit of RON 886,000 (under EUR 200,000), according to official financial data posted on the Finance Ministry’s website this week.

However, Google’s business in Romania is much higher. The U.S. tech giant holds almost half of the Romanian digital advertising market, estimated at some EUR 64 million in 2016 and EUR 72 million in 2017, according to Iniative’s Media fact Book report. Thus, Google’s actual revenues in Romania may be over EUR 30 million. However, this amount represents the money that Google takes from local advertisers, out of which the company also pays website owners who display Google ads.

The group runs most of its local business through its subsidiary in Ireland. EU countries have been asking for new fiscal rules that would allow them to tax tech giants such as Google, Facebook, Amazon and others for the revenues these companies actually make in these countries.

Romania’s tax agency ANAF started investigating Google and Facebook to determine the actual revenues these companies made in Romania. Facebook doesn’t even have a subsidiary in Romania.

editor@romania-insider.com