The long-awaited amendments to construction law – the good and the bad
For years now a reform of the Romanian Construction Law has been demanded to achieve the simplification, speed-up and digitalization of the much too formal and bureaucratic building permit procedure. Changes have now come at last.
Practical issues related to permanent establishments
In a globalized world, cross-border activities carried out by companies are quite natural. From a fiscal point of view, the long-term presence of a non-resident person in a certain country generates a permanent establishment, whereby a limited taxation right of that particular country over the non-resident person appears.
Undercapitalization – Tougher sanctions to be expected
In mid-October the Romanian senate approved a draft law referring to undercapitalized companies. It includes clarifications, restrictions and new sanctions in cases of undercapitalization. Currently, it is being discussed in the Chamber of Deputies.
Romanian electronic system for linking the Commercial Register within the EU is now functional
The Romanian Commercial Register issued a press release on 5th September 2019, noting that the Romanian system linking the Romanian Commercial Register to “BRIS”, the system for the interconnection of EU Business Registers, has, become operational in September 2019 and can be accessed under https://e-justice.europa.eu.
Tax registration of foreigners – often a challenge
The tax laws of Romania generally set forth that any person or entity subject to a fiscal relationship must be registered and receive a tax number. The tax number is used for the registration of the taxpayer in the electronic system of the Romanian tax authority (ANAF) and for the allocation of tax paid and reported by such taxpayer.
Transactions involving agricultural land in Romania – often problematic
Romania comprises 14.7 million hectares of agricultural area, of which 10 million hectares are farmland. According to an estimate in 2008, there were then approximately 6.8 million hectares of land left unplanted/unfarmed.
Operational measures to safeguard trade and commercial debts
Debt collection, whether from commercial entities or private individuals, is an ongoing problem in Romania. In case of cross-border matters, the process of forcing debtors to pay is even more complex and laborious.
Simplification of rules about consignment stocks to be expected
On 4th December 2018, EU Directive 2018/1910 on the fiscal treatment of consignment stocks was adopted, which will result in simplification not only for Romanian companies, but for all active in the EU.
Most recent anti-money laundering and terrorism financing provisions in Romania and their impact on companies
Legislation on anti-money laundering measures first came into force in Romania in 2002 and was updated in 2012, to transpose certain provisions of the EU legislation for the first time.
Further effects of the new regulations on money laundering and terrorism financing
We have recently outlined the legal obligations included in the new law on preventing and fighting money laundry and terrorism financing . This article tackles the actual changes, as a result of the new laws