The Electronic Archive for security interests in movable property replaced – compulsory enforcement still unclear

Romania’s Electronic Archive for Securities on Movable Property (“AEGRM”), is where – as the name reveals – securities on movable property (eg. liens), but also leasing contracts etc. are registered; this makes them opposable against third parties.


Differences between the German and Romanian GAAP

The business environment in Romania is represented by a significant number of companies belonging to German groups or by German investors looking for business opportunities to expand their businesses in Romania. In such context the reporting of the financial performance of their Romanian subsidiaries to the parent companies should allow the investors to properly understand the results and to facilitate them in taking the best investment decisions.


New obligations for companies after implementation of EU regulations to prevent money laundering

The directive concerning money laundering should have been implemented in all member states by 26th June 2017. In July 2018, unjustified delays even led to the European Commission initiating an infringement procedure against Romania.


Extending the commitment period for offers in public procurement law – duty or option?

Context
In public procurement procedures, bidders are often requested by the contracting authority to extend the initial commitment period of their offers. This request is generally due to the fact that the contract cannot be signed within the initial commitment period given the existence of repeated disputes over the award procedure.


New mandatory salary increases for certain areas of activity

The Romanian Government’s surprise Emergency Ordinance (“EO 114”), which came into force on 1st January 2019, is having an unwelcome effect on important economic sectors, notably the construction industry.


Legal surprises at the turn of the year – follow-up

Last week, we reported about the fiscal changes, some of which are far-reaching, which came into force on 1st January 2019 by means of a highly debated and heavily criticized Emergency Ordinanace (“EO 114”).


Tax surprises at the turn of the year

In Romania, it has become common to take tax-payers by surprise with legislative changes at the end of the year. 2018 was no exception. On 29th December a new Emergency Ordinance (“EO 114“) was published, which came into force on 1st January 2019.


Real Estate Law: Important news on condominiums

On 28 September 2018 a new law (the law) came into force, providing new regulations relevant in practice for properties jointly owned by several persons.


Additional places of business, in practice

A company’s business can require the execution of permanent activities outside the company’s headquarters. In such cases, the Romanian Tax Procedure Code identifies the existence of additional places of business (sedii secundare). In practice, one must observe the following important aspects.


Minimum wage raised by law. Besides, certain employers might have to raise salaries voluntarily

It is almost a tradition that every year, the Romanian minimum wage is raised by Government Decision. In view of the raise for 2019, the Government issued two legal acts having effects on several levels.