Advance pricing agreements on the transfer prices

One of the fiscal areas which is most sensitive and prone to significant tax adjustments is related to the transfer prices (i.e. prices applied within the transaction carried out with affiliated persons). This is mainly due to the size of the transactions carried out between affiliated persons (usually between the non-resident parent company and its Romanian subsidiary), and to improper setting of the transfer prices themselves.


Actions for damages in case of infringements of the competition law

On the 14th of October, regulations on the right to compensation of any individual who has been the victim of the infringement of the competition law entered into force in Romania.


Europe seeks more efficient measures for preventing insolvency

On the 26th of June 2019, the Directive (EU) 2019/1023 (“Restructuring Directive“) regarding insolvency procedures was published; it came into effect on 16.07. Member states had to implement this directive in their national legislation by 17.01.2021.


NEWSFLASH – Tax amendments at the beginning of 2021

NEWSFLASH - Tax amendments at the beginning of 2021

A number of relevant fiscal amendments have been enacted in the final period of the year through Law no. 296/2020 amending and supplementing the Fiscal Code (Law no. 227/2015), subsequently modified by the Emergency Ordinance no. 226/2020.

Please find more details here.


Labor Law Update 2021

At the turn of the year, we would like to provide an overview of the most recent changes of relevance in practice in the field of Labor law in Romania and to provide an outlook for 2021.


Advance pricing agreements on the transfer prices

One of the fiscal areas which is most sensitive and prone to significant tax adjustments is related to the transfer prices (i.e. prices applied within the transaction carried out with affiliated persons). This is mainly due to the size of the transactions carried out between affiliated persons (usually between the non-resident parent company and its Romanian subsidiary), and to improper setting of the transfer prices themselves.


Payment transactions – a few particularities

The foreign exchange law is relatively unknown although the daily processes imply payment transactions on a regular basis. In practice, this occurs by means and under the supervisions of banks. Some principles and particularities will be discussed below.


Simplified rules for LLCs as well as for Commercial Register Procedures

The month of November brought two long-awaited amendments to the Law No. 31/1990 on companies, which are intended to further stimulate investments in the context of the difficult economic situation caused by the SARS-Cov-2 pandemic.


Rooftop PV systems can be erected by prosumers without any building permit

According to the new version of the law no. 50/1991 regarding the approval of construction works (“Construction Law“), amended on 11.01.2020, mounting PV systems on rooftops is possible again without any building permit. We have reported several times about the inconsistent course of the Romanian legislative body in this regard.


Privacy Shield invalidated – What next?

On the 16th of July 2020, The Court of Justice of the European Union (ECJ) invalidated the Privacy Shield. This could have a major direct impact on the business relationships between European companies and their US business partners in case personal data is transferred from the EU to the USA.