„Preventive Settlement" (concordat preventiv) for avoiding insolvency
Insolvency proceedings are natural part of a functioning free market economy, even if they are often associated with considerable disadvantages for those affected. However, there are situations where institutional support for the debtor is necessary to effectively avert insolvency. For such cases, Romanian law provides for the instrument of the "preventive settlement" (rum. Concordat Preventiv), which is frequently used in practice.
Government austerity package with tax implications
The new Romanian ruling coalition, composed of pro-European parties, has decided to take responsibility before Parliament for a draft law (the “Draft”) concerning a series of fiscal and budgetary measures. The declared aim is to reduce the budget deficit and prevent the country's credit rating from being downgraded by international agencies.
Omnibus and the future of ESG reports
After several years of preparation for the EU Corporate Sustainability Reporting Directive (CSRD), and shortly after it came fully into force, the European Commission hit the panic button in February 2025 and released the so-called Omnibus Package. While intended to simplify the reporting process, this package also introduced uncertainty for long-term business planning and could potentially undermine the objectives of the Green Deal.
Court hearings in Romania soon to be held via video conference?
For some time now, many lawyers - and presumably judges as well - have been hoping for a more efficient and faster way to conduct court proceedings. On June 11, 2025, the Romanian Senate tacitly adopted a draft law[1] allowing certain civil court hearings to be held via video conference The idea is not entirely new - during the COVID pandemic, court hearings were temporarily allowed to be held via video conference[2] but the proposal now aims to implement this permanently in specific cases.
Simplified assertion of claims up to approx. EUR 10,000 in Romania
On May 15, 2025, Law No. 57/2025 amending Art. 1026 (1) of the Code of Civil Procedure (hereinafter “CCP”) entered into force. It changes the procedure for so-called “low-value claims”, simplifying the judicial assertion of certain claims up to RON 50,000.
Transfer price documentation - key practical topics
Transfer price is an important - and often the sole - subject of tax audits in Romania. Adjustments, as well as associated fines and late payment penalties resulting from audits, usually have a significant impact on a company's cash flow.
New legislation on the approval of direct investments
Foreign investments are a key component of Romania’s national economic development. Emergency Ordinance No. 46/2022 (“EO 46”) stipulates an authorization requirement for certain direct and new investments and has been amended several times.
Revaluation of tangible fixed assets
In Romania, the revaluation of fixed assets is regulated by several legal acts, such as the Ordinance of the Minister of Finance No. 1802/2014 regarding accounting regulations for the revaluation of assets, and the Tax Code, which includes, among others, the tax implications of revaluation. The revaluation of fixed assets must be performed by experts registered with the National Association of Authorized Experts in Romania (ANEVAR), in accordance with the applicable legislation. The outcome of this process can help shareholders and company management to develop effective financial strategies and make informed decisions.
Information and consultation of employees - a vague task in Romania
Employees have the right to be informed about facts and developments relevant to their employment. In addition, the employer even has a duty to involve them in company processes and decisions that affect the workforce. The technical term is “information and consultation”. So, what exactly are companies required to do?
AI-Act: use of AI in companies
On June 13th, 2024, the “AI Act” (Regulation (EU) 2024/1689) was published as one of the first regulations worldwide for artificial intelligence (AI) systems. It came into force on August 1st 2024 and will be applied in stages on certain dates (02.02.2025, 02.08.2025, 02.08.2026 and 02.08.2027). The comprehensive AI Act sets a framework aimed at maximizing the benefits of AI while minimizing its risks. Its guiding principles include technical safety, privacy and transparency, fairness, social welfare and accountability. AI should be safe and trustworthy, and its use should guarantee the health, safety and fundamental rights of people as well as ensuring legal certainty for companies in EU member states.