Measures to prevent and combat aggressive advertising techniques on the capital market
On 25 June 2024, Emergency Ordinance no. 71/2024 ("EO 71") was published regarding the introduction of measures to prevent and combat aggressive advertising techniques on the capital market practised by companies that are not entered in the register of the Financial Supervision Authority ("FSA"). Most of the provisions of EO 71 entered into force on June 25th 2024. The main objective of EO 71 is to create a safer investment environment and a predictable and clear legal framework that contributes to the sustainable development of the local capital market. To this end, a number of legislative amendments have been made and the powers of the FSA have been extended in order to promote the harmonisation, clarification and completion of the legal framework in this area and the development of the capital market.
Far-reaching digitalisation in the tax sector in Romania
The Romanian Tax Administration (ANAF) recently caused a stir once again with legislative amendments. A few days after the publication of various amendments in the area of e-invoicing, e-transport and the introduction of e-TVA with implications for numerous economic operators, the ANAF published further legal norms which, among other things, contain further amendments to the above-mentioned regulations. This approach has generated general dissatisfaction. The measures represent an extension of the procedures for the electronic control of economic operators; they can be summarised as follows:
News on the new e-Transport monitoring system
The legal situation in the transport sector is constantly changing. The recently introduced e-Transport Monitoring System (hereinafter RO e-Transport) needs to be supplemented in order to keep pace with changes at European level. The legislator must ensure that the circulation of goods (especially those with high tax and customs risks) is monitored efficiently on their domestic or intra-Community transport route.
Acceptance upon completion of construction or installation work in energy law
Romania is expanding its renewable energy targets in line with EU initiatives such as Fit for 55 and REPowerEU. By 2030, the share of renewable energies in total energy consumption is to increase to 36.2 %. This means expanding renewable capacities by 11.9 GW. Another pressing issue is the imminent implementation of the EU's Renewable Energy Directive ("RED 3"). RED 3 is shaping the future of renewable energy across Europe; its strict standards and timetables require significant investment in technology and infrastructure.
How to better prepare for an audit
The statutory audit season is linked to the statutory deadline for the annual financial statements filing; the 2023 season just ended two weeks ago. The annual audit process can be a difficult and time-consuming activity for many companies and their finance and accounting department.The bigger the size of the company and the more complex its operations, the more disruptive the audit can be perceived. This can be valid also for smaller companies, where the key financial and accounting tasks are allocated to a few employees, sometimes one chief accountant or a finance manager being the only person involved in the annual statutory audit process. The audit season which just ended can be a learning opportunity for both companies which already experienced it or for those whom 2024 shall be the first time audit. There are simple and effective takes which can make the audit process smoother and more time and resource efficient for companies.
NEWSFLASH - Increase of the minimum statutory wage as of 1 July 2024
The Government Decision no.598/2024 brings an increase of the minimum salary for Romania as of 1 July 2024. Key changes include:
VAT group in Romania
Romanian tax law allows several taxable persons resident in Romania to join together to form a VAT group. Requirements for taxpayers The tax group members must be legally independent but closely linked financially, economically and organizationally. This close connection exists if more than 50% of the capital of these taxable persons is held directly or indirectly by the same shareholders. The fulfillment of this condition is proven by certificates issued by the commercial register (Certificat Constatator) or by other evidence.
The ‘Pay or OK’ model
At the request of several supervisory authorities, the European Data Protection Board (EDPB) has issued an opinion on ‘consent or pay’ models of large online platforms in connection with behavioural advertising. The background to this is (also) a ruling by the ECJ in the case ‘Meta Platforms INC. v. Bundeskartellamt’ of July 4th 2023, which dealt with this issue.
NACE rev 3 - Update of the companies' objects of activity
It is generally known that the so-called NACE codes must be used for any economic activity in Romania. We take a recent amendment to the legislation in this area as an opportunity to describe the essential rules and backgrounds.
Equal pay for men and women for work of equal value: new EU requirements
On 17.05.2023, (EU) Directive 2023/ 970 on the strengthening of the application of the principle of equal pay for men and women for equal work or work of equal value through pay transparency and enforcement mechanisms ("the directive") was published. The general objective is to eliminate inequalities between women and men and to combat discrimination based on gender. Women still earned 13% less than men on average in the Union in 2020. The Directive therefore lays down minimum requirements to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women ("equal pay principle") through pay transparency and strengthened enforcement mechanisms. The deadline for implementing the directive is 7 June 2026; Romania has not yet passed any legislation.