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.
Minimum wage - quo vadis? National and European background
As is well known, Romania has a general, legally regulated minimum wage, which is increased (at least) once a year by government decree. It currently amounts to RON 3,300. A new increase to RON 3,700 as of July 1, 2024 was recently announced, which according to the press should already be in place. At the same time, there are also new European requirements for criteria for setting minimum wages by the member states. Against this backdrop, what is the future of the minimum wage in Romania?
Income of non-resident companies/persons in Romania - obligations
Companies or individuals operating in Romania, but who are non-residents, are confronted with a complex legal and tax framework that entails a number of obligations and responsibilities.
Key issues regarding loan securities in Romania. Part II - Mortgages
This article is the second in our series discussing corporate lending and related collateral. It deals with mortgages, the most common collateral in practice due to their value. The following are selected aspects related to the creation and realization of mortgages in Romania.
CfDs - the new funding scheme is here!
On April 10, the long-awaited CfD support program for the production of renewable energy ("CfD Program"), approved by Government Decision 318/2024 ("RB 318"), came into force in Romania. It provides a mechanism for securing certain electricity prices on the market in the long term.
Tax Procedure Code in Romania
All procedural aspects related to tax matters, e.g. tax determination, tax audits, tax administrative acts, etc. are regulated in Romania by the Tax Procedure Code (Codul de Procedura Fiscala). Since basic knowledge in this area is extremely relevant in practice, this article provides an overview of important issues regarding the application of the Tax Procedure Code in Romanian practice. In addition, its regulatory purpose and important principles governing the relationship between the taxpayer and the state authorities are presented.
"Postponed does not mean canceled" - Pitfalls associated with share capital
Since November 2022, there is no longer an obligation to pay in the share capital in full when founding a Romanian limited liability company (S.R.L.). However, the law stipulates that this must be done no later than one year after its inception. This simplifies the incorporation process because the often difficult discussion with banks about opening an account is now unnecessary. Nevertheless, there are still pitfalls in connection with opening a business account and paying in the share capital, which can cause problems in practice after the company has been founded.
New legislative projects in the energy sector
In February and March of this year, ANRE, the Romanian electricity regulatory authority, published a series of draft laws for public consultation on its website, which contain important regulations of practical relevance.
Accounting basics - interpreting a trial balance
Every business owner needs to understand an accounting balance sheet (balanta de verificare) in order to be aware of, in real time, the financial position of their company and the business decisions that impact it. The same applies to potential investors who are considering acquiring shares in a start-up or other companies, as they need to assess the risk of their investment.
EU funding in Romania - Practical tips
Romania can use almost 100 billion euros in EU funding between 2021 and 2030 and has often been described as a "funding paradise". This may sound tempting, but the reality is somewhat less enticing. After all, the money is there, and Romania has learned to make use of almost all the funding available since joining the EU. But getting there is not easy - hence a brief overview of which EU subsidies are currently available to companies and will be in the near future, and what to look out for when submitting an application and handling a project.