Basic rules of conduct (Do's & Dont's) around insolvency
According to Law No. 85/2014, Romanian insolvency exists when the existing liquidity of the company is insufficient to pay the debts as they fall due. This means that in Romania, insolvency is confirmed on the basis of a cash flow test. Nevertheless, not all ups and downs in the cash flow of a company lead to its insolvency. Below we briefly analyze when to file a petition to open insolvency and what basic rules must be observed before and after the opening of insolvency proceedings.
Granting and tax treatment of vouchers for employees
The goal of promoting employees and retaining them in the medium and long term is as known as it is important to all employers. In Romania, there is the possibility of granting additional benefits to the salary in the form of vouchers for this purpose.
Attention, waste! Waste management regime tightened
The new year starts with a stricter regime of waste management. Not only have new cases been introduced that trigger penalties – including criminal liability for the fulfillment of certain offenses, but the sanctions have also been tightened, so that companies and individuals face much higher fines. At the same time, by replacing some terms, the extension of certain obligations related to waste management was achieved.
Retention obligation – A desire for simplification
With the turn of the year, there are traditionally new changes in the area of taxes and accounting. This year, they concern, among other things, the obligation to keep documents. The Accounting Law (Law 81/ 1991) obliges all companies operating in Romania that fall within its scope to keep accounting records and evidence documents based on which entries are made for certain periods of time. While the minimum retention obligation was usually 10 years until January 15th, 2023, on the basis of Law 36/ 2023, published in the Official Gazette on 15th of January 2023, this has now been reduced to 5 years.
Flood of new regulations in Romanian labor law
At the end of the past year, a considerable number of relevant and fundamental innovations occurred in Romanian labor law. Although a separate article should be devoted to each one, the innovations of the past two months are presented below only in a synopsis.
Working time and its recording
All employers in Romania are required to keep records of the hours worked by their employees and to submit these records to labor authorities for inspection when necessary.
Five typical mistakes when acquiring forest land in Romania
Recently, we have noticed an increased interest from investors in acquiring land areas with forest vegetation for the purpose of exploitation and management. Despite the high value of the contract, parties to these investments often fail to examine essential aspects in detail. Since this can have considerable legal and economic consequences, typical errors in the acquisition of forest land are presented below.
Newsflash - New Template For All Employment Contracts In Force
Newsflash - New Template For All Employment Contracts In Force On December 09th 2022, a new template of the employment contract was published in Romania. The legal basis for this new template of the employment contract is represented by Order 2171/ 2022, which, among other things, implements the current changes in Romanian labor law. Please find more details here.
ECJ decision: Beneficial owners in the spotlight
After long discussions on the notification of universal beneficial owners (Rom. beneficiari reali) and the establishment of the relevant registers, the ECJ ruled by a judgment of 22.11.2022 that public access to these registers without proof of a legitimate interest is unlawful.
Tax changes with effects from 2023 - renewed amendments are imminent
After the Romanian Parliament amended the Tax Code in 2022 through Regulation 16/2022 (“the Regulation”), it adopted a new amendment to the Regulation and thus further adjustments to the Tax Code on 16.11.2022.