Registration for VAT purposes in Romania
Some companies can – or, depending on the situation, even must, get registered for VAT purposes in Romania. The registration procedures for taxpayers headquartered in Romania are summarized hereinafter.
Avoiding double taxation – some tips
If non-residents receive income from Romania, it must be clarified whether the income is taxable or not in Romania. This question must be answered according to Romanian, but also international tax law.
Group consolidation – corporate tax groups possible beginning with 2022
Similar with VAT groups, starting with 2022, it will be possible to establish corporate tax groups under Law 296/2020. This opens up interesting possibilities:
Facilitations (now also) for associations and foundations
At the end of 2020, the Romanian regulations regarding the incorporation and functioning of associations and foundations (“NGOs”) were simplified. Law No. 276/2020 (“the Law“) completed and amended Government Ordinance No. 26/ 2000 about associations and foundations (the Ordinance) and also introduced positive debureaucratization measures.
Employee protection in case of insolvency– short-term change
During 2020 and at the beginning of 2021, many have voiced their concerns about a hovering economic crisis. For some, the start of such a crisis was expected at the end of 2020, while others are now speaking reluctantly of an economic downturn to be happening only in the fall of 2021.
Renewable energy: projects on agricultural land outside built-up areas?
In October 2020, Law no. 17/ 2014 (“Law 17”) regarding the sale of agricultural land (terenuri agricole) located outside the built-up areas (extravilan) was significantly amended. A complicated preemption procedure (procedura de preemptiune) involving several stages required before the effective sale of these plots of land was regulated.
Debureaucratization of legal relations – Waiver of the stamp requirement
It has been widely known for a long time that private and public legal persons as well as authorities in Romania must use a stamp. While often found surprising by investors from states whose legal system places less emphasis on this formality, in this country this was an unavoidable practice for all companies.
Amendments to public contracts
On 19th of January 2021, the Instruction No. 1 of the Chairman of the National Agency for Public Procurement regarding amendments to public contracts ("Instruction") came into effect.
Reception of rooftop photovoltaic systems
For rooftop photovoltaic systems (hereinafter referred to as „PV-systems “) no building permit is needed in principle, as long as the PV-systems are mounted by so-called “prosumers”.
Data protection within the employment relationship
The beginning of the year brought a record fine (EUR 10.4 mil.) for a German company due to the unlawful video surveillance of its employees.