NEWSFLASH _ Deadline for submission of statements regarding the beneficial owner
Due to the latest developments, please find hereinafter a special edition of our newsletter, informing you about recent legal changes with impact on the statements regarding the beneficial owner (UBO). As already announced, companies, foundations and associations have to disclose their UBO due to Romania's new anti-money laundering legislation (Money Laundering Act No. 129/2019). The notification form for this purpose was published in October 2019. The Romanian Commercial Register recently published a practice-related circular which raises questions regarding the deadline for the first filing in 2020.
The increase of the minimum salary – but with no cure for confusion
As always at the turn of the year, the new Romanian government has decided to increase the legal minimum salary also for 2020. However, there are other legal acts from the previous government (2018 and 2019) that are still in force and that include special provisions for the minimum salary. So now, in 2020, the Romanian law provides several legal minimum salaries.
Is a Managing Director liable for third parties’ mistakes?
The appointment of a managing director, besides responsibility, provides attractive remuneration and a social rise. However, the legal position of the managing director is special and can generate a particular liability potential. Any managing director should enquire about this matter in advance.
The long-awaited amendments to construction law – the good and the bad
For years now a reform of the Romanian Construction Law has been demanded to achieve the simplification, speed-up and digitalization of the much too formal and bureaucratic building permit procedure. Changes have now come at last.
Practical issues related to permanent establishments
In a globalized world, cross-border activities carried out by companies are quite natural. From a fiscal point of view, the long-term presence of a non-resident person in a certain country generates a permanent establishment, whereby a limited taxation right of that particular country over the non-resident person appears.
Undercapitalization – Tougher sanctions to be expected
In mid-October the Romanian senate approved a draft law referring to undercapitalized companies. It includes clarifications, restrictions and new sanctions in cases of undercapitalization. Currently, it is being discussed in the Chamber of Deputies.
Romanian electronic system for linking the Commercial Register within the EU is now functional
The Romanian Commercial Register issued a press release on 5th September 2019, noting that the Romanian system linking the Romanian Commercial Register to “BRIS”, the system for the interconnection of EU Business Registers, has, become operational in September 2019 and can be accessed under https://e-justice.europa.eu.
Tax registration of foreigners – often a challenge
The tax laws of Romania generally set forth that any person or entity subject to a fiscal relationship must be registered and receive a tax number. The tax number is used for the registration of the taxpayer in the electronic system of the Romanian tax authority (ANAF) and for the allocation of tax paid and reported by such taxpayer.
Transactions involving agricultural land in Romania – often problematic
Romania comprises 14.7 million hectares of agricultural area, of which 10 million hectares are farmland. According to an estimate in 2008, there were then approximately 6.8 million hectares of land left unplanted/unfarmed.
Operational measures to safeguard trade and commercial debts
Debt collection, whether from commercial entities or private individuals, is an ongoing problem in Romania. In case of cross-border matters, the process of forcing debtors to pay is even more complex and laborious.