Construction law: Requirements for building developments on plots of land
When it comes to making construction investments in Romania, most investors choose to purchase plots of land for construction.
Registration of companies for tax purposes has finally become easier
At the end of January 2019, we were surprised, yet again, by unexpected regulations from the Romanian Tax Authority ANAF – this time, however, in a positive way.
Tax Law: new mediation procedure and further novelties
On 20th January 2019, Law no. 30/ 2019 (“Law 30” ) came into force, bringing practice-relevant changes in the tax law. It brought changes and additions to the Emergency Ordinance No. 25/ 2018 (“EO 25”), which had changed the tax law at the beginning of 2018.
VAT of 5% for hotels, restaurants and catering services
As we remarked in an earlier article, emergency ordinance (“EO“) Nr. 89/2018, as of 1st November 2018, reduced the VAT on some deliveries and services. A reduced VAT rate of 5% will apply to (among others):
The Electronic Archive for security interests in movable property replaced – compulsory enforcement still unclear
Romania’s Electronic Archive for Securities on Movable Property (“AEGRM”), is where – as the name reveals – securities on movable property (eg. liens), but also leasing contracts etc. are registered; this makes them opposable against third parties.
Differences between the German and Romanian GAAP
The business environment in Romania is represented by a significant number of companies belonging to German groups or by German investors looking for business opportunities to expand their businesses in Romania. In such context the reporting of the financial performance of their Romanian subsidiaries to the parent companies should allow the investors to properly understand the results and to facilitate them in taking the best investment decisions.
New obligations for companies after implementation of EU regulations to prevent money laundering
The directive concerning money laundering should have been implemented in all member states by 26th June 2017. In July 2018, unjustified delays even led to the European Commission initiating an infringement procedure against Romania.
Extending the commitment period for offers in public procurement law – duty or option?
Context In public procurement procedures, bidders are often requested by the contracting authority to extend the initial commitment period of their offers. This request is generally due to the fact that the contract cannot be signed within the initial commitment period given the existence of repeated disputes over the award procedure.
New mandatory salary increases for certain areas of activity
The Romanian Government’s surprise Emergency Ordinance (“EO 114”), which came into force on 1st January 2019, is having an unwelcome effect on important economic sectors, notably the construction industry.
Legal surprises at the turn of the year – follow-up
Last week, we reported about the fiscal changes, some of which are far-reaching, which came into force on 1st January 2019 by means of a highly debated and heavily criticized Emergency Ordinanace (“EO 114”).