New fiscal changes starting with 1st of February

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As from 1st of February will become effective some new regulations in fiscal area in Romania, such as:

  • for small businesses – the limit amount of annual revenues under which the companies are considered micro-enterprises will increase up to the amount of 500,000 euros and the tax rate for micro-enterprises with one or more employees will represent 1% of incomes. Until now, the tax rate was represented by a different percentage of the income, depending on the number of employees;
  • the 088 form regarding the registration of the companies as VAT operators was removed;
  • the companies that deals exclusively with activities of innovation, research and development will be exempt from profit tax in the first ten years of activity;
  • the limited amount of 5 gross average salaries over which the employees and employers didn’t pay social contributions (CAS) and health contributions (CASS) will be removed;
  • the seasonal workers will be exempted from income tax of 16%;
  • 102 taxes will be eliminated, which include radio and TV tax, environmental tax, registration fees to the Trade Register, tax for issuing certificates of criminal record, judicial stamp duties and a number of consular fees;
  • the minimum wage will increase by 16%, from 1,250 lei to 1,450 lei gross.

POR 2016/2/2.1.A – Micro enterprises call for projects extended

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The Romanian Ministry of European Funds extended the deadline for submitting the projects under the Call no. POR 2016/2/2.1.A – Micro enterprises, Priority Ax 2 – Enhancing the competitiveness of small and medium companies, Priority investments 2.1 – Promoting entrepreneurship, in particular by facilitating the economic exploitation of new ideas and by fostering new businesses, including through business incubators.

The funding applications rejected due to administrative and eligibility check can be re-submitted under the new deadline, but no projects can be submitted again after being rejected at the stage of technical and financial evaluation. All projects that will be submitted again are procedural considered newly filed applications.

 

Draft budget for 2017

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The Romanian Ministry of Finance has issued a press release regarding the draft budget for 2017.

According to the press release, the European funds for 2014-2020 has been foreseen as follows:

  • 4.441 bln. Euro – funds for European cohesion policy;
  • 1.18 bln. Euros – funds for the National Rural Development Programs;
  • 1.8 bln. Euros – funds for farmers in the common agricultural policy.

The complete press release of the Ministry of Finance can be found here.

European Account Preservation Order (E.A.P.O.) – new procedure to facilitate cross-border debt recovery in civil and commercial matters

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Starting this year, debt recovery is faster, cheaper and more efficient with this new procedure for obtaining an European Account Preservation Order (E.A.P.O.).

This procedure is an additional and optional tool that the creditor can use for debt recovery. According to this Regulation – (EU) No 655/2014 – which applies starting the 18th of January 2017, the creditor is entitled to obtain a E.A.P.O. for preventing the subsequent enforcement of the creditor’s claim from being jeopardized through the transfer or withdrawal of funds up to the amount specified in the Order which are held by the debtor or on his behalf in a bank account maintained in a Member State.

This regulation applies to pecuniary claims in civil and commercial matters in cross-border cases and it does not extend, in particular, to revenue, customs or administrative matters or to the liability of the State for acts and omissions in the exercise of State authority.

New tax for the transfer of property

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Starting with February 1st the method of determining the tax due for the income coming from transfer of property rights changes, as follows:

  • for income resulting from the transfer of property rights for the construction of any kind and associated land, as well as the land of any kind without construction, amounting to 450,000 lei (aprox. 100,000 €), the Romanian state will not apply any tax;
  • for the incomes resulting from transfers amounting to more than 450,000 lei (aprox. 100,000 €), the tax represents 3% of the difference between the value declared by the parties and the allowance of 450,000 lei.

The Romanian Government says that this decision intends to encourage the sales of real estate, which leads to a growing construction industry, oriented to construction of living houses.

 

2017 special tax for accommodations and food industry companies

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The new year came with a very important amendment to the tax regime in Romania.

The Law. no. 170/2016 stipulates that the companies that have in their articles of incorporation activities regarding accommodation of the tourists, restaurants, catering, or the selling of any kind of drinks, must pay a different tax than they paid before.

This means that they will not pay anymore a tax related to the revenue or profit, but it will be calculated using a formula with more variables, such as the value of the standard tax, the ranking of the town where the activity is driven, the area where the activity is developed, seasonality, adjustment for technical space of the business.

This kind of amendment eliminates the problem that the fiscal authorities encountered so far in collecting the taxes, related to the non-issuing the fiscal documents that stated the commercial activity these companies developed. Therefore, the firms will pay taxes no matter their declared revenue was that year.

Welcome!

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Welcome to our website!

We are glad that you are here, interested in our work. Our first blog post is about us, a detailed version of the “About us” page.

We are a team of young Romanian lawyers that started this website because we are competitive and we can do a very good job providing legal information.

We became lawyers because we want to make a difference. And we are doing it right now!

As members of Bucharest Bar, we worked so far in other legal companies that offered us great experiences and teaching. Because we wanted to cover all the activities a lawyer can do, we kept it small and comprehensive, we developed our skills and improved our university learning by working with smart lawyers in small or mid-sized law firms, who took the time and patience to show us the backstage of the reality of the legal system.

We especially learned that a lawyer cannot know everything a client asks, but a good lawyer doesn’t give up until he finds all the answers. This includes a thoroughgoing study of the legal problem and a lot of work doubled by passion for profession, with a very good result coming from it. And this is reflected in the client’s contentment.

This is the outcome that we seek and are trained to obtain.

We combine our talent in representing the clients in court with good advisory competences, so we can offer full legal services. Because no problem is only about litigation or only about legal advice, a litigator needs to know how to read the legal documents and how to bend them, as much as a legal adviser must predict the disputes that may arise from a legal document he is preparing, so he can avoid it.

Also, we started this website because we have a goal: to raise awareness and the standards in the legal field. We believe that qualitative law services can be offered for reasonable fees, and that is why we are constantly seeking for methods to do it. This includes the technology that we use to always be in touch with our clients and the legal tools for reducing our work time.

For more information, you can find us on social media.