Finance News by Forvis Mazars Romania October 2024

Thu | 31.10.2024

Accounting/audit/tax

Public and social sector leaders resetting strategic priorities to build resilience in a new era, shows a Forvis Mazars’ study

In Romania, 95% of the C-suite leaders acknowledge the critical need for enhanced regulation of generative AI, either on a national or international level. This consensus reflects a broader trend where 79% of public and social sector organisations are already integrating generative AI into their operations.

Companies are focusing less on the latest technology fads, and leaders are looking at the most effective ways technology can be adopted to deliver more efficient ways of working in harmony with the skills of their people.

Main conclusions:

Executives in the public and social sector are generally optimistic: 58% expect funding to increase in the next financial year, but this is a significant drop from 85% last year.
Economic factors, including high inflation and cost of living (27%), and increased demand for services and political change (each 26%) are three of the top external trends impacting organisations most in the coming year. The emergence of new technologies (23%) and scarcity of talent (22%) are also expected to impact organisations significantly and only 25% are confident they’re prepared for this.
Meeting demand for services is a potential issue for a quarter of organisations stating they will likely fail to achieve this.
Scarcity of talent is one of the top five external trends leaders say will impact the sector in the next three to five years, with nearly two thirds (63%) of executives confirming a difficulty in hiring talented people. Yet, crucially, talent strategy is only positioned at number nine in their strategic priorities for the year ahead.

Read more info HERE.

Turkish investments in Romania continue to expand, strengthening economic ties, by Forvis Mazars

Türkiye and Romania, long-standing economic partners in the Balkans, continue to deepen their economic ties with significant investments and robust trade flows between the two nations. By the end of 2024, the trade volume is anticipated to grow to $13 billion.

Forvis Mazars’ experts prepared a material regarding the Turkish investments in our country, the challenges investors face, and the fiscal advantages they can benefit from.

In Romania, Forvis Mazars has established a new Turkish Desk - a dedicated team with cultural fluency and industry expertise. This team is designed to offer a comprehensive range of services and support to Romanian firms wishing to do business in Türkiye, Turkish companies setting up in Romania, and Turkish people who moved to Romania and need guidance in managing their assets.

Read more info HERE.

Forvis Mazars earns Best Place to Work status in CEE and Central Asia for 2024-2025

Forvis Mazars, the international tax, audit, and advisory network, is now recognised as one of the best places to work in Central and Eastern Europe (CEE) and Central Asia, and respectively in Romania.

With over 30 years of experience and research on workplace culture, Best Places to Work is an international HR certification programme providing employers in different countries the opportunity to learn more about the engagement and satisfaction of their employees. Each year, it honours those who deliver an outstanding work experience with the highest standards of working conditions.

Around 1,500 people from 16 countries across Forvis Mazars in CEE and Central Asia participated in the survey and shared their experiences of working with the firm. The participants placed the organisation among their top employers of choice resulting in the firm receiving an 81% certification score.

“I’m incredibly proud that Forvis Mazars has been certified as a 'Best Place to Work' in Romania. This achievement, coupled with our recent recognition by Undelucram.ro as the second most appreciated consultancy firm in the local market, underscores our dedication to creating an exceptional work environment.”, mentioned Gabriel Dascălu, Head of HR, Forvis Mazars in Romania.

Read more info HERE.

Elevating talent acquisition: navigating Romania's candidate pool in the new academic year, by Forvis Mazars

The talent shortage in Romania has emerged as the most pressing recruitment challenge for businesses across the country, notes Forvis Mazars’ study, highlighting the strategic priorities for business leaders in the coming 3 to 5 years.

Now that the new university year has started, businesses have an opportunity to tap into a fresh pool of talent. Of the total student population, almost 545,000 students have enrolled in higher education for the 2023-2024 academic year, with over half (55.4%) being female.

46.1% of students in primary and secondary education are shaping Romania's future by learning today and leading tomorrow

In Romania, as shown by INS data, nearly half (46.1%) of the school population is currently enrolled in primary and secondary education, while approximately a third (17.4%) are in high school. This reflects the importance of long-term talent development strategies, starting from early education, which can ensure a steady supply of skilled employees into the labour market in the years to come. The recent increase in high school (+6,700 students) and university enrollment (+5,900 students) points to an increasing focus on educational achievement, particularly in business, administration, law (23.7% of university students), and engineering fields (19.7%).

„In support of this vision, Forvis Mazars organises a Community Day each year, dedicated to renovating schools and providing children with safe spaces to learn, explore, be creative, and innovate. This initiative not only improves the learning environment but also encourages students to engage in their education actively. Additionally, Forvis Mazars collaborates with universities to provide business training sessions in areas such as audit, tax, accounting, or HR & payroll. These programmes enable students to gain practical knowledge and experience, preparing them for successful careers in the financial sector. We encourage employers to collaborate with educational institutions to develop programs that nurture critical thinking and problem-solving abilities. This partnership can help cultivate the next generation of skilled professionals, positioning Romania for economic success and innovation.”, mentioned Cătălina Călinescu, Partner, Outsourcing – HR & Payroll, Forvis Mazars in Romania.

Read more info HERE.

The proactive role of HR teams in managing the transition to retirement, by Forvis Mazars

Starting from 1 September 2024, Law no. 360/2023 regarding the public pension system came into force, except for certain provisions that apply as of 1 January 2024. Thus, pensioners can request a recalculation of their pension by including additional income and contribution periods, along with relevant documents.

HR teams are essential in this transition, providing employees with support in understanding their rights and guidance on the necessary documentation for pension recalculations or other options, such as Pillar IV or the possibility of continuing their employment.

In a constantly changing legislative context, employees need to be well-informed about the available options and the steps they need to take. Forvis Mazars’ experts wrote an article regarding the essential aspects of the new regulation and the crucial role of HR teams in supporting employees through the retirement process.

"Although individuals can obtain certificates or documents attesting to their contribution periods for periods after 1 April 2001, upon request, from the territorial pension houses or in electronic format, in practice, situations often arise where employees or former employees turn to their current or former employer for a document certifying the income earned during that period.", mentioned Cătălina Călinescu, Partner, HR & Payroll, Forvis Mazars in Romania.

Read more info HERE.

Latest tax alerts, by Forvis Mazars

Amendments to the VAT Refund Procedure for Non-Profit Entities;
Tax amnesty for debtors and incentives for taxpayers who comply with tax liabilities;
Amendments regarding the non-taxable threshold for pension income;
Romania’s reciprocity declaration to the United Kingdom of Great Britain and Northern Ireland regarding the refund of value added tax for certain transactions;
Latest updates on the RO e-VAT compliance notification.

Read more info HERE.

This article is provided by our Finance Partner, Forvis Mazars Romania.

Share this on: