Finance News by Mazars Romania February 2024

Wed | 28.02.2024

Accounting/audit/tax

Dealmaking in CEE held up strongly in 2023, shows a Mazars’ study

Mazars released its annual CEE M&A report, prepared in association with Mergermarket. It reveals that dealmaking in the CEE region remained robust in 2023 in the face of global challenges.

Main conclusions:

Against a backdrop of falling global M&A activity, dealmaking in Central and Eastern Europe (CEE) held up relatively well.
The number of transactions in the region in 2023 equals 1,097.
The total value of M&A activity reaches €37.3bn, according to the reported data and taking into account the criteria set out in the methodology.
Romania is increasingly catching the eye of investors, solidifying its position as the third-most preferred destination in CEE.
At the local level, the total value of transactions nearly doubled compared to 2022, reaching approximately 4.1 billion euros.

„At the beginning of the year, we noticed a slowdown in M&A activity, and in the first two quarters, there was a clear decrease in transaction dynamics. However, starting from the third quarter, we experienced a revival of the market, marked by an increased number of requests for proposals and the start of numerous due diligence processes, representing a significant change from the previous period. This trend translated into a significantly higher volume of transactions in the latter part of the year, and we anticipate that this momentum will continue, generating a significant volume in the first months of 2024. Nonetheless, 2024 will be a year filled with challenges, both locally and regionally, as well as internationally. I am optimistic regarding the positive evolution of the M&A market both in Romania and in CEE, considering the maturity and opportunities it offers.”, mentioned Răzvan Butucaru, Partner, Financial Services & Advisory Leader, Mazars in Romania.

Read more info HERE.

Mazars announces another year of record revenues as it builds global ambition

Mazars, the international audit, tax and advisory firm, announces double-digit growth across all services, both audit and non-audit, for the third consecutive year. Despite ongoing market uncertainty, revenues are up 13% on last year, reaching €2.8 billion in fee income.

The firm’s global results follow the recent news of its plans to create a new top ten global network later this year with US accounting firm FORVIS.

„In Romania, Mazars has achieved remarkable double-digit growth, marking a 22% increase compared to the previous year. Our audit services have contributed significantly to these results, and reflect our commitment to expanding our capabilities to deliver value to the Romanian market. We recognise the critical role that robust audit practices play in ensuring transparency, accountability, and sustained success. Passing on these values to future generations has underpinned Mazars for years.

Furthermore, we doubled our investment in technology and innovation, focusing on improvements to support clients in navigating the latest reporting requirements such as SAF-T and e-Invoicing, alongside optimising finance processes. Responding to the growing demand in the market, we also launched a dedicated sustainability business line, reaffirming our commitment to delivering holistic solutions that align with evolving market demands.

Additionally, this progress reflects our steadfast investment in our team, empowering over 370 colleagues with opportunities for personal growth. Recently, we strengthened our local leadership by welcoming four new partners in Tax and Outsourcing – Accounting and HR & Payroll, an achievement that makes all of us proud mentors and colleagues.

In the next financial year, we will continue to invest in what matters for our people, our clients, and society.”, mentioned Dino Ebneter, Country Managing Partner, Mazars in Romania.

Read more info HERE.

The CSRD Directive was transposed into Romanian law, by Mazars

Recently, Directive (EU) 2022/2464 of the European Parliament and of the Council regarding companies’ sustainability reporting, known as the Corporate Sustainability Reporting Directive (CSRD), was transposed into Romanian law through Ministry of Finance Order no. 85/2024 (“OMF 85/2024”).

2025, the first year of reporting for Romanian companies

The scope of companies subject to reporting obligations has significantly expanded, along with the magnitude of requirements they must fulfil. To allow companies time to prepare, the transition to the new reporting requirements will occur in phases.

However, there are many requirements, and companies need to consider starting the implementation process with priority.

Thus, companies currently adhering to OMF 1802/2014 or OMF 2844/2016 accounting standards are scheduled to start sustainability disclosures in the following manner:

2025 reporting (for financial year 2024)

medium and large public-interest companies averaging more than 500 employees during the fiscal year;
public-interest parent companies of a large group, averaging over 500 employees, on a consolidated basis, at the balance sheet date.

Mazars’ experts prepared material with more information regarding the subject.

Read more info HERE.

Mazars: Six sectors are responsible for carbon dioxide emissions from energy use

The second report in the OECD series on greenhouse gas (GHG) emissions pricing and energy taxation, published in November 2023, analyses the situation in 72 countries. The aim of this report is to assess emissions trading systems, fuel excise taxes, and carbon taxes in 2021, and track their evolution during 2022 - 2023, taking into account the energy crisis and high inflation rates.

Mazars’ tax specialists prepared material with the following main conclusions:

Emissions trading systems will be the primary tool for reducing carbon emissions in 2021.
In the period 2021–2023, the reduction in fuel excise taxes resulted in similar levels of effective tax rates on carbon emissions in the electricity, industry, and transport sectors.
The volatility of carbon emission certificate prices can undermine investments in decarbonisation technologies.
Over 80% of emission certificates are allocated for free in the electricity and industry sectors.
Six sectors are responsible for carbon dioxide emissions from energy use: agriculture & fisheries, buildings, electricity, industry, and off-road and road transport.

„The effective tax rates on carbon emissions measure the level of carbon pricing for greenhouse gas emissions. According to the report, during the period 2021–2023, in the context of the energy crisis and the war in Ukraine, which led to various policy changes, the reduction in fuel excise taxes, for example, resulted in similar levels of effective tax rates on carbon emissions in the electricity, industry, and transport sectors. In most of the analysed countries, the effective tax rates on carbon emissions decreased in all sectors during the period under review.”, mentioned Liviu Gheorghiu, Tax Director, Mazars in Romania.

Read more info HERE.

e-Invoicing in Romania is now mandatory, by Mazars

As of 1 January 2024, the RO e-Invoicing is mandatory for all B2B transactions in Romania. Mazars’ tax experts can help you understand the legal framework governing e-Invoicing, as well as what action points to consider to ensure compliance and operational continuity.

The window for adapting to the new regulations and avoiding potential fines is closing soon. Starting with 1 April 2024, non-compliance with the reporting deadlines in e-Invoice will lead to financial penalties.

Mazars can offer you support regarding:

The latest legislative developments;
Challenges in implementation & solutions: explore Mazars’ application designed to support you with e-Invoicing requirements;
Practical examples of how to complete the fields of the xml file.

Read more info HERE.

Latest tax alerts, by Mazars

Order 134 approving the implementation of Transfer Pricing rules in Republic of Moldova

On 9 February 2024, Order no. 134 on the approval of the Transfer Pricing implementation rules was published in the Official Gazette of the Republic of Moldova, no. 61-63, Part III.

Updating the tax registration forms of taxpayers and the types of tax obligations forming the tax vector

The Order of the President of the National Agency for Tax Administration no. 2.079/2023 on the amendment and completion of OPANAF 1699/2021 for the approval of tax registration forms of taxpayers and types of tax obligations that form the tax vector was published in the Official Gazette, no. 27, dated 12.01.2024.

Multilateral Instrument Updates (MLI).

After Romania deposited with the OECD on 6 March 2023 the Notification for the fulfilment of its internal procedures, on 15 December 2023 the synthesized text for 55 Double Taxation Treaties (DTT) with regard to the impact of the MLI Convention was published. Effects to take place the earliest as of 1 January 2024.

Read more info HERE.

This article is provided by our Finance Partner, MAZARS in Romania.

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