Finance News by Mazars Romania - March 2022

Mon | 21.03.2022


M&A deals in 2022: analysing the tax risks and identifying the challenges of a business can define the success of a deal, by Mazars

Despite concerns about COVID-19, resurgent inflation, and rising energy prices, 2021 saw robust dealmaking across the CEE region. As Mazars has noted in a recent article regarding the maturity of the M&A market, in 2021 there were 49 disclosed deals among Romanian companies, which means an increase of 17% compared to the previous year. Thus, after 2 years since the global economy was affected, the interest of strategic investors and investment funds remains relevant at the local level as well.

In 2022, the investors or financial companies, that are planning transactions for this year, need to consider several tax issues, regardless of how the deal is intended to be performed or its stage. Thus, a process of due diligence, carried out prior to the deal signing, is more than recommended. This kind of analysis facilitates the investment decision-making process and, at the same time, provides the latter with future protection against potential identified risks.

First of all, we consider it important for the investor to know how the company in which it intends to invest has operated up until the time of the acquisition, from a legal, commercial, financial, tax, and human resources perspective. Secondly, in relation to tax issues, a tax due diligence exercise carried out before the transaction, will enable the investor to know the tax status of the company in which it intends to invest (for example, whether or not it has been subject to tax inspections during the statute of limitation period), to identify the areas with potential tax risk, so that in the end, these areas are quantifiable and adjustable through the mechanism for setting and paying the price related to the transaction.”, mentioned Lucian Dumitru, Tax Director, Mazars Romania.

Read more info HERE.


CEE Tax and Payroll Newsletter, by Mazars

At the moment, within every business community, there is a need for every professional to be informed when it comes to the latest legislative changes, that are happening almost daily. With this thought in mind, Mazars has designed a thought leadership newsletter, to keep every expert up-to-date with the most important changes in the tax, labour, and payroll legislation within Central and Eastern Europe.

In this edition, Mazars has summarised the most important changes in tax, labour and payroll legislation from Albania, Austria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia.

Furthermore, you can also discover the most recent topics announced across Central and Eastern Europe that impact businesses on an international scale, such as:

  • Parliament Resolution: directions for development of EU VAT system - On 16, February, 2022, the European Parliament adopted the European Parliament Resolution on the implementation of the Sixth VAT Directive.
  • New regulations: CIT, known as the anti-tax avoidance Directive III ("ATAD III") - Introduction of a "minimum substance test" for EU companies.

Read more info HERE.


SAF-T implementation and e-invoicing in Romania, by Mazars

After many requests from the business environment, as well as various statements issued by the tax authorities, ANAF digitalisation has been included on the agenda for 2022. This brings several challenges and opportunities for businesses, and it is very important to stay up to date with the latest developments.

The Standard Audit File for Tax – SAF-T is a standardized file that facilitates fiscal control by the Romanian tax authorities and simplifies tax compliance for taxpayers. In addition to this, SAF-T also guarantees the information security.

As the SAF-T reporting has raised multiple questions and challenges, Mazars’ specialists are reacting and offering you their support to successfully submit your file.

In addition to the SAF-T reporting, companies doing businesses in Romania should also consider the new electronic invoicing system, launched earlier this year. This is a major step towards the digitalisation of the fiscal authorities in Romania and brings many benefits to both the public administration and the private sector.

Read more info HERE.



This article is provided by our Finance Partner, MAZARS Romania

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