Finance News by Mazars Romania March 2024

Sun | 31.03.2024

Accounting/audit/tax

C-suite optimistic for a year of transformation, but say more regulation and ethical considerations needed, shows a Mazars analysis

Mazars released its latest C-suite barometer: outlook 2024. Optimism and confidence are at their highest recorded by the Mazars C-suite barometer. Business has its eyes firmly set on a positive future, and leaders are looking to expand and grow with confidence.

Main conclusions:

Optimism hits a record high – 89% increased revenues vs the previous year and 94% have a positive outlook for growth expected in 2024, eight points up from last year.
Economic factors, including high inflation and cost of living (37%), and energy prices (33%) are two of the top external trends impacting businesses most in the coming year. The emergence of new technology (33%) is also expected to impact significantly, and businesses are confident they’re prepared for this.
The proportion of businesses boosting investment, averaged across all business activities, increased to 66% (up 3 points on last year), and 44% are “very confident” they can manage external trends, up 6 points from last year.
83% of Romanian C-suite leaders look ahead with a positive mindset (17% are very positive, 39% are positive, and 27% are slightly positive).
Organic growth (39%) remains the most important source of growth for the Romanian C-suite leaders, followed by M&A activity and strategic alliances/joint ventures with third parties (each, 22%).

„Most probably due to the geopolitical context and the post-pandemic effects, the Romanian leaders expected no change to their 2021 revenue vs. 2020, with only 38% of them predicting growth, compared to 86% globally. Now, two years apart, things are definitely different, with local businesses being more positive; from 38%, now 94% say they’re growing, compared to 89% globally. This huge change indicates a business market optimistic for the future, confident about their development, and ready to take on the challenges ahead.”, mentioned Dino Ebneter, Country Managing Partner, Mazars in Romania.

Read more info HERE.

Companies must implement the anti-harassment Guide by 17 April 2024, by Mazars

According to Government Decision no. 970/2023, companies have less than three weeks, until 17 April 2024, to familiarise themselves with the concepts related to workplace harassment (definition, types, examples of behaviours), as well as to develop and implement a Guide on preventing and combating sexual and moral harassment, to create a safe and inclusive work environment.

„By clarifying definitions, imposing prevention obligations, establishing reporting and investigation procedures, protecting victims, and applying sanctions, the legislation aims to reduce the incidence of harassment and raise awareness of the importance of mutual respect in the workplace. It is essential for both employers and employees to be informed and work together to implement these measures effectively.”, mentioned Cătălina Călinescu, Partner, HR & Payroll, Mazars in Romania.

The appointment of a person or committee responsible for resolving harassment cases is among the main obligations imposed on employers

In addition to developing and implementing a Guide on preventing and combating sexual and moral harassment in the workplace, companies must appoint a person or committee responsible for receiving and resolving harassment cases. Thus, the table with the names and responsibilities will be displayed at the company's headquarters and made known to all employees.

In addition to these obligations, we also mention:

The establishment of a registry for reporting cases where complaints will be registered.
Introducing the provisions of Government Ordinance No. 137/2000 on preventing and sanctioning all forms of discrimination and Law no. 202/2002 on equal opportunities and treatment between women and men in the internal regulations.
Prohibiting and sanctioning any actions that may lead to moral or sexual harassment in the workplace, as well as taking measures to prevent and combat harassment in the workplace.
Informing and training employees on harassment prevention through annual training courses.
Communicating the methodology to all employees.

Read more info HERE.

Penalties of up to €20,000 for failure to submit the CbC report, by Mazars

Multinational groups operating in Romania, which submit the non-public CbC report only in countries with which Romania does not have an automatic exchange of information agreement on CbC, must also submit the report to the Romanian tax authorities.

Penalties for non-submission of the CbC report (Form R404) are among the highest in the Romanian tax legislation, amounting to up to €20,000 per fiscal year.

Read more info HERE.

CEE Tax & Payroll Newsletter, by Mazars

The CEE Tax & Payroll Newsletter aims to share Mazars’ latest news on tax, labour, and payroll legislation in the Central and Eastern Europe region, with the scope of helping you to prepare for the changes that could lie ahead in the following countries: Austria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia, and Ukraine.

Insights to guide you through today’s evolving regional tax, labour, and payroll landscape:

OECD Pillar 2 GloBE implementation status update in CEE by Mazars’ joint regional team of tax experts in Central & Eastern Europe.
Navigating the future of finance: outsourcing trends and opportunities in payroll by Jana Boštíková, Outsourcing HR & Payroll Leader, Mazars in CEE.

Read more info HERE.

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

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