Finance News by Mazars Romania September 2023

Fri | 29.09.2023

Accounting/audit/tax

Understanding Pillar 2 - what to expect and how to prepare, by Mazars

The Pillar 2 Global Anti-Base Erosion (GloBE) rules have been developed by the Organisation for Economic Co-operation and Development (OECD) to provide a common system of taxation that ensures multinational enterprises (MNEs) pay a global minimum tax (GMT) of 15% in each jurisdiction where they operate and generate income.

Positioned as one of the pioneering countries in the OECD's initial agreement, Romania has adhered to the Pillar 2 principles. Demonstrating its commitment, Romania has undertaken the obligation to implement the UE Directive 2022/2523 to ensure a global minimum level of taxation for both multinational enterprise groups and large-scale domestic groups within the European Union, by the end of 2023.

Large multinational groups operating in Romania should proactively start analysing and evaluating the potential impact of Pillar 2 by simulating the calculation of the Effective Tax Rate (ETR).

Learn more from Mazars’ experts HERE and read more info HERE.

How to navigate the latest tax changes with confidence, by Mazars

Mazars provides invaluable knowledge and insights necessary for thriving in today's complex Romanian tax environment.

Learn more from Mazars’ experts about:

Minimum turnover tax;
Personal tax changes;
The future of tax compliance and reporting framework (SAF-T, CbCR, global minimum tax, transparency in tax);
e-Invoicing obligations;
Changes in VAT rates (including food, social housing, selling and installing photovoltaic panels);
VAT exemptions and excise duty changes.

Read more info HERE.

Transition to CSRD: your essential starting kit, by Mazars

In 2014, the European Commission adopted the Non-Financial Reporting Directive (NFRD), intending to strengthen accountability and to help stakeholders monitor and assess the ESG performance of large companies. The new Corporate Sustainability Reporting Directive (CSRD) builds on the purpose of NFRD, but brings an enlarged scope, with more companies being required to take part in the collective effort for the EU to reach its sustainability goals.

As a result, under the CSRD, many more companies will need to prepare extensive sustainability reports, of the same level of quality and transparency as the financial reports.

The evolving framework, the constant updates and the complexity revolving around the CSRD/ESRS and EU Taxonomy make it difficult for companies to understand how to start and what information to use in sustainability reporting. Complying with sustainability requirements can be overwhelming, yet no longer optional in the not-too-distant future.

Read more info HERE.

Doing business guide - unlock investment opportunities in Romania, by Mazars

Mazars is pleased to present their comprehensive guide, 'Doing Business in Romania', which has been meticulously crafted to provide a detailed overview of the Romanian market, offering insights into the process of establishing a business, understanding the taxation system, labour laws, accounting regulations, and audit requirements.

Whether you're planning to invest in Romania or already own a business here, Mazars’ guide will equip you with the knowledge to navigate the Romanian business landscape with confidence. Stay ahead of the curve by understanding the local business environment, legal requirements, and cultural nuances that can impact your business operations.

Download the publication below, and let it be your ultimate roadmap to achieving your business goals in this dynamic market.

Read more info HERE.

Latest tax alerts, by Mazars

The approval of the procedure for refund of VAT on purchases of goods or services made by non-profit entities

Order of the Ministry of Finance no. 2438 approving the Procedure for the refund of VAT on purchases of goods or services made by non-profit entities was published in the Official Gazette no. 788, Part I from 01.09.2023.

Main changes:

The provisions refer to VAT exempt operations, such as: construction, rehabilitation or modernization of public hospitals and supply of medical equipment, devices, accessories and protective equipment, materials and consumables for sanitary use, as well as the adjustment, repair rent and leasing of such goods.
VAT refunds shall be granted by the competent tax authority where the non-profit entity is registered, based on the request submitted by the non-profit entity.
Non-profit entities may apply for a VAT refund within 90 days of the end of month for which the refund is claimed.
Non-profit entities must provide documentary justification of the purpose for which the VAT amounts refunded from the state budget were used, including amounts that have been offset against the entity's tax liability.

News related to the procedure for VAT customs deferment certificate

The Order no. 2045/2023 of the Minister of Public Finance amending the norms related to the procedure for granting the VAT customs deferment certificate and issuing the guarantee for imports of goods was published in the Official Gazette No. 829 on the 14th of September.

Main changes:

The VAT certificate will be issued by the Romanian Customs Authority instead of General Directorate for Customs.
Such certificate is valid for 6 months.
The certificates issued before 14th September 2023 remain valid until 31.12.2023 or until the expiry date, whichever occurs first.
The template application form for issuing the certificate has been updated.

Read more info HERE.

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

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