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New regulations regarding the registration of individual employment contracts

Under current legislation, employers in Romania are required to register the individual employment contracts at Labor Inspectorates within 20 calendar days from their closing and to transmit them to the General Registry of Evidence of Employees within 5 days.

Due to some new regulations, as a measure against tax evasion, the Labor Ministry published the GD. 37/2010 on January 20th, 2010 which states that employers must register in the General Registry of Evidence of Employees the employment contracts and the identification data of employees - name, surname, personal identification number, date of employment, position, type of contract - not later than the previous day of the beginning of work by the employee. The employment contract must be submitted online or presented at the Labor Inspectorate on the same date, the term of 5 days given to employers to communicate this information at the Labor Inspectorates being eliminated. read more»

Starting with January 1, 2010 micro-enterprises no longer exist in Romania

According to the communication of the Ministry of Public Finance of Romania, on January 27, 2010, starting with January 1, 2010, the provisions of Title IV ‘Taxes on the Income of Micro-enterprises ", the application regulations, as well as other provisions incident to this system, are not longer produceing legal effects.

In accordance with the provisions of Art. 107 of Law no. 571/2003 regarding the Fiscal Code, the taxation system for micro-enterprises had a limited application in time, ending on December 31, 2009, by way of regulating tax rates only for the years 2007-2009. read more»

New regulations in the activity of the Romanian Trade Registry

On December 29th, 2009 the Romanian Government issued the Emergency Order number 16 ofor the establishment of new measures for registrations in the Trade Registry, legal provision published in the Official Gazette of Romania no. 926 of December 30rd, 2009.

This emergency ordinance shall enter into force 15 days after its publication in the Official Gazette and applied until the publishing of the regulation of registration made by commercial registers. Within 6 months from the effective date of this Emergency Ordinance, the Government will adopt the proposal of the Ministry of Justice, for the law on the establishment, organization and operation of the profession of commercial registrator.

The legal provision comes as a result of crowded courts with a large number of cases and procedures related to business flow. read more»

How can we use the tax exemption for the reinvested profit?

In the Romanian Official Gazette No.761 of November 9, 2009 was published the Law nr.329 of 05.11.2009 amending the Tax Code with an new Article, namely Article 19.2 paragraph (1) which states a tax exemption on the reinvested profit.

Thus, by law, the profit invested in the production and/or acquisition of equipment (machinery, equipment and work facilities), as stated in subgroup 2.1 of the “Catalogue on classification and normal periods of operating fixed assets, used in order to obtain taxable income” is exempt from tax.

The exemption from tax applies only to assets considered new, by this understanding that they were not used before the publication of these provisions.

Profit invested under Law 329 of November 9, 2009, represents the balance of the profit and loss account, representing the cumulative accounting profit from the beginning of the year and is used within the year when the investment is made. read more»

Uncertainty regarding the tax rate for micro-enterprises in 2010

The Government Ordinance amending the Tax Code which will apply from January 1, 2010 has been adopted and does not contain any provision on the reduced tax of 3%.

According to the Tax Code for 2010, published by the National Tax Administration Agency, micro-enterprises will pay from January 1, 2010 an income or profit tax of 16%, as the reduced income tax of 3% applies only until 31 December 2009, as indicated in the Article 107 of the Tax Code:

“The tax rate on micro-enterprise's income is 2% in 2007, 2.5% in 2008, 3% in 2009”.

The Finance Ministry has expressed its intention of not changing the tax rate of 3% for micro-enterprises, with the possibility of extending its application for a further year. These are only expressed opinions, as there is no legislation in this regard till today.

If this tax rate will disappear, all the advantages that firms bearing the status of micro-enterprises benefited from, will be abolished from 2010. read more»

2010. The economies in the region whereto?

Another turbulent year is closing. After a devastating 2009 for the economies of all countries in the region what interests us most now, as investors, is what will happen in 2010 and what evolution will have the economy of these countries in the year we're just about to enter.

The forecasts of the key financial and international institutions are not always in consensus and the estimations of the local governments are usually more optimistic than those of international institutions, mainly for elections PR reasons, so we will try to do a review as most complete as possible of these forecasts, including various points of view.

As average values, the contraction of the Eastern Europe economies in 2009 was estimated by BERD to 6.3%, respectively as by the estimations of the same international body, in 2010 we can expect an average increase of 2.5% of the Eastern European economies. read more»

What news brings us the Fiscal Code in 2010?

2010 is preparing us a series of new amendments to the Tax Code. In addition to those which are still in the planning phase or in the center of public debate, there are some changes that have already become certainties, since they were already published in a legal document, the Ordinance 109 of October 7, 2009 published in Official Gazette no. 689 of 13.10.2009.

The main amendments of the Fiscal Code refers to the place of delivery for services and the finalcial summary statement. Thus, the Ordinance 109 of 07/10/2009 amended Article 133 of the Tax Code, regarding the place of delivery for services.

If until now the place of delivery for services was considered the place where the supplier is established or has fixed office from which services are delivered, once with the amendments of the Ordinance 109 of 2009, under Article 133 paragraph 2), the place of delivery for services became the place where the person that receives the services has the business office. read more»

The companies from our region interested in becoming more entrepreneurial

In January 2009 Ascent Group has signed a strategic partnership with the very known American expert in researching and promoting the principles of entrepreneurship and innovative business solutions - Larry Farrell. Due to this partnership, Ascent Group is going to represent Mr. Farell in Romania, Bulgaria, Serbia and Moldova for training and consultancy services on entrepreneurship topics.

The conclusion of this partnership was followed by some visits of Larry Farrell in the region, who launched the program personally in Romania between 10-18 April 2009 and în Bulgaria on October 6. read more»

The influence of new political realities on the investment climate of the Republic of Moldova

The year 2009 was certainly not the best for Moldova, in all respects. It started with a campaign that slowly degenerated into a real political crisis, which, unfortunately, at the end of the year continues. A political crisis that we hope it will be resolved soon and which in tandem with global financial and economic crisis has created an unprecedented situation for Moldova.

However, nothing can lie a good eye of an investor who knows that a crisis may be a perfect runway, if you know how to pave the way and take advantage of the specific geographical region. An economic crisis brings beautiful investment opportunities with little money, because the whole economy has become "cheaper", but with the same critical needs. The giants in the business world recommend the crisis as the most favorable moment for large projects.

Moldova is a special case which succeeded to stick his head in 2 crises that affect itself one to each other. read more»

December 25 – the date when Romanians will be able to pay the taxes online

The portal e-Romania will be launched on December 25th with the first ten services. So whether you must pay a tax on a good or a fine, starting with this date you can do it directly on internet, saving any unnecessary travels or lossing time staying at the endless queues.

Later on, the portal will cover other areas such as education, health and culture.

A better news is coming, but for legal entities: within maximum 89 days, all companies will be able to present the balance sheets and pay all the fees online.

According with the World Bank, Romania has currently one of the most bureaucratic tax administrations in the world.

If on December 25 the portal will be really launched , then we could say that we are witnessing a great step that Romania is doing towards information technology and, implicitly, to improve the communication between the State and its custumers, the taxpayers.

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