The recent practice in the field has shown that the expenses with intragroup services are currently one of the main topics addressed during tax audits and, at the same time, one of the main topics generating tax controversies.

Popovici Nitu Stoica & Asociatii has successfully represented Azomures before Romania's High Court of Cassation and Justice in a dispute hinging on intra-group tax relations.

From 1 January 2024, taxpayers can benefit from a tax allowance for investments in the construction of electricity storage facilities. The tax allowance is available for 6 tax years, with the first tax year being either the year of installation or the following tax year, at the taxpayer's option. This incentive is intended to encourage the installation of new electricity storage facilities which enable the taxpayer to store electricity generated for its own use.

Starting on 1 January 2024, a new feature was launched regarding personal income allowances, meaning that certain tax base reduction allowances can also be claimed on a continuing basis. The purpose of the existing tax advance return is to allow the employer to determine and deduct the tax advance, considering both benefits and costs.

According to a draft legislation on digital companies issued at the end of 2023, “digital companies” would be exempt from paying public burdens and local business tax. Employees in employment relationships and the executives of companies could fulfil their tax payment obligations after their income through special public burden contributions.

Ellex has advised Hollister Incorporated on launching a new shared services center in the Kaunas Free Economic Zone, in Lithuania.