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Law No. 69/2022 amending and supplementing Law No. 8/1996 on copyright and related rights (“Law No. 69/2022”) was published in the Official Journal of Romania, Part I No. 321 of 1 April 2022 and, with the exception of a few provisions which will become applicable 30 days or 6 months after publication, entered into force on 4 April 2022.

The Court of Justice of the European Union (CJEU) released its judgement in Case C-333/20 Berlin Chemie on 7 April 2022. This extremely important ruling might mark the turning point in the controversial VAT fixed establishment topic. Although numerous European courts had already passed decisions on this issue, the approach taken by tax authorities in many EU Member States, including Romania, have been aggressive and inconsistent, with significant tax assessments made against companies mainly due to uncertainties in the existing legislation.

This review was prepared for Ukrainian refugees by the law firm Tuca Zbarcea & Asociatii upon request and in coordination with the international legal network Multilaw and Ukrainian law firm Arzinger. The review is as of March 11, 2022. The review is not a legal advice and is for informational purposes only. For updates, please follow www.multilaw.com and/or www.arzinger.ua

Ordinance No. 11/2022 for the amendment and completion of certain normative acts, as well as for the amendment of several deadlines (“GO 11/2022”) was published In the Official Gazette No. 96/2022. This ordinance brings amendments and completions to both Law No. 227/2015 regarding the Fiscal Code (“Fiscal Code”) as well as to Law No. 207/2015 regarding the Fiscal Procedure Code (“Fiscal Procedure Code”).

Intra-group loans and guarantees are frequently encountered in the activity of group companies, especially when centralized capital and liquidity management systems are in place. Intra-group loans are often used as tools to maximize liquidity at the group level while reducing the cost of funds, while the guarantees provide group companies with better access to external financing or high-value commercial contracts.

Technology is part of our lives. And technological development leaves its mark on our lifestyle. We saw that in our own homes when we gave up our traditional landlines and used the fixed broadband Internet connection instead, at higher and higher speeds. We see that when exploring the ever-expanding features and options of our mobile handsets. We also see that while viewing high definition programs or when accessing digital interactive services through our TV sets, and when faced with the option of placing calls using traditional services or through new applications. We can see the technological development when rural areas have access to electronic communications and are thus able to reap the benefits of the digital economy.

Over 77% of the European Union’s territory is classified as rural (47% is agricultural land and 30% is forest). The numbers are little different in Romania, where around 81% of the territory is rural (approximately 50% is agricultural land and over 31% is forest cover).

The brain drain of highly trained and otherwise qualified professionals is increasingly felt in all industry sectors of Romania. We have lost people from all professional backgrounds and levels, low- and high-skilled alike. Statistics are disconcerting: in 2017, nine Romanians left the country every hour and we were second in the world after war-stricken Syria in emigration rankings. In the space of only ten years, about 17% of Romania’s population left the country. How many of them will ever come back? Romania needs a strong country project, sustained, ongoing efforts meant to encourage return migration, and policies to dissuade those who consider leaving the country. In 2018, the centenary year of Romania’s Great Union, I wish for a stronger, more united Romania, looking for ways to entice the next generations away from emigrating and into returning to their home country.

While 2017 was characterized by various fiscal changes, experiments, and abandoned proposals, the tax landscape at the end of 2018 underpins the competitive edge of Romania in the region. Still, there are reasonable threats with regard to the predictability of the tax system, considering the current macroeconomic trends and the budgetary constraints faced by the Romanian government.

At a global scale, trends in the financial sector are undoubtedly oriented towards digitalization. By employing new technologies, financial institutions are striving to meet clients’ surging demand for contracting financial services via digital channels. In other words, the spotlight is turning from branch-proximity to digital-technology, as the use of paper-based documentation and the need for clients to be present in person when contracting financial services are shrinking.

Although Romania claims the highest GDP growth rate in Europe and a low unemployment rate, all is not rosy in the seventh most populous member state of the European Union, and prominent lawyers in the country admit to profound dissatisfaction with the country’s leadership and concern about its long-term prospects.

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Tuca Zbarcea & Asociatii at a Glance

Țuca Zbârcea & Asociații is a full-service independent law firm, employing cross-disciplinary teams of lawyers, insolvency practitioners, tax consultants, IP counsellors, economists and staff members. It also operates a secondary law office in Cluj-Napoca (Romania), and has a ‘best-friend’ agreement with a leading law firm in the Republic of Moldova. In addition, thanks to the firm’s dedicated Foreign Desks, the team provides the full range of services to international investors seeking to gain a foothold or expand their existing operations in Romania. Since 2019, the firm and its tax arm are collaborating with Andersen Global in Romania.

Țuca Zbârcea & Asociaţii is providing legal services in every aspect of business, covering all major areas of practice: corporate and M&A; litigation and international arbitration; corporate tax; public procurement; TMT; employment; insurance; banking and finance; capital markets; competition; healthcare and pharmaceutical; energy and natural resources; environmental; intellectual property; real estate; regulatory legal services.

Țuca Zbârcea & Asociaţii is a First-Tier law firm in all international legal directories and a multiple award-winning law firm both locally and internationally. It received the CEE Deal of the Year Award (DOTY Awards 2021) and the Law Firm of the Year Award: Romania (IFLR Europe Awards 2021). 

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