Latest news on accounting and fiscal regulations

1. New accounting accounts 

Order no. 2649/2023 amending and supplementing certain accounting regulations has introduced new accounting accounts, which will become applicable starting with the annual financial statements for the year 2023. For companies with a financial year different from the calendar year, the changes apply starting with the first annual financial statements completed after 1 January 2024. 

• Order came into effect on 6 October 2023
• New accounts:

6121 “Royalty expenses”

6122 “Commercial leasing expenses”

6123 “Rent expenses”

616 “Expenses related to intellectual property rights”

617 “Management expenses”

618 “Consulting expenses”

• In the absence of any clear definitions of the terms used in the accounting legislation, the qualification or re-evaluation of transactions based on their nature can become a complex task, especially in terms of categorising them as royalties, rent, management and consulting 

2. Changes regarding the contraventions covered by the Prevention Law; increase in applicable fines 

Government Decision no. 97/2023 removes several contraventions from the scope of Law no. 270/2017 (the Prevention Law), allowing them to be directly sanctioned without requiring prior compliance and the issuing of a remediation plan.

• Decision comes into effect on 5 November 2023
• Under this regulatory act, the following have been removed from the scope of the Prevention Law:
  • Law no. 227/2015 (Tax Code) and Law no. 207/2015 (Tax Procedure Code)
  • Emergency Ordinance no. 28/1999 on the obligation of economic operators to use electronic fiscal cash registers and Emergency Ordinance no. 193/2002 on the introduction of modern payment systems
• The contraventions that will no longer fall under the purview of the Prevention Law and can be fined directly include the following:
  • Non-submission of tax registration, deregistration or amendment declarations within the legal deadlines – fines ranging between RON 1,000 and RON 5,000
  • Failure to respect deadlines for the correct declaration of taxable goods, income, tax, fees and contributions and for the provision of required information, according to the legal requirements – fines ranging between RON 1,000 and RON 5,000
  • Failure to submit VAT summary declarations on time and the submission of incorrect or incomplete summary declarations (D390) – fines ranging between RON 500 and RON 5,000
  • Failure to submit on time the informative statement regarding deliveries/services and acquisitions carried out within the national territory (D394) – fines ranging between RON 2,000 and RON 14,000
  • Non-compliance with the obligation to prepare the transfer pricing documentation within the relevant deadlines and in accordance with the requirements specified in Order no. 442/2016, and non-compliance with the obligation to present the transfer pricing documentation upon request by the ANAF – fines ranging between RON 2,000 and RON 14,000
• Law no. 296/2023 on various fiscal-budgetary measures meant to ensure the long-term financial sustainability of Romania removes the option to pay half of the amount of the minimum fine within 15 days as of the date of delivery or communication of the offence report for those fined under the provisions of Law no. 227/2015 (Tax Code), Law no. 207/2015 (Tax Procedure Code), Law no. 82/1991 on accounting and Government Emergency Ordinance no. 28/1999 on the obligation of economic operators to use electronic fiscal cash registers. This provision will come into effect within 15 days of the date on which Law no. 296/2023 is published in the Romanian Official Gazette (published in the Official Gazette no. 977/27.10.2023)

• Law no. 296/2023 also introduces significant increases to the fines for the contraventions stipulated in Government Emergency Ordinance no. 28/1999 regarding the obligation of economic operators to use electronic fiscal cash registers, especially those relating to a failure to issue fiscal receipts and/or to record the amounts collected in the special register, which determines the existence of any unjustified sums. The increased fines can now go up to three times the value of the fines applicable prior to the entry into force of Law no. 296/2023, and repeat contraventions within a 12-month period can result in a doubling or tripling of the value of the fines already increased as a consequence of Law no. 296/2023. These changes will also come into effect within 15 days of the publication of Law no. 296/2023 in the Romanian Official Gazette 

3. Amendments to Law no. 70/2015 – strengthening financial discipline with respect to cash receipts and payments 

The limits for cash transactions specified in Law no. 70/2015 with subsequent amendments and additions will be reduced, according to Law no. 296/2023 on various fiscal-budgetary measures meant to ensure the long-term financial sustainability of Romania.

• The amendments come into force 15 days after publication in the Official Gazette of Law no. 296/2023 (published in the Official Gazette no. 977/27.10.2023)
• Receipts cannot be issued to legal entities for amounts in excess of RON 1,000. Legal entities must therefore make any payments in excess of RON 1,000 by other, i.e. non-cash, methods
• Cash payments to legal entities are limited to 1,000 RON/person and no more than 2,000 RON/day
• Cash payments to cash & carry stores may be made up to a maximum amount of 2,000 RON/day
• Cash receipts and payments involving individuals are limited to 5,000 RON/person until 31 December 2024, and 2,500 RON/person as of 1 January 2025
• Cash receipts/payments relating to loans, regardless of their nature and purpose, from/to individuals with the status of associates, shareholders, administrators, natural persons, or other creditors with the exception of institutional creditors involved in financial intermediation activities as provided for by law can only be made using non-cash payment instruments

A new limit has been introduced regarding the amount of cash that may remain in the cash register at the end of each day, which now cannot exceed RON 50,000. Where this limit is exceeded, the corresponding amount of cash must be deposited into the entity’s bank accounts within 2 working days.

These limits also apply to foreign currency receipts and payments made within the territory of Romania.

4. The e-Seal mechanism

Law no. 296/2023 on various fiscal-budgetary measures meant to ensure the long-term financial sustainability of Romania introduced the national RO e-Seal system. This system aims to ensure the traceability of goods transported by road in Romania.

• The law comes into effect 15 days after publication in the Official Gazette of Law no. 296/2023 (published in the Official Gazette no. 977/27.10.2023)
• The system is based on advanced electronic seals and an IT platform that gives authorities the ability to monitor the transportation of goods on the roadways in real-time, regardless of whether they are in transit or have a final destination at a company located within the national territory
• Within the national territory, the National Agency for Fiscal Administration (ANAF) and the Romanian Customs Authority are responsible for the application of smart seals and the monitoring of the road transportation of goods based on a risk analysis
• Failure to comply with this obligation by a driver constitutes a contravention, attracting fines ranging between RON 20,000 and RON 50,000, with the exception of cases that may be considered offences under the law.

Source:

* Order no. 2649/2023 amending and supplementing various accounting regulations

** Government Decision no. 937 of 5 October 2023 amending Annex no. 1 to Government Decision no. 33/2018 regarding the determination of offences falling under the scope of Law no. 270/2017 (Prevention Law) and the model for a remediation plan, amending and supplementing various normative acts

*** Law no. 296 of 26 October 2023 regarding various fiscal and budgetary measures aimed at ensuring the long-term financial sustainability of Romania