Individual employment contract clauses
An employer can stipulate at least four specific clauses in an individual employment contract, according to the Romanian Labour Code: the non-compete clause, the confidentiality clause, the mobility clause and the vocational training clause.
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Income tax exemption for a new category of employees
As of August 1st, 2016, a new category of employees is exempt from income tax on wages and other wage-related income. It consists of employees who carry out applied research and development activities and/or technological development activities,…
New tax rules regarding income obtained under civil-law agreements
According to the New Romanian Tax Code, as of January 1st, 2016, income obtained from activities performed based on civil-law contracts/agreements, concluded in accordance with the Civil Code, as well as based on agent contracts, are excluded…
Law No. 77/2016 on debt discharge and its impact on the real estate market
After controversial debates, Law No. 77/2016 on discharge of mortgage-backed debts through title transfer over an immovable property ("Law on Debt Discharge") was finally published in the Romanian Official Gazette No. 330 dated April 28th, 2016,…
New legal provisions on share foreclosure
A. Distraint and sale of shares
Pursuant to changes set forth in Law no. 152/2015 amending and supplementing specific normative acts on registrations in the Trade Registry, now the creditors of a shareholder have the possibility to put distraint…
The Panama Papers
The Panama Papers are an unprecedented release of 2.6 terabytes of information (11.5 million files) from the database of the world’s fourth biggest offshore law firm, Mossack Fonseca. The records were gradually obtained from an anonymous source…
Changes impacting the activity of the Romanian Trade Registry
A. Legal changes effective since 2015
The most recent legislative changes to companies registered with the Romanian Trade Registry refer to the improvement and simplification of the dissolution, liquidation and de-registration procedures…
FATCA – a new tool to combat tax evasion
USA Congress enacted the FATCA legislation (which stands for Foreign Account Tax Compliance Act) in 2010 to mitigate tax evasion by US taxpayers directly owning unreported offshore accounts in non-US financial institutions or indirectly owning…
New changes as of January 1st, 2016
PFAs and dwelling-located companies have to register as such, and provide documents to have their local taxes established
Companies and self-employed persons with home offices have to submit declarations to local tax authorities, by March 31st,…
Limited Liability Company Incorporation in Romania
The Limited Liability Company –”Societate cu Răspundere Limitată” (SRL) – is the most commonly incorporated type of company in Romania. There are no limitations in regard to the nationality and residence of directors and shareholders.…