Various legislative changes and additions were made to Accounting law no. 82/1991 on 24 February 2021.
Some of the more important changes are described below.
- The obligation to organise and manage their own accounting now also applies to foreign legal entities that carry out activity through a permanent establishment/several permanent establishments in Romania, as well as foreign legal entities that have their place of effective management in Romania.
- It is mandatory that a general inventory of the assets, liabilities and equities held at the beginning of the year be performed at least once during the course of the financial year by foreign legal entities that carry out activity through a permanent establishment/several permanent establishments in Romania, as well as foreign legal entities that have their place of effective management in Romania.
- It is also mandatory to perform a general inventory of assets, liabilities and equities in the event of transformation.
- Transactions performed pursuant to merger, division/transformation or liquidation operations are to be booked by foreign legal entities that carry out activity through a permanent establishment/several permanent establishments in Romania, as well as foreign legal entities that have their place of effective management in Romania, on the basis of the corresponding documents drawn up in such situations.
- The following documents are to be kept for 10 years:
- financial statements and mid-year reports
- annual financial statements
- consolidated annual financial statements
- interim financial statements
- Financial statements are to be accompanied by the following:
- management reports
- audit reports or audit committee reports
- reports of payments to governments, where required by accounting regulations
- proposals to distribute accounting profit or cover accounting losses
- Annual consolidated financial statements are to be accompanied by the following:
- management reports
- audit reports
- reports of payments to governments, where required by accounting regulations.
- New practices which can be considered infringements have been introduced, while changes have been made to those practices already considered infringements.
- The fines imposed upon failure to comply with the provisions governing the preparation and submission of financial statements have been adjusted.
- Depending on the length of delay in the submission of the financial statements, the following fines shall be applied:
- between RON 300 and RON 1,000, for delays of between 1 to 15 working days
- between RON 1,000 and RON 3,000, for delays of between 16 to 30 working days
- between RON 1,500 and RON 4,500, for delays in excess of 30 working days.
- The determination of infringements and application of the corresponding fines is carried out by persons with fiscal inspection and financial control functions, as well as staff from other structures belonging to the Ministry of Finance, i.e. the National Agency for Fiscal Administration, established by Order of the Minister of Finance or Order of the President of the National Agency for Fiscal Administration.
Source: Emergency Ordinance no. 13 of 24 February 2021 regarding adjustments and additions to Accounting law no.82/1991.
Tax & Legal Newsletter February 2021
