Legislative News 20.09.2024

Accounting and Tax Legislative Changes as of September 1, 2024

On September 1, 2024, a series of significant legislative changes came into effect in the field of accounting and taxation in Romania, including:

1. Fines for delays: The updates to the Accounting Law include significant increases in fines for presenting false or uncorrelated data and for delays in the submission of financial statements. These penalties can reach up to 20,000 lei in serious cases.

Fines for delays and errors in the submission of financial statementsThe amendments to the Accounting Law no. 82/1991, effective from September 1, 2024, have introduced stricter penalties for companies that fail to meet the deadlines and legal standards regarding the submission of annual financial statements:- Presentation of false data: If the reported data is inconsistent or incorrect, the fine can vary between 1,000 and 3,000 lei.- Delay in submitting financial statements: If a company delays in submitting its financial statements, the fines are gradual:

• Delay of 1-15 days: fine between 1,000 and 3,000 lei.
• Delay of 16-30 days: fine between 2,000 and 4,000 lei.
• Delays greater than 30 days: fine of 3,000 to 5,000 lei.

In addition, if accounting regulations regarding the preparation, use, and storage of supporting documents are not observed, penalties can reach up to 20,000 lei.

1. Tax facilities: Emergency Ordinance 107/2024 introduces a 3% incentive for companies that pay all their tax obligations on time, under certain conditions.

Tax facilities: The 3% incentiveAccording to Emergency Ordinance 107/2024, companies can benefit from a 3% incentive if they meet the following conditions:- Timely payment of all tax obligations: Companies that pay their tax debts in full and on time, including those for profit tax or other taxes, can request this reduction.- Additional conditions: The incentive is also conditioned by compliance with other requirements, such as the correct and timely submission of all tax declarations.This incentive was introduced to encourage tax discipline and to support companies in managing their tax debts.